How does the speaker approach trade planning and execution?

The speaker creates detailed 'battle plans' with multiple entries and a preferred trade. They follow this plan strictly, even in the face of early trade retracements, and adjust strategy based on market context and position size.

How does the speaker manage risk and position sizing?

The speaker adapts to trade conditions, often peeling off profitable contracts and using leverage metrics to determine acceptable stop-losses. Once green, they avoid taking on excessive risk to protect the day's gains.

How does the speaker advise on managing a profitable day?

Once profitable, the speaker restricts further risk, ensuring that any new trade has a stop-loss small enough to keep the day green. This protects accumulated profits and enforces strong capital discipline.

Wednesday August 20, 2025

Q: What is the core philosophy of Microtrader.com?

Microtrader.com promotes starting with micro-contracts when trading futures. Traders are encouraged to work with micros until they can comfortably handle 20 to 30 of them before transitioning to E-mini contracts, emphasizing gradual progression and skill development.

Q: What is the significance of the 'green over greed' principle?

The 'green over greed' principle prioritizes securing profits and walking away from the market once green for the day. It teaches traders to resist the temptation to overtrade and risk losing their gains.

Q: What are some key technical indicators and market events discussed?

Key indicators include the RTH low, fair value gapping candles, and the bull bear line. Market events mentioned include FOMC speakers and minutes, and the Jackson Hole Symposium featuring Fed Chair Powell.

Q: What is the role of mental discipline in trading according to the speaker?

Mental discipline is foundational. Referencing Romans 12:2, the speaker emphasizes mindset renewal, emotional control, and the ability to resist impulsive trades as key components of trading success.

Q: Why is starting with 'micros' recommended for new traders?

Micros allow new traders to gain experience while minimizing risk. The speaker recommends mastering 20–30 micros before transitioning to full-sized contracts like the ES.

In Episode 496 of the AM Briefing, Micros Trader emphasized the importance of discipline and risk control in futures trading, anchored by the guiding principle of “green over greed.” The session covered strategic trade planning through the “battle plan” framework, stressing key levels like the bull/bear line and RTH low. Technical tools such as fair value gapping candles and leverage-based stop-loss calibration were central to managing entries and exits. With macroeconomic events like FOMC minutes and the Jackson Hole Symposium on the horizon, the focus remained on preparation, mindset, and preserving profitability.

☀️ AM BRIEFING

Opening Remarks

"Do not be conformed to this age, but be transformed by the renewing of your mind." (Romans 12:2)

This sets the tone for the day’s trading mindset—focusing on discipline, transformation, and the importance of mental clarity in the market.

Trading Philosophy and Discipline

Green Over Greed: Micros Trader emphasizes the critical mantra: “Green over greed.” He explains that a winning trader is one who knows when to stop after locking in early gains.

“Green over greed—and that was the point in the battle plan last night. Who was the trader of the day? If you were green on that first trade and you captured those multiple 10-point moves and you were done, you were the trader of the day.”

Controlling the Chart, Not Being Controlled by It: A key mental question was posed: “Who is in control—you or the chart?” Micros Trader reminds us that the inability to walk away or say no to the market can be detrimental.

“Traders who can't say no to the chart won't be traders long.”

The Green Day Rule: Risk management is framed around not turning a green day into a red day. Once a trader is green, they are encouraged to limit further risk by adjusting stop-losses and being highly selective with entries.

“My trade plan says once I'm green, I can't go red. I look at how much I'm green and only risk a portion of that.”

Starting with Micro Contracts: Micros Trader advises new traders to begin with micro contracts.

“How long do you trade micros? Until you can handle 20 to 30 of them before you switch to ES, in my humble opinion.”

Key Trading Strategies and Market Analysis

The Battle Plan: The trading day is guided by a structured “battle plan” outlining five possible entries, with a clearly defined preferred trade.

“I had five possible entries and I knew which one was my preferred trade.”

Key Levels and Context: Micros Trader identifies multiple key levels that played into the day's strategy: RTH low, August 12th low, and August 11th halfback.

We are under the bull bear line—I have to surrender to the fact I'm probably going to get taken out.

Fair Value Gapping Candles: “Laddering back with strength leaving a wake of multiple fair value gapping candles” is mentioned as a sign of directional confirmation.

The risk of short covering is high.

Scalp Entries and Runner Management: Trade management involves taking early profits and managing runners.

“I took off one of three contracts and then tried to let the others run.”

One-Contract Entries: If only one contract is used, hold it with confidence if it's a solid entry. “If I get 10 points, I mentally lock in 50%.”

