When To Stop Trading Futures

Q: When should a futures trader skip trading, even if the market is open?

You should plan for 'no trade days' because sometimes the price action is simply too dangerous, like a surfer encountering waves that are too big or not big enough for their skill level. If you are only up small, especially under Friday rules, you should consider risking 0.0 to avoid giving back your week's gains. Specific warning signs that suggest you should skip trading include seeing high volatility, the appearance of 15-point 'red candles' (which is referred to as blood on the chart), or a high Average True Range (ATR). If you are new or feel uncomfortable, the strong recommendation is to stay flat, as these conditions can lead to an 'account killer zone.'

Friday November 7, 2025

☀️ AM BRIEFING

Introduction: The Myth of Hectic Trading

When you picture a professional trader, what comes to mind? For most, it’s an image of frantic energy: someone glued to six screens, shouting orders, making high-stakes, split-second decisions as markets flash red and green. It’s a stereotype fueled by Hollywood, suggesting that success is a product of constant action.

The reality, however, is often the polar opposite—a quiet, methodical discipline built on one core mission: navigating an environment designed to exploit human impulse.

The core principles that guide a disciplined trader offer powerful, counter-intuitive lessons that extend far beyond financial markets, applying to any high-stakes decision-making. This post distills four of the most impactful takeaways from an expert trader's recent AM Briefing, revealing how the most effective strategies often defy our instincts for action.

1. The Most Powerful Move Is Often No Move at All

A core tenet from the AM Briefing is that “Every day is not a trade day.” Micros Trader compares a trader to a surfer assessing the ocean; some days the waves are too big and dangerous, while other days they are too small and offer no opportunity. The professional knows how to recognize these conditions and has the discipline to simply walk away.

From a psychological perspective, this is a masterclass in overcoming Action Bias—our innate, irrational preference for action over inaction. In moments of ambiguity, our brains scream, "Do something!" This is compounded by a powerful fear of missing out (FOMO) when we see others acting. The professional’s edge is a trained, conscious override of these instincts.

They understand that preserving capital, energy, and focus for high-probability opportunities is a far more profitable strategy than chasing action for action’s sake.

If you never have a no trade day, you don't have your rules in place yet. Every day is not a trade day. Sometimes the price action is so dangerous... you just have to say, no, I can't trade this price action.

2. Success Isn't About Acting; It's About Waiting

Throughout the AM Briefing, the most profitable trades discussed—like those at "Battle Plan #4" and "Battle Plan #5"—were not the result of impulsive action in the heat of the moment. They were the outcome of hours of patient waiting for the market to arrive at specific, pre-determined price levels.

This reframes success from "making things happen" to "being prepared for when things happen." For most people, waiting is mentally taxing; it runs contrary to the desire for immediate gratification. The pro, however, cultivates patience as a primary skill.

This patience is a constant struggle; Micros Trader notes a recent trade where he exited prematurely, a costly reminder that the plan is simple, but its execution is a perpetual test of discipline. Success, in this context, becomes a function of waiting for the market to meet your terms—not the other way around.

A disciplined, slow, methodical approach to trading futures. You've got to learn to wait. You got to learn to say no, thank you.

3. Learn to See the 'Blood on the Chart'

Micros Trader repeatedly warns of "dangerous price action," using the word "dangerous" 19 times in a single session. His indicators for this are not subtle; they are visceral warnings like large "15 point candles." He calls this "blood on the street," a recurring sign that the market is punishing impulsive decisions in what another trader dubbed "the account killer zone."

This isn't just risk management; it's a behavioral trigger. The phrase "blood on the chart" is deliberately visceral, designed to activate a conscious "flight" response (staying out of the market) rather than the emotional "fight" response that leads to revenge-trading and catastrophic losses.

The point isn't to never lose—Micros Trader freely admits, "you take losses, welcome to trading"—but to never get destroyed by unacceptable risk. The professional's first job is not to seek profit, but to "keep traders safe" by avoiding the environments where emotional decisions lead to ruin.

I actually used the word dangerous yesterday 19 times... Just because I'm trading doesn't mean you should be trading... You've got to know when should I be trading and when should I say no thank you?

4. The Best Decisions Are Made in Advance

The entire strategic framework is built on a concept called the "Battle Plan." The idea is profound: all decisions about where to potentially engage with the market are made the night before. This proactive planning defines the exact conditions that warrant action. If the market does not meet these criteria, no action is taken. Period.

