4-24-2013

My Notes:

Focusing on 2 legged measured moves and only taking 2nd entries unless price is in a very steep move and it is a first entry off the EMA, then I'll take it.  Otherwise every other entry is a 2nd entry with the 2 legged measured moves being the basis of almost all trades.

Since I started doing this a little over 2 months ago I have improved.  On a range day like today I would normally be fortunate to break even but today I didn't have a a losing trade using the 2 legged measured moves.  I am still very far away from going live but I am much further ahead than I was 2 months ago.  I even took almost every trade Mack said was a good trade by focusing on these 2 legged measured moves.  I am becoming more and more convinced that these are the key for me to be a profitable trader.

Good trend line drawing today and S/R lines.  Getting better at this as well.  They are easier for me to see now.  They are not perfect but are way better than where I was 2 months ago.

Mack's measured move arrows are in black.  I could not see this which is why I did not label it.  I just couldn't make it out no matter how hard I tried.

Mack's Notes:

You want to buy at support and sell at resistance.  If you try to trade breakouts you will go broke.

Buying at support and selling at resistance goes against common sense b/c you are trading against the way price had been moving.

If you are sim trading just follow the rules the best you know them and take all of the good trades you see.  At the end of the day review your charts and see what you did right and do more of that. See what you did wrong and correct that thought process.  That is how you become a better trader.

Do not try to learn with a live account.  If you haven't proven that you can make money on the simulator then you will not make money trading live.

When you 1st go live you will struggle with your emotions but you will be light years ahead if you have proven to yourself that you are consistently profitable in sim.

My Trades:

1.  2nd entry and was looking for the 2nd leg of the measured move up.

2.  Thought it was a 2nd entry short off of a double top but as soon as it didn't go down to start what I thought was the 2nd leg of a big measured move down I got out at BE.  I have no idea where price is going right now.  (AS SOON as I get out price moved down to take out my scalp.  Oh well at least my reasoning for taking the trade was correct)

3.  2nd leg of a 2 legged measured move.  2nd entry counting from the lows off the EMA.  I got in one tick too high b/c I didn't have my entry correctly placed.  At least I got the scalp.

4.  2nd leg of a two legged move.  Entry bar had a great short trap.  2nd entry long counting off of the lows.  Should have taken my 2nd contract out at the 1 point scalp b/c that is where the end of the measured move was.  I had it 2 ticks below the resistance level.

5.  End of a 2 legged measured move up and was a 2nd entry short.  Obviously I was a little early but it still worked out.  I was also looking for the 2nd leg of the bigger measured move down.  I thought it was a great setup since the 2 legged measured move pullback had been hit and formed a beautiful 2nd entry where I was looking for the bigger 2nd leg of the measured move down.  I had my 2nd contract 1 tick above the low of the measured move.

6.  End of the bigger 2 legged measured move down and of the smaller 2 legged move which was withing the bigger 2nd leg down.  Price was coming off support and was a 2nd (maybe 3rd entry).  I took my 2nd lot out at the end of what I thought was the 2 legged measured move up.  Obviously I wish I had put it at the resistance level.

Missed Trades:

1.  2nd entry long off of a double bottom.  I thought about taking this and if I did I would have dropped my order 2-3 ticks into the entry candle since my stop would have been too big where the entry bar gave me the entry.  I also didn't take it because I had no idea about the measured move since there was not one.  But I did see this trade and marked it before I watched Mack's review video.

2.  He said this was a 2nd entry long but I just do not see it from counting from the lows or the highs.  He also said this was a failed break lower but this is an advanced trade that I am not taking because I would just be guessing if I took this trade.

3.  2nd entry short off of the highs and off resistance.  I didn't take this trade b/c I was unsure if price was going to go back up and reach the measured move long.  I should have taken this short since this was obviously a range day and price had made a higher high.  The only thing was that what I thought was the 2nd leg of the measured move down where the 2nd entry short was too close to the end of the measured move down.  Obviously it wasn't close to the end of the 2 legged measured move since it went all the way down to support.  I was confused so I didn't take the trade which is fine for now.