7-22-2013

Pre Trading Notes:

1.  Draw the smaller trend lines and look for the break of the small trend, then the 2 legs up to a new high or down to a new low which signals a change in direction.
2.  When price overshoots a trend channel or S/R area look for it to overshoot it the other way.3.  Keep looking for failed 2nd entries to confirm 2nd entry trades. 

Post Trading Notes:

Brutal day at the beginning.  I knew I was wrong on the first trade when the failed 2nd entry long formed and I looked up and could have gotten out with a 3 tick loss but I held on "hoping" price would go back up.  When you start hoping then you are on the wrong side of the trade.
For the 2nd loss I got in right when a 2nd entry long formed and I was taking a short.  I should have waited for a failed 2nd entry long to signal and when it didn't then I would not have taken this trade.  

Two bad trades but trades to learn from.
Once I figured out that price was in a range then I went 100%.  The problem was taking the two bad trades and not getting out when I knew I was wrong.

Mack's Notes:

Watch for the 2 legged moves in each direction.
A low volume day today, you have to be patient.
You have to learn to buy the lows and sell the highs.  It goes against your natural instinct to buy the lows and sell the highs.  

You will see it over and over again, 2 legged moves and then a change in price pattern.

Always ask yourself, "Is this a trap setting up?"
You are always better to miss a trade than to get trapped on the wrong side.  
Bad entry points are where there is a lot of congestion and dojis.
Always draw your short term trend lines b/c you usually will get a break and then a test or a new low/high.

Your 1st step in learning Mack's rules is to learn to spot the trades after the day is over.  You have to be able to spot all of the trades and explain why they are valid trades after the day is over. When you can do this then you work on spotting them in sim using the market replayer.
We enter on the corrections, not on the moves.

This takes time and experience to learn and to get better.  You won't be successful using Mack's rules right away.

Trades:

1.  7:36 - 2nd entry long.  Turned about to be a failed 2nd entry long.  Should have gotten out when the failed 2nd entry long formed for a small loss.
2.  9:02 - 2nd entry short.  Turned out to be a failed 2nd entry short.  A 2nd entry long formed right after it.  The 2nd of 2 bad trades I took today.
3.  9:38 - 2nd entry long and a failed 2nd entry off of the EMA and the lower trend channel.  I got out near the top of the measured move.  Obviously I wish I had held on until the top of the range.
4.  12:04 - Failed 2nd entry long and a 2nd entry short.  I was also looking for price to complete the 2nd leg of the measured move.
5.  1:57 - 2nd entry short.

Missed Trades:

1.  7:50 - Failed 2nd entry long.
2.  8:31 - Double top pullback to the upper channel.
3.  8:42 - 2nd entry short off of the upper trend channel.
4.  9:04 - 2nd entry long off of the EMA and support level.  There was also a failed 2nd entry short.

7-19-2013

Pre Trading Notes:

1.  Draw the smaller trend lines and look for the break of the small trend, then the 2 legs up to a new high or down to a new low which signals a change in direction.
2.  When price overshoots a trend channel or S/R area look for it to overshoot it the other way.
3.  Keep looking for failed 2nd entries to confirm 2nd entry trades.

Post Trading Notes:

Good trading today.  Once I found the trend line then I knew to only go long.  Today I did well of having a trend within a range but only trading on the support areas.  I just felt like I did a good job of finding the range and measuring it up for the 2nd move.  Then finding the trend within the range but still making sure to only trade going long once I found it.

I am still thinking about just scalping everything.  Even today I would have been up if I had scalped every trade rather than try to have runners.  I think having runners is good for now but it looks like when I go live that I can make more money by scalping every contract rather than worrying about having runners.

Draw your short term trend lines.  You are not doing this and you need to.

Mack's Notes:

Slow day where you had to be patient.  Even he made some mistakes today and got shook out of some trades.

At 16:00 in the review video he goes over how to enter into the trades.  Good review on signal bars and how to enter.
At 18:00 in the review video he goes over traps and what they look like.

Trades:

1.  8:27 - 2nd entry long off of the support level.  I knew price wasn't in a down ward trend b/c none of the lines matched up so I figured price was probably in a range and was looking for a 2nd entry long b/c wherever it triggered was probably a support level.

2.  8:33 - 2nd entry short off of resistance level.  Was also a failed 2nd entry long if counting from the SL.

