Day Trading with Averaging Down on the Mini Index

[00:03] Last week I showed the differences between martingale and averaging down, which many people think are the same thing. They're not. Averaging down is used to improve a position that makes sense, but if you don't know how to trade and try to average down,

[00:16] you end up trying to fix a trade, and you know the result? Account failure. There's a smart way to average down, and that's what average down, and that's what I'm going to show you right after the intro

[00:34] Hello, welcome! I'm Viana, and it's a great pleasure to have you here on my channel. So, go ahead and leave a like, subscribe to the channel, activate the bell, and follow me on Instagram for other tips and

[00:49] content. Well, for those of you who still don't know what averaging down is, I'll show you here on the screen. Let's suppose you bought an asset. Draw a

[01:01] Kendall here; you entered, you bought it. And then the asset, instead of rising to your target, fell. target, fell. You can make a second

[01:16] buy order here. So, your position that was up here you bought another one here, halfway up, and it stops halfway, right? So, if

[01:30] you average down 200 points and it stops 100 points below, you do one it stops 100 points below, you do one with 150 and it stops at 75, always in the middle. And if it goes back up, you already profit from this operation you did here below and

[01:42] here above. When it goes back up, it doesn't need to go that far up, and you 'll make your profit. Now, if you enter without averaging down, you'll have to wait until it reaches your profit point up there. That's all. In the sell position, I'll give an

[01:56] example here: you entered short to target down here, right? Here's

[02:16] instead of stopping if the market moves against your direction, moves against your position, you can simply make a second entry

[02:30] simply make a second entry up here. And if you sold here, your position is here. You need it to reach here, then you make another sell here. Your position that was previously here stops in the middle, and then

[02:47] was previously here stops in the middle, and then profit. It needs to reach further down here. So here you exit with one of the positions, the second one you made, and the other you wait for it to reach...

[03:00] other you wait for it to reach... Down here, if it doesn't arrive after you exit with the first one you averaged down, you exit with one of them, you improved your price, which is now here. Assuming it moves back a little more, you've already exited with

[03:15] one here, right? But if it doesn't come to get the second one, then you've already exited as you're free to average down again, but now your position is improved. It's here, and then you make another entry. Remember, if you're exiting one of the

[03:30] trades, you're left with a maximum of two contracts; you won't enter with a third. If you want to enter with a third, then you'll have to use your own strategy, which I'm teaching here. It would be a step two for

[03:42] those who trade the way I always teach here on the channel without averaging down. If you managed to close the first month in the positive, you start doing this as positive, you start doing this as phase 2. So, if you were here

[03:55] selling a little more, your position comes to a stop here, and now you have two contracts again. As soon as the market reaches this region, you'll exit with

[04:07] another one, and this position started here; it's already up here, right? You're improving your price, and then you're free to average down again because now you have... A contract, if

[04:20] it doesn't reach its profit margin, with the profit margin that was previously down here, now you're already taking your total exit, it doesn't even need to reach down here, and instead it moves up, and then your position that was here, the

[04:37] your position that was here, the position that started down here, now it's up here, then you make another sell entry there, because you already have credit to make, you've already exited with another contract, you can make

[04:52] exited with another contract, you can make another profit here until the second profit will be in this position here, no longer down here. So look at the distance you've been improving your

[05:06] price, now risk management has to go hand in hand with this, otherwise you can break your account, imagine you start averaging down, not accepting Stop Losses, it gets more and more expensive because before you had

[05:19] one, then two, now you have 100 contracts, imagine, there are people who don't accept Stop Losses, that's what makes the account break down, if you accept Stop Losses by averaging down. Remember that your day's profit cannot

[05:33] be less than your day's loss, it will close the account and will facilitate your daily operations, so for example, I'm trading, I got the First example, I'm trading, I got the First trade without points, I took the second with

[05:48] 200 points, and then on the third I average down. If the average goes wrong, it triggers a full stop loss, meaning I don't take any position. It 's a bit difficult to happen, but it does. You'll lose 300 points

[06:02] because now there are two contracts, so it will be 600 points. Since you've already gained 200, you'll close the day with 400. So you have to aim for 400 points. It's no use averaging down and only taking 300 points. Once you've

[06:17] points. Once you've averaged down, if your target for the day was 300, if it's on the first entry where you average down, you'll have to aim for 600 points as well because your losing day will be 600. You won two or

[06:31] three, but if you take a loss, your losing day would be 400 points. After all, you already have 200 in credit. So you have to aim for 400 points. This is paramount; risk management has to go hand in hand with technique.

