E-mini Russell and an up channel.
Hey everyone. I hope you enjoy this content. Don’t forget to click that subscribe button and hit that bell to be notified of upcoming videos. Hey everyone, Josh Martinez here with tradersagency.com and welcome to this week’s idea. Today’s date is July the 28th, 2021. It is a Monday. Happy Monday everybody. Behind us is the E-mini Russell 2000 with a E-mini contract is $5 a tick and with the micro, it is 50 cents a tick. So we are inside of an up channel and we were at the top of the channel and is relatively straight forward. We’ve got to wait for the mark and fall back down to the bottom of the channel.
The question is, can you wait for it?
I don’t know. That’s the decision that you have to make, but it’s this week’s idea. Now these movements have been proven to be well over 1000 ticks and with a E-mini contract that’s worth 5,000 U.S. dollars worth of opportunity and what the micro contract is worth about 500 U.S. dollars worth of opportunity when we can get it right.
Now, the question that you want to… something to think about for this week for this week’s ideas, what are your rules? What’s your idea? Who are you as a trader? In life, we do certain things that provide a positive outcome and then we avoid certain things that provide a negative outcome. And we call these core beliefs and it’s realistically what makes up our characteristics and our values as people. We don’t do these things, actually we do these things because good things happen and we don’t do these things because bad things happen. You need to have those same exact rules when it comes to trading. So a couple of my rules are very basic, very straightforward. Four rules: buy low in the buy zone, sell high in the sell zone, do not buy high prices and do not sell low prices. These four rules are designed to help me win more than half the traits. And I try to teach those rules because they work. Now, what that ultimately means is when we’re in an uptrend, one of the things that I like to do is, I will only buy while we’re an uptrend.
So if we’re going up and we’re at the top of the channel, I will say, “Okay, I’m out of the market.” And when the market falls, I am not selling the market. Market falls and I’m not trading it. Now we’re at the bottom and we begin to U-turn on the way up. This is where I would just come in and say, “Okay, now I’m interested in buying.” I’m buying a low price at a known level of U-turn and what I’ve found is that success can be repeated and you’re buying from this low price, taking profit at that high price.
Once the mark is back in the high price, I’m out. I’m not trading, I’m waiting, I’m enjoying my life and I’m just waiting for the market to come back down. Now, some people will say, “Well, Josh, you can make money on the way up and you can make money on the way down.” Well, not from me. I don’t try to make money on the way down because I’ve lost so much money trying to do that along the ways and it’s much much harder than you anticipate.
Now, market begins a U-turn notice how I’m not buying the low, I’m buying the U-turn after the low. Then we look to buy and market goes up and we rinse and we repeat. We rinse and we repeat and so on and so forth. And so when the market’s back at the top of the channel, like it is here, common sense says, “Well, go enjoy your life and wait for it to come back down.” And if we look at this same exact scenario where we are now in this up channel, right now we’re at the top of the channel. So common sense says, “Go enjoy your life and see the market fall back down.” If it can, that should be a nice little buying opportunity. That’s this week’s idea with Josh Martinez and we’ll see you next week.
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