Forex Pivot Point Trading!

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Happy New Year! Well just a couple of days short. I have found a couple of great videos on using pivots on forex trades.I have touched on pivot points before in a previous blog post. It continues to be used more and more as a strategy to identify great trades on forex pairs.

I currently use a great pivot strategy that is very consistent. The more I learn about them the better I will be at identifying better trades.

They work in trending markets as well as channeling markets, and the videos are better than the previous blog post on pivots.For a day trader pivot points are essential for identifying strong resistance and supports. Note, the amount of times he mentions discipline and money management in the first video.

So three great videos on pivot points and the use of them. The first video is split into two, and will give you a good understanding of the fundamentals, entry's and exits. The third is a bit more detailed and if you have used  pivots before? Then maybe you jump to that video. It has a strategy which is easy to pick up!







The third video is one of the best explanations I have seen of pivot points, nine minutes of great information, and I encourage you to take notes. If you do come across a pivot strategy and want more info, or would like to use  them in your trading  Click here for a free stock market DVD

 



Pivots are as discussed a very strong indicator, the amount of growing company's that are using them as trading strategy's is an example of its importance. They also work well with other indicators, to give you even more secure entry's in your forex trading!

To Your Trading Success in 2010!
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2010 Here You Come!

Merry Christmas all, the festive period has kept me busy and I have had very little time to update my blog. Trading officially ended on the 18th of December due to the lack of volatility in the markets after this period. In time honored tradition my brain in the last week in particular, has switched to festive season mode. But more importantly the master plan for 2010!

Whatever has happened to you that is negative in 2009 forget about it! Whatever has happened to you in 2009 that is positive, hold, focus and make it bigger! I caught up with twitter queen Milli Ponce this week and we discussed many topics including our love for reading. Two books that we talked about in particular were the Celestine prophecy and also the Alchemist by Paul Coelho.

Both books are story's but have a real value to life. In short one is the journey a person takes to find riches (The Alchemist) and If I had to describe the Celestine Prophecy I would say it was a combination of Think and Grow Rich and the secret. Honestly there are really no problems that any human has faced that somebody else has not faced before you. Humans are repetitive and everything is a repeat of that repetition!

What makes a person different is there ability to deal with challenges and more importantly how you choose to live your life i.e ATTITUDE. My blog was inspired through the fact that after 6 months of trading and loosing it dawned on me that I was fighting myself. Win that battle and I would win at trading. From that point on the charts and screens have looked very different.

Yet again it proved to me that no matter what you are doing in life you are responsible for what happens (Both good and Bad). While the difference between 2010 and 2009 is actually one day this can be and should be used to motivate yourself for your next journey in life.

In my discussions with Milli we also talked about Will Smith. To become the highest paid actor in Hollywood Is incredible. If you had gone back 20 years and said that a black man would be the highest paid actor grossing over 100 million on each of his last eight films...People would call you mad and probably throw you in Jail.

The video below is 9 minutes of short clips... but I encourage you to watch it all.  It is an example of what can be achieved with the correct mindset!




Remember belief mixed with actions creates results and change only comes from you! I leave you with my favourite quote form Albert Einstein:

Insanity: doing the same thing over and over again and expecting different results. 

What will you change to get ahead in 2010? I start trading again from Jan the 4th when volatility is back in the market. Until then I wish you all a fantastic Christmas and the best year ever in 2010.

To Your Trading Success in 2010

Forex Trading Diary 8th Dec 09

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Morning all, I'm in bed trading because I'm still sick as a dog (Far too much info I know) I have had flu for four days and missed my alarm this morning at 5.45am. However it has not stopped me from pimping the pips!

I did a late trade around 14.40 yesterday for 19 pips and another 7 pips later on the break of the pivot to take yesterdays total to 59 pips for the day.

So why am I sharing so much about this morning? Well Adrian  (Trading partner) was up on time and noticed that cable was making a move at 6.10am and actually took an additional 33 pips before I had even woken up! This morning I had no problems with IG and I took 30 pips again!

