 What's going on everybody? This is Joe Voting from Spy Options Trading. Today is December 5th, 2018. The stock market is closed. Today's declared national day of mourning for former president George H.W. Bush. May he rest in peace. I wanted to make today's video about something that I need to be implementing in my trading and I think that you should too. But before we get to that, let me show you yesterday's signals. I wanted to show you my signals that were produced yesterday. Yes, it was a trending day. So maybe not your typical, you know, win-loss sort of situation, but still it was worth noting. Here is my screen that I show you guys each and every game. Facebook, Apple, Spy, Netflix, Baba, and this one changes between Amazon, Nvidia, the Q's, just anything. I kind of leave this one open. This is the only one that doesn't really stay the same. But anyways, check this out guys. Facebook. We've got a cell signal here. Let me zoom in. Cell signal, you would have made money. Cell signal, you would have made money. I guarantee you could have made money just in this quick little move here. So that's it, just two. Here on Apple, one bad signal and then two really good signals. I guarantee you could have made your 10% right here. Very, very confident. Somebody, if you like to call me out, go ahead and look it up, but I'm confident you could. And of course, depending on where you got in. But anyways, that's besides the point. We got three signals here on spy. This is the one that I missed. One, two, that's a really, really good one right at the top, right at the beginning. Amazing. And then this one too. So that's three good. So far, we got one, two winners, three, four, five, six, seven winners and one loser. Netflix here. We got a winner here, winning signal here, winning signal there. Baba signal, winning one, winning one, winning one, winning one, losing one. And then here we got a winning one. We can omit this one right here on NVIDIA. It went fly. I'm pretty confident you would have been stopped out depending on what your sort of stop loss would be, but I'm confident you wouldn't have. And that would have been a winner there. And then we got a losing signal there. So altogether, I believe we have 15 wins and three losing signals. Heck of a strategy there, guys. Again, I just wanted to show you guys that really quick from yesterday's trading session. Pretty interesting stuff. I didn't just want to show you the signal that I missed. I wanted to show you all the other signals that I got. So there you go. Take it for what it's worth. I just wanted to point it out. I don't just want to be your everyday average YouTube channel that tells you how to use a MACD or how you should use a MACD or RSLINE or any other indicator. We do real trading here. We do real trading here. We can, you know, we talk about real things that you can implement in your trading, trading strategy, trading in general. Let's get down to it. Scaling out, guys. Scaling out. Pretty interesting. I've heard, obviously, everybody's heard of scaling out. All the great traders do it. But here's something new, something that you can be doing in your trading to help improve your trading, make you more money. And then as, you know, this is something that I need to work on too. So no, I'm not just trying to be a hypocrite here. I want to tell you what I'm going to be doing, what I need to work on. So maybe you can use it too at home. Scaling out. Here's the idea. Most traders, most traders out there will have like ratios when you're going to be getting out of a trade on a losing trade versus, you know, your take profit points, something, you know, just to get my point across, most traders will have a two to one, three to one ratio where for every dollar that they're willing to risk, they want to make two dollars or maybe three dollars or whatever that ratio is. Toss that out. Toss that out of your playbook. You're doing it wrong. For the longest time, that's how I thought I wanted to trade, but I never implemented it into my trading because I didn't understand it. Hear me out, guys. Bear with me. I know that, you know, you guys that use ratios are probably mad or irritated here, but stay with me. It's a good idea to cap your losing trades. Cap them off, come quick, clean, look for the next one. But here's where everybody goes wrong, including myself. We are capping our winners. Why are we doing that? Why are we capping our winners? Why are we telling ourselves, I'm only going to make X amount. I don't want to make any more. I'm going to be getting out still five to 10% take profits targets. But I'm going to leave half of my position in there. In my case, I'm going to be trading with two contracts, selling one at a 10% gain and holding the other one. Once I sell at a 10% gain for half, I'm going to bring my stop loss to break even and I'm just going to let that run. That's what I'm going to try to do. That's what I tried doing on my last successful trade, but I chickened out. I can't chicken out. That's the number one role you can't chicken out for this to work. And it's going to work to your advantage. It's going to work to my advantage here. This is why once you've sold half of your position at, in my case, 10% gain and I bring my stop loss to break even, it's no longer a question of, am I going to win on this trade? I've already won 10% on that position that I sold half of my position, right? It's a question of how much I'm going to make on that trade now. Why? Because once you bring up your losing, your stop loss to break even, you can't lose anymore. Sure. I had a comment the other day in that video that he's trying to implement that in his trading strategy, but he'll hold on for too long and it'll go down on him and he's sitting there wishing that he would have just sold everything where he first initially sold. Well, yeah, but you're capping yourself. You're killing, you're shooting yourself in the foot. I'm shooting myself in the foot every time that I sell my entire position at a 10% gain. I'm telling myself the world that that's all I want to make is 10%. Let's be smart about it. Let's take some money off the table. Let's take our profit off the table, but leave a little bit in there to work for us. You'll be amazed at how much money you can actually make yesterday being a great example. Had I actually, had I actually, first of all, traded, it got in on that trade and sold everything at a 10% gain. I mean, just really simple. These are live numbers, real live real world numbers. I would have been buying at $1.60. My 10% take profit would be at $1.76, right? 16 cents. I would have sold my one contract at $1.76 would have made 16 bucks and would have written the other had it not have gone all the way back down to $1.60, which it did not and would have just left it run. I could have potentially, I wouldn't have done it, right? But I could have given myself that opportunity to possibly sell at the high of the day, which is $7.02 or something like that. But do you see the idea? Do you see the logic behind it? I hope you do, because I feel like that is a huge part of the puzzle that I was missing. And maybe that you were missing too, guys. Comment down below what you thought about this video, about this strategy, about this idea. Do you like it? Do you hate it? Do you think it's stupid, dumb, smart, whatever? Hit that like button also. Don't forget to subscribe to the channel. I'm going to give you some real-world examples, real-world trading advice, trading tips, trading tricks throughout my journey here, as I'm trying to figure it out. And I want you guys to learn with me too. Maybe, maybe, just maybe, I can give you something new that other YouTube channels aren't giving you guys. So hit that subscribe button down below. Don't forget to hit that bell notification so you get notified the moment that I upload a video, guys. Let's find another good trade tomorrow, guys. I'm excited. I'm really excited. I feel like I'm on the verge of something really big here that's going to elevate my trading. And it's going to be life-changing. I feel that in my mind, body, and soul, guys. Stay with me, guys. Thank you so much for tuning in. See you again next time.