2-26-2013

I thought I did pretty well after I watched Mack's recap.  I still made at least one really bad trade by a bad trend line I drew.  I need to fine an NT indicator that shows the days high/low.  It won't be useful everyday but for a day like today it would have been perfect.  It is best to get in when there is a trap or coming off of a high/low. 

What Mack always looks for his entries to come on the trend lines or support and resistance.  He also says you need a reversal bar of some kind.  A reversal bar has a big stem and closes near the high of the bar.

Trade 1:  2nd entry long off of lower trend channel

Trade 2:  2nd entry long and two legged pull back off of EMA.

Trade 3:  Failed 2nd entry long.  Notice how the price never closed above the EMA.  This seems to be crucial for these trades to have success.  Price cannot close on the opposite of the EMA for these types of failed 2nd entries to work. 

Trade 4:  2nd entry short off of the upper trend channel.  I also thought it was a big two legged pullback but in retrospect I don't think it is.

Trade 5:  2nd entry short off of upper trend channel.

Trade 6:  1st entry short off of EMA.  I think at the time I thought it was a 2nd entry short, no wonder it failed.

Trade 7:  2nd entry short off of upper trend channel.  This was the 2nd entry short.  I should not have taken the trade before this but I made a mistake and thought trade 6  was a 2nd entry short.

Trade 8:  2nd entry short.  I drew a new trend line.  I have never drawn another trend line right after it has broken the old one.  I think I got some of Al Brooks teachings confused with Macks.  Because of this I took the 2nd entry short.  If I had not had drawn that trend line like I never have before then I would not have taken this trade.  This was the horrible trade I was referring to earlier.

Trade 9:  2 legged pullback to the EMA with a short trap.  This is the trade I am most proud of.  Not because it was the big winner for the day but because I recognized it right after my short was stopped out.  I deciphered that since my short was just stopped out that the down trend was over and I needed to go long.  I saw that price had made a two legged pullback to the EMA so I got in one tick above the short trap off of the EMA.  I got out a couple of ticks above the previous swing high.  I could have held on for another two points so I'll have to do my exits better.

Missed Trades:

1.  Failed breakout short.  Not sure if I saw this at the time.

2.  2nd entry long.  At the time the channel had not been established so this is too advanced of a trade for me.

3.  I didn't mark it but it is at 12:26.  It is a 2nd entry long with a great reversal bar that is also a failed break out lower.  The reversal bar is the key here.  I need to remember to always look for those bars.

2-25-2013

I've been watching the Al Brooks video series and one thing that stuck out to me was always trade the way the institutions are trading.  When you see big moves then get in on them.  Reverse your position if you see a big move going against you to join in on the move.  The institutions move the market and all you can do is hop along for the ride.  I was doing more of the failed 2nd entries coming off of support/resistance which seemed to work out really well today.  I think those work best in a channel when coming off one of the channel areas.  I'm really going to start focusing on those b/c it seems that is where my big runners come from more so than the 2nd entry trades.

Trade 1:  2nd (3rd) entry long off of the EMA.

Trade 2:  2nd (3rd) entry long off of the lower trend channel after I missed the first trade

Trade 3:  Retest of support turned resistance.  What I thought it was at the time was a failed 2nd entry long so I took the short thinking price was headed to the lower channel.

Trade 4:  2nd entry failed short.  I went long and should have dropped my order one tick above the lows.  I would have gotten filled and had a 3+ point runner.  It is okay to miss a trade to try and get a better entry.  If I had done this a 3 point loss would have been a 4+ point winner.  I did call that it was headed higher after the failed 2nd entry short.

Trade 5:  2nd entry long.  This is just a horrible trade.  No two ways around it.  Price was coming off the upper trend channel, no reason to take this trade.  For some reason I convinced myself that price was going up out of the channel.

Trade 6:  Failed 2nd entry long off of upper trend channel.

Trade 7:  Failed 2nd entry long off of upper trend channel.  I figured price was headed down again at  least to the lows of the day so after price broke the failed 2nd entry long I hopped on board.

Trade 8:  Failed 2nd entry long off of EMA.  Figured price was headed to the lower channel band which it ended up doing.

Trade 9:   2nd entry long off of EMA.  Figured price was headed to the upper trend channel.

Trade 10:  2nd entry long.  Had a double bottom and figured I was only risking two points if I was filled to win 3+.

