Fibonacci and Trading FOREXI am really annoyed with people pushing fibonacci numbers and trading markets as how to make money in those markets. Specifically I'm talking about FOREX but this goes for any Fibonacci Trading "System" . My problem is not with Fibonacci numbers themselves or the golden ratio in itself, it's with the way they are used as a trading tactic. Let me first say that technically you could say any trading "system" is has a 50/50 win chance. While that sounds good, it matters more how much you win and how little you lose to actually be profitable.
Fibonacci Numbers are being touted online as trading systems making people extremely rich. Let's remember, when we see the majority of the fibonacci screen shots the majority are in Hind Site, after the fact. Just as trading Patterns are shown AFTER the fact, while, when you look at a chart AFTER the fact, you will also see these patterns proven wrong time and time again (I can't count how many times a double top has been blown, or a ascending triangle has been wrong, the channel has broke but it's ko because it didn't break it enough...). Now understand, I'm not talking about finding something that works every time, these patterns and sequences may improve your odds, but most of the time they will appear because you want them too, not because they actually have (or they fit the model you're looking for again hind site). Using an accumulation of knowledge, patterns, fibonacci numbers, news and other technical and fundamental signals will help you make more educated trading decisions. Remember in any Market, the majority of the time most people are making money in the long term, accumulating positions in their picks. While large financial institutions may make tons of cash in seconds day trading, the average invester is not going to have enough leverage and insider information to make these trades and will lose the majority of the time due to speculation based on incorrect signals and trading. Latest FOREX Product Reviews:Forex AutoMoney Review Benefits Of FOREX Trading |