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.