 What's up everybody, today is Monday January 6th, 2020. Awesome day today. I did place a trade. I will show you that trade today after a couple of things, guys. I reached out to Kevin Avery. He has a YouTube channel, trading YouTube channel, it's called Avery Day Trading. I will put a link in the description to his YouTube channel, guys. You guys are definitely gonna want to subscribe to his channel, guys. I reached out to him for some advice. I had a couple of questions and he replied, guys. Let me show you his response. Don't forget to hit that subscribe button to his channel. He has some awesome content. Let me show you his responses to my questions. Traders, thank you so much for joining us today and thank you, Giovanni, for the invitation to do this video with you. Excited to get into some of these questions today, some good tips, some good advice for new guys to start 2020 on a great note. So the first question is, having a small account, should we go all in every time or break it up into several blocks? That's a great question, Giovanni. Unless you got a thousand people following you in a chat room, I'd suggest breaking it up into smaller blocks. You see a lot of the gurus out there, they do this. They'll start with a very small account, but the problem is they're trading these lower flow stocks. They got tons of people behind them that are easily, these stocks are easily manipulated. That's why it's so easy for them. But the thing you should focus on first of all and foremost is consistency. If you start with a $2,000 account and you're consistent, you should have no problem bringing in maybe roughly 50 bucks a day or a little bit more, risking 25 bucks, making 50 bucks. You should have no problem doing that. And once you're consistent, everything else follows. You should be avoiding home run hits and just going for those base hits, going for those small singles versus the home runs because you're gonna get knocked out of the game quick. And if anyone's been trading for a long time, they know that experience in the market is your best teacher. You want that experience. Just watching the professionals trade and seeing how they do it, you don't wanna just jump in and emulate that. See, I can watch professional athletes play all day long, but then when I get out there on the field, I don't know what I'm doing, even if I've been learning from through watching because I don't have the muscle memory or the experience, your body just kinda takes over, the intuition kinda takes over in the market. You need that experience in the market. That's gonna be your best friend. So go for singles. Don't try to get rich quick because that's just gonna end in disaster. Focus on consistency, everything else follows. Make 50 bucks a day, you'll have no problem just add a zero to the end of your order to make that $500 a day, 5,000 a day. It's as easy as that. Next question, what's something you know now about trading that you wish you knew when you first started trading? This leads me to my second point perfectly. When I first started trading, like most, this is about roughly three years ago, a little bit more than that, I overestimated the amount of profits I was gonna make and underestimated the amount of time it was gonna take to get there. So just like I said, experience is your best teacher. That's your best friend. Just start small. Don't start with sacred money. Sacred money meaning money you need to pay your bills. You wanna start with a small enough amount of capital so that you can get that experience behind you to lie guys, they start out with the 25K and then they blow it up quick. The stock market, there's a saying in the stock market that says the stock market makes rich people poor, poor people rich, there's a reason behind that because poor people don't have all that capital to blow up with at first. They learn and then once you learn and you get consistent, everything else follows. Quality versus quantity, which is better? Should I trade more often or better to be selective? And that's a great question, Giovanni. One that I always didn't understand and there needs to be a balance and it really needs to be both. See, I used to think that it was just quality and that's all you could trade and I would go kind of all in, like your first question on that trade. So I would say, okay, this is the best setup, the pocket pair of aces. I'm only gonna focus on this stock and I'm pretty much going all in. And that's a very dangerous place to be. See, the stronger your opinion, the stronger your bias on a stock, the harder it is to get out of it. So when I would get in the way of just probabilities, then I'd say, okay, this is the best setup out there. This is what I wanna be in. I'm marrying this ticker essentially, putting all the chips in and it's just swinging for the home run and then when it doesn't work out, yeah, it turns into disaster for your account real, real quick. So you need to work in probabilities. You need to not only just trade the best setups which are the A quality setups, but you can also trade B quality setups. You don't have to just trade the pocket pair of aces. You can trade pocket pair of kings. You can trade pocket pair of queens. You can trade really good setups, but they don't all have to be the high quality. So quantity does play a factor because let's say you are 60% consistent. You wanna have more than one trade out there because the probabilities are gonna be working for you. It's the same thing in a casino. In a casino, there's more than one blackjack table. There's more than one poker table. There's a lot, there's more than one slot machine. There's a lot of them working together. Now one may pay out, so one may hit it big, but they have all of them working together so where the house always wins. And we are the house when it comes to trading. So the probabilities work for you is quantity and quality. That's a great question. Next question, averaging down. Is that a good or a bad idea? It's a terrible idea, but don't confuse averaging down with scaling down. Averaging down means I'm just, that's my goal. I'm trying to get my average down where a scaling down to position is just you building to your full position size. So scaling down would say, okay on this stock I wanna have a thousand shares. So then let's say you're buying the dip as the stock's pulling down, but you only scale into a quarter position. So you got 250 shares, then it keeps going further. You add another quarter, you're at 500 shares. That goes even further. And then you add the other half, you had 500 shares. So now you scale down to your full position that you pre-planned on this stock. And it's all about pre-defining your risk. You always wanna pre-define your risk before you ever enter a trade. And this is where that plays a factor, is scaling down to position. So