In the chart below you will see a trade I have currently in place. This trade is an example of the scary nature of trading pivots the way I do them. When things go right, you can make thousands of pips. When they go bad though, you can lose your account. Here is how this trade breaks down. The weekly pivot is 1.6729. I stacked 10 orders below the pivot, each 10 pips apart. The first at 1.6719, then 1.6709, 1.6699, etc. until I had 10 buy stop orders ready to go.
On Monday, the price spiked up and opened all of my positions but one. The price then fell somewhat putting my account negative for a while. Then early this morning (Tuesday), the price spiked up again and missed the weekly pivot by 1 pip. Yes, 1 pip, then fell like a stone and nearly margined my account before coming back somewhat. Now, this trade may yet work out. If you've looked at the way price moves in relation to the pivot point you'll know that it very often comes in contact with the pivot more than once. So I'm riding this out. But this is an example of why this trading method is not for everyone. It can be volatile and frightening. If you fear losing your account, don't trade this way. We'll see how the trade works. I'll report when it closes.Happy Trading!