3.  9:08 - 2nd entry long and a failed 2nd entry short off of the EMA.  Price had made a couple of dojis and was up against resistance so I dropped a limit order in off the EMA which made for an easy scalp.  Was looking for a measured range move up which was where my 2nd lot was located.

4.  9:53 - 2nd entry long off of the EMA.  Should have waited for the failed 2nd entry short to confirm the entry and could have gotten in 2-3 ticks better.  Should have gotten in better since there were dojis and congestion.

5.  11:05 - 2nd entry long off of the lower trend line.  There were two dojis so I got in 2 ticks better which made for an easy scalp.

6.  12:01 - Failed 2nd entry short and a 2nd entry long off of the lower trend line and the resistance turned support area.  My 2nd lot was near the upper trend line and it hit.

Missed Trades:

1.  8:41 - 2nd entry long and a 2 legged move at the bottom of the trend line.
2.  9:31 - 2nd entry long off of the lower trend line.  There was also a short trap.
3.  2:33 - 2nd entry long and a failed 2nd entry short off of the EMA.

7-18-2013

Pre Trading Notes:

1.  Continue to look for 2nd entries and failed 2nd entries complimenting each other.
2.  Keep drawing all of your trend lines and S/R lines.
3.  If it is a good setup bouncing off of the trend lines, S/R lines or the EMA then take the trade.  Do not hesitate if you recognize and know it is a good trade.
4.  Plan in advance what setup you are looking for depending on what price is doing.  Always try to be prepared and have the setup in your mind for what you are looking for.

Post Trading Notes:

I made the mistake again of trying to force a trend into a range and trade off the trend when price is bouncing off of one of the ends of the support or resistance.  You can have a trend in a range but when price bounces off of the S/R area then trade off of that and not the range.  Only until price breaks out of the range and shows it is in a trend, then that is when you switch over and trade the trend lanes.

Mack's Notes:

An overshoot of a channel that is the end of a 2 legged move will usually mean it will go to the other side and there will be an overshoot on the other side as well.
You want to get in cheap and use a real small stop when you can.  You do not want to get stopped out for your max 2 point stop every time.  When there is congestion wait for the setup to signal an entry then drop a limit order back in congestion.

Your stop always have to go above the signal bar at minimum.
Always make sure you have room to at least scalp out of a trade.
Make sure you draw the short term trend lines b/c they really do help.

Mack's lines are in black.

Trades:

1.  8:38 - 2nd entry long off of the EMA and what would be the lower trend line.  It also was a failed 2nd entry short that triggered a couple of bars before.  I didn't have the green lines drawn correctly at first, other wise I would have gotten out at 1682 rather than 1681.50.

2.  9:07 - 2nd entry long and a failed 2nd entry short off of the lower trend line.  Had the 2nd lot close to the top of the upper trend line.

3.  11:34 - 2nd entry short and a failed 2nd entry long off of the EMA.  My 2nd lot was a tick up from the end of the measured range move.

4.  12:52 - Tried to force a trend into a range.  This is a problem I have at the moment.  I knew it was a range and had it labeled correctly but I stuck some trend lines on there and tried to trade off of them.  You can have trends in ranges but when it hits one end of the range then that trend is more than likely over.

5.  1:35 - Failed 2nd entry short off of the EMA.  Was looking for price to go up and retest the highs for the 2nd lot.

6.  2:45 - 2nd entry long off of the support.


Missed Trades:

1.  11:06 - 2nd entry long which is also a 2 legged move back to the support area.
2.  12:19 - 2nd entry short off of the EMA and also was a failed 2nd entry long that never went 4 ticks.

7-17-2013

Pre Trading Notes:

1.  If price creates a 1st entry that forms a double top or double bottom by only going up or down by 1 tick then do not count it as a 1st entry.  It seems Mack's charts do not show these bars being first entries but only double tops or double bottoms.  If it goes 2 ticks or more to create a double top or double bottom then you can count it as a 1st entry.
2.  Continue to use failed 2nd entries to confirm 2nd entries and to trade them on their own against the trend lines and the EMA.
3.  If price is against a trend line and bumping against a S/R line then go with the trend line to trade off of and not the S/R line.  If price is in a trend within a range, has come off of a S/R area and is in the midpoint of the range but bouncing off of the trend line then do not use the trend line because price is probably going back to the opposite side of the range.

