Why do day traders use pivot points?

Trading is an interesting investment. Unlike other investment options, in trading, you get to choose your budget as well as the timeline. There are no strict maturity terms or tenures involved. So you can quit and withdraw your funds at any point. This liquidity is what makes trading an attractive option for those looking to make use of some spare cash at hand. With the rise in the number of trading systems like Qprofit System, more and more people are now confidently considering trading as an investment option. You would be able to find a detailed review of Qprofit System on that page.

There are various trading strategies followed by traders as well as technical indicators. The mix and match of these would result in a trading strategy that is unique to each trader. And this is what determines the actual profits and losses made.

Most day traders love using pivot points to make crucial decisions. These are points that are calculated taking into account, the highs and lows reached as well as the closing price of the previous session. Besides the basic pivot level, there are the resistance and support levels.

  1. Recent trends talk better than historical data:

Analysing, the historical charts help understand the direction to some extent. But the latest data would be more important. Given that pivot points are based on the most recent data these are known to give real-time information about the trends. For day traders pivot points based on 15 minute or 5 minutes or even 1 minute time frames work well.

  1. Dataset is great:

Larger timeframe charts might not capture each small price change. But when the time frame is shortened to understand the pivot points even the slightest fluctuations can be captured. This results in a more accurate data set to analyze.

  1. It really works:

Day traders have been using pivot points for making their decision for a long time now. And there are proven results accepted by traders around the world that pivot points really make the decision making the process simpler.

Unlike most other technical analyses using pivot points is quite simple. So even for those who are new to day trading, this method might be easier to learn. Finally, it all boils down to the accuracy with which you calculate the pivot points. When that is done right then day trading can be made much more convenient with these.




Trading bots as learning aids for budding traders

Trading bots have been the talk of the town. Being able to simply make a deposit and watch a bot act as the trader on your behalf might sound like a science fiction movie. But this is something that is happening around the world. Trading still continues to be a popular investment which comes with a great liquidity. And with other investments, you might have upper and lower limits on the amount to be invested. But in trading, you get to choose how much you want to deposit.

All these attractive perks that trading offers can be used if you know how to trade and if you know to watch the stock market. Anyone can watch the stock market but would you be able to identify specific trends that occur and pick out a list of good stocks from the pool of thousands? You would be able to do this not merely by the knowledge acquired in the books on the stock market but by actually trading in the live market. But how do you ensure that you reduce your risks? By never stopping your learning process. While all this might sound tedious, it gets a lot interesting when you actually take the leap and become a trader. Where does a trading bot come into the picture? For someone who doesn’t know anything about the stock market, it would be tough to pick multi-baggers, gainers, and losers. Understanding candlesticks, support and resistance levels and other technical indicators might all seem a little too complicated. The real understanding happens once you have a practical aid in helping you learn trading better. So trading bots would do exactly that for you. With the little knowledge that you have in trading make your predictions and take your decisions. Compare that with the decisions taken by the bots and then you would be able to find out where you went wrong.

The time you spend on actually comparing the trading bots in the market and then picking the right one would be a worthy investment. Because when you choose a bot with a reliable algorithm you would be able to sharpen your trading skills. Start with a small deposit (keep in mind that some trading systems have minimum deposit requirements). And then while also making some decent profits you would be able to learn to trade in a practical way. For more information about one such trading system that is popular among the beginners refer to this source.