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INTRODUCTION TO TRADING WITH PIVOT POINTS

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Presentation on theme: "INTRODUCTION TO TRADING WITH PIVOT POINTS"— Presentation transcript:

1 INTRODUCTION TO TRADING WITH PIVOT POINTS
The Art of Seeing Through the Clutter and Prospering With Your New Found Financial Freedom. INTRODUCTION TO TRADING WITH PIVOT POINTS Your Key to Winning Strategies in Stocks, Futures, and Currency Trading!

2 We Respect Your Privacy!
We are committed to your success. First the Legal Statements & Disclosures: We will never sell, rent, or otherwise abuse your address or postal address. It will be used solely for the purpose of sending you the Simplified Trading e-letters and occasional notices of upcoming events that you may have an interest in. (We send these letters ourselves; we do not share your address or any information about you with anyone.) Should you wish to unsubscribe at any time, instructions on how to do so are included with every . We Respect Your Privacy! Simplified Trading and any and all training programs and instructions are explanations of speculative trading processes or systems which are designed to buy stocks, currencies, and/or futures at low prices and sell at higher prices. The techniques can be used in “shorting the market” or through traditionally favorable “long” entries.  We lay no claims as to past, present or future profitability of the techniques presented in the training or services provided by the principals or other participants with Simplified Trading programs, and there is no guarantee that the suggestions presented will provide any profits to traders using those suggestions, and may cause such traders to incur losses . Hypothetical or simulated performance results as suggested through the use of paper trading or the use of simulated electronic trading programs will have certain limitations. Unlike live trading with your money at risk, simulated results do not represent actual market contact events to include having no market compensation or market impact nor does it take into account any lack of liquidity or other market responses. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve the profits or losses similar to those shown in training or simulation programs or documentation no matter what the source of the information. All advisory or signal alerts provided to our advanced participants and generated by Simplified Trading are provided for informational and educational purposes only. Any trades placed upon reliance on these signals are taken at your own risk for your own account. Past performance is no guarantee of future results. While there is great potential for reward when electronically trading world markets, there is also substantial risk of loss. You must decide your own suitability to trade.  Trading results can never be guaranteed.  This is not an offer to buy or sell futures, options, or commodity interests. All signal alerts are based on successful historical formulas and the experience of the trading instructor through their personal interpretation of those formulas as they relate to the markets traded.  You can lose all or a significant portion of your money very quickly through electronic trading and you must decide your own suitability as to whether or not to trade.  Use only true risk capital that you can afford to lose and accompany that with strong money management. Never risk more than 5% of your account on any one trade.  Stop trading if you are uncomfortable with the trading style or you cannot follow the signals. Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

3 Commodity Futures Trading Commission and Other Disclaimers
SEC Disclosure Past performance does not guarantee future results.  Simplified Trading instruction or suggested trade signals for advanced participants is not investment advice.  We have no financial interest in the outcome of any trades mentioned or suggested signals, other than disclosed in the Terms of Use and/or subscription agreement.  There is substantial risk of loss trading currency, stocks, futures, and commodities. You need to determine your own suitability to trade them. There may be tax consequences for short term profits/loss on trades. Consult your tax advisor for details on this if applicable. Commodity Futures Trading Commission and Other Disclaimers Neither Simplified Trading, LLC, not its principals, officers or employees are CTAs. Becoming a subscriber and/or trading any of the system's signals presumes you have fully read and understood the risks involved in trading futures/commodities as set forth below or in the full disclaimer and disclosure statements provided with every communication and/or as available on our web site and/or by requesting such disclaimer and disclosure statements. Additional  Notices There are no guarantees or certainties in trading.  Reliability of any trading signal or alert from either a trained individual or a mechanical system are based on historical probabilities only.  Trading is a business, part-time or full-time it involves hard work, risk, discipline and the ability to follow rules and trade through tough periods.  There are no guarantees!  A significant majority of traders lose their investment capital when trading.  Underlying causes and effects can be attributed to their lack of discipline and failure or inability to be consistent. Following the rules established in our Simplified Trading Programs can help you become consistent in your trading, reducing but not eliminating the risks involved.  Your ability to remain disciplined in your trading is probably of greater importance than any technical indicator you may choose to use. Mental attitude and worrying about your cash flow required for living can contribute to and cause a trader to make trading errors leaving established rules and safeguards behind.  Only trade with risk capital and always include money management in your trade. Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

4 I am committed to your success!
Be systematically successful, not occasionally lucky! I am committed to your success! Welcome, your host is: Richard Stephens, author of Simplified Trading and Financial Gladiator. Photo by Robbie Patterson, CLC I have traded successfully several markets to include stocks, futures, and the financial markets; Over the past 13 years I have perfected a successful trading system; Trading Long or Short, you can average about a 70% success rate; What I love to do is trade, but most of all, my love is teaching others how to perfect their trading and to help them find the financial freedom that they are looking for; That’s what Simplified Trading is all about, that’s why we’re here! Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