Post Trading Notes:

I learned a very important lesson today or rather it was nailed home in me.  For some reason I try to make everything a trend, even on range days I like to have trend lines within ranges.  For whatever reason I gravitate towards drawing trend lines and give those more weigh then S/R lines.  In reality they are the same thing except one is diagonal and the other is flat.  That is what happened to me today.  I was so hell bent on making price into a trend whether up or down that I took two bad trades b/c I was going to be damned if my trend line didn't work.  As soon as I realized this and traded off the S/R lines my win rate went to 100%.

For some reason I do not trust S/R lines as much as I do trend lines which is why I think I always try to fit ranges into trends.
Once I saw that the two legged big move was not going to happen I should have realized that it was going to be a range day.  That is what usually happens.  When the 2nd leg doesn't form then that means it is usually going to be a range day.

I went ahead a put back on the trend lines in pink so I can look back on this and see my mistake.

(Edit:  After watching Mack's video I had the pink line drawn correctly, I was just trading off of it incorrectly and not counting the 2nd entries correctly)

Mack's Notes:

Draw the short term trend lines b/c you need to expect a break of the trend line and then a new low if in a downtrend or a new high if in an uptrend before price reverses.
In an uptrend you only want to enter off of support and/or the EMA.  In a downtrend you only want to enter off of resistance and/or the EMA.

You want to buy the lows and sell the highs which is why you draw your trend lines and S/R lines b/c you trade off of those.  You are looking for a reason to go long at suppport and short at resistance.
You can't enter late and you can't hold on too long.  These trades are designed for scalps, not swing trading so I need to scalp out more on both contracts.

After the 1st major break of a trend line price will usually go back and retest the highs or create a new high if in an uptrend and will retest the lows or create a new low if in a downtrend before going into a range or reversing the other way.

A lot of the time when you get an overshoot of the trend channel on one side price will come back and overshoot it on the other side.

When you get a break of a trend line you will get 2 legs up to a new high or down to a new low a lot of the time so it is a setup to expect.

Trades:

1.  8:36 - 2nd entry long and failed 2nd entry short off of the EMA.  I put my entry 2 ticks below the entry price b/c there were some overlapping bars previously.

2.  9:08 - Failed 2nd entry short off of the EMA.  I could have gotten a better entry but I still had my 2 tick cushion on my 2 point stop loss so it fit my entry criteria.  There were 3 overlapping bars so in that aspect I probably should have dropped a limit order instead of using a stop order.  Was looking for price to follow the big green trend channel up or at least hit the resistance level which it did.

3.  9:35 - 2nd entry long off of the lower trend line and the EMA.

4.  10:18 - Thought it was a failed 2nd entry short and was looking for price to head to the other side of the trend line.

5.  10:43 - Thought it was a 2nd entry long off of the lower trend line and a double bottom.  Obviously I am reading the charts incorrectly.

6.  12:07 - 2nd entry short off of the resistance area.

7.  1:27 - 2nd entry short off of the resistance area.

8.  1:52 - 2nd entry long off of the support area.

Missed Trades:

1.  He said it was a failed 2nd entry short off of the trend line but price went 4 ticks so I'm not sure.

2.  Breakout pullback long off of the trend line.

3.  2nd entry long off of the lower trend line.

7-16-2013

Pre Trade Notes:

1.  Focus on looking for failed 2nd entries.  These help confirm 2nd entries.
2.  Keep drawing all of your lines and re-drawing them if they do not match up.
3.  Identify if price is in a range or a trend.  A trend can be in a range and a range can be in a trend.
4.  Know your exit for your 2nd lot before you enter the trade.

Post Trade Notes:

Interesting day today.  I was running the replayer too fast at 9:57 because I had a limit sell order at 1675.00 but price didn't come back a 2nd time.  Even thought he long I took at 12:30 worked it is a horrible trade I should never take.  Going against the overall trend is a way to my account so don't start doing this.  I think I did it b/c I felt frustrated b/c I got of a trade early that would have been a winner, then I had a losing trade and lastly I couldn't get in on the big move of the day.  I could feel the frustration building inside of me. 

I think that when price creates a 1st entry against the SH or SL then I am not going to count it as a 1st entry when it is only for 1 tick b/c in looking at Mack's charts he doesn't have a 1st entry there.  Just a double top or a double bottom.  In my first missed trade you can see what I am talking about.  I have a 1st entry while Mack just has a double top on his charts.

Mack's Notes:

Not too many trades today. 
The market moves in 2's and moves in measured moves.

Trades:

1.  8:45 - 2nd entry long off of the support area.  I got out at BE when higher highs started forming against the EMA.  I got out right before price skyrocketed up.

