What is the core philosophy of "microsrader.com" regarding trading success?

The core philosophy revolves around patience and disciplined waiting. Micros Trader emphasizes that successful trading is about waiting for ideal setups rather than constant market activity.

Wednesday Aug 6: Emini / Micros Morning Prep for Our S&P Trading Community

Q: How does the speaker use biblical scripture to illustrate a key trading principle?

Micros Trader uses scripture from Luke to highlight the dangers of emotional attachment and greed. He promotes rational, disciplined trading with the phrase 'Green over greed.'

Q: What is the 'Battle Plan' and how does it contribute to trading strategy?

The 'Battle Plan' is a pre-market tool that outlines trade setups and key levels. It allows traders to follow structured entries and exits based on defined analysis.

Q: What is the significance of the 'RTH low' and the 'critical strong level at 6311' in the battle plan analysis?

These levels serve as crucial technical reference points. Their failure to break signals market sentiment and provides insight into future price action.

Q: What is meant by 'Don't diddle in the middle' and how does it relate to trading?

The phrase warns against trading when the market lacks direction. Trading from the middle of a range often results in poor edge and increased risk.

Q: Explain the 'three contract system' and the concept of a 'lotto runner.'

This system manages trades with multiple contracts. The 'lotto runner' is kept at break-even to allow risk-free participation in extended moves.

Q: What is the '3-minute course strategy front side base entry' mentioned for full members?

It is a specialized entry method taught within the microsrader.com membership. It identifies strong long setups using a defined technical structure.

Q: What is the speaker's current trading stance and what are the implications for the upcoming RTH session?

Micros Trader is flat due to the market's position within a range. He will prepare new setups just before the RTH open during the live Zoom session.

Opening Remarks

Micros Trader opened the August 6th AM Briefing by highlighting the foundational mindset required for consistent trading success. The central theme was patience. The "Tip of the Day" emphasized, "It’s the waiting that makes you the most money—waiting for the setup and waiting till your lotto runner has been taken out. Trading is mostly waiting."

Micros Trader urged traders not to force trades, especially if they miss their setup. “If you miss the setup, close the platform and wait,” he advised. This reinforces the idea that trading discipline often means doing less, not more.

Market Outlook: Range-Bound Conditions and Neutral Bias

The overall market tone was described as neutral. Micros Trader observed that the S&P 500 (ES) was positioned squarely within a two-day range: “We’re right in the middle. We are literally right in the middle.” The clear guidance here was: “Don’t diddle in the middle. If you want to trade well, trade an edge and know where you’re at.”

He highlighted that bulls had defended a key level during the prior session. “The bulls defended exactly where they needed to,” he noted. Yet he added a cautionary statement: “The bulls still have a lot of work to do.”

When addressing broader index behavior, Micros Trader pointed out that each index was displaying unique characteristics—ENQ in a two-day balance, Dow in upper distribution, and Russell “doing its own thing.” Still, he reiterated clearly: “This is not bearish.”

Regarding news or scheduled events, he shared, “Not much on the agenda today. In fact, I have zero for Wednesday, August the 6th. We’ll trade whatever comes our direction.” The focus for the session was on reactive trading, adjusting to price action rather than pushing any particular bias.

Overnight Battle Plan Trade Review

Micros Trader then walked through a successful overnight trade idea from the Battle Plan service. The setup was built around a strategic “ladder back” concept. Although he didn’t initially enter because the move lacked strength at first, he noted that “the strong defense occurred” later in the night, aligning perfectly with the mapped-out plan.

“This was the exact mapped-out entry,” he confirmed. The trade allowed those who followed the plan to potentially capture a “20 to 30 point runner.” The setup illustrated the value of preparation and trusting predefined trade zones.

The final target zone, according to the plan, was labeled the “perfect TP location,” a strong range resistance that had been identified ahead of time.

Trade Management Strategy: The Lotto Runner

Trade management was another focal point, particularly the use of the “lotto runner” technique. For traders who entered long overnight, Micros Trader advised, “Try to stay long with a lotto runner.”

He also reminded listeners of the value in taking profits when appropriate. “You could’ve TPD and you’re a happy camper. You’re already green for the day. Green over greed.”

By leaving a portion of the trade (the runner) at break-even, traders gave themselves the chance to capture a larger move without additional risk. “You could literally still be in this trade,” he noted, illustrating the power of staying in the game with protective structure.

Membership Benefits and Live Access

Micros Trader encouraged viewers to take advantage of the 7-day free trial for access to the nightly Battle Plan. He emphasized that new entries would be mapped out “15 minutes before the market opens live on Zoom” for full members.

