If you watch our YouTube videos and have seen the trade example video I posted on Thursday April 9, 2020, then you have already seen this video. I wanted to post it to the website as well with a few comments for future easy reference. If you have already seen the video, it might be worth watching a second time, but I did not want to waste people’s time that have already seen it. The additional commentary here is likely worth the read either way.

I demonstrate a 2nd entry short trade here, but it is also a double test entry, with prices testing a previous high point twice more before the down trend resumes and prices push lower again. There are two main points this video attempts to address.

Point one being that you should not fall for YouTube videos where Internet Marketers post trading videos that make this look simple. Promises of an easy $500 a day are just that, empty promises. As you will see in my video, it looks very simple here too. Trust me when I tell you that it is not simple, nor is it easy finding these entry points. It takes a lot of experience and practice while also knowing what to look for when entering a trade. You can not buy a price action manual or a price action book and read it once or twice and start making money in a week or two or even a few months. It just does not work like that. If it were truly that easy, those guys would be busy trading every day.

The second point that I try and make in this video is that you must be patient while you wait for good entries to set up for you. Most of your good set ups will occur at the “key entry points.” Where are the key entry points though? Those are the important support and resistance areas, both horizontal and sloped. Trend lines are nothing more than sloping support and resistance lines, so keep that in mind. The 21 EMA will also act as important support and resistance while helping you to know if the market is trending up, trending down or if prices are simply flat and going sideways.

Once you know how to find the key entry points, you then simply wait for prices to reach them and give you a proper set up to enter. Sometimes prices reach the key entry points, but do not give you a proper set up, so you do not enter just because prices are at the correct locations. You must then wait on a set up. You can not just scan the market on every bar looking for an entry. Doing this is futile, but this is how most inexperienced traders actually trade, and it is exactly why most blow their trading accounts out in short order.

A good trader is like a predator. He does not chase trades or run all over the chart looking for entries. A good trader sits patiently waiting on the set up to come to him while he lays silently in wait at the easy places to gain an advantage. Once his prey arrives, he still waits for the right moment to pounce, which is a good set up. If anything different happens, he continues to wait. He may have to move to a new location, but he always lays in wait for the perfect opportunity, and because the trader is a patient predator, he rarely misses out when he does attack or take his trades.

In conclusion, trading is not easy, so do not fall for internet marketing schemes that promise easy riches. This is not easier than any other profession that takes years to master. Remember the key entry points and wait on the easy trades to come to you. Think like a predator and most importantly, act like one. I hope you enjoy the video and that this helps you to better understand how we enter trades.

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Comments

Greatlookinguy April 10, 2020 at

LOVE the advice about thinking and acting like a predator Mack. Brilliant. Thank You. GROWWLLL !!!

Larry Poh April 10, 2020 at

Every thing you say is true. I love your expression…”But you don’t know that”. Patience and self-discipline are the two most important virtues absolutely necessary to even begin to think about trading.
My simple, honest advice to anyone thinking about trading is “Don’t even think about it”.

Abdul Syed April 10, 2020 at

Mack, just curious, do you trade at this zoom level or you are doing it for the purpose of recording?

brianjreid74 April 11, 2020 at

Mack, was just curious if you still find the square of nine (range) and the 21 EMA reversal entry point (trend) still as viable options to keep in one’s toolbox? Of course we often see you crossing through the 21 EMA on many of the reversal setups already.

I know those entries still come as one of your premium purchases, but would be very interested in a premium member video elaborating on it, if you find it worth demonstrating. Thanks.

bpaharris April 11, 2020 at

Thanks Mack.I sent the youtube link to this video to my buddy. I told him this video I want him to see not so much your trade but want him to listen to oyur commentary throughout the video. Lots of good guiding thoughts in this one! Thanks!

Curt White April 12, 2020 at

Mack, how do you place your Buy Market orders without clicking the button to the right? It looks like you just click on the chart somehow.

Also, how do you turn that annoying ORDER SUBMITTED voice off?

michaelphines April 13, 2020 at

I’m also curious about what zoom level people trade at. I’m frequently zooming in and out, and trading at various zoom levels. Sometimes zooming out completely changes my perspective. Steep movements appear shallow in context and I realize that what I thought was a major movement was actually an area of consolidation. Awareness of the location of the EMA relative to the price movement helps remind me to get perspective, but I wonder if maintaining peripheral context at a wider zoom level is something that I need to practice.

Mack April 13, 2020 at

Yes, you have to see the entire picture for the day, so always zoom in and out and look at the context. You can see it all on a single chart too, so no need to open multiple charts. Learn to see it all on one chart.

Mack April 13, 2020 at

Go to the video library at NinjaTrader. They have excellent training videos that show you how to do anything you want to learn with their software. It is much easier than me trying to reproduce what they already have in place. All of their videos are very well done and easy to follow.

Mack April 13, 2020 at

You have to zoom in to find the set ups, so whatever zoom level that requires is the level I use when entering a trade. You might zoom out some to evaluate the context of the chart, but you have to zoom in to a reasonable level to make an actual entry.

Mack April 13, 2020 at

I am zooming in and out at lot, but I am zooming in to fine tune my entry. This is a must.

JMLtrades May 5, 2020 at

I am still practicing trying to spot second entries. Understanding what good signal bars are.
that’s my sticking point right now.
but, I am patient! sometimes I miss out on trades, but all screen time helps me learn.
better to watch than to lose!

Mack May 7, 2020 at

No trade is always better than a losing trade, so patience is key. You can’t be scared to pull the trigger, but passing up on a trade because you don’t understand what is going on is the right move. Any time you are unsure, no trade is a good trade, as we are not gamblers.

Mat May 16, 2020 at

Thanks so much for your guidance and lessons.

Please allow me to ask if, as in this video, the stop loss is, by design, meant to be at 1 tick above the signal bar, and therefore as in this case, 17 ticks from entry, is this one trade that a trader would choose to pass on ?

The reason I ask is that it seems to jar with the “8 tick at max” stop loss rule. I would be willing to lose 8 ticks vs 4 tick profit, but 17 ticks vs 4 ticks profit may be hard to swallow.

Thanks once again for your guidance.

Mat May 16, 2020 at

Many thanks Mack for your quick response and for sharing your years of experience and knowledge.

Eternally grateful !

Jennifer Butler May 17, 2020 at

Thank you, Mack, for all you do. I’m learning so much! Quick question – I would likely have taken that 2nd leg up around 13:30 because of the break from the trend line and the double bottom as an entry. Would that be too early to go bullish/reverse from the bearish trend?

wilsonsk June 4, 2020 at

At 15:24 mark of this video, you said once the signal bar broke above the “two bar matching highs” (which I understood to be the high of the 1st entry and the high of the last bar of the 1st leg of correction – Does this mean the signal bar need to break higher (or lower) than the 1st entry (and/or the last bar of the 1st leg of correction – or last bar of the 2nd leg of correction) to become a 2nd entry?

femi July 3, 2020 at

in your first short, how did the position of the EMA help you determine if you should take the trade or not?

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