Trade 11:  Failed 2nd entry short.  Had a nice short trap with a 2nd entry short signal I thought could trap a lot of shorts.  Not sure if this is a good trade.  Do not think it is even though it worked out.

Missed Trades:

1.  2nd entry long off of 2nd test of support with a double bottom.

2.  2nd entry short with failed breakout.  Saw it at the time and should have taken it.  Talked myself out b/c when I saw it break through resistance I though it may be going up.  These are trades you have to take b/c you were risking 1.75 to get 3+ on your runner since support was 3+ points away.

3.  2nd entry long off of lower trend channel

4.  2nd entry short off of upper trend channel

5.  Failed 2nd entry long off of upper trend channel.  This is a beautiful trade to take EVERYTIME!  This is where the majority of your runners come from.  Failed 2nd entries at a upper/lower channel area.

6.  2nd entry short off of upper trend channel.  No reason to not take this and I saw it at the time but I talked myself out of it b/c for some reason I thought price was headed higher.  I should take this every time b/c more than likely price is at least retracing to test the low or get close to it before turning higher.

7.  2nd entry long.  Pretty aggressive trade so no problem not taking it.

8.  Failed 2nd entry long off of upper trend channel.  Beautiful trade but I didn't run the sim this far.  It would have been another great runner.

2-5-2013

This is why I am not ready for the advanced trades he recommends taking.  I tried 2 of them which of course ended up being losing trades b/c I misread the charts.  I'm not going to take out the measure move against the trend trade from the list of trades I take.  I am not ready for it until I can read price action better.

Trade 1:  2nd entry long off of lower trend channel.  If I had stuck to my plan and left my stop at 2 ticks below the signal bar then I would have at least made the 1 point scalp.

Trade 2:  2nd entry long off of the EMA.

Trade 3:  This was a made up trade I did which of course ended up being a loser.  Every time I do one of these trades it is a loser so quit making trades up and stick to your plan.

Trade 4&5:  Both of these trades I'm not taking anymore until I can read price action better.  I thought they were an overshoot of the measured move up and at the top of the upper trend line.  I thought I could short them when really I couldn't b/c they were not far enough away from the EMA.  Horrible trades b/c I struggle to read price action so I am not ready to take these trades.

Trade 6:  2nd entry long off the EMA.

My profit targets

Right now I am trading with 2 contracts because it will be the same if I am trading with 2 or 50 (not including the issue of slippage of course).  My first target is 1 point for the first contract.  The 2nd target is initially set at 2 points but it will change each and every time depending on how price is moving.  I will use different techniques such as measured prices moves, support and resistance levels and channels to determine my most profitable exit for my 2nd contract.

My stop loss

From Mack's teachings I have an initial stop loss of 2 points.  As soon as the entry bar closes I move my stop two ticks below it.  I will never move my stop loss greater than two ticks below/above the entry bar once it is set.  I will move my stop loss up if I feel the trade is not moving as it should accordingly.

Trades I am Currently Taking

1.  2nd entry longs/shorts only off of EMA or the upper or lower trend channels.

2.  2nd entry failed longs/shorts

Starting (2/24/2013)
3.  1st entry long/shorts when price creates a nice stem off of the upper/lower  channel

4.  Measured move long/short at the end of the move.  Taking a trade in the opposite direction at the top/bottom of the move after the bar that reaches the top has the next bar close higher (long) or lower (short).

2-6-2013

It's Saturday night, time to stay home and go over old charts!

Every time I make a losing trade it is b/c I see something that is not there.  I pretty much just make up a trade b/c I think the market is headed in the direction I have decided for it. There are numerous trades I am missing from his market reviews but they do not fit my trades as of yet.

Mack's lines are in black.  The measured move short at the top is very interesting.  One I will think about adding since the only trade that happens everyday are the 2nd entry trades.  The failed 2nd entries do not happen everyday.

Trade 1:  2nd entry long off of the EMA

Trade 2:  2nd entry long off of the bottom of the trend line

Trade 3:  2nd entry short off of the EMA with a short trap bar.  I thought the market would go and test the support again for at least another scalp.  Turned out to be a failed 2nd entry short.

Missed Trades:

1.  Price touched the bottom channel and reversed off.  This is another trade to think about adding b/c he takes them and they are pretty easy to spot.

2.  Long off of retest of support level.  I think I just made this trade up so I'm glad I didn't take it when I had thought about it even though it worked out.

