A patient trader is a profitable trader.
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 September the 20th, 2021. Happy Monday, everybody. Behind me is the E-mini Russell 2000. And we have a wonderful, wonderful structure here. Matter of fact, the structure has lasted for most of the 2021 year. And we could have an opportunity right around the corner, if we can be patient.
Now, remember an E-mini contract with the E-mini Russell gives us $5 a tick. And when trading a micro contract, it is 50 cents a tick. So what do we have here? Well, this is a classic consolidation range, very textbook, winner if the market comes near the bottom of the blue level, the market goes to the top level. We’ve discussed this several times, this week’s idea along the year, when the market’s at the bottom, we look to go along. And when the market’s at the top, we look to take some profits. You can see the market recently touched the top of the blue level, and now the market is falling to the bottom blue level. If we can be patient and allow the market continue to fall like it did here, here, here, here, here, here, and then look for the U-turn at the bottom of the range, there could be a thousand plus tick opportunity towards the top of the range.
That thousand ticks is worth 5,000 US dollars with a E-mini contract and 500 US dollars with a micro contract. This has been a little bit more strategic when it comes to trading. What I mean by that, if you think about this with a E-mini contract, since February, we’ve had one, two, three, four, five, six buying opportunities. Let’s just say, all you did was just enter in buying just six times. And you made a thousand ticks, which is $5,000 each time. That means up to this point for this year, you could have made 30,000 US dollars if you do this properly. Okay, granted there’s risk involved, but there’s also reward involved. Now I’m not saying that you’re going to be make $5,000 to the next trade. This next trade the market could just completely break bears, and that could be the possibility and structure breaks.
But based upon probability, you can be a little bit more strategic about your trading to where you don’t have to trade every single day, which is called over trading. You could say, well, I’m just going to wait for it to come near the bottom blue level. And I’m going to enter in, if you so choose when the odds are stacked in your favor.
Hey, that’s this week’s idea. Once again, it’s the Russell 2000 waiting for the market to touch the bottom of the blue level. When it does, we’ll go to the one hour timeframe and look for the U-turn. This is Josh Martinez, and we’ll see you next time.
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