Mastering Pivot Point Trading
It's a critical skill that all successful traders need to master: mastering pivot point trading. If you haven't heard of it, this article is a perfect place to start. I will explain what this means and how to use it to your advantage. The more you understand, the better equipped you'll be to learn.
So what is pivot point trading? It's just the process of identifying and exploiting profitable price points. The first step is to define these price points. The most common uses for this term are: day trading, seasonal, technical analysis, trend trading, and scalping. The more specific you can be with your terms, the better.
Now that you know what pivot point trading is, it's time to figure out where you want to be. Usually, scalpers know they're successful by the time they hit a high. What they don't realize is that they also have to recognize the lowest point of their session.
These are the pivot points. Once you've recognized your lowest, you can start moving into the next low. By knowing where to go in between, you will have a better chance of selling the stocks at your pivot point.
One thing you should know about pivot point trading is that there is no one ideal strategy for every type of trader. Different types of traders will react to different price situations differently. The best way to do pivot point trading is to implement a strategy that fits your personality. When you do that, you'll be able to trade within your comfort zone.
The best way to determine your long term goal is to analyze your individual behavior. Focus on the lows, focus on the highs, and focus on each pivot point. You may find that you have a 'starter's guide' strategy in the first couple of weeks.
In addition to that, you will want to do some research to see what other traders are doing. They're often well informed about where the markets are going, so they can help you identify your highest and lowest price points. And they often know when to exit their positions to take advantage of a lower price.
In conclusion, learning pivot point trading is a matter of being willing to do the work. Once you have the strategy down, stick with it!