3.  2nd entry long.  Would have gotten a scalp but it was in the middle of the channel.

4.  This is a measured move short.  I really like this trade and am thinking about adding it.  At the exact top of the 2nd measured move price ticked up and then reversed.  The market moves in twos so it wouldn't have to retrace very far for a scalp.  Mack said the better entry would be below the green bar one over to the left or at least below the close of the bar that ticked one tick higher.

2-22-2013

Today is definitely a learning day.  The good news is that all of my losses are very correctable b/c it is due to me reading the price action incorrectly and getting in at bad times.  The market confused me and it showed in the trades I took.  I was taking a short when I should have been taking a long and I got fooled and took a long to early when if I had taken it two bars later when I should have then a 3 point loss would have turned into a 1 point gain.  Anything in black on my charts is from what Mack said after I watched his market review.  I'll get better by reviewing more charts and putting in more time doing this.  It takes a lot of time watching the charts and eventually knowing what to expect.

Notes from Mack:
Prices are continually looking for strong support and resistance areas.  You can't be swayed by fear or swayed by greed b/c they each work against you.  You have to think rationally.  If you buy and sell breakouts you will eventually lose all of your money.  You are better off to fade the breakouts.  You will get better identifying the support, resistance and trading channels by spending more time with the charts.

Trade 1:  2nd entry long off of the EMA and trend line.

Trade 2:  2nd entry short off of resistance level after failed break out of the trading range.

Trade 3:  This is where the market got me good.  I had drawn that brown trend line thinking the market was in a downward trending channel and that the market was going to hit it and reverse back down.  It was a 2nd entry short off of an incorrectly drawn trend line.  After watching his video I realize I should be looking at going long there.  I also did not carry over the resistance turned support line where price was bouncing off of looking to go higher.

Trade 4:  I misread the price movement b/c it was not a 2nd entry long.  The 2nd entry long was 2 bars after my entry bar off the EMA.  If I had read it correctly and/or waited for price to hit the EMA then I would have been able to scalp 1 point rather than losing 3 points. 

Trade 5:  2nd entry long and 2 legged pullback off of the lower trend channel and off of the resistance turned support (which I did not recognize at the time).  Price came back and took out my BE stop by one tick right on the trend line before it skyrocketed up for another 4-5 points.  Oh well, just one of those days.

Missed trades:
1.  Was a 2nd entry long but was near the top of the 1st trend channel I had drawn and there were several overlapping bars.  Also was too far away from the EMA.  Good job not taking it.

2.  Failed 2nd entry long.  I called it at the time and thought about taking it since price had made a lower high previously.  I didn't take it b/c it could have been considered a breakout trade from the previous low to the left.

3.  2nd entry short.  No way I'm ever taking that so far from the EMA and so close to the bottom of the trend channel.

4.  2nd entry short off of resistance levell.  I am not comfortable taking these yet since I do not have a plan if they are not 2nd entries.

5.  (This is a black circle that Mack said was a great entry)  This was a 2 legged move down that made a failed breakout new low.  A failed breakout of the trading range.

6.  (This is a black circle that Mack said was a great entry)  2nd entry long where resistance turned support.  This totally fooled me b/c I was convinced that was an area to take a short and not a long.

2-21-2013

Today there were lines drawn all over the place.  The main thing I recognized early was that price was making a slow and grinding move up which meant it did not have much strength right before the market opened.  I was fortunate my only long trade of the day hit my first profit target and that based upon how it was channeling in the channel I got out with a little bit of a profit on the 2nd contract.  Price was coming back and taking out all break even stops and was grinding slowly upwards so I didn't feel that there was much of a chance for a runner.After I drew my 3rd trend line before the first 30 minutes of live trading was done I realized there had to be a bigger channel which I found.  This saved me from taking 1 -2 longs at the top of the channel which would have been losers.  I would have taken at least one long trade after that strong move up out of congestion if I had not made the decision to trade off the channel before price reached up there and only take shorts.  Price didn't make it all the way to the lower channel today but it was the basis for me only taking short trades today.  I got in 2 of my new trades I am adding which are the failed 2nd entry short/longs.  I still need to clarify when to exactly get in.  There may not be a solid answer and you might just have to get in after you see the 2nd entry failing going against the trend.  The one trade I am glad I didn't take was the short near the end of the day.  Where there were 6 overlapping bars.  I remembered Mack saying that type of formation is not a good setup so avoid those trades.