2.  9:27 - 2nd entry long and what at that point was a failed 2nd entry short.  Was looking for the 2nd leg up to the resistance area.  Obviously this was not a good trade.


Missed Trades:

1.  7:52 - 2nd entry long.  Mack had it off a support level but my bars formed differently than his so that same supoprt level wasn't fairly obvious.

2.  8:35 - 2nd entry short off of resistance level.

3.  9:31 - Failed 2nd entry long off of the upper trend line and the EMA.  This is where I took the wrong side of the trade.  This was a really bad trade to go long since price had just made a very strong move down and was struggling to go up.  That is one thing to keep in mind.....How fast does price move into a certain area?  Is it going faster in a downtrend or in an uptrend?

4.  9:55 - 2nd entry short and a failed 2nd entry long with a 2 legged measured move completed.  It was also against the upper trend line and the EMA.  This is where I tried to get in but I was running the replayer too fast and price did not come back up again.  Good job in trying to get in this trade but bad job in running the replayer too fast.

5.  10:41 - Failed 2nd entry long.

6.  11:47 - 2nd entry short.

7.  1:00 - Failed 2nd entry short off of the EMA and am expecting price to go up to the upper trend channel.

7-15-2013

Pre Trading Notes:

1.  Focus on failed 2nd entries.
2.  If in a range you can have a trend but make sure you are trading on the right side of the trend.  If price has bounced off of resistance then only look to take short trades in the trend until it reaches support.  If price has bounced off of support then only look to take long trades in the channel until it hits the resistance level.
3.  Draw your lines and trends, better too many than not enough. 

Post Trading Notes:

I am extremely please with how I traded today.  I drew the correct overall trend line and I had the correct S/R areas drawn which made trading so much easier today.  I could see the setups and whether or not I wanted to take them.  Today was another slow grinding day.  One way to get better is to really focus on where I want my 2nd lot exit to be located.  I am getting stopped out too much on my 2nd lot.  A good example of this is my 1st trade where I should have used the end of the measured move as my exit but I was greedy and had it by the upper trend line.  I could have had another 1.50 points. 

Mack's Notes:

Another slow low volume choppy day.
If there is overlap in the bars when you are looking for a 2nd entry then he likes to drop a limit order to get a better entry price after the 2nd entry signals.
You don't want to go long after price has made a big move up and has hit resistance.  You want to go long after price has gone down and hit support.

If you find yourself hoping and praying that price will come back then you know you are on the wrong side of the trade and need to exit immediately.  If you find yourself getting frustrated and having losing trades then get up, go take a break and come back and re-evaluate what price is doing.

Trades:

1.  8:51 - 2nd entry long off of the lower trend line.  Should have gotten out where the end of the 2nd leg of the measured move was located.  Was getting greedy and tried to get the 2nd lot at the top of the trend channel.

2.   9:43 - 2nd entry long off of the lower trend channel and the EMA.  Got in 2 ticks better b/c the signal bar was a doji. 

3.  12:25 - 2nd entry long off of the support level.  My 2nd lot was one tick below the next resistance level and by the upper trend line. 

4.  2:46 - Failed 2nd entry long off of the EMA.  If live I would never take this trade so close to the close of the day so I shouldn't do it in sim.


Missed Trades:

1.  8:24 - 2nd entry long and a failed 2nd entry short off of the EMA.  (My data was messed up from not loading so in skewed my EMA)
2.  9:06 - 2nd entry long off of the lower trend line and looking for the 2nd leg up.
3.  10:21 - Failed 2nd entry short and a short trap off of the EMA.  I was going to take this but since it was so close to the resistance level that I wanted to wait and see what happened with price hitting off the level. 

7-12-2013

Pre Trading Notes:

1.  Be watchful of when price is making higher highs or higher lows.
2.  Keep looking for 2nd entries.
3.  Keep drawing all of the trend lines.  Better to draw too many than not enough.  Be on the constant lookout for new trend lines.
4.  You exit your 2nd lot by either scalping it in a choppy day, a set target based on the chart or you use the yellow line and when price breaks and retests it you then get out.

Post Trading Notes:

Started confusing range rules with trend rules.  Tried to fit a trend into a range when I should have just traded the range.  You can have trends within ranges but you have to make sure you are on the right side of the trend.  My bad trade I was not on the right side of the trade.  The trend channel was correct but you have to realize when you are in a range that price goes from one side to the other.  You do not have a true trend that will keep going since price gravitates to the opposite side after it has hit one side.

