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.