I am looking for a book/course/videos that show you how to gauge the market direction based on the previous days activity and the pre-market hours.  I think this will help me greatly b/c I have a very hard time at the beginning of the day deciphering which way the market is moving and that is when I take the majority of my losing trades.  Vanilla showed me some stuff I will take a look at to see if that has this sort of information. 

Trade 1:  2nd entry long with a pullback to the EMA and trend line.  Was fortunate to get one more push up before the market went down for good.  Notice how the market was grinding slowly up with no strength.  I took the 2nd contract out early b/c price was always coming back and touching the lower trend line so due to all those factors I didn't think there was a very good chance to have a runner.

Trade 2:  2nd entry short off the EMA.  Price was too far away from the uptrend channel to think that it was just a pullback before resuming its upwards trend.  I figured that price would probably go down to test the previous low and I had my 2nd contract 2 ticks above that but it took out my BE stop first.

Trade 3:  2nd entry short off the EMA.  Beautiful setup and perfect measured move down.  I left about 1.5 points on the table but I am very happy b/c I got out using the measured move down.  This is where I drew the larger trend line in brown b/c I had drawn 3 previous trend lines and the market had not been open 30 minutes.  I used this to remind myself to only take shorts unless the market took out the high at 1507.

Trade 4:  2nd entry short.  Price had broken out of the channel but I though there was still a good chance it was just a slight move higher before turning back down.  At the time I didn't see that the move had made a higher high than the high at 9:00.  I think that was a sign that this was going higher.  If this swing's price had just made a double top compared to the swing at 9:00 or a lower low then this would have been a good trade to take.  ALWAYS NOTICE IF THE SWINGS ARE MAKING HIGHER HIGHS, HIGHER LOWS, LOWER HIGHS OR LOWER LOWS.  Keep an eye out for these things b/c this is what will make you super successful

Trade 5:  I should have waited for the 2nd entry short which would have happened 3 bars later.  I just took this trade b/c price was hitting the top part of the channel and I got scared that I would miss a good short.  This is not a trade I am taking right now.  It has to be at least a 2nd entry short, not a 1st entry.  It worked out b/c the channel was correct but do not take these 1st entries right now.  Mack can but you can't due to your lack of experience.

Trade 6:  Failed 2nd entry long.  Great job recognizing this trade.  Price was in a downtrend and was making lower highs along the upper trend channel.  Maybe could have gotten in a tick earlier.Price was hitting off of the upper trend line and the swing high made a lower high than the previous swing high.  I left about 2 points on the table waiting to move my stop down.  I probably should have moved my 2nd exit to all the congestion at 1500 since the bulls were fighting that area.  I was greedy and was looking for price to run all the way to around 1498.

Trade 7:  2nd entry short off of the upper trend channel line.  Beautiful hit off of the newly drawn upper trend channel line.  Excellent exit using the measured move and right around the lows of the day at that time.  Excellent entry and exit.  Very nice trade.

Trade 8:  Failed 2nd entry long.  Another trade I am proud of.  These failed 2nd entries seem to produce runners almost every time.  There must be a lot of trapped people on the other side.  Exited two ticks above the bottom of the lower trend line.  Another excellent trade.

Missed Trades:

1.  2nd entry short.  I saw it and even though about taking it but it was too far away from the EMA for my liking.

2.  2nd entry short.  This is a trade I am proud I did not take.  There had been 6 overlapping bars and Mack preaches that is not a good setup so even though I really wanted to take the short I held off.  The emotions of missing a winning trade were yelling at me hard to take the trade but fortunately I followed Mack's advice.

3.  Failed 2nd entry short.  Price had been going down all day so I was not looking at taking any longs.  It was also close to the upper brown trend line and late in the day.  It would have been a great trade but there were too many factors going against it that I am fine with not taking it even though it turned out to be a great trade.  Very good job of recognizing while trading that it was a failed 2nd entry short but quickly going over the pros and cons and sticking with your plan to only take shorts today.

2-20-2013

Did a good job of only trading with the trend today.  I was tempted to try some longs like I did earlier in the week but I stuck with my plan to not take counter trend trades so I'm happy about that.  It is too reckless for where I am right now.  I missed one entry that I should have taken at 13:06 b/c I was running the replayer too fast.  Eventually I'll incorporate some of Mack's other trades he recommends taking such as when price was in a downtrend today and price ticked one tick higher off of the EMA or upper trend line compared to the previous bar.  This trapped in longs and was a good entry bar.  It wasn't a 2nd entry like I am taking now and I didn't even recognize it when it was happening so I know I have a lot more review sessions to do.

