Today I am going to allow you to watch me take live scalp trades in the ES using price action strategies just as we teach them each day.  I am always getting comments about “my trading” and why don’t I show all of my trades, etc.  The idea with our chart lesson’s is to teach you how to find and take the trades as we teach our strategies, so it’s not to show my trades.  I often talk about my trades during the video, but the point is not to show my personal trades, as that’s not going to help you learn how to read a price chart or to trade profitably.  Learning why we take trades and teaching you how to find those locations and entries is what is needed to learn how to do these things and become profitable as a day trader in the ES or other markets.

I have attached a video of about two hours of trading on a single day in the ES between 9:30 AM CST and 11:30 AM CST.  The date was July 9, 2013 and it was a relatively low volume, low volatility day, which can often be a very difficult type of trading day.  I took a total of 3 trades, all winners and all longs during a small uptrend in what was an overall range type day with an upward bias.  If you follow our work, you are likely familiar with the fact that we feel it is important to understand the “type” of trading day we are experiencing and to trade accordingly until those variables change.  The idea behind this video was to show that you can indeed scalp singles contracts in the ES and make money.  Obviously you will not get rich this way, but you will be surprised at how well you can do and it’s a cheap way to learn to day trade without risking huge amounts of capital.

Just to clarify for any newbies, we are scalping a single point on each trade which makes us $50.00 prior to commissions.  We will risk a maximum of two points on any trade, but our objective is to try and enter the trade with less risk than two points if possible.  Our stop always goes a tick or two below the signal bar as long as that doesn’t violate our two point safety stop rule.  If so, we have to find a better entry or skip the trade.  I hope that you enjoy the video and that it gives you some insight into how and what I am thinking as I am trading.  Most importantly, notice how patient I am and how I wait on the right set ups.  Yes, I am often anticipating that certain things will happen.  Often times I am correct, but if not, I quickly change my strategy or remove the entry order for my trades.  I never force a trade, or at least I try not to force myself into trades, because impatience and forcing yourself into trades is a sure way to lose money.

The video is below.  I hope that it’s a good learning tool or at least allows some of you to get an understanding that “yes,” you can have multiple winning trades in a row following our strategies and techniques if you can indeed learn them.  I’m going to wrap up this article and now get on with the video so that you can watch me take live scalp trades in the ES using price action strategies as we teach them.  As an FYI, the first trade has no sound, as I forgot to turn on my microphone, but I describe the trade later on in the video so that you will better understand what I was doing and thinking.

 

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Comments

David July 11, 2013 at

Will you please comment on how/why you avoided buying above the reversal bar around 9:19. Reversal after making new low at bottom of a trading range seems like a reasonable long. Thanks!

Reply

    Mack July 12, 2013 at

    I’m not sure exactly which point you are talking about, but I am assuming the break that created the lowest point below the strong resistance at 1639.0? If so, that was indeed a valid entry, so no reason you couldn’t have taken it? I actually talked about that at the end of the video, so not sure if you missed it or didn’t watch it all?

    Reply

      David July 13, 2013 at

      Yes, I was just hoping you saw a PA reason NOT to take that trade as it was only good for a scalp and is the type of trade that is likely to hit my stop below the entry bar (anticipating a return to the top of the trading range). I appreciate your time.

      Reply

        Mack July 15, 2013 at

        It’s an aggressive trade, and a first entry. It is almost always better to wait on a second entry off of a strong sup/res area unless it is a proven trading range, which there was still some question about that when that set up occurred, so yes, that was enough reason to skip it: Because it was a very aggressive entry.

        Reply

          David July 16, 2013 at

          Got it, thanks Mack.

dspeckleback November 10, 2013 at

Thanks Mack! I find these videos very helpful as it gives an opportunity to hear what you are thinking and corrects some of the bad decisions I would have made. I know these sorts of videos take a lot of time and I REALLY appreciate the extra effort. Thanks again!

Reply

mgcorreia March 10, 2021 at

Shoot i’d like to watch this, but i click the video and its from today 3/10/2021

Reply

    Mack March 11, 2021 at

    This was corrected. Not sure why it was linking to a current chart lesson. I think YouTube changed the link because they are not keen on live trades being shown any longer.

