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Monday, February 9, 2009

Fibonacci Stock Trading - Using Indicators to Stay Ahead of the Market

In today's volatile market, I've found the easiest way to invest is with currency trading. I've always done okay, but it wasn't until I learned about Fibonacci numbers that I started seeing steady gains.
Developed in the 13th century by Leonardo Fibonacci, the Fibonacci sequence is a way of expressing certain relationships that are constant throughout the universe. These relationships can be seen in both natural phenomena and in human behavior. But what a lot of people don't know is that the stock market shows these same relationships between its trends and counter trends.
I've used this system with great success in the past six months. I invest pretty conservatively, but my biggest gain so far (on one currency cross) was over $5000. By using leverage, just a few pips change in price levels allowed me to get in and get out without putting a whole lot at risk. And I used Fibonacci's "golden ratio" to find the proper price levels at which to trade off.
There are a lot of programs available to help you map out Fibonacci waves. You can download SpiralTrader for free; there's also VTTrader, which my neighbor uses and recommends. Both of them work wonders; all you have to do is input a few numbers and drag your waves over market graphs, and it shows you the key percentage levels at which to trade successfully with that fund.
It's not rocket science, and it's not magic - it's just a way to see patterns and determine when they will repeat. I've made over $20,000 now, and most of it came from using this system to trade on the Forex. Make sure to find out all you can about this little-known way to predict the future of the market!
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