[06:47] the chance of you blowing your account trying to reverse the operation, not accepting the stop loss, and increasing it more and more is high. Your position is what makes a lot of people leave the market because they take a big loss and

[07:01] I'm going to show you the day's trading and how it works in practice. Let's go. Well, what still has more body than the wick of the what still has more body than the wick of the sell signal? It's crossing a thousand, yes,

[07:15] but we've been ignoring thousands in recent months. Here it's giving almost more than 150 points to reach the low of the last Kendall candle from the previous day, and here it gives a sell signal at 10 seconds.

[07:32] Repeating, because in recent days the first candle has been acting on its own, right? And the second Kendall candle too. When it's crossing a thousand, we have to ignore the thousand when it ends with zero, zero, 119,000, 118,000,

[07:47] 120,000. I even leave it in yellow there, you see? low of the previous day's candle for us to reach, and if it

[08:01] starts to go back up, I don't think it's worth averaging down for those who are already here. I'm protected, let's go, pay, pay, pay, pay, already, right? It already touched there, so here, it paid. Let's go, average price for those going

[08:16] to phase 2. What is phase 2? You finished the first one, even if it's positive, even if it finished the first one, even if it's positive, even if it 's R$10, that's good. That proves you have your head on straight. That proves you took a full stop loss on the first

[08:29] candle, sometimes you took 300 points of loss and didn't continue trading, right? It's to try to recover, then you lose another full stop loss. People then have 600 points, then your

[08:41] day's profit is 300, you'll need two days to recover that. And then the account doesn't balance at the end of the month. So if the account balances at the end of the month, if you're merely positive, it means you managed to stop at the first

[08:54] stop loss, that you had your head on straight, because clicking buy or sell isn't the hardest thing, the hard part is exiting when your planned stop loss hits for the day, the maximum stop loss. Most players try to

[09:08] recover and it goes badly for them. So you closed the first month in the positive. So you're already understanding the market, right? Which is much more difficult, including trading without averaging down. You managed to close in the positive. Okay, so in

[09:23] the second month you start averaging down. So, on the first candle, you don't wait to build a cushion of at least 100 points because you've already gained 100; you'll lose a maximum of 500, meaning you'll win 100 reais. You win a trade

[09:37] first. From the second candle onwards, you can start averaging down. Once you get make three trades; none hit the average. I exit the market. On the second or third trade, it started moving against me. I averaged down.

[09:51] Now you won't aim for 300 more; you'll have to aim for at least 500 points. If you win two or three here, I'll click sell. Let's continue. If you win two or three, meaning you have 200 points, then you'll have to

[10:07] aim for 400. If the third candle gives you the possibility to average down, because if you lose that trade, you'll be 400 points negative,

[10:19] so you have to aim for 400 points as well. And that's how your account will close in the second month. Oh, and also Stop Viana, I want to difficult to close the account at the end of the month. Oh, what a

[10:37] rip-off! Here, the average price won't work because I'm already protected. I'm already at Breaking

[10:50] the way I said, when you've already the way I said, when you've already gained one, two, or three points. average the price now, taking a full lot without catching any exits, I

[11:07] 'll end up with 400 negative points. So if I average the price, I'll have to fight back So if I average the price, I'll have to fight back So now I'm going to wait for Ronaldinho Gaúcho at 10 AM, it's

[11:21] 9:11 AM now. I'll be patient because at 9:30 AM today is Thursday, every Thursday the initial unemployment claims come out, a preview of what the payroll will be. It happens every Thursday,

[11:35] payroll will be. It happens every Thursday, so now at 9:11 AM we'll wait for that news, and since I'm going to wait, I'll wait for Ronaldinho. I'll only buy on Ronaldinho, there's no selling on Ronaldinho Gaúcho. Usually we

[11:49] go against the previous trade at 10 AM, so at 10 AM sharp I click to buy two seconds before, right? Or sell, so if you still have green, I'll sell; if it's red, I'll buy. Lately, I've only been buying.

[12:03] Before Ronaldinho was even called Ronaldinho, I only bought. Then someone came saying, "Look, Viana, have you noticed that he's going against the previous trend?" And so we started trading against the trend. The good news is that we

[12:18] get a profit without points going up or down, before it moves 300 points. It ends up buyer. In other words, if you arrive at 10 AM and do this: "Eeny, meeny, miny, moe, choose a receipt," you 'll win on both sides. Okay, but today I'm

[12:32] going to buy, I'll hold until 10 AM, there's a 48-minute break, right? I can have a coffee, do other things, I'll be right back. Well,

[12:44] Ronaldinho Gaúcho, when his time comes, I'll look at the previous days, that's all you have to do. Look, if I had bought here yesterday, it would have given a profit. bought here yesterday, it would have given a profit. I was even at the Viana Trader club,

