In Stage 2 you still forget frequently, but the periods of mind wandering which follow forgetting are relatively brief.
Stage 3 is about eliminating forgetting and mind wandering entirely. The basic technique is to jump in at pay a lot of attention at the point where the mind wandering ended and you remembered that you were meditating. Try to go back and remember what your brain was doing just before the forgetting. Was it too active (distractions)? Was it too inactive (dullness)? By remembering the moment just before forgetting, you are training your brain to be aware of that condition the next time it occurs (just before forgetting), and thus giving it a chance to intervene before forgetting occurs. You are actually training a subconscious process in you brain to do this. Amazing, simple practice repetition will do this. Weirdly, your brain is actually trying to help you, and what it will work on is what you pay attention to – in this case the moment of forgetting and remembering
Try also to keep peripheral awareness open during all of your sits. The content and clarity of peripheral awareness don’t really matter at this Stage, but keeping it open (you are aware of the sounds of your environment) is important.