Matplotlib automatic legend outside plot

EDIT:

I HIGHLY RECOMMEND USING THE ANSWER FROM ImportanceOfBeingErnest: How to put the legend out of the plot

This one is easier to understand:

import matplotlib.pyplot as plt
x = [1,2,3]
plt.subplot(211)
plt.plot(x, label="test1")
plt.plot([3,2,1], label="test2")
plt.legend(bbox_to_anchor=(0, 1), loc='upper left', ncol=1)
plt.show()

now play with the to coordinates (x,y). For loc you can use:

valid locations are:
right
center left
upper right
lower right
best
center
lower left
center right
upper left
upper center
lower center