He also referenced additional training resources, including the "three-minute course" strategy that focuses on front-side base entries. The service aims to provide "tomorrow's trades tonight," giving subscribers a head start on preparing for market opportunities.

"No household slave can be the slave of two masters, since either he will hate one and love the other, or he will be devoted to one and despise the other. You cannot be slaves to both God and money."

While not expanded upon in detail, this verse set a tone that resonated throughout the rest of the session. The message "Green over greed" echoed the biblical sentiment, encouraging traders to value discipline and sustainability over chasing excess gains.

❓ FREQUENTLY ASKED QUESTIONS

Frequently Asked Questions (FAQ)

1. What is the core philosophy of "microstrader.com" regarding trading success?

The core philosophy, as highlighted by Micros Trader, revolves around patience and disciplined waiting. The "Tip of the day" explicitly states, "It's the waiting that makes you the most money waiting for the setup and waiting till your lotto runner has been taken out." This suggests that successful trading isn't about constant activity, but rather about patiently observing the market for opportune moments and then executing a well-defined plan, including knowing when to exit.

2. How does the speaker use biblical scripture to illustrate a key trading principle?

Micros Trader uses the scripture from Luke, "No household slave can be the slave of two masters since either he will hate one and love the other or he will be devoted to one and despise the other. You cannot be slaves to both love and money," to draw a parallel with trading. This is interpreted as a warning against being overly attached to either "love" (perhaps implying emotional trading or attachment to specific outcomes) or "money" (greed). He later reinforces this with the phrase "Green over greed," suggesting that profitable trading prioritises rational decision-making and pre-defined strategies over emotional impulses driven by the desire for quick riches.

3. What is the "Battle Plan" and how does it contribute to trading strategy?

The "Battle Plan" is a pre-market analysis and trade mapping tool provided by microsrader.com. It involves identifying potential entry points and strategic levels before the market opens, as demonstrated by the detailed mapping of an overnight long entry. Micros Trader showcases how following the "Battle Plan" – which is available to members and via a free trial – can lead to significant profits (e.g., "20 to 30 point runner"). It serves as a structured approach to trading, providing clear instructions for entries and profit targets.

4. What is the significance of the "RTH low" and the "critical strong level at 6311" in the battle plan analysis?

The "RTH low" (presumably referring to "Regular Trading Hours low") and the "critical strong level at 6311" are key technical indicators used in the Battle Plan to assess market sentiment and potential price movements. Micros Trader notes the bulls' failure to break the RTH low or challenge the 6311 level, indicating weakness. The expectation was for the bears to attempt to take out these levels overnight, with the hope that the bulls would then "bounce back above with strength." These levels represent crucial support or resistance points that inform trading decisions.

5. What is meant by "Don't diddle in the middle" and how does it relate to trading?

"Don't diddle in the middle" is a cautionary phrase used by Micros Trader to advise against trading when the market is neither clearly trending up nor down. When the price is "just inside of this 2-day range" and "literally right in the middle," there's no clear "edge" or advantage for a trader. Trading in such conditions increases risk and reduces the likelihood of profitable outcomes, reinforcing the philosophy of waiting for clear setups.

6. Explain the "three contract system" and the concept of a "lotto runner."

The "three contract system" is a trade management strategy employed by microsrader.com members. While not fully detailed, it implies a method of allocating multiple contracts to a trade. The "lotto runner" is a specific component of this system, referring to a portion of the trade (one contract, in this context) that is kept open even after initial profits have been taken on other contracts. The idea is to move the "lotto runner" to break-even, eliminating risk, and allowing it to potentially capture significant further gains ("you could literally still be in this trade"). This strategy aims to maximise profit potential while managing risk.

7. What is the "3-minute course strategy front side base entry" mentioned for full members?

The "3-minute course strategy front side base entry" appears to be an advanced or specific trading setup taught within microsrader.com's full membership program. It's described as a "beautiful entry to get long," suggesting it's a particular technical pattern or indicator that signals a favourable buying opportunity. This indicates that microsrader.com provides detailed educational content and specific strategies for its members beyond general market analysis.

8. What is the speaker's current trading stance and what are the implications for the upcoming RTH session?

Micros Trader is currently "flat" (meaning not holding any open positions) for the RTH (Regular Trading Hours) session. This is because the market is "in the middle of the middle" of a two-day range, which is not considered an optimal trading environment. While some traders who capitalised on the overnight "Battle Plan" trade might be "green for the day" and choose not to trade the RTH session, Micros Trader plans to "map out our new entries 15 minutes before the market opens live on Zoom" for those who are also flat. This highlights a disciplined approach of only entering trades when clear setups are identified.