Friday August 15, 2025

Q: How does the speaker define a 'successful week' in trading?

A successful week, according to the speaker, is measured by one key metric: 'You do not have a single loss greater than your ideal loss.' This highlights the importance of strict risk management and limiting downside, rather than solely focusing on profits.

Q: What are the 'Friday rules' and specific expectations for OPEX Friday?

The 'Friday rules' emphasize not 'giving your week back' and trading with caution. Expectations for OPEX Friday include no follow-through, pinning the price, and choppy price action. The speaker suggests using smaller size or even sitting the day out.

Q: What is the 'battle plan' and how does it relate to the speaker's trading decisions?

The 'battle plan' is a pre-market strategy tool available on microtrader.com that outlines trade ideas and key levels. The speaker uses it to enter trades that align with mapped-out conditions, reinforcing a disciplined and structured approach to trading.

Q: What is the speaker's approach to managing trades, particularly runners?

The speaker uses a strategy of taking partial profits and keeping a runner to capture larger moves. For counter-trend setups, he uses smaller size and tightens stops dynamically based on trade context.

Q: How does the speaker view the current market conditions, especially for August?

August is described as a 'choppy, no follow-through month' where conditions are difficult and volatility is low. The speaker recommends cautious trading with small positions and a preparation mindset for more active markets in September.

Q: What is 'pinning the price' and why is it expected on OPEX Friday?

'Pinning the price' refers to the market hovering near a specific level due to options expiration pressure. It's common on OPEX Friday as large participants seek to control closing prices for maximum options value.

Q: What are some of the key risk management principles highlighted by the speaker?

Key principles include maintaining losses within ideal limits, using smaller daily loss thresholds, reducing position sizes, and quickly adjusting stop-losses to break-even once trades move favorably.

On OPEX Friday, Micros Trader warned of choppy price action and emphasized capital preservation over aggressive trading. He advised reducing exposure and maintaining strict loss limits, reflecting August’s typically low-conviction conditions. Reviewing recent trades, he illustrated how adhering to a structured battle plan and scaling down position size can preserve profits even during counter-trend setups. Traders were urged to focus on preparation, discipline, and adaptability heading into more favorable September trends.

☀️ AM BRIEFING

Opening Remarks

Micros Trader begins the AM Briefing by addressing the seasonal tendencies of the market in August. He emphasizes that August is notoriously choppy and lacks follow-through, calling it a “see money, take money” month. This sets the tone for the day’s trading: quick profits over expectations for large trending moves.

He reiterates that August is not typically favorable for aggressive strategies, saying, "August does not look that pretty." However, he also notes that the month is ideal for preparation: “Play August to get ready for that September move,” implying that better opportunities will emerge the following month.

OPEX Friday Rules and Expectations

Micros Trader shifts focus to OPEX Friday, highlighting it as a unique trading day with specific characteristics. One of his cardinal rules is, “Never give your week back,” emphasizing capital preservation over last-minute gains.

He advises implementing a smaller daily loss limit to prevent unnecessary drawdowns due to the erratic nature of OPEX Friday. Characteristics like “no followthrough” and “pinning the price” are typical — where the market gravitates toward a specific level, often to settle options. He speculates that "the pock is right here at 83," hinting at a likely pinning level for today.

Humorously, he advises, “Go play golf,” underscoring the idea that stepping away might be wiser than trading in unpredictable conditions.

Risk Management and Position Sizing

Risk management is emphasized heavily throughout the briefing. Micros Trader asserts, “You do not have a single loss greater than your ideal loss,” framing this as the most important metric of the week.

He recommends reducing exposure significantly: “Trade smaller — maybe don’t trade all 20 accounts, maybe just trade one account, maybe just focus on one trade and you're done every single day.”

One practical technique he shares is to “keep a runner back,” allowing part of a position to remain open for a possible extended move after taking partial profits.

He also walks through a counter-trend short where he dynamically adjusts the stop-loss: “Once it moves at least two points in my favor, I usually move it to break even. But because I’m able to get short up in this area here, I'm willing to allow it to be a one-point loser — not the end of the world.”

When counter-trading, he notes, “I’m only one contract. I’m not using the three-contract system. Why? Because I’m counter, so I got to go small.”

Trade Review and Outlook

Micros Trader reflects on prior trades, offering commentary on execution and thought process.

