MES Futures Trading System

Wednesday October 29, 2025

In a sharply cautionary AM Briefing, Micros Trader warned futures traders to avoid taking positions ahead of today’s FOMC announcement, citing a parabolic market prone to sudden liquidation breaks. The speaker emphasized that risk is disproportionately high and technical levels may fail without warning. A values-driven approach was presented, advising traders to view their capital as stewardship and to detach their identity from short-term results. Tactical suggestions were minimal, as the overarching guidance remained to either sit out entirely or reduce size dramatically to protect both financial and mental capital.

Opening Remarks

Micros Trader begins this AM Briefing with an urgent reminder: this is not a typical trading day. The combination of a multi-day parabolic rally, today’s FOMC announcement, and post-close earnings creates a highly unstable and dangerous trading environment. The central message is simple yet powerful: do not trade today unless absolutely necessary — and even then, trade as small as possible.

Primary Directive: Trade Carefully, Small If At All

Micros Trader states unequivocally: “I underline and I bold the if at all. You do not need to trade today.” This kind of day is best categorized as “trap the trader.” The potential for sudden reversals is high, and technical levels often become irrelevant. In fact, when asked how to trade on a volatile FOMC day, the answer is direct: “You don’t.”

Traders are encouraged to plan a “no-trade” day, which is a valid and intelligent choice given today’s setup. For those feeling the urge to participate, alternatives include playing pool, hitting golf balls, or cleaning out the garage. Micros Trader emphasizes the option to just observe the price action for educational value, especially when market conditions are designed to punish overconfidence.

For those who must engage, several ways to mitigate risk include: switching to a simulator, using only one account, drastically reducing size, and keeping the DOM closed until favorable conditions appear.

Current Market Conditions: A Liquidation Break Looms

Micros Trader details a market that has been moving “parabolically to the North” for several days — a highly unsustainable pattern that increases the odds of a violent liquidation break. This kind of break is described as a “monster move out of nowhere,” fast and aggressive.

During a liquidation break, technical levels become irrelevant. “It don’t care about your freaking levels.” Wait for the “second ladder” after the initial selloff instead of trying to catch the fall.

Psychological Traps and Trader Personas

The AM Briefing takes a creative and insightful turn by framing the day’s environment as a game show titled “Trap the Traders.” Participants include caricatures of common trader errors:

Johnny "I just have to trade every day" Johnson — the compulsive trader.
Sam "never saw a short I didn't short" Stevens — always counter-trending.
Malcolm "make matters worse" Montgomery — compounds errors.
Rusty "reset" Roberts — frequently blows accounts.
Freddie "FOMO" Fredrickson — cannot stand missing moves.
Patrick "predict Price" Patterson — believes they can outguess the market.

These personas highlight the psychological traps waiting to ensnare undisciplined traders. The takeaway: don’t be a contestant on this show.

Philosophical Framework: Stewardship, Integrity, and Detachment

The devotional portion of the briefing presents a values-driven philosophy designed to fortify a trader’s mindset. The foundational scripture, Job 1:21 — “The Lord gave and the Lord has taken away” — underpins the concept that traders do not own their capital; they steward it.

"The Lord gave and the Lord has taken away."

This mindset protects against emotional spirals and fosters discipline. The goal becomes: “Execute your edge with integrity, regardless of results.” When emotional stress rises, traders are urged to step away from the screen, go for a walk, and reset before making any decisions.

Tactical Advice: How to Trade If You Must

Even though the dominant advice is not to trade, some tactical notes are offered:

Use only "paper cut" stop losses — ideally under four points.
Micros Trader shares an example using a 32-second chart with a 2.5-point stop.
To manage runners post-exit (e.g., due to prop firm restrictions), use “mental trading” by tracking the new RTH low daily and adjusting stops mentally.
This method, in one example, would have captured over 200 points in an ongoing trade.

Essay Format Questions

What emotion did you feel as you considered trading FOMC day?
How can you prepare emotionally for future high-volatility events?

Journaling and Future Review

Micros Trader strongly encourages traders to journal FOMC days specifically. Over time, this enables pattern recognition and better preparation by filtering journal entries to assess performance under volatile conditions.

FOMC Day Caution and Trading Discipline — Q&A

Q: What is the primary caution given to traders about engaging in the market on FOMC day?
A: Traders are strongly cautioned to trade carefully, trade small if at all, and are told that they do not need to trade today. The day is characterized by extreme volatility and is referred to as "Trap the Trader."

Q: According to the provided daily devotional, what spiritual principle should traders apply to their accounts?
A: Traders should hold their trading accounts with open hands, recognizing that every dollar is stewardship, not a permanent possession. This perspective helps protect traders from emotional decisions like revenge trading when losses occur.

Q: If a trader decides to take a position in the current dangerous, parabolic market environment, what specific condition must be met regarding their stop loss?
A: The trade must have a very small stop loss, ideally a paper cut stop loss of less than six points, or typically four points or less. If the ideal stop loss is not very small, the trader should not engage.