Overall I think I did well in another range day.  I am understanding them better but it is a process. 
Mack's lines from his review video are in black.
Mack's Notes:

This stuff works.  This is basic price action.
Another range day, follow the range rules.
You don't learn this stuff overnight.  It's like learning to be a doctor who goes to school for years and learns under other doctors before they become successful.  It is the same way with trading.  It can take years to learn and it is hard work but when you reach the point of being successful it is worth it.
If you think this is get rich quick you will be dissapointed.


Trades:

1.  8:25 - 2nd entry long off of the support level.  2nd contract exited when price broke the yellow line and retested the high.
2.   8:42 - Failed 2nd entry long off of a triple top.  Had my 2nd contract way down at where I thought the lower trend line was but price bounced up off of the support level.
3.  10:14 - Thought it was a 2nd entry long off of the lower trend line.  Should have just used the range rules but I was convinced it was in a trend within the range.
4.  10:29 - Failed 2nd entry long off of the EMA.  After I saw I was on the wrong side and the failed 2nd entry long formed I went short for a scalp. 
5.  11:54 - 2nd entry long and a failed 2nd entry short off of the support area.  I missed the original entry but it came back and got my limit order for a scalp.
6.  1:47 - 2nd entry long and a failed 2nd entry short off of the EMA and the trend line where I was expecting price to continue its upward move to the top.  I should have had my 2nd lot near the high of the day, could of at least made another point.

Missed Trades:

1.  8:14 - Failed 2nd entry long off of the EMA.
2.  9:13 - 2nd entry long and a double bottom off of the lower trend channel.  I saw this trade and should have pulled the trigger but hesitated and missed out. 
3.  11:42 - 2nd entry long and failed 2nd entry short with a double bottom off of the support level.  I got in when price came back and touched my limit order.
4.  12:18 - This isn't a 2nd entry but is a triple bottom off of the support level and price had made a higher high.

My chart setup

7-11-2013

Pre Trading Notes:

1.  Keep diligently looking for both 2nd entries and failed 2nd entries.  When you get a setup that has both of those then TAKE IT!  Those seem to have a very high success rate.
2.  Keep drawing your trend lines and S/R lines.  Right now it is better to draw too many than not enough.
3.  If the day is choppy then scalp out both lots.

Post Trading Notes:

Made some bad trades today by forcing some trades.  Seems to be the newest problem I have that will take some work to correct.  Instead of being patient I am trying to force things.  Another range day.  These are good practice b/c they give me the most trouble.  Just stop trying to force trades at the S/R areas.  Those seem to be the places that give you the biggest trouble.  If you miss a reversal who cares? Catch the next leg up.  Only take the trades at the S/R areas that give you a clear signal.  You are trying to force too much and it ends up in losing trades.

Mack's lines from his review video are in black.

Mack's Notes:

You trade when there is movement.  You can trade during lunch time if there is movement.
On choppy days draw your short term trend lines and follow the rules.
If you do not understand what price is doing then stay out.


Trades:

1.  8:22 - 2nd entry long off of the support area.  I dropped a limit order 2 ticks below the entry price so I would have a full 2 ticks on my 2 point stop loss below the SL.
2.  8:41 - Failed 2nd entry long off of the EMA.  Scalped out both lots at 1 point since that was around the support area.
3.  9:30 - Thought it was a failed 2nd entry short and a 2nd entry long off of the support level.  Obviously it was the opposite.
4.  10:10 - 2nd entry long and a failed 2nd entry short off of the EMA.  Was looking for price to go back up to the resistance area.
5.  10:55 - Thought it was a failed 2nd entry short off of the EMA and the lower trend line.
6.  11:23 - 2nd entry long off of the support area.  After being int hat trade for over an hour I got out with a 2 tick win.  I have no idea what price is doing right now.  (And of course I got out 1 bar before price took off)

7.  2:03 - 2nd entry long off of the EMA.  Had a nice 2 legged pullback to the EMA. 

Missed Trades:

1.  9:30 - 2nd entry short and one bar to the right is a failed 2nd entry long off of the EMA.  This is where I got confused and got trapped on the wrong side.
2.  9:51 - This isn't a 2nd entry but he said it is a good short trap with a higher low.  I was looking to take a trade here but no 2nd entries developed before price took off.
3.  12:56 - Another non 2nd entry but made a triple bottom and was coming off the bottom of the trend line and the support area.  This is the trade where I got out 1 bar early b/c I got scared and thought that price was going back down.