Trade 1:  2nd entry short off of the EMA.

Trade 2:  2nd entry short off of the trend line and a 2 leg pullback.

Trade 3:  2nd entry pullback.  I'm debating on waiting until price retests the upper trend line when price has broken the EMA even if it a 2nd long.  The reason why is even though it was successful I wonder if after seeing the 2nd entry long if I put a short limit order right on the upper trend line.  I've seen this before where price makes a 2nd entry short but above the EMA and price goes higher to the trend line before turning down.  The 2nd entry short may signal that price will probably go lower but that it isn't going to make it's push down until it reaches the top of the channel.  This is something to look at. (((((((((((((((((If price is in a downtrend channel and makes a 2nd entry short above the EMA, then put a limit order short on the upper trend line for a better entry b/c since price has already broken through the EMA then it will probably reach the upper trend line before turning back down EVEN THOUGH you have a 2nd entry short before the upper trend line))))))))))))))))

Trade 4:  2nd entry short off of the EMA

Missed trades:

1.  2nd entry long with it being a short trap.

2.  This is one of those trades Mack was talking about that is all about reading the price action.  It isn't a 2nd entry short.  Price had been making lower highs along the EMA and trend line.  Then price created a 2nd entry long THAT FAILED! Put your entry one tick below the low of the previous bar b/c look how quickly price turned lower.  If you had taken this trade you would have had a 3+ point runner.  LOOK FOR FAILED 2ND ENTRIES GOING THE OPPOSITE DIRECTION OFF OF SUPPORT/RESISTANCE!  Add the failed 2nd entry against the trend to my trades to take.

3.  2nd entry short off of the trend line where price slightly overshot it.  There is no reason why I should not have gotten in this trade.  This is a 2nd entry trade I take.  I was running the replayer too fast.

2-19-2013

It takes intestinal fortitude to enter long when price is in a pullback but if you understand price action you will know why you are trading correctly and getting long when the losers are getting short.  They are transferring their money to you.

Today I felt I did well.  Getting a little better at recognizing the price action and trends.  If I had drawn the correct trend line at the end of the day (the dotted black line I did not draw but was the correct line) then my last trade would have been a winner b/c I would not have tightened my stop up so much.  I was afraid of price rolling over and didn't want to take a full 2pt loss so I tightened up the stop 1 tick below the lows.  A good rule of thumb is to go 2 tick below the swing low since Mack even mentioned in today's video that price so many times will tick down one tick below the lows just to take out your stop.  Other than that I felt all of my trades were solid and the video he made today follows trade #3 I took exactly!  I'm excited about it b/c I took the exact same trade.  I was a little unsure about it since the entry was a 4th long pullback entry rather than a 2nd but price was coming off the trend line and off the EMA and probably one of the biggest factors is that it created a short trap.  I saw all of these things ahead of time before I took the trade.  I did make the mistake and think that it was the 2nd leg of the move up when really the 2nd leg had already been formed from the previous leg up.

I need to read the Trading in the Zone book by Mark Douglas....I think that's his name and title of the book.

If price skyrockets up or down then that is a "gap."  If that move isn't a retracement or move to fill a previous gap then realize that eventually price will come back and fill the area where price skyrocketed up or down.

Other than the mistakes of moving my stop up too early and tight for the last two trades, today was a great day b/c I took what would have been all winning trades!  Also, the first 3 trades are good trades that Mack said were valid trades in his video.

Trade 1:  2nd entry long and 2 legged pullback to the trendline and EMA.

Trade 2:  2nd entry long after price had pulled back to the trend line and EMA.

Trade 3:  This is the trade I am very proud of b/c it is the same one Mack used as his live example.  4th long pullback entry rather than a 2nd but price was coming off the trend line and off the EMA and probably one of the biggest factors is that it created a short trap.  I saw all of these things ahead of time before I took the trade.  I did make the mistake and think that it was the 2nd leg of the move up when really the 2nd leg had already been formed from the previous leg up.

Trade 4:  This one is questionable.  I took it b/c price had made a double top previously and  did not bust through the support so I felt we were in a range and could get in at the lows.  I would only risk about .75 points to make 1 pt plus a runner. Turns out if I had kept my runner a tick below the swing low I would have been in the trade until the end of the day.  I got too aggressive with it and didn't wait for the swing low to develop.

