--- title: 'Starting from Zero in Day Trading #2 - How to Use Leverage' source: 'https://youtube.com/watch?v=JMZcO6AuaiU' video_id: 'JMZcO6AuaiU' date: 2026-08-05 duration_sec: 996 --- # Starting from Zero in Day Trading #2 - How to Use Leverage > Source: [Starting from Zero in Day Trading #2 - How to Use Leverage](https://youtube.com/watch?v=JMZcO6AuaiU) ## Summary This video is the second lesson in a day trading series, focusing on how to use leverage management to amplify profits while risking little. The instructor demonstrates a strategy based on touching a moving average and predicting the next candle's color, with an adjustment to capture a sequence of three consecutive candles of the same color. He explains compound interest and shows a real-time example of leveraging trades, including handling losses and ultimately achieving a net profit. ### Key Points - **Introduction and Prerequisites** [00:02] — The video is lesson two in a day trading series. Viewers are required to watch lesson one first, as this lesson builds on the strategy taught there. - **Leverage Management Concept** [00:16] — Leverage management allows making a lot of profit while risking little. The strategy from lesson one is adjusted with a different management approach. - **Entry Signal: Candle Touching Average** [01:14] — The entry signal is when a candle touches the moving average (period 9) and the previous candle's color is observed. If the previous candle is green, a buy is placed expecting the next candle to be green as well. - **Doji Candles Are Ignored** [02:11] — When a trade is returned (money refunded), it's because the closing price equaled the opening price, forming a doji. Doji candles are not considered for entries in this strategy. - **How Leverage Works with Compound Interest** [03:40] — Leverage involves reinvesting profits. Example: a $100 trade with 96% payout yields $96 profit, making the total $196. The next trade uses $196, and if it wins, the profit is $188, totaling $384, and so on. - **Risk Management: Limit Leverage** [05:28] — Leveraging infinitely is utopian. Beginners should aim for a maximum of two or three consecutive wins. The instructor plans to attempt a three-win streak. - **Multiple Attempts Strategy** [06:24] — The advantage of leverage is having multiple attempts. The instructor plans three attempts, risking $100 each, with a worst-case loss of $300 but a potential net profit of $652 if one attempt succeeds. - **Strategy Adjustment: Capturing Flow** [07:32] — Instead of just entering when the candle touches the average, the instructor looks for a sequence of three consecutive candles of the same color. He enters on the first candle and then leverages subsequent entries to capture the flow. - **First Attempt Failure** [09:09] — The first attempt was operated incorrectly and resulted in a loss. The instructor lost $100 on that attempt. - **Second Attempt: Two Wins** [10:12] — On the second attempt, the first entry won, and the second entry was placed with $196. The instructor captured two consecutive green candles and entered the third trade with $384. - **Second Attempt Loss** [12:03] — The third entry in the second attempt lost, resulting in a loss of $384 for that attempt. The instructor then proceeded to the third and final attempt. - **Third Attempt Success** [13:19] — On the third attempt, the instructor entered a buy when the candle touched the average and the previous candle was green. He won the first trade, then leveraged into the second and third trades, capturing three consecutive green candles. - **Final Profit Calculation** [15:08] — The instructor achieved a net profit of $452 after accounting for the two failed attempts. He emphasizes that leveraging can be profitable even for beginners using the lesson one strategy with the flow-capturing adjustment. ### Conclusion Leverage management can significantly amplify profits when combined with a simple strategy, but it requires discipline and risk management. The instructor demonstrates that even with two failed attempts, a successful third attempt yielded a net profit of $452, proving the viability of this approach for beginners. ## Transcript Starting from Zero in Day Trading series. And if you haven't watched the first class, it's mandatory that you watch it. The link is below in the description, and then you can go back to lesson two. If you have already watched lesson one, welcome to lesson two. And today, in this video, I'm going to teach you how to use the strategy from lesson one, but with a different management approach: leverage management. Leverage management allows you to make a lot of profit even while risking little. So we're going to make a slight adjustment to our strategy. So, actually, even though it's a new strategy, it's more based on the strategy from lesson one. So go ahead and leave to the channel. The link to create your account with the broker and earn $5 with your first deposit is in the description. And don't forget that you can earn $60 every month just by trading, hitting the volume target, and completing the daily missions in the "My Account" tab within the brokerage. So, without further ado, let's get to the graph. I'm going to let's get to the graph. I'm going to previous lesson. Why did I enter into this purchase transaction? We had the candle purchase transaction? We had the candle touching the average period of nine, and then we observe the color of the previous candle. So, the previous candle was a green candle, and that candle was touching the average here. That's why I picked up a purchase to say that the next one would also be a green candle, that it needs to be the same color as the previous candle. Beauty? So, that's why I took on this operation, okay? So, the first operation I performed there, look, it's looking like it's going to be a failure. Let's see. There are about 25 seconds left , 24 seconds. Remember that every strategy has moments when it's very good, and moments when it's bad. And here we're going to see it in practice in real time, operating with the adaptations that I'm going to teach you, and with a management strategy to leverage your profits, and we'll 'll hit the target or if I'll stop out, if I'll lose money, okay? This first operation, look, it's going to close now, look. The operation was shut down and the money was returned. What does that mean? It was actually a good thing that it happened. When the trade is returned, it's because the closing price was the same as the opening price. Look, it was a dojo. It was a candle that she opened and closed at the same price. So the money comes back to me, okay? So when you return it here, the little orange card stays, but the money comes back to me. You can see that it's back in my account, okay? And there's also an interesting observation: when we have a doji on the chart, we won't take it into consideration when entering the strategy. For example, this candle caught and touched here at the average. What color was the doji? It was could take a buy position now, predicting that the next candle will be green, but we won't enter. Why? Because it's a doji. If it were a normal candle, with we could already pick it up. Now, when it opens and closes at practically the same price within the body of the market, then it's considered a dojo, and we don't use that strategy. This real-time scenario was perfect . Here we had another doji. So this doji, it used to be a candle that had a little bit of movement, see? If I zoom in enough, you can see that the previous candle actually opened and closed at the same price. This one had a slight fall, it was a doji, but it involved a slight falling motion. But regardless, let's hope for a scenario where we don't have dojiti. Meanwhile, I'll explain to you how leverage works. When you're trading here and using leverage, what's the method I prefer and believe is the most effective, especially for beginners? beginners how to leverage their strategies effectively. To leverage your investment effectively, you need to understand what compound interest is. When you take a trade, for example, of $1, and you make a profit, you 'll see the payout. In this case, we're operating on the IDX, which is the index of the main cryptocurrencies that are here within IBNEX. And the payout is 96%, so if I win, I'll win $96, right? So, if I take a right? So, if I take a $ operation and I hit a win, how much do $ operation and I hit a win, how much do I get? With the 100 from the operation plus 96, I end up with 196. And then I'll use that exact amount in my next entry, you understand? So I enter with 196. If I win with 196, how much do I win? I'm winning here, look, 188. See? So, if I go in, how much do I earn? I earn another 188, but I already have 196, you understand? So, in this case have 196, you understand? So, in this case , 100 becomes 196, and here 196 becomes 196 + 188, which makes my life easier. I'll pretend it's 200 here. 200 + 188, 388. But we have to take away qu. Beauty? So, look, look , okay? And so, once again, you can actually do it as many times as you want. If you want to try to win five in a row with compound interest, it's very profitable. But what's the problem? The thing is, if you lose, even if you got four in a row right, and the last one you missed, you the money you risked at the beginning. You can leverage with 0, with 10, with 100, with 50, however you want , but you need to understand that there's no point in leverage infinitely. Why? Because it's utopian, it's not going to happen. For someone just starting out, you should aim for a specific amount of winnings; ideally, you should leverage a maximum of two, maybe three, wins. So I'm going to try and get a three- game winning streak here, okay? So in the third operation I should enter this, and if it's a win, how much will I have left in total? Let's take a look here. 284 equals 752. 