 What's up everybody? This is Giovanni from the options trading channel here to talk to you about scaling out and how I use it to my Advantage, I've been getting a lot of email inquiries as to why I only look for 10% gains and How is it that I actually scale out? Well, very easy very self-explanatory But first I want to touch base on you that scaling out is basically an art form All the professionals do it and you can squeeze the most out of a out of a move that you're in or the trade or the trend and All while actually taking profit off the table locking in those those gains It's what allows me to turn this bat signal here on spine into a profitable one And it's very easy very simple, but a lot of people just don't understand the psychology behind it It's the equivalent of going to the casino Vegas whatnot and starting off with a thousand dollars Getting it up to a thousand dollars and then going home with absolutely nothing It's absolutely stupid and dumb guys. You guys really need to take some money off the table So to speak take your original investment out And a little bit more and then you're actually playing with house money, so to speak Let me explain to you exactly why We're gonna use this trade a real-world trade that I actually took it was my I believe it was the last video that I uploaded Before this one, of course, I got a signal here. Well really quick We're looking at the one-hour chart on the left hand side on spy and then the right hand Chart, this is the daily chart on spy. We're only really concerned about the one-hour chart here I got a buy signal here on spy on February 19th That was the last trading signal that I received that I actually traded Got in as soon as I got in I put in a limit sell order My profit targets basically at a 10% gain For half of my position Once it executes once you actually take that 10% gain You've basically have locked in in a nutshell, right? 5% out of your entire trade at that point At that point it's no longer a question of is this gonna be a winning trade or losing trade It's more of a question of how much you're gonna make After I sell half of my position at a 10% gain the other half I'm holding one of two ways that I'm gonna exit this the the trade completely One is if it comes back down to my original buy-in order for my entire amount I'm gonna exit out for break even on that second half basically, right or The second half I'm going to sell at bigger gains This way I am in the markets with house money, so to speak You don't you're not in any danger of losing more money than you have put into the trade or have made on the trade at that point I hope that really makes sense to you guys. This is the single most important tactic if you will or strategy or skill that I have learned that has completely turned my trading completely around and Into a profitable trader Most the majority I would say the majority of traders where whether it be Amateurs beginners or whatnot. They don't understand this This is not a skill that a lot of people talk about When trading whether it be on YouTube or particular Programs or whatnot this single tactic here will save you a lot of money a lot of heartache and Headaches and also make you a lot of money in the long run and actually this is one example of about three or four that I've actually Taken if you had followed the actual strategy just strictly with no rules what not This this would have happened to you a couple of times where you would have ended up losing money But per my management skills money management skills I've actually squeezed out a little bit of money out of it And I'm thankful for it. And yes, I could have actually sold at the at the high here and actually would have gained Gosh, I think the seller there was 10% and I think it it got up to as high as 15 or 17 percent I'm not 100% sure but And sure in hindsight I would have loved to have sold there But I didn't actually actually ended up selling somewhere the candle afterwards for even money But I'm happy I didn't lose money and that's what this game is about guys It's not necessarily about Learning how to make money and learning how to make winning trades. It's a game of How not to lose any money once you actually put those pieces together and you understand and you learn how to Not lose money in the stock market. Those winners will come in Hand over fists so to speak so I hope that under I hope that that makes sense to you guys I hope you understand that methodology as to why I like to scale out Now I'm hoping that I can start scaling Scaling up my trades the amount of money that I actually trade with currently I only traded for a total total portfolio worth of $1,300 not much, but it's this the skills the skills that You you acquire basically through trading small amounts. So thank you so much everybody for watching this video I hope it makes sense comment down below what you thought about this video If you haven't already hit that subscribe button down below it'll help me out tremendously and also let me know what You you're struggling with If you're making money if you're losing money if you need any help with anything in particular I want to know about it. I want to help you guys Thank you so much everybody for watching see you here on the next trading video hoping it's a green trade See you guys later. Take care