    Reply

      Seedbird March 11, 2021 at

      Is there any possibility you’d be able to do something like this again? I think it would be a massive help to see you talk through them in real time.

      Reply

        Spencer March 12, 2021 at

        I 2nd this! I’d love to see a morning of your live trading from a recent date, if for nothing more than inspiration! Thanks Mack!

        Reply

      mgcorreia March 12, 2021 at

      Thanks for the fix Mack, not sure i’d take any of those trades myself, seemed like a lot of overlapping bars, not much room into resistance and too far from the MA. But helpful study of PA nonetheless.

      Reply

        Mack March 12, 2021 at

        This is from the old days, before all of the current volatility. You didn’t have much choice back then, as those were good trades for that time and era.

        Reply

Daniel March 11, 2021 at

So I understand the two main rules of stop losses are to have it 1-2 ticks below/above the signal bar AND maximum 8 ticks away from entry.

I see entry points you mark that ignore the 8-tick rule quite often. The mark at 5:20 on this video has a 12 or so tick signal bar with no possibility of a better entry. The next one after that looks like it is also borderline 8 ticks.

Do you just follow that second rule as a beginner and then gradually ignore it as you get better at recognizing good entry points?

Reply

    Daniel March 11, 2021 at

    Oh, I was referencing the March 10th video fyi. It’s changed now I think.

    Reply

    Daniel March 11, 2021 at

    I found the FAQ where you answered it. No need to answer.

    Reply

    Mack March 11, 2021 at

    With the current volatility, you can throw out the 8 tick rule, as it simply won’t work. Read through the FAQs page for updates on this. Also, note that these trades are from 2013. We just updated the link, which automatically sends out a new post, although this post is not new.

    Reply

Greatlookinguy March 11, 2021 at

Brilliant. Thank You for sharing this Mack. Back in the day when the Mackster was copy-pasting trend lines and using arrows for measured moves.. before the renaissance of NT8 and the new plug-ins. For some reason, I am just so delighted to have joined the community when all this was still old school and the website still looked like something out of an 80’s computer magazine 🙂

Reply

michaelnero March 11, 2021 at

Hi Mack,
This video is great keep’m commin ;-).

Question: In the video you mention a “Failed Second Entry” in which the trend does not continue after a second entry but fails and the trend changes direction. I am currently studying the Pats Second Entry strategy. Am I correct in understanding that what you are referring to in this video is a different strategy? This is a failed second entry strategy entering opposite of the current trend in a reversal as opposed to a Second Entry where we jump back into a trend continuation. Is this correct? If so do you teach on the Failed Second Entry Strategy?
Cheers,
Michael

Reply

    Mack March 12, 2021 at

    Yes, if you are new, do not worry about failures at this point. That is much more advanced and will confuse you and make it harder to learn basic 2nd entries. Once you get a complete understanding of 2nd entries and can spot them clearly, failures will be almost automatic.

    Reply

      Michael Nero March 15, 2021 at

      Awesome thanks Mack!!

      Reply

Greatlookinguy March 11, 2021 at

Question on this video Mack: If a person pauses that video at the 4:02 mark, that looks like a situation of, “..made a new high, tested it once, tested it twice..”. You actually went long at a price point that is not even one tick above or below an entry bar. Now THAT is the kind of advanced thinking I would like to learn (hopefully because I’ve already understood the regulation second entry there, and the failed second entry that’s coming up). It appears to the untrained eye as if that second entry limit order long – once the horse has bolted the stable – is in contention with the triple test downward bias of that mini-resistance line. Yet you have placed a buy stop AS IF you knew that prices would not go lower but higher if they reached there (this is all before the failed second entry short takes place). Please share why sir.

Reply

tberg67 March 11, 2021 at

I’m still not profitable but getting better everyday. I watch your videos everyday & have read the manual 3x so far.
Thank you for making it possible to shave time off the process by giving back to beginners !!

Reply

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