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.
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