Third Party Pivot Point Plan

Well, if nothing else this is a nice little bit of alliteration.

I was wasting some time checking out a few trading videos last night, there area couple that are decent but they are all on US exchanges so the trade ideas don't cross over well, although I expect that sometimes they are pertinent. This led me to thinking about information and trade plans or ideas.

I read a few blogs about trading. They talk about technical setups, psychological aspects, scans, backtesting, market analysis, fundamental analysis....basically there are so many aspects to trading that there should be something for everyone.


Therein lies the trouble. Too many aspects. Considering that the stat I read the most is that between 90% and 97% of traders are not successful, I expect that the same percentage could be applied to the information that is available online. This tells me that I must keep my bullshit filter on high gain...which I have always known. Perhaps that is not really correct to assume. Perhaps it is that up to 97% of the information available is of no use to an individual for the purpose of their trading. Information overload.

Of all the ideas that I have read I have gleaned a few choice ones that work for me. Most I have figured out by some method of trial and error but they have also been confirmed by others that have used the same or similar methods. There is not much that is really new in trading so it is very hard to be original...but that is not really the goal I am after anyway.

Specialization.

I figure that by concentrating on that, perhaps, 3% of all the available information I will find that niche that lets me work a couple ideas to give me an edge in the environment that is very familiar to me. I already figure that I have found it...it did take about a year afterall to figure them out and to put them together in a form that seems to be a very strong plan.

This brings me back to the videos.

The two that I ran across also happen to use pivot points. One had covered it so long ago that I cannot find the clip but I drop in to see what he is up to occasionally (US markets again) and the other stopped short before giving any decent details about the actual trades based on the points, which makes the video next to useless except for those who already know pivot points. In that case it only served as a confirmation that someone else applies them in the same or similar manner as I do. In both cases the individuals do make trades based on their point systems.

So I saw a bit of confirmation that these points work. I happen to use them for daytrading, they are using them for longer term trades.

All in all this was just a ramble to clear my mind about a few things that were floating about this morning. Now I need to get back to setting my pivot points for tomorrow's trading and do some chart work for my medium term trading blog...I have some new ideas for those trades now...but they are probably not original.

Jeff.