Date:        08 DEC 2009
Reference:    DIAAAAAEM25RSAN
Size:        Buy to close
Open Level:  16373.3
Market:      Spot FX GBP/USD 08 DEC 2009
Level:        16343.3

 

Tired and feeling lazy and so wont say much more apart from scalping an additional 10.5 pips to make 40 for the day and 100 pips in two days.

To Your Trading Success!

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Forex Day Trading Diary Mon 7th December 09

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Oohh wow what a f%^&**^ frustrating morning....I had the breakout set for 16874 and pushed the button to enter but IG refused to fill the price. I missed a good 30 pips and possibly more, have a look at the charts and you will be able to see my frustration.



I'm not sure what caused the vicious drop this morning but it was a major one! Brown announced a spending cut and the market could have reacted to that. Candles work in a 3, 5 , 8 , 13 combination on a trend.

Today it went short for 8 straight candles which tells me something spooked the market.
I did finally enter the trade when it broke a later pivot and manged to also scalp some additional points to make a total of 33 pips on the day so not too bad.

The pivot strategy which I didn't play yielded 70 pips this morning. The skype chat group was very buoyant with many people taking the most amount of pips they have ever taken in one trade. In 45 minutes cable dropped 130 points and I only took 33!I will say it again bloody IG

I was involved in the webinar yesterday for the traders that are on skype. After this finished I discussed with Marcus De Maria what people expected from the webinars. They occur monthly but I'm not sure the traders are taking full advantage of it.

The group support that we give is amazing for any novice trader. But we don't believe people come with enough questions to help them improve.

A couple of points that I would like to make for anyone trading and loosing. It is a time thing purely and simply. You will become a good trader if you stick at it and most important Master your PSYCHOLOGY. Trading with fear is the number 1 reason people are not successful in trading in my opinion.

The point I made earlier about the candle formation is a great example. I had been trading for 6 months and was getting extremely frustrated about my losses. I then went on a webinar and was given that info.

I couldn't believe that I had never noticed this before. As soon as the webinar was finished I opened up the charts and you know the saying "I was blind but now I see"

All this time I had not noticed this point and it is now an integral part of my trading. You will continue to pick up small nuggets that will refine your trading and add to your strategy and then it will take off.

To Your Trading Success!

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Forex Trading Diary Friday 4th Dec 09

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Loss of 30 pips on cable on Wednesday but gained it back in the afternoon. The trade took so long I nearly fell asleep... Nearly two hours before I got back the 30 pips I lost. Not my kind of trade....

Today is non farm day which I am very much looking forward to. I took 30 pips on cable this morning but missed many more. Knowing a forex pairing is vital to trading it. Today cable began going long at 6.45 am.

As you know, I tend not to trade this until after 7 due to the false indications you get. But on this occasion the jump was too significant. So myself and Adrian my trading partner entered the trade early. He got in at a slightly better price and took 25 pips. I held on for 30 nice ones.....



Always much debate about trading announcements...I took an additional 20 pips to take my weekly number to above 100 and my daily number of pips to 50. We have a strategy to trade announcements, so I look at it as a calculated risk.



I made the trade more difficult as I did not adjust to Ig's trading rules change. When I finally had limits etc correct it had moved past my entry point. But looking at the news that unemployment in the US was better than expected! I assessed it was good for an additional 20 pips.

If entry had been where I originally wanted I would have taken 50 pips. All in all another great week, over 100 pips again and a nice percentage growth in my account.

To Your Trading Success!

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Day Trading Diary Tues 1st Dec 09

A week of announcements ahead, in particular non farm on Thursday. I tend not to trade the announcements but non farm is an exception.

Due to this being the first week of the month you have to be cautious because sometimes the Forex pairings will channel before the non farm announcement on Thursday.

Thankfully no major channeling so far this week, the forex markets have continued to be liquid. Not sure if we have the Dubai continued speculation and issues to thank? But I am 99 pips up in two days.

I placed another two trades today, one at 7am the other around 8.05am. Both trades one of 30 pips and one of 17 pips struggled a bit at a couple of psychological levels then raced through for the pips!

(Cable trade)



(Cable second trade)



Ftse opened at 8 and the up swing in stocks also helped cable break through giving me another entry point above the pivot at 16483. The exit which is the most important part of a trade, was to get out before 16500.

To Your Trading Success!

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