7-10-2013

Pre Trading Notes:

1.  Focus on failed 2nd entries
2.  Keep looking for patterns you recognize.  They should be like those 'Magic Eye' posters where it looks all jumbled until you relax and then you can see the picture clearly.
3.  Don't get lazy drawing your trend lines.  It is better to draw too many than not enough.  Dirty up those charts!

Post Trading Notes:

It takes much more concentration but when you look for the failed 2nd entries then you get a much better picture of where price is headed and which side of the market you should be trading.  If you are looking for a 2nd entry long and a failed 2nd entry short develops then you are good to go with your long when the signal hits.  They are also great when you are expecting price to reach a level and you are looking for anyway to get into the move.  This is especially true in a downtrend within a range.

I really need to go back to Forex Factory and look at when Bernanke is speaking or whatever is going on b/c obviously something big was released at 1:00pm.  No wonder the market was super slow before then.


Mack's Notes:

FOMC day.  Low volume until the announcement.  It is best to either call it a day before the FOMC news comes out or wait until things slow down after the news before you trade around the FOMC.
On choppy days he recommends not using runners b/c you will just get stopped out.
You have to sit tight and read the price action correctly on these slow trading days.  You have to be patient, read the price action correctly and know that you are on the right side of the trade.

Trades:

1.  8:47 - 2nd entry long off of the lower trend channel.
2.  9:26 - Failed 2nd entry long off of the EMA.  I am looking for price to go down to the lows.
3.  9:45 - Failed 2nd entry long off of the EMA.  Price had broken out of the channel for the 1st time and I was looking for price to go retest the lows.
4.  10:13 - 2nd entry long and what I thought was a 2nd entry short.  Price had broken out of the channel and had made a new low so I was looking for price to go back up.  When huge sell orders starting coming in I got out for a small loss.
5.  10:35 - Once I saw the short trap and the new high with the bar after I got back in for a scalp.
6.  11:00 - Was looking for a 2nd entry long and for price to make another leg up to the high.  Turned out to be a failed 2nd entry long.
7.  11:13 - 2nd entry long off of the support area. 
8.  12:36 - Failed 2nd entry short counting from either the SL or the SH off the EMA.  Another scalp.
9.  1:46 - Failed 2nd entry long off of the EMA and the S/R line.  Was also off the top of the trend line.  Had my 2nd lot down by the lows and support area.


Missed Trades:

1.  Failed 2nd entry short counting from the SH.  Was also a 2nd entry long counting from the SH.  The 2nd entry long also formed two bars to the left if counting from the SL.
2. 2nd entry long off of the lower trend line.

7-9-2013

Pre Trading Notes:

1.  Focus on drawing the trend lines.  Keep drawing them until price bounces off of the correctly.
2.  If you are confused and/or do not recognize the setup then do not take the trade.  Confusion leads to guessing which leads to losing trades.
3.  Be able to clearly explain why you took every trade you took and where you expected your target to be for your 2nd lot.

Post Trading Notes:

Really rough day today.  The first losing trade was a mistake by me trying to force a trade.  My intuition was correct in that price was going to go up but it was at the wrong time.  The 2nd bad trade was getting in again too early with a 2nd entry long trap.  Live and learn.

The S/R areas are now my biggest weakness.  I've gotten better at drawing the trend lines but the S/R lines and how to trade off of them are my biggest area of weakness. 

Mack's Notes:

DIFFERENT TYPE OF VIDEO THAT IS AWESOME!  He pauses it and is showing his thought process as he is taking live trades. 

You have to train your eyes to see the correct price movement on the chart.  If you have only been trading for a year or less then you are probably not ready to go live, especially if you are not consistently making money.  This takes a lot of hard work and time to get this down.  This cannot be learned overnight.  This took Mack years to learn and he is still learning.

He loves the failed 2nd entry trades.  You can just trade that one pattern/signal and make a living off of it.   The trend lines keep you on the right side of the trade.

He recommends that when people are first starting out to just scalp singles until you become profitable and confident in your abilities.
Where most people make the mistake is they trade trying to get rich.  Trading is a methodical process where you go into the market each day to make your salary for the day and then pack up and go home.  Trading is a long term endeavor, not a get rich quick scheme.

You normally get two legs up to a new high.


Trades:

1.  @9:29 - Thought it was a failed 2nd entry and a 2nd entry long off of a support area.  It was obviously the opposite.  I think I tricked myself into thinking it was a valid trade.  It was also at the top of that small trend channel so it was a bad trade.

