6-25-2013

Pre Trading Notes:

1.  Focus on getting the major trend line correct and keep on readjusting it if need be.
2.  If a trade is not coming off one of the trend lines or off the EMA then avoid it.
3.  When price breaks out of the small trend channel (especially in a pullback to the EMA or a trend line) look for a reversal pattern to take a trade in the opposite direction.  (Double tops, higher highs)
4.  Have patience and wait for the setups that you recognize.  Do not worry about missing out on a trade that you are confused about but "think" it might be a good setup.  Know that it is a good setup and execute the trade.  Confusion = Guessing.

Post Trading Notes:

I think today ended up being a range day, or that is at least how I viewed it.  I may be drawing too many lines on my charts, I may need to cut down on all of the line drawing. 

The purple dots is an indicator that Welly recommended.  This makes drawing trend lines much easier!  You basically connect the dots and this was the first time I used it.  I will be using it from now on b/c it helped show me

I need to again start looking at 2 legged measured move pullbacks to the trend lines or the EMA and not just 2nd entries.  I am missing a bunch of winning trades b/c of always looking for 2nd entries.

Mack's lines are in black.

Mack's Notes:

He trades from 7am until around noon.
He doesn't do these videos to show his trades everyday.  It is to show you the setups so we can learn to do these ourselves.  He doesn't take all of the trades he lists.  He misses some, he just provides these for us to learn how to trade.

He likes to use stop entries when there is a good signal bar.  He likes to use limit entries when the signal bar is not very good or the entry is too big.

The most recent price action is usually best to look at.
What he likes to do in determining where to exit his 2nd lot, he draws the short term trend line.  When price breaks the short term trend line for the 1st time and then goes and creates a new/high low, then he exits. 

Whichever way you decide to go in determining how you get out of your runners.  Do it every time.  Do not pick and choose b/c when you start doing that you will start costing yourself money.

With experience you can become very good at picking entries.
What makes trading so hard is the emotional aspect.  1st you have to learn to read the chart and pick out the entries.  Once you learn how to do this in Sim and are profitable then go live.  Start with one contract until you become good at the emotional side then add contracts.  When you are comfortable with your trading style you will be a profitable trader b/c you know your tolerance and how you like to trade.
Find what you are comfortable with regarding your 2nd contract exit strategy and go with it.

Trades:

1.  2nd entry short off of the EMA.  I didn't take the trade where the entry was b/c it was way too low.  I put my entry up by the EMA and was filled.  I wanted to get out at the lower trend line but took profits when price didn't continue down.  I can always get back in.

2.  2nd entry short off the upper trend line.  The entry was too far away for where I would like to have my stop so I put it closer to the upper trend line.  Price retraced back to it after the original signal and made for an easy scalp.  The bars are very big right now.

3.  2nd entry short off of the upper trend line.  I had my entry higher up after it signaled and price came back and filled it.  I always try to have 2 ticks as cushion from the highest point of the swing high.  Had my 2nd lot down by the lower trend line and where the end of the 2 legged measured move was.

4.  2nd entry short near the upper trend line.  I'm not sure this was a good trade even though it worked out for a scalp.  Price had gone above the upper trend line.  I was able to get the scalp b/c I put my entry 2 ticks better than the signal price so I would have a 2 tick cushion for my 2 tick stop loss.

5.  2nd entry short after 2 legged move off of resistance area.  I got in late b/c I wanted a 2 tick cushion and the original entry didn't give me it. 


Missed Trades:

1.  @8:08 - Wasn't a 2nd entry but was a good entry off of the trend line and the EMA with a good signal bar.  Price also made two attempts to go lower.

2.  @8:40 - 2nd entry long and first break of the trend channel.  After the first break of the trend channel you should expect price to test the previous high or make a new high before it consolidates or reverses direction.  There was also a double bottom with the 2 bars side by side on my chart.

3.  @8:47 - 2nd entry short off of the resistance level.

4.  @9:04 - 2 legged pullback to the upper trend channel line.

5.  @9:37 - 2nd entry long.  He had the big trend line drawn (black line) so he was able to see it.  I did not have it drawn so I did not see this trade.

6.  @10:49 - 2 legged pullback to the trend line he had drawn.  I did not have it drawn.

7.  @12:17 - Failed 2nd entry long off of the EMA.

8.  @12:35 - 2nd entry long off of the support area and a double bottom.  I am unsure about trading off of support areas so even though I saw this trade I hesitated and did not take it.

9.  @1:16 - Failed 2nd entry short off of the trend channel and the EMA.