Trade 5:  2nd entry long from the EMA and close to the trend line.  If I had drawn in the trend line when I was trading then I would not have moved my stop up so tight and it would have been a great trade.  The short trap took out my stop.  I should have had it two ticks below the low at a minimum or I should have just left it at 2 points.  I was afraid price was going to turn over and go back to the gap by the end of the day.  Other than the mistakes of moving my stop up too early and tight today was a great day b/c I took what would have been all winning trades!

Missed Trades:
At the end of the day I didn't have the trend line drawn correctly but I still saw the trade but hesitated taking it.  I still should have even though I drew the trend line incorrectly b/c it was a two legged pullback to the EMA and was a 2nd entry long.  No excuse for not taking this trade.  The correct trend line is drawn in black dots after I was done trading.  If I had drawn this trend line correctly then I probably would have taken that trade.  It is a perfect setup.

2-7-2013

I am doing 2-7-2013 b/c nobody trades on Presidents Day (Today 2/18/2013).  I think I am playing with fire by taking too many of the 2nd entry longs in a big down trend.  When price makes a double bottom and is heading up to resistance for a 2nd time then do not take a 2nd entry short thinking you are in a range.  You might be but since price had just made a double bottom it could blow past your perceived resistance which it did today.  Don't talk yourself out of trades when there is a beautiful setup.  I called it that price trapped the shorts and was fixing to turn up with a beautiful 2nd entry long coming off support.  It was also a failed breakout lower but I talked myself out of it b/c I was up for the day and didn't want a losing trade to put me negative.  This is only in Sim but yet my emotions still wreak havoc on me.

Trade 1:  2nd entry long after price was far away from the EMA.

Trade 2:  2nd entry short after price was in a downtrend and off the EMA.

Trade 3:  2nd entry long after price was at the bottom of the channel.  It looked like price had been stalling and was fixing to turn higher.

Trade 4:  2nd entry long.  This time price turned higher after the shorts had lost momentum and price went to the top of the channel.  Good exit and great entry.  I left a point on the table but I'm happy exiting early since price had been in that huge downtrend and price would probably come back and test the low.

Trade 5:  2nd entry short at perceived resistance.  Price had broken out of the channel and I thought it was in a range.  I should not have taken the trade b/c I had just missed a beautiful double bottom long and price had broken out of the downward channel.

Trade 6:  2nd entry long off of the EMA and new channel line formed b/c of it.  Beautiful entry and PERFECT exit.  I used the 2 legged measured move and exited 2 ticks before the top.  Turned out to be a perfect exit.

Trade 7:  2nd entry long after price had overshot the channel.  Price was also testing the previous resistance turned support level so I factored that into another plus as to why I should take the trade.  I figured that price would probably test the previous high which is where I planned to exit. If price went higher than that then oh well but I didn't want to give up 2.25 pts to wait and see.  Also it was hitting the support turned resistance of the bottom of the channel.  Turned out to be another GREAT exit!

Missed Trades:
1.  Had a buy order that was one tick away from being filled.  Price had moved up into that area from the night before and I figured price would test support and turn up to test resistance at least once.

2.  This is the trade I talked myself out of.  Price made a failed breakout low then turned up and created a 2nd entry long off of support.  Price skyrocketed up from there.  Live and learn.  You were scared about taking a long trade in the face of the move down to test the previous low b/c I was slightly up for the day and a losing trade would have put me at a loss.  You did a good job in recognizing that it was a great trade to take and even called it but you hesitated and could not pull the trigger to buy.

2-8-2013

Range days are confusing too me right now.  I think I was lucky on one or two trades today, especially the first trade.  Going to need a lot more practice on range days b/c they do not always give you your 2nd entry signal.  They will hit the top or bottom of the range and then go off of it.  Draw your first channel or your range bars off of the overnight high/low.

Trade 1:  Should not have taken this trade.  Figured the market was overbought and had a long trap so I could scalp  a point.  Do not continue to do this.

Trade 2:  2nd entry long in an uptrend.  If you look to the right you will see a better entry after price made a double bottom.  More confirmation that price is going up and I could have gotten in one tick better.

Trade 3:  Blindly put my stop and the bottom of the initial range.  Not sure about this type of trading, I don't like it so probably won't trade like that until I get more experience.