[12:57] which happens every Wednesday, and it gave a profit, just to analyze, because on the other days, if I had only bought, it would have given a profit, and sold too. He moved 100 points to... After he sent 300, he agreed. So both sides won, as I'm

[13:12] seeing that there are many people wanting to buy stocks as well, an upward trend, right? The market wants to return to 120,000 when the bank opens at 10 am. That's why trading exists, right? For those who don't

[13:25] know, during the pandemic my wife started working here at home, answering clients by phone. At 10 am everyone wanted to position themselves in the market, right? So, older people, many of whom don't know how

[13:39] many of whom don't know how to use Home Broker or any buy the bank's recommended portfolio, what time is it?" 10 am, the time the bank opens. So everyone is in this buying frenzy, "I'm going to buy

[13:52] this buying frenzy, "I'm going to buy here and there." He crossed the thousand, here and there." He crossed the thousand, tried to return, couldn't, the candle. I see this buying as a good sign. I'm

[14:07] going to buy there. Before the 10 am candle opened, you could technically sell, right? Because he looked to buy, right? Then Ronaldinho looks to one side and moves to the other, here, I'm going to buy, I

[14:21] bought. I could have sold too. Technically, Ronaldinho would be a Technically, Ronaldinho would be a sell here, buy or sell on this Ronaldinho? If I had sold, I would already be

[14:42] almost making a profit, right? 25 at falls there, I'll do a break for whoever sold. Maybe Ivan hit a break at that

[14:55] moment, so he was left out. So the sell, if you use a break, you wouldn't have caught it. Now, come on, come on, I don't need to do the average, I'll just take my 300 points here and bye. Let's

[15:07] test upwards again, will it catch my profit? I won't will it catch my profit? I won't need to do the average, just come on, it

[15:24] an average here, my position fell, you can see it. I adjust the two stops here to 300 points, it was at 765, let's see if it reaches 765 there, that is, if you had bought and didn't

[15:40] do the average price, let's see if it would have stopped out. Look, it let's see if it would have stopped out. Look, it went to 775,

[15:52] whoever bought and didn't do the average price wouldn't have been stopped out either, huh? Because the stop was at 765, it hit the stop. Oh, it was 770. Wow, was at 765, it hit the stop. Oh, it was 770. Wow, he kissed a TikTok, guys!

[16:08] Ronaldinho wouldn't have given up yet, so you can see how a 300 Stop makes sense, right? This is years of study to reach this conclusion. Look, and

[16:20] there, the second Kendall that I entered without points, right? It was there. As the position fell, it's 25 points away, careful not to go back there. It's already hit, now I can even do a

[16:36] second average price if it continues to fall. Okay, whoever did Ronaldinho without an average price wasn't stopped out and can still win here. So if I entered 200 points. I got 25 points in the first and 175 in the second. I could get

[16:53] first and 175 in the second. I could get 50 points here, right? And the one above is at 150, totaling 200 points. If it falls again, my position will keep falling. So I'm making my Stop more difficult. So the average price is for those who pass the first phase,

[17:08] which is much more difficult than the others, right? So the first phase is more difficult, you don't... You have money, but you lack experience. You don't have your head on straight yet. You don't understand that the strategy works. It's much

[17:20] harder when you start averaging down; you start improving your position, and it becomes much easier. So, phase 2 is easier than phase 1 and phase 3. You want to do partial profits with averaging down, right?

[17:35] My daughter Carol teaches this in private mentoring, right? Phase 3 is only possible with mentoring; you need to do this mentoring. You can live just the way I'm talking here, averaging down, or live in phase 1

[17:49] without averaging down as well. It depends on each person's profile. And here on each person's profile. And here we go, up there, distance when it was the first entry, right? Now it's 175, look, it already caught on. So,

[18:05] for those who did the normal operation without averaging down, they won. Also, those who sold won. And those who bought won. This is Ronaldinho, who's been trading since 10 AM, no matter which way you go today. Technically, Ronaldinho sold,

[18:19] but observing the market, I preferred to buy. If I had sold, I would have won more quickly, but both those who bought and those who sold won with Ronaldinho Gaúcho. So that

[18:31] 's it. If you want to learn this method... Step-by-step instructions – the link is in the video description or access my website VianaTrader.com.br. There you'll find an e-book (which will be updated this July), step-by-step videos,

[18:45] recorded mentoring sessions from previous classes, access to a WhatsApp group, a WhatsApp group, a free month of the Viana Trader club where we trade via Google Maps without delay every Monday and Wednesday, and of course, you can get all

[19:00] your questions answered by me or the best trader I know, my daughter Carol. We practically hold the hand of all traders. If this video helped you in any way, don't forget to

[19:13] leave a like, subscribe to the channel, and see you in the next video!