He discusses taking a long trade from the RTH (Regular Trading Hours) low, keeping a runner in hopes of an extended move. He also reviews a counter-trend short where, despite the market rallying, he “captured 10 points… almost had 30.” He emphasizes the principle: “The play was long; shorts were counter, small if at all.”

Overnight, during the London session, he shorted based on the battle plan. The setup was triggered after the Dow hit its overnight high. His initial stop was hit, but he re-entered a smaller position with a -1 point stop and let it run — demonstrating the discipline to follow through on a pre-defined plan.

For today, he notes a mixed read: ES pulled back, but ENQ and Russell weren’t following. With Dow making all-time highs, he sees potential for price to fall back and pin lower. Still, he stresses flexibility: “What do I know? I’ll trade the levels as they develop.”

Battle Plan Usage

The battle plan is described as an essential framework for every trading day. It allows Micros Trader and his audience to approach the session with intention. “Take it because you’ve thought about it, you’ve put effort into it,” he says.

He recommends consistently referencing the battle plan for strong levels and trade ideas: “Reference your battle plan.” He reminds the audience that the battle plan is easily accessible via “microstrader.com — click battle plan.”

❓ FREQUENTLY ASKED QUESTIONS

What is the primary focus of the "OPEX Friday AM Briefing"?
The briefing primarily focuses on daily trading strategies and market analysis, specifically for OPEX (Options Expiration) Friday. It provides insights into current market conditions, particularly for August, which is described as a "choppy, no follow-through month." Micros Trader emphasizes risk management, such as avoiding losses greater than the "ideal loss" and trading with a smaller daily loss limit, especially on OPEX Friday.

How does the speaker define a "successful week" in trading?
A successful week, according to Micros Trader, is measured by one key metric: "You do not have a single loss greater than your ideal loss." This highlights the importance of strict risk management and limiting downside, rather than solely focusing on profits, especially given the challenging market conditions often seen in August.

What are the "Friday rules" and specific expectations for OPEX Friday?
The "Friday rules" are in full force on OPEX Friday, with a strong emphasis on not "giving your week back" by incurring significant losses. Specific expectations for OPEX Friday include:
• No follow-through: Prices are not expected to sustain a clear trend.
• Pinning the price: The market is likely to find a specific price point and hover around it, finishing the day at that level.
• Choppy price action: Volatility without clear direction.
Micros Trader suggests trading smaller, perhaps using fewer accounts or focusing on a single trade, and even considers it a "good day to just go play golf" due to the anticipated dull market.

What is the "battle plan" and how does it relate to the speaker's trading decisions?
The "battle plan" is a key tool for Micros Trader's trading. It's a pre-market analysis and strategy outline, available on microtrader.com, that maps out potential trades and market movements. He frequently references it, stating that he enters trades, like the short position he took, because they "mapped out to my trade" and "met my conditions." It provides a structured approach, allowing traders to "think about it" and "put effort into it" before execution.

What is the speaker's approach to managing trades, particularly runners?
Micros Trader emphasizes the importance of "keeping a runner back," which refers to holding a portion of a profitable trade even after taking initial profits. This strategy aims to capture further upside potential. For counter-trend trades, like his short position, he goes "small" (one contract) and, once the trade moves in his favour, he tightens his stop-loss, sometimes to just one point in profit or a one-point loser, depending on the entry quality.

How does the speaker view the current market conditions, especially for August?
August is characterised as a "really choppy, no follow-through month" and a "see money take money month." Micros Trader reiterates that "August does not look that pretty" and describes the current week as "just another dud week in summer August." This indicates an expectation of low volatility and difficult trading conditions, making cautious strategies and small positions advisable.

What is "pinning the price" and why is it expected on OPEX Friday?
"Pinning the price" is a phenomenon expected on OPEX Friday where the market finds a specific price level and tends to hover around it, ultimately finishing the day close to that point. This occurs because options expiration creates incentives for large players to keep the underlying asset price near certain strike prices to maximise their options' value or minimise losses.

What are some of the key risk management principles highlighted by the speaker?
Several key risk management principles are highlighted:
• No loss greater than ideal loss: A strict limit on how much one is willing to lose on any single trade or day.
• Smaller daily loss limit: Reducing the maximum acceptable loss for the day, particularly on challenging days like OPEX Friday.
• Trading smaller: Reducing position size, for example, trading one contract instead of three, especially when trading counter-trend.
• Not "giving your week back": Avoiding significant losses that erode previously earned profits.
• Tight stop-losses: Moving stop-losses to break-even or a small profit as soon as a trade moves in one's favour.