3-21-2013

My Notes:

(After watching Mack's video I was wayyyyy off today.  No wonder I got destroyed.  I thought it was a range day but it was a trend day.  All of my support/resistance levels were not needed.  It's embarrassing how wrong I was about today but it just goes to show how much I have to learn.  At least I'm not throwing a tantrum like I did the other night b/c I recognize that I'm going to have many losing days right now as I learn this price action trading.  So if you are reading my notes below just know that most of them are incorrect compared to how I should have treated the day.  My first trend channel was too narrow b/c I didn't do it off the over night high and low.  I need to start doing this.)

(Mack's correct trend lines are in the black dots)

Still going with the theme of "If I don't understand the setup then do not take the trade."  If I can get 2-4 trades that follow the super strict rules right now of only taking 2nd entries or 2 legged pullback at trend channels or support/resistance areas then I'll be happy with that between 7:30am - 11:30am.

I ended up getting destroyed today but with every trade I had a plan and stuck to my rules.  After watching Mack's videos all of my losing trades were because I cannot read price action correctly.  I recognize this and I have much to learn.

Mack's Notes:

Most breakouts fail and they snap back.
You have to understand how and why price moves.
The goal is to learn and understand price action.
You have to get the experience until you don't have emotions in trading.
Whether you have a winner or a loser you should feel no emotion because winning trading comes with experience and when you get to that point trading gets boring.  That's when you know you are ready to go live.

My Trades:

1.  2nd entry short off of resistance.  The expectation is down since price went down into the range.  Good trade.

2.  2nd entry short off of upper channel of trend line.  Good trade.  I was hesitant to take it b/c the range had been reached from the 1st range but this is a trade I take so I went ahead and took it.

3.  2nd entry long and 2 legged pullback to the lower trend channel.  My thinking was that it was in a channel within in a range and it was going to go back up to test the highs of the day.  Horrible trade.   (Mack said: "Today was a trend day, not a range day.  It suckered me in and he said it probably suckered some other people in.  The gap had already come within a couple of ticks to being filled so that is why it didn't reverse and go up to the high like I thought it would.  Horrible trade but learn from it.

4.  This trade I read incorrectly but it still worked out.  Mack says even if you get a bad entry if you are trading with the trend then you still have a chance to get a winner rather than if you were counter trend trading.  I was going off the failed 2nd entry long when I should have been looking at the 2nd entry short.  If I had done the 2nd entry short then my entry would have been at 12:55 off the EMA and resistance level.  Would have gotten in .75 ticks better.  I took the 2 point gain b/c I was running the replayer too fast.  I finally saw the range it was in and would have had my stop 2 points lower from where the measured range bar ended up 2 ticks above it.  It looks like if I did my 2nd target would have gotten hit at BE so I think this trade is kind of misleading b/c if I took the trade where I was supposed to then it would only have been a one point gain.

5.  2nd entry short off of resistance level.  I thought the market would reverse and test the low one more time.  Horrible trade

Missed Trades:

1.  2nd entry short off the upper channel line.  Beautiful trade I missed b/c I did not have the trend line drawn yet.  If I had I would have taken the trade b/c it was a great trade.