NQ’s Influence on ES: “ENQ just can't seem to get on the northbound train and that drags us down. But if NQ can get going, I think we're going to be just fine.”

Market Events and Calendar

FOMC Speaker and Minutes: “It’s just the minutes—it’s not FOMC, don’t get all worked up.”

Upcoming Data Releases: Tomorrow’s calendar includes unemployment claims, PMI data, and existing home sales.

Jackson Hole Symposium: “Jackson Hole starts and all eyes are on Friday for Powell.”

Personal Trading Experiences and Lessons

Sticking to the Preferred Trade: “I almost got out at break even. But I said, ‘Nope—this is exactly where I want to be long.’ So I added to my trade.”

Handling Disappointment and Learning: A trade didn’t work overnight, but Micros Trader used it to reinforce adapting and accepting outcomes.

Leverage and Stop-Loss Calibration: “If my leverage metric says, ‘Hey George, for you to stay green you need a two-point stop loss,’ then that’s the only trade I can take.”

Frequently Asked Questions

What is the core philosophy of Microtrader.com?

Microtrader.com, as its name suggests, advocates starting with 'micros' (micro-contracts) when trading futures. The recommendation is to trade micros until a trader can comfortably handle 20 to 30 of them before transitioning to ES (E-mini S&P 500 futures). This approach suggests a focus on gradual progression and building foundational skills before scaling up.

What is the significance of the "green over greed" principle?

The "green over greed" principle is a crucial trading philosophy highlighted in the briefing. It emphasises the importance of knowing when to stop trading for the day once a profit has been secured ("being green"). Micros Trader advises traders to close their platforms and walk away once they've had a successful trade, rather than being driven by greed to continue trading and potentially losing their gains. This is linked to self-control and not letting the "chart" dictate one's actions.

How does Micros Trader approach trade planning and execution?

Micros Trader meticulously plans trades, often presenting "battle plans" with multiple possible entries, even indicating a "preferred trade" (marked in green). They demonstrate a commitment to their pre-defined plan, as seen when they added to a trade even after it initially pulled back, stating, "This is exactly where I want to be long." However, they also acknowledge market realities, such as adjusting their strategy based on contract availability or the market's position relative to key levels like the "bull bear line."

What are some key technical indicators and market events discussed?

The briefing references several technical indicators and market events:

RTH low (Regular Trading Hours low): A key price level identified for potential trade entries.
Fair value gapping candles: Candlestick patterns indicating price imbalances that could suggest strength in a move.
Bull bear line (Strong Levels indicator): A critical technical line that dictates the overall market sentiment, with being below it suggesting a bearish bias.
FOMC (Federal Open Market Committee) speaker and minutes: Monetary policy events that can impact market volatility, though Micros Trader downplays the significance of minutes compared to actual FOMC announcements.
Jackson Hole Symposium and Powell's speech: A major economic symposium, particularly Friday's speech by Jerome Powell, anticipated to be a significant market mover.

How does Micros Trader manage risk and position sizing?

Risk management is evident in Micros Trader’s approach. They initially aimed for three contracts but only got into one, demonstrating adaptability. They also discuss taking profits by "peeling off" contracts (removing one of three) once a trade is profitable. Crucially, they link their stop-loss strategy to their "leverage metrics" – if they are already "green" for the day, their stop-loss for any subsequent trades must be tight enough (e.g., two points) to ensure they do not end the day in the red.

What is the role of mental discipline in trading according to Micros Trader?

Mental discipline is paramount. Micros Trader quotes Romans 12:2, "Do not be conformed to this age but be transformed by the renewing of your mind," which he relates to discerning "what is good, pleasing and perfect will of God" in trading. This underpins the "green over greed" principle and the ability to "say no to the chart." Micros Trader stresses that traders who lack this control "won't be traders long," implying that self-mastery is key to long-term success.

Why is starting with 'micros' recommended for new traders?

Starting with 'micros' is recommended because it allows new traders to gain experience and build confidence without risking large amounts of capital. The advice is to trade micros until one can handle "20 to 30 of them" consistently. This suggests that micros serve as a training ground to master trade execution, risk management, and emotional control on a smaller scale before transitioning to the larger, higher-risk ES contracts.

How does Micros Trader advise on managing a profitable day?

Once a trader is "green" (profitable) for the day, Micros Trader advises extreme caution against giving those profits back. Their personal rule is: "once I'm green though I can't go red." If they choose to take another trade, they will only risk a "certain portion" of their existing profit. This means any subsequent stop-loss must be calculated to ensure they remain "green" even if that trade goes against them, demonstrating a strong emphasis on protecting capital.