don't confuse scaling down to averaging down. Averaging down would say, okay I'm at full position, but I wanna add more risk to this trade. And that's what amateurs do. They average down. They adjust their risk parameters mid-trade. That's what amateurs do. We wanna avoid that. We wanna pre-define that risk before we enter a trade. And that way there's nothing to be worried about. You just let the trade play itself out. Next question is for someone just starting out, what would you suggest not to do? Now I suggest not listening to your emotions. Number one, I'd suggest not listening to gurus. Number two, I'd suggest not starting out with a ton of capital and sacred capital. I would suggest you start out with disposable money, money that you plan and are expecting to lose as your market tuition to get started. I would suggest not trying to hit home runs. I'd suggest not trying to get rich quick. I'd suggest not focusing on the money, but focusing on the risk. That's what a lot of amateurs do. They just, all they see is the money and then they end up going deer and headlights cause they don't focus on the risk at all. So those are just a few for that question. That was a great question. The next one, what do you think makes a great trader? Would it be the amount of trades they make, the amount of money they make, the amount of money they trade with, the percentage gain per trade? I think it has nothing to do honestly with how much they make, how much they trade with. I think it does have to do with are you consistent? That's what makes a great trader. Are you bringing in money from the market consistently? That's what a great trader is because guess what? You're among the 10% at that point. You're doing what you need to do in order to make a lot more money. If you're making consistently $50 a day, there's no reason you can't consistently make $505,000 or even more than that per day because you got it. That's all there is to it, is finding your edge and trading that edge and trading it exclusively, accepting the risk, accepting the results and moving on. It's a probabilities game. So that's ultimately what makes a great trader. What doesn't make a great trader are those who are just results oriented. Oh, I made money on this trade. It was a green trade. That was a good trade and that was a bad trade because it was a red trade. What makes a great trader is I followed my rules. I adhered to my rules even if it was a loss. That's okay because it's a probabilities game. The casinos don't go, oh no, we just lost money because they understand the probabilities. I mean, they understand they're gonna make that money back. If you're consistent, there's nothing to worry about. It's all about quality and quantity as that was a great question, Giovanni. So let's gonna wrap up the video. Thanks for letting us do this, man. I really appreciate it. I think it's gonna help out a lot of new traders out there. If you wanna become part of the 10%, among the 10% guys, pick up my book, Among the 10%, it's gonna be in the description below this video. I really appreciate this time. It was an awesome time getting this going, Giovanni. Don't forget guys, hit the like button on this video. Hit the subscribe button to Giovanni. Got a ton of great content out there for you guys and we will see you all next time. Thank you so much for that, Kevin. I greatly appreciate you responding to my emails and those questions. I know I appreciate it. I know my subscribers do. Again, guys, you don't want to miss out on any of those videos that he makes. He has some great content, lots of knowledge. You definitely want to subscribe to his channel. Also, I put a link in the description down below if you wanna go ahead and purchase his book. Lots of great information in that book, guys. Moving on to today's trade. I did place a trade, a good and a bad one and I'm still in it actually. Let's get down to the screen so I can show you that trade. What we're looking at here is the middle chart is a one hour chart, off to the far left is the one minute chart, intraday chart of the 322 calls that I traded today that expire in seven days. And this small one here is the daily chart. As you can see, we're still in an uptrend. The last single that we got on the daily chart is an up arrow. So we're only trading calls here. And before we start, I'm gonna show you the mistake that I made today. I jumped the gun, jumped the gun, I broke my rules and I paid for it. I bought one call option of the 322 calls that expire in seven days, bought them at $2.63. You can see the time here. I bought 14 minutes before that candle actually closed thinking that it was going to close above that upper MOBO ban. And I jumped the gun. I thought I was smarter than the markets. That is a no-no, big no-no. And I only bought one knowing that I was buying in early. And it just, it didn't. And I ended up paying for it. I ended up selling at $2.52. 20 minutes, 22 minutes after I bought it. So, and then finally got a signal here. Again, I was on my lunch break. I hate these signals that are coming in when I'm on my lunch break. I bought a couple of minutes before it closed, but I was really confident about this one. I bought two call options at 261. Again, the 322 calls expire in seven days. And then 25 minutes later, something of that nature, I ended up selling one at $2.82 for an 8% gain. You can see here, 282 right there. That's about where I sold, yep. And I'm holding on to one. If you recall on my previous trades, what ends up happening is, it was this one right here. This was the very last one. I would buy in, get my 10% and then after hours it would go up just a tad bit higher and I don't wanna risk it. And so I ended up selling completely only for it to open up tremendously the very next morning. That's the last two trades, it's happened. And hey, that's the way it goes. And I might lose my shirt on this trade. Who knows what's gonna happen, guys? Stay tuned. Tomorrow's video is either gonna be a really happy video or a really sad video. I'm not sure, I'm hoping for the really exciting, happy video. This is probably gonna be the trade that doesn't actually get up tremendously. That's just the way it goes, guys. But I wanted to show you today's trade sold for an 8% gain. Overall, I'm green on the day. I erased my mistake, thankfully, and I'm still holding on to one. So we'll see what happens, guys. Thank you so much, everybody, for watching today's video. Give it up for Kevin Avery. Greatly appreciate him. There's a link in the description down below. If you haven't subscribed to his channel, he has some awesome content. And on this one, if you haven't liked my video, do that, it'll help me out tremendously. And also consider becoming my subscriber, guys. Thank you so much. See you here on the very next trading video, guys. Take care.