752. So basically, I'm going to go from $ to 752, risking the $. So my profit was $ 752 - $100 = $652, getting only three trades right, okay? because of that, and we're going to try to leverage it in real time during the recording. What is the advantage of using leverage? That you can have more than one attempt. Can you start trading now and get three right in a row? Yes, it's not that easy. That's why you can have three attempts within this management period. So you're going to take the risk. In this case, I'm going to for real here with you guys, putting up my real money. I try again, and if it in a row, I try again. And then I try again, I try again. So, worst case scenario, if everything goes wrong, I'll lose the first attempt, the second attempt, the third attempt, I'll lose $300, but if I manage to get it right once, I'll have a gross profit of $752, a net profit of $6.52. It's OK? So it's more than double what it would be if something went wrong. Beauty? So we 'll have three attempts. This is how you can create an we need to do, right? I'll put the value here, see, $. I'll leave it here ready so I can take on my first operation. However, as I said, there will be an adjustment that we will make to the strategy. Beauty? What adjustment are we going to make to the strategy? Instead of just thinking, "Oh, it hit, it struck the average," I look at the agreement from the previous candle and then I enter. I'm going to take the operation and make my prediction there, you know , whether it's a buy operation or a sell operation. So what should I take into consideration then? This movement will continue on the next sail. So, when my candle is about to close, I'll grab an entry ticket. If with the updated value for the next one to try and catch a repeating pattern of three candles of the same color in sequence. Alright, guys? I grabbed one here, but because I ended up entering it incorrectly. I had achieved victory, then I experienced defeat. And now we're going to have a second attempt, okay? It's not recorded for you, but the price is coming in to be around the average here. He's almost about to hit me. It practically hit the mark, right? Let's see if it works. Let's see if it average ends up touching the candle, it also applies to our second first attempt I even ended up entering incorrectly, which is why we did n't even include it in the recording for you, okay? But let's keep going. Let's go! Let's see. 5 seconds. It's no longer possible to enter. It has to be next time . It hasn't hit yet. Let's see if the next one hits the mark. If this one hits the mark, I'll buy it, okay? If it falls too much, the average will catch up. Can you see that the average is trying to catch up? The average is trying to catch up there. He pulled over. So, boom, I grabbed the purchase. Why? Because the candle is touching the moving average, and we had a previous candle that was green, okay? So, the first attempt, as I said, I recorded it, operated incorrectly, unfortunately, I messed up there and it didn't work. And now we're on the second attempt, so I've already lost money, okay? the history. First attempt, I won 96, then I lost 196. That's a loss of $ from the first attempt. So here we go for the second attempt, a little purchase operation here. Now, in detail, as I said, the strategy will be different because of the leverage. If this candle because of the leverage. If this candle is proving to be profitable for me, meaning if it starts to rise significantly and is practically guaranteed to close in the green, then what do I do? I'll take the second entry on that same candle to capture a flow of three consecutive green candles, you understand? If that's not possible, then we'll proceed with the strategy as normal. We are waiting for a new opportunity. But try making one trade after another. Bang, bang, bang. So here, for example, it's going up now, it's looking like it's going to win. There are about 20 seconds left, but it's not a sure thing yet , like, you can't really know for sure. I'll get 196 ready, okay? Remember that we have until the last 5 seconds to enter. It looks like it's going to be a victory. 7 6. I'm in now. I went in already because it's probably going to close. Green. 3 2 1. Great, it closed green. That's good, right? So we've already made a profit of 96, and I've now entered the next candle, which is the difference in strategy compared to lesson one, okay? leverage our position, we try to capture that flow of three consecutive candles. So, look, the candle has already started. Legal. So, initially, we're making a profit there. And the next entry, it's going to be a 384 entry, okay? If we win, right? Just a reminder that I'll only join if we win, okay? But it seems works now, right? Look, we're practically certain we're going to candle is 15 seconds away from closing and it's a bright green color. So I can already consider this a win, like making a purchase. So that the managed to capture this sequence of three candles. If it were a sell operation, . Remember, it was the first attempt, and it didn't work. Okay, let's go, let's go, we've won