This is a compilation of three live trades that were taken on Friday. All of these trades are using Mack’s price action strategies. The first trade is one I took (Mack), which was a short off of the key entry point in the Friday downtrend. I entered short on the failed second entry long into the trend line of the major down trend. This was a great place to enter back with the main down trend for the day. Notice that my entry is at a “key entry point,” and I waited patiently for not only a lower high, but a failed second entry long. If you entered on the lower high, which I know some did because you asked me why it failed, then you were too early and likely got stopped out. <\/p>\n\n\n\n
Many times, a lot of you have the right idea, but your timing is off. Timing is a bit of an experience thing, so you will get better and learn not to enter too early or too late if you study your trades diligently at the end of the day. The fact that you can find the correct entry spot is the most important part of this, as you will learn to better time your entries with more experience.<\/p>\n\n\n\n
The second trade is by a student by the name of Husam. It is a very similar trade to the one I took. He enters on a failed second entry long in the down trend as well. It is also a breakout of a small range with a double test of the support that then held as resistance. A very nice trade overall by Husam. Notice the instant feedback on his long trap, as prices quickly shoot lower closing his trade in only seconds. These are the best kind of trades! Quick, easy, no pressure and in and out in a blink with a nice profit. Failed second entries are better served for at least mid-term students, as new students should hold off on trying to learn these until they fully understand basic second entries with the trend.<\/p>\n\n\n\n
Finally, trade three is by another student named Shawn. Shawn’s trade is interesting in that it is a failed second entry short on the reversal off the lows that took prices back up to the main trend line where I entered the short trade you watched first. Shawn is basically catching leg two of the large two-legged pullback to the main downtrend line where I entered my short trade. Shawn says he was simply trading the breakout pullback long entry, which is certainly valid, but he unknowingly was taking leg two of a two-legged pull back to the main trend line. He nabbed a 10-point runner on this trade too, so that makes it an extra special trade in my book.<\/p>\n\n\n\n
I hope these are not only motivation for those of you just starting to learn, but also a great learning opportunity to see how powerful failed second entries can be once you get an understanding of how to spot and trade them. Again, they are more advanced, so if you do not really have a solid grasp on second entry trades, do not spend a lot of time on these just yet, as you will only confuse yourself and make the learning curve much longer.<\/p>\n\n\n\n
Enjoy the trades and I hope everyone has had a great weekend!<\/p>\n\n\n\n