2. @9:37 - 2nd entry long and failed 2nd entry short off of a failed breakout lower.

3.  @9:44 - Failed 2nd entry short off of the EMA.

4.  @1:44 - 2nd entry long off of the lower trend line.  Obviously it was a failed 2nd entry long and a losing trade.

5.  @2:12 - 2nd entry long off of the lower trend line.

Missed Trades:

7-8-2013

Pre Trading Notes:

1.  If the trade does not come easily to you then do not take it.  What I mean is if I have a hard time recognizing the trade setup then I am confused and confusion leads to guessing which leads to losing trades.
2.  You should be able to recognize the setups you take and be able to describe why you took each setup and where your profit target is located for your 2nd lot before entering the trade.
3.  Don't stray from the 2nd entries, those keep you out of trouble.
4.  Don't stray from trading off the trend lines and the EMA.
5.  Make sure you have the trend lines drawn correctly before taking a trade.  If you have a losing trade it is probably b/c you drew the trend lines incorrectly.

Post Trading Notes:

One key for me is to just keep drawing the trend lines and support/resistance lines until price keeps on bouncing off of them.  If price keeps on breaking them then zoom out and look for a bigger trend line or S/R level b/c price doesn't always fit into smaller trend channels for very long.  Once I get the larger trend channels or S/R levels established then my trading win % goes wayyyy up.  Most of my losing trades have been b/c I did not have the correct trend line or S/R level drawn correctly.


Mack's Notes:

Today was a slow day that you just grind out. Just a big trading range day.  Digesting the big move from Friday.  The safest bet today was buying the lows and selling the highs.  Your best bet today was to use range rules.

Trades:

1.  @8:39 - 2nd entry short off of the upper trend line and was a failed 2nd entry long.
2.  @8:56 - Failed 2nd entry short off of the EMA.  Was looking for the 2nd leg to the 2 legged measured move.  Price was also coming off of a triple bottom.
3. @9:17 - 2nd entry long off of the lower major trend line.  Was also the end of a 2 legged measured move.
4.   @9:25 - Failed 2nd entry short off of the lower trend channel.  Also had a 2nd entry long earlier.
5.   @10:35 - 2nd entry short off of the EMA.  I got in a full point better b/c if I was wrong I didn't want to give up more than a point.  My 2nd lot was one tick above the support level.
6.  @11:30 - 2nd entry long off of support level..  I got in better b/c I didn't want to take the original entry price so I wouldn't give back too much if I was wrong. 
7.   @12:11 - Thought it was a failed 2nd entry short off of the support level.


Missed Trades:

1.  2nd entry long off of the support level.  It was also a double bottom.  I saw this trade but was too late to get in b/c I had just gotten out of the short and did not have the correct view.
2. 2nd entry short.
3.  2nd entry short

6-28-2013

Pre Trading Notes:

1.  Keep focusing on working on getting the bigger trend lines established then work down from there.
2.  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.
3.  Your 2nd lot exit will be at a pre determined spot.  You only get out if it breaks out of the channel and creates a new high/low before hitting your target.
4.  Look for 2 legged moves.
5.  Every stop loss is 2 points with at least a 2 tick cushion from the SH or SL.
6.  Use stop entries with a good signal bar.  Drop limit entries when there is a bad signal bar or the entry bar is too big for your stop loss.
7.  Keep drawing your trend lines, it is better to draw too many than not enough.

Post Trading Notes:

 Another very solid day.  I missed some trades but I didn't panic and chase them.  I just let them go and looked for the next setup.  The indicator that Welly recommended that provides the purple dots for the SH and SL has proved to be extremely valuable!  This makes drawing the trend lines very easy and I am able to spot the trends much easier than before.  All you do is connect the dots.

Obviously there was potential to absolutely crush it today, I am talking about up 30 points with the way the market moved today but I am happy b/c all of the trades were winners and there was only one trade I felt was a questionable trade looking back.  I am starting to become consistently profitable so lets so how long I can keep this up and if I have turned a corner.

Mack's Notes:

Another range day.
All you can do is draw your trend lines and follow the rules.
You always want to wait on a 2nd entry to enter a trade.
Draw the short term trend lines and wait for the break.  Price then will usually retest the line before moving back down (when looking for a short).
Very good review from around 21 minutes to the end about what to look for in reversals.
Be patient and wait for your setups.  You have to be patient and don't force trades.  When you do know you have it right then do not hesitate to pull the trigger.  You have to be patient yet you have to pull the trigger when you see the setup.
Draw your short term trend lines.