This is a powerful psychological tool known as pre-commitment. It’s a strategy to protect your rational, "planning" self from the emotional, "in-the-moment" self who is highly susceptible to fear and greed.

In behavioral terms, it ensures that System 2 (your slow, logical brain) makes the decisions when you are calm and objective. This plan then acts as a guardrail against the impulsive, bias-driven reactions of System 1 (your fast, emotional brain) when the pressure is on.

This principle is universal: defining your rules of engagement before a high-stakes situation arises is the ultimate tool for maintaining discipline.

That's part of the battle plan—I want to know where am I interested in engaging in price? I'm making that decision the previous night... No level, no trade. Period. End of story.

Conclusion: Discipline Over Impulse

Tying these lessons together is a single, powerful theme: discipline triumphs over impulse. In a high-stakes environment where quick decisions can have significant consequences, success is defined less by occasional flashes of brilliance and more by the consistent, disciplined avoidance of foolish mistakes.

The true professional wins not by acting more, but by acting better—and knowing when not to act at all.

The ultimate lesson is a masterclass in emotional control. Where in your life could you achieve more by having the discipline to strategically do less?

☀️ AM BRIEFING

Introduction: The Myth of Hectic Trading

The reality, however, is often the polar opposite—a quiet, methodical discipline built on one core mission: navigating an environment designed to exploit human impulse.

1. The Most Powerful Move Is Often No Move at All

They understand that preserving capital, energy, and focus for high-probability opportunities is a far more profitable strategy than chasing action for action’s sake.

If you never have a no trade day, you don't have your rules in place yet. Every day is not a trade day. Sometimes the price action is so dangerous... you just have to say, no, I can't trade this price action.

2. Success Isn't About Acting; It's About Waiting

A disciplined, slow, methodical approach to trading futures. You've got to learn to wait. You got to learn to say no, thank you.

3. Learn to See the 'Blood on the Chart'

I actually used the word dangerous yesterday 19 times... Just because I'm trading doesn't mean you should be trading... You've got to know when should I be trading and when should I say no thank you?

4. The Best Decisions Are Made in Advance

This principle is universal: defining your rules of engagement before a high-stakes situation arises is the ultimate tool for maintaining discipline.

That's part of the battle plan—I want to know where am I interested in engaging in price? I'm making that decision the previous night... No level, no trade. Period. End of story.

Conclusion: Discipline Over Impulse

The true professional wins not by acting more, but by acting better—and knowing when not to act at all.

The ultimate lesson is a masterclass in emotional control. Where in your life could you achieve more by having the discipline to strategically do less?

❓ FREQUENTLY ASKED QUESTIONS

Futures Trading Questions

1. When should a futures trader skip trading, even if the market is open?

You should plan for "no trade days" because sometimes the price action is simply too dangerous, like a surfer encountering waves that are too big or not big enough for their skill level. If you are only up small, especially under Friday rules, you should consider risking 0.0 to avoid giving back your week's gains. Specific warning signs that suggest you should skip trading include seeing high volatility, the appearance of 15-point "red candles" (which is referred to as blood on the chart), or a high Average True Range (ATR). If you are new or feel uncomfortable, the strong recommendation is to stay flat, as these conditions can lead to an "account killer zone."

2. How important is waiting, and what is the core philosophy of disciplined futures trading?

Waiting is crucial; you must learn to wait and adopt a disciplined, slow, methodical approach to futures trading. The strategy relies on waiting for price to come to you, rather than chasing it. You must establish Battle Plans in advance to decide where you want to engage in price over the next 23 hours. A key rule is "No level, no trade." Patience ensures you are ready for a strong setup, such as waiting hours for the price to hit a specific Battle Plan location where you are interested in engaging.

3. In dangerous market conditions, what specific rules should I follow regarding leverage and stops?

If you insist on trading during dangerous price action—characterized by high volatility and large movements (like 15-point candles)—you must use the smallest leverage possible and strictly manage your stops. You should employ paper cut stop losses to limit the damage. Additionally, if you are trading multiple contracts and get a nice movement, you should peel off your first contracts at the next strong level, as this is the point where the price is most likely to bounce back against you. Never make things worse; know when you are wrong and immediately exit. If you manage to get up 10 or 20 points, you need to stop trading to maintain discipline and secure your gains.