Trade 4:  2nd entry long off of new range low.  Also thought that may have been the bottom of a new downward trending channel.  Ended up closing out both positions when I only meant to close out one and move my runner to BE.

Trade 5:  2nd entry short off of the top of the range.

Trade 6:  2nd entry short off of near top of range. 

Missed Trades:
1. 2nd test of original low and the market had traded up into that range.  When the market tries something twice and fails then the market is usually headed in the opposite direction.
2.  Price broke through the resistance and came back and touched support.  (My resistance level should have been one tick higher)
3.  I saw this right after it formed and I was already in that bad short trade.  2nd entry long after failed break out low.  I should take this every time.
4.  A better long entry after a double bottom.
5.  Long entry after a short trap and bouncing off of range low.  Not a 2nd entry long so I didn't take it and it was 20 min to close on a Friday so I probably would not be trading at that time anyways.

2-11-2013

I need to go back and redo this day.  Not sure what I was doing then since it was several days ago and I do not remember my though process for those 2 trades.  Obviously it was wrong.

2-12-2013

Was only trading with one contract here.  Price will sometimes stall before pushing through the EMA when going from opposite sides of the channel.

Trade 1:  2nd entry long off of the bottom of the channel.

Trade 2:  2nd entry short off of the top of the channel after price overran it.  Should have held on for the full scalp but exited when price started making dojis on the EMA. 

Missed trades:

1.  2nd entry short off of the top of the channel.

2.  Not a 2nd entry but price made a short trap off of the low of the channel.

2-13-2013

Draw trend lines at the beginning of the day, not from other days.  Only go by trendlines from the current day.

Trade 1:  2nd entry long off of the bottom of the trend line.

Trade 2:  This wasn't a 2nd entry long but price was coming to a major trend line and had pivoted off of it.  Even Mack said this was a good trade.

Trade 3:  2nd entry long off of the trend line.  I should have been wary b/c price was acting funny and probably should have been looking for a short.  Once I saw price create a long trap (I was in) I should have moved my exit to one tick below my entry candle at 1518.00.  This would have reduced my losses even more. 

Trade 4:  2nd entry long.  Once I saw price waffling around the EMA then just got out.  Price had rocketed down and I thought they could retrace to the EMA and go back down again so I didn't want to be on the wrong side.  Should have trusted my entry and held on.

Trade 5:  2nd entry short and price was retesting the support turned resistance it just broke through.  Good job holding on and exiting near the bottom of the channel.  Once I saw the short trap before price turned lower for good then I knew I would at least get a scalp out of it.

2-14-2013

Today's chart was a little sloppy b/c I had a hard time getting the correct trend but that will become easier with more practice.  Made one bad trade that wasn't a 2nd entry short and I just took it off the trend line.  Draw the channels using today's price, not previous days prices.  If you are not sure of anything else then stay with the trend.  If you do not know the direction of the market then do not trade.

Trade 1:  2nd entry short and looked like it was also off a resistance level.

Trade 2:  Horrible trade.  Just took it b/c price was hitting the top of the channel and coming down to the EMA.  I should have noticed how price was making higher highs on the way up.  There was no reason to take this trade since it wasn't a 2nd entry.  At least I cut my stop down to minimize the loss.

Trade 3:  2nd entry short off of the top of a channel.  Got out early on 2nd contract when I thought price was going to go back up.  Should have stayed in at least to the bottom of the channel.

Trade 4:  2nd entry long coming off the bottom of the channel. 

Trade 5:  3rd entry long coming off the bottom of the channel where price has made a 2nd leg down and there is a short trap.  Great trade and I'm satisfied with the 2 point runner from the measured move of the 1st leg up. 

Missed trades:
1.  Double bottom on the EMA in a downtrend.

2.  Double bottom off of the trendline long in an uptrend channel.

3.  2nd entry short.  It is okay to miss this one even though you could have at least scalped it.  The reason why is the channel I was going off of had not been reached at the top and price was too close to the EMA and the bottom channel.  I should have adjust the channel to fit the new trend it was on.

Price Action Trading

This blog is mainly for me to have a place to write my notes after each day's trading.  Currently I am trading in simulation the ES using 2 contracts.  One contract is out at 1 point profit and the other is usually left to be a runner.  My goal is to be able to trade the maximum number of contracts the ES will allow before you experience bad slippage. 

