4-23-2013

My Notes:

Still focusing and identifying the 2 legged measured moves.  That has been the breakthrough for me so far.  Today I am going to take every trade based off of those 2 legged measured moves that I think is a good trade.  I am not going to tighten up after I have a couple of winning trades.  I am going to continue to look for good setups and take the trades.  This is all in sim so take every good trade you see.

Mack's Notes:

When there is a trend line break in an uptrend then price will usually create two more legs to a new high before going into a range or reversing.

Usually when price moves big from a news reaction then price will usually come back and fill it during the day.

You never trade w/o safety stops.

My Trades:

1.  The 2 legged measured move was 1-2 ticks from completing and this was a 2 legged move down.  I expected price to go to the big overall 2 legged measured move.  The was also a 2nd entry from the previous swing high.  (I took my 2nd lot out when price stalled)

2.  2 legged measured move down that had completed and was a 2nd entry off of the low which was also off the EMA.  This might not have been a good trade but I at least got a scalp.

3.  Was the end of a 2 legged measured move down but the long trap got me on the first entry.  Should have waited for the 2nd entry which I got in below.  2nd entries + 2 legged measured moves are the key to success.  The 1st entries are tempting but I think they lead to more losses than the 2nd entries do.  You cannot get impatient.

4.  The 2 legged measured move down had been overdone and this was the 2nd entry from the previous swing high.  I took my 2nd contract out when a down trend line developed and a 2nd entry short formed with a double top.  I wouldn't even be trading this late anyways if I was live.

Missed Trades:

1.  Pullback in a strong trend to the EMA.  I am not really taking this trade.  I saw it but was waiting for a 2nd leg down that was a measured move for me to take the trade.

2.  2nd entry short off of the previous high.  It was also off the EMA.  I suppose I could have looked for the 2nd leg of a measured move down.  I was actually looking for a 2nd entry short off of the lows but I see why I missed this.  I should have been going off the highs when looking for a 2nd entry short on a 2nd leg to a measured move.