Futures Trader Homework: Do This Every Day!

Okay, traders, this video is for every trader, but mainly it is for new traders to our Micros Trader group. What do you see when you look at this chart? Well, that’s the RTH session, and when I look at that, I see all of our core strategy trades. The first three levels that bounce are taught in boot camp. When you join, you get access to boot camp and flight school. Boot camp is where I teach you the first three levels that bounce, and in the fourth class, we put all of those three levels together, and you will create what is called an end-of-the-day chart, clearly labeling and annotating every single trade on this RTH chart for today.

Non-farm payroll: we had five core strategy entries. We were five for five today on this chart. There were also additional trades that are taught more in the flight school, the advanced core strategy, for lack of a better word. So, what does an annotated chart look like? This is what it looks like. This clearly outlines and labels and points and shows where all of the trades existed on this day. The reason you want to do this every day is it will build your confidence that the system that you are learning is a high-probability, awesome trading system. And if you would just stick to the core strategy, it would keep you safe and get you into winning trades.

You should never be ran over by price action. Does that happen from time to time? Sure, from time to time, you’re going to get a candle out of nowhere, and it just rips through a level. But that’s why you have a stop loss. It’s not the only reason you have a stop loss. You have a stop loss because, heck, every now and then, my electricity will flash, and I have to reboot my computer. Every now and then, your broker might freeze up, and you can’t get the order through. You always trade with a stop loss, and we trade with a stop loss because of all of those reasons, and sometimes price does rip through levels. So you have to be prepared for that. No single loss should make a dent in your day or your week. It’s no big deal. Losses do happen, but should you have multiple losses in a row? No, no, no.

So, I encourage you, please, as you go through boot camp, earn each badge for each level, then post your end-of-the-day charts with full annotations like this inside the group. I cannot judge your chart every single day; that’s for one-on-one training. But just by you doing the chart, posting it in the group, comparing your chart to my chart, there is going to be embedded in that process many delightful lessons that you’re going to want to feast on.

So when you annotate your chart like this, I do it throughout the day. As the day was happening today, I am marking my lines and making my annotations. I am putting them in a folder. I call this folder the “Friday End-of-the-Day” folder, okay? And I just slide everything in there, and at the end of the day, you turn it on, it’s complete and finished. By doing this during the day, what does it also do? It slows down the day a little bit and gives you time to breathe and contemplate and think.

Okay, so let’s look at these annotations today. If you’re in my group, this will be valuable to you today. So the NFP news drivers, these red candles, yep, you’re in for a day just like the AM briefing said, it’s probably a good day not to trade. The first level we get is a beautiful front side and a fair value gap, nice 10 Points, and I noted something about trend. It’s the second ladder up. This is a IB high trade, and then you had the overnight high trade as well, which I marked under the advanced stuff. We’re not going to really talk about that, and this strong level bounce that occurred way up here, we’re just going to focus on the core strategy trades, the three levels that are taught inside of boot camp. But as you advance, you’re going to want to put these additional trades on your chart. You might even want to do a second chart showing your trend lines and when trend lines were broken.

So let’s continue going through the day. So price goes up, up, up, up, and then we get a parabolic move. You do not short a parabolic move to the north. In other words, do not counter a parabolic move. You’re looking for longs. This was the next long. Now, this is not the prettiest break level, not the strongest looking break level, but entry was with parabolic trend. When you enter with trend, things can be a little bit sloppier, not as clean and gorgeous, but you’re with trend, and so there’s you another entry to go long with the trend.

Then we came up to the strong level, had a very nice reaction, and one my traders went short here. It’s a core strategy entry on a different time frame, and made 15 points. Good job, Jackie! Price comes down, and you are presented with this option here. So follow the little arrow up here. This was a backside, but the backup level was nine points away. No, thank you. If you did take it, requiring a backup level, you were given the gift of break-even. I’m not going to take that trade when I’m seeing an obvious breakdown here and the backup level is nine points away. No, thank you.

I’m not taking that trade. Now, if you took the backup level, which is this front side, this was a better entry than the backside because the break level was really close, giving you a nice close backup level, plus you had VWAP right behind the break level, IB high right behind the break level, and if you’re in my group, you know we had a high time frame top-of-range level there as well. Multiple confluences with different maths gave you a very nice entry, touch and go. You would have done very, very, very well in that trade. And then we came up and had a perfect touch and go short, nice bounce, front side in a fair value gap with a break level backup. You always want a backup level.

And then price came in, hit this break level again. I narrowed down to like a 30-second chart, you had a nice five-point move, so you would have captured what you capture there. It came back, would have got you out of your runner on that, in my humble opinion, with our three contract system. So we had five for five trades today, and one of the levels was not a trade, this one. So there are really six trades on there, but one of them is not a trade because the backup level is too far. The ideal stop loss is too far. So we use all of these core strategy rules to craft our day.

This is your lab book. And you know what I recommend you do with this when you’re done? Have a settings hit template, and then I have print settings, and what that’s going to do, it’s going to turn my screen white. I can barely look at it. And then you can come in here and say, okay, I want to print this out, but maybe you want vertical lines here instead of all of those colors, and turn off the sessions indicator. You get a suite of indicators when you join our group to help you. And you take this, you print it out, you put it in a binder, and on the weekend, you bring out that binder and you flip through the week, or you come back and you do the replay, candle by candle feature in TradingView, and replay every single day, looking for those core strategy entries.

I’m going to go back to my dark setting. Ah, so much better on my eyes. I’m going to bring back my session indicator because I like seeing that. Of course, you can adjust the opacity of that color and everything, but this is the end-of-the-day chart. Should you be trading until you can do this? Until you can mark up this chart, where you can go from this to this? I recommend you don’t trade until you know where all of these trades are, and you are building your playbook here, guys. You’re building your playbook, and you’re building your confidence that the levels that you’re learning inside of our group work, because they do. And you know how you build your confidence? You do the homework. This is your homework. Do it. You’ll be glad you did.

No trading until your chart can look like this, and you see all of the core strategy trades. Once you can mark up a chart like this, you’re ready to start paper trading. Paper trading. Then you can probably graduate into getting a single prop account. The smallest prop account that says you got to make $1,500 without losing $1,500. If you can’t make $1,500 without losing $1,500, should you be trading with real money? The answer is no.

And with that prop account, I want you to do the max withdrawal. Let’s say it’s 10 grand. Take that 10 grand out, put five in savings, and fund your account with $5,000 and trade micros. This is why we’re called Micros Trader. That’s where you should be, is trading micros. And then what do you do in your cash account? As every $2,000 you make, you can add an extra MES contract. You make another 2,000, you can add an extra MES contract. So your leverage will grow as your account grows.

We start smart, we start small, and you know where you start? You start at boot camp, and you learn these levels. Then you learn to mark them on your end-of-the-day chart. Then you paper trade, and you build from there. I’m here to help you every step of the way. So if you’re interested in learning our system, having some accountability, having some coaching, check us out at micrtrader.com. And if you just want to watch us on Zoom and you could care less about any of this, you’re just interested in watching Zoom, because what we do is we zoom in the morning, pretty much from this time to this time. This is my trading window, and this is when I trade live on Zoom. And then in the afternoon, I come back and trade basically this time frame, but by making posts inside of Discord. Okay, so the morning we zoom, and in the afternoon, it’s more Discord posting of charts, thoughts, analysis, all of that stuff. Okay, that’s how we do it in our group. Stay green, my friends, and to learn more about our group, go to microstrader.com.