Trades:

1.  @8:37  - 2nd entry long and a failed 2nd entry short.  I dropped a limit order in to get a 2 tick cushion on my 2 point stop loss below the SL.  Price was also coming off a support area.  I don't like this trade b/c it was going against the grain and was not off a trend line or the correct side of the EMA.

2.  @8:52 - Failed 2nd entry long off of the top of the trend line.

3.  @9:53  - 2nd entry long off of the EMA with a short trap.  2nd lot exit was at the top of the trend line.

4.  @10:41 - 2nd entry short off of the EMA and upper trend line.

5.  @12:47 - Failed 2nd entry long and 2nd entry short off of the EMA.  I had my 2nd lot all the way up at the top of the brown trend line.  Looking back I obviously should have had it at the earlier SH.

Missed Trades:

1.  @8:45 - 2nd entry short and a long trap off of the EMA.  This is a trade I saw and obviously should have taken.  I should have been looking for the 2nd leg of the two legged measured move.

2.  @9:27 - Failed 2nd entry short off of the EMA.

3.  @11:02 - 2nd entry short off of the upper trend line.  Also it was two legs up and I didn't have the trend line in place yet.

4.  @1:42 - 2nd entry short coming off of the resistance level.

6-27-2013

Pre Trading Notes:

1.  Keep focusing on working on getting the bigger trend lines established then work down from there.
2.  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.
3.  Your 2nd lot exit will be at a pre determined spot.  You only get out if it breaks out of the channel and creates a new high/low before hitting your target.
4.  Look for 2 legged moves.
5.  Every stop loss is 2 points with at least a 2 tick cushion from the SH or SL.
6.  Use stop entries with a good signal bar.  Drop limit entries when there is a bad signal bar or the entry bar is too big for your stop loss.


Post Trading Notes:

Today was one of the first days where I felt confident the whole day.  Even though it looks like I may have taken one bad trade (even though it worked out) I still like the reasoning and I had a plan b/c I saw a setup and stuck to the rules.  There are a ton of lines on the chart but I'm drawing them as I go so it only looks confusing after I am done trading.  This was another range day that you did extremely well on and these for me have been the toughest to learn.  I am still a ways away from going live but this small step in learning the technical side of trading is encouraging today.

Mack's Notes:

Today was a range day.
Draw your trend lines and follow them until you get a break.
The only way to trade low volume choppy days is to draw your trend lines and trade of of them.
We don't trade off of 2 legged measured moves only.  We wait until 2nd entries when those patterns setup.  We are price action traders, not pattern traders.

Reversals - Look for double tops and double bottoms.  Lower lows and higher highs.  Lower highs and higher lows.  Failed breaks lower or higher.


Trades:

1.  @9:10 - 2nd entry long off of the lower trend channel.  Dropped a limit order in a tick better so I would have a full 2 point stop loss with a 2 tick cushion below the swing low.  Got out on my 2nd contract when price broke the yellow line and made a double top.

2.   @9:45 - 2nd entry long off of the EMA and 1st break of the trend line.  Ended up being a long trap.

3.  @9:50 - This might have been the 2nd entry long with a great signal bar off of a support area.  Good for a scalp.

4.  @10:08 - 2nd entry short after a 2 legged move to the resistance area.  I had both contracts out at a scalp since that is where support was located.

5.  @10:47 - 2nd entry long and there was also a failed 2nd entry short other wise I probably would not have taken this trade.  Exited both at the S/R level.

6.  @11:23 - 2nd entry short off of the EMA and the support turned resistance.  2nd lot was at the lower trend line.

7.  @12:01 - 2nd entry long off of the EMA and a failed 2nd entry short.  It looked like when price was coming down that it broke the dotted yellow trend channel line and then went down to make a new low.  This seems to be a signal to a reversal pattern.  Also the end of a two legged measured move was perfectly hit.  I dropped a limit order where the 2nd entry long signaled and was filled.  My 2nd lot was one tick below the resistance level and at the end of the 2 legged measured move.

8.  @12:28 - 2nd entry long and a failed 2nd entry short off of the EMA.  I was looking for price to go up to the next resistance level but just got a scalp.


Missed Trades:

1.  @10:05 - 2nd entry long
2.  @11:02 - 2nd leg of a measured move down.
3.  @12:58 - 2nd entry short off of the upper main trend channel