My trading style has evolved from about 6 years of learning a bunch of different forms of trading.  I love day trading and have already busted one account at the beginning so I am not going live again until these two conditions are met:

1.  I am profitable at the end of every week for 12 weeks in a row.
2.  Getting in a trade does not excite me. 

For #2 what I mean is that I have practiced in sim for so long and have my trading style so engrained into my brain that when I take a trade it no longer excites me.  I know exactly what to do in any situation and if something does surprise I will be able to quickly adjust to it.  No longer will I be nervous b/c I am not sure about the trade but that I will be so confident from practicing so much that getting in every trade I take is not exciting b/c I am prepared.

I am using Mack's Price Action Trading.  For some reason his style made perfect sense to me.  I think if I started out with his style it may not have made so much sense to me but because of my journey so far I think I ran across his style of trading at the perfect time.  You can check out his website at http://priceactiontradingsystem.com/.  He also provides daily market recaps on his Youtube channel at http://www.youtube.com/user/PATsTrading?feature=watch.  I did not want to rely on "customized" indicators that someone else created who I would have to pay for.  I did not want my trading to be at the mercy of someone else.  I had already been down that road several times and it did not work for me.  The only indicator on my charts is the 21 EMA.  I first ran across the concept of only trading using price action while only using EMAs from Al Brooks.  The problem is that to me, his teaching style is so advanced that it is hard for me to understand what he teaches and how to implement it.  I loved his trading style but I had a really hard time understanding it.  Mack's style made perfect sense to me the first time I read it so I ran with it.

2-15-2013

Ended up +3.75 points on the day.  Even though my losing trade faked me out I should have gotten out at around a -1.25 loss once I saw it did a long trap and reversed lower.  I also didn't take a trade at the end of the day which I called when trading that would have been another 3+ points at the minimum!  Even in Sim my emotions go crazy and I talked myself out of the trade even though the trade setup beautifully and met the price action requirements to take the short.  I think in a year from now if I come back and replay today then I would get 11+ points easy only trading 2 contracts. 

 Always watch for trading range areas b/c when price breaks through a range it usually goes the same distance as the previous range.

Trade 1:  2nd pullback off of EMA and it looked like price had overshot the trendline.  I expected price to go up and provide at least a one point scalp. 

Trade 2:  I thought price was creating a new flatter trend since I didn't expect the initial trend to hold b/c it was too vertical.  Price made a 2nd pullback long.  I expected price to test the previous highs or to go higher for the new trendline I anticipated.  Once I saw the long-trap happen I should have put my stop one tick under the swing low.  I shouldn't have taken the trade b/c I should have waited for the pivot to develop to see if price was really in a new channel and should have been looking for a short rather than a long.

Trade 3:  2nd pullback short to a channel where price was actually in a trading range.  I'm happy with how I exited but now I've learned about the trading range and how to calculate a move when price breaks out of a range.  I left 2 points on the table since I was going by a 2-legged measured move and not the trading range breakout measured move.  Overall I am very pleased with this trade from where I am in my trading knowledge.

Trade 4:  If I had looked to the left of the chart I would have seen that price was getting close to the lows of the day which would have confirmed this trade even more.  I perceived that price was due to at least go back up to the EMA for at least a scalp and possibly could go as high to the top of the trendline.  I figured that price had overshot the trendline and was due for a pullback.  I entered on a 2nd pullback long and exited my second contract around the top of the trendline.  This is another trade I am very pleased with in how I entered and exited the trade.  Not just b/c I maximized the profit but b/c I had a plan and stuck with it for my exit. 

Missed Trades
1.  At 3:49 in the morning I missed a 2nd entry pullback long coming off of a double bottom after a run down where price could at least rebound and test the EMA.  More than likely I would not have been up at this time to trade but it is something I would have taken if I had been up trading then. 

2.  At 9:46 I totally missed this trade and only put it there b/c Mack identified it and it fit a trade I would have taken.  It was a 2nd entry long off of the trendline and off of the lows of a trading range.  I was still wondering about the losing trade I had just taken so I was not ready to identify this trade like I should have.

3.  At 1:04 I missed a trade.  This is the trade I talked myself out of, even in Sim.  I was reasoning that it would have been Friday afternoon and if I was live I would lock up my profit and call it a day.  Not wanting to risk a losing day I didn't take the trade.  This was a 2nd entry short off of the top of the trendline.  I even called it when going through sim.