5 Be systematically successful, not occasionally lucky!
Pivot Point trading strategies have been around for a long time; Originally used by floor traders to have some idea of where the market was going during the course of the trading day; The Pivot Point is the level where the market changes directions for the day; You can calculate the day’s Pivot Point by using the previous day’s high, low and close. You can also use the same calculation to identify the Pivot Points for Weekly or Monthly trading positions by simply substituting the “Previous Day’s high, low and close” with the same information using Weekly And Monthly charts respectfully; Most charting programs permit you to have your daily pivot points calculated and displayed automatically; Because of auto-calculations available on many trading platforms, Pivot Point trading is rapidly out pacing Fibinatichi calculations. Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

6 Be systematically successful, not occasionally lucky!
Pivot Points are predictive using previous day’s trading to calculate potential turning points for the day you are about to trade; Many traders are now using Pivot Points to calculate entry and exit positions and because of their use, the market is reactive to the Pivot Points that you calculate; Pivot Point Calculator, presented on the following page, is available for download free; The formula’s used to calculate the Specific Pivot Points are listed on the page as well; to calculate the Weekly and Monthly Pivot Points, simply use the previous week’s or month’s High, Low and Close to achieve those numbers; The general idea in trading Pivot Points is: a) based on the days opening, an open above the Pivot Point the day will tend to gain position; b) if it opens below the Pivot Point the day will lose position; c) reversal breaks or short term consolidation is anticipated at support and resistance points, 50% between such points and an attempted cross over of the Daily PP. Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

7 Be systematically successful, not occasionally lucky!
Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

8 Be systematically successful, not occasionally lucky!
15 Minute Chart Daily R2 50% Daily R1 50% Daily Pivot Point Daily S1 Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

9 Be systematically successful, not occasionally lucky!
Daily R2 Daily R1 Daily Pivot Point Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

10 Be systematically successful, not occasionally lucky!
Move Based on FOMC News Daily R2 Daily Pivot Point Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

11 Be systematically successful, not occasionally lucky!
Daily R1 One Minute Chart Daily Pivot Point Monthly Pivot Point Daily Pivot Point Daily S1 Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

12 Be systematically successful, not occasionally lucky!
30 Minute Chart Monthly R1 Weekly R1 Weekly Pivot Point Daily R2 Daily R1 Daily Pivot Point Monthly Pivot Point Daily S1 Weekly S1 Daily S2 Daily S3 Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

13 Be systematically successful, not occasionally lucky!
15 Minute Chart Daily R1 50% Daily Pivot Point Weekly Pivot Point Daily S1 Daily S2 Monthly Pivot Point Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

14 Be systematically successful, not occasionally lucky!
Weekly R2 Daily Chart so Weekly & Monthly PP Apply Monthly R1 Weekly R1 Weekly Pivot Point Monthly Pivot Point Weekly S1 Weekly S2 Weekly S3 Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

15 Be systematically successful, not occasionally lucky!
4 HR Chart Weekly R2 Monthly R1 Monthly R1 Weekly R1 Weekly Pivot Point Daily R3 R2 R1 Monthly Pivot Point Daily S3 S2 S1 Weekly S1 Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

16 Be systematically successful, not occasionally lucky!
One Hour Chart Weekly R1 Weekly Pivot Point Daily R3 R R1 Daily Pivot Point Monthly Pivot Point Daily S3 S2 S1 Weekly S1 Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

17 “You will run out of money before a guru runs out of indicators!”
Be systematically successful, not occasionally lucky! Technical Indicators “You will run out of money before a guru runs out of indicators!” - Neal T. Weintraub “Contemporary databases, software, and hardware allow system developers to test thousands of ideas almost instantaneously. I caution these people about the perils of curve fitting. I urge them to remember that one of their primary goals is to achieve discipline which will enable them to earn profits. With so many great tools, it’s easy to change or modify a system and to develop indicators rather than rules, but is it always wise.” - Barclay Trading Group, Ltd., Barclay Managed Futures Report, Vol. 4, No. 1 published the first quarter of 1993 Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management!

18 Be systematically successful, not occasionally lucky!
I’d like to leave you with this “To Do List” adapted from the writings of Napoleon Hill’s Think and Grow Rich… Create the Intent to Capitalize upon your Greatest Idea for Financial Wealth; Believe and have Faith that YOUR Intent WILL Become Fact and See Yourself with the Fruits of YOUR Intent ALREADY DELIVERED; Formulate YOUR Plan to Transform YOUR Intent into Physical and Financial Reality; Put YOUR Plan INTO ACTION; Apply and Follow Through on YOUR Plan with Persistence and Back this with Sound Decision Making Until YOUR Intent Has Been Achieved; Prepare the way to Success through YOUR Unending Desire for Success! Copyright 2009 Author Richard Stephens Trading is Risky - Use appropriate money management! 18

19 Personalized Robbie Patterson, CLC Empowered A Certified Life Coach
Contact: Robbie Patterson, CLC A Certified Life Coach She will help you find Personal Success and Achievement through the Law of Attraction and a fuller understanding of how the “SECRET” can change your life! Robbie at: Empowered Informed Copyright 2009 Author Richard Stephens


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