here. It has already started going up the third entrance. Here's the history wrong because I operated incorrectly, that's why I didn't show it, as I already said. So, on the second attempt, we got a win on the first entry, we got a win on the second entry, and now we're going into the third entry following this repetition of three green candles. The problem is that it's been a while since we've huh? This was the last time, the rest here was, oh, two, one, two, two, two, one, one , two, one, two, one, two. Let's see if we can get it now. Looks like you're going to want to lose, huh? She's going to try to cause defeat, that [ __ ]. Come upstairs, old lady. Let's go for it, give us the victory! Come on, my daughter. Let's go. Come up, baby. Yeah, the second attempt is looking like it's going to be a flop, huh? 6 attempt is looking like it's going to be a flop, huh? 6 5 4 3 2 1. Unfortunately, the second see here, I'm showing you the reality of the market. Second we're going for one last try, so we're going back to $1, okay? And then we wait here to pick up our tickets. Beauty? So let's see if the candle will hit there. If it hits, we'll get a sale, because the previous candle was a red candle. It's OK? So let's see if we'll have an opportunity to enter. Two attempts have already failed . We're going for the third and final attempt to see if we can leverage this by taking three trades in a row here. Let's wait and see third entry, I'll come back with you. Look, we're going to make a purchase here now on our last attempt. Why was the operation seized? Candle hitting the average. The we believe the next candle will also be a green candle. Remember that we need to stay alert so we can enter with the adjusted value in case we win. And if we lose, unfortunately we'll end up concluding with three unsuccessful attempts . So let's wait and we'll be able to meet the goal and achieve this leverage. Oh, there are 10 seconds left, it looks like it's going to be a victory. [snoring] I'll get into position here for the next one, assuming victory. So, let's start with 196, which is 100 plus 96. Okay? We finished with a victory in the first round. The operation here on Monday is all set up right now, see? Here's my history for you to see. A $ 100 operation that yielded a $96 profit. And now we're seeing what was our second entry using compound interest. And if we win, we'll do a we win, we'll do a 384. Okay, which unfortunately was the one that resulted in a defeat in the previous attempt. We almost managed to beat our leverage, right? We lost on the last attempt, and now we're heading towards another final attempt. Let's see, this is the very last one . This is the very last attempt, okay? So, either we'll win and we'll hit the target with a gross profit of 752, or we won't. Oh, I'll go get it right now assuming it's going to be a win, right? That's practically a victory already, right? That's practically a victory already, right? So, 4 3 2 1. Okay, ready. So, that 's all right. Our profit is already here, right? So now we need this one to be a green candle as well. Let's go! It's going in the winning direction, huh? It 's exploding. We finally managed to catch a repeating movement of green candles here, even a reversal of this movement that had been a slight downtrend and is now going up. And since we had two attempts, think about it this way: in a normal scenario, you would have made 752 minus the initial 100, which would be 652. But we had two attempts, so we've lost 200 so far. So 652 - 200 equals 452. Vitória. There are about 10 seconds left. You can celebrate now. I can already celebrate because I made $452 in profit by leveraging the strategy from lesson one, with this adjustment of taking the sequence within the first entry. And there you have it, profit in the pocket, operation one, operation two, and operation three. After three attempts, on the last try, we finally managed to reach the goal. So, as you can see, yes, it is possible to profit from leverage, even as a beginner, using the strategy from lesson one. A simple strategy, with a slight difference, which is trying to capture that flow. Remember that if you don't manage to catch this flow, and you feel insecure, that's okay. Just enter the strategy normally, wait for the candle to hit the average, and then continue with the strategy as usual. But if you can catch that flow, it's more interesting, because any time you have three candles repeating the same color, you'll be able to leverage it. And you saw that even though two attempts failed, the third and final one was successful. And we had a net profit of $52, more than R$ 2,000. It's OK? I hope you enjoyed it, and it's important that you watch lesson number three, which is the next lesson and will appear somewhere on this screen and is also in the description. Just a reminder to create your account; the link is also in the description. Ibnex is by far the best brokerage for you to make a living from day trading. See you in class three.