trade currency online

Fibonacci Stock Trading - Consistent Gains With Currency Trading

Have you ever noticed how so many things seem to be connected? Well, it's not just you; modern science has proven that certain numerical relationships remain constant throughout the world.
One of these constants is the "golden ratio", which is also the result of dividing any two consecutive Fibonacci numbers. Fibonacci noticed these relationships almost a thousand years ago, but I'll bet he never thought his theories would be making people money today!
A friend of mine explained to me how it works: By investing $100, I could buy on margin (called using leverage) and control much larger portions of currency than my original capital. A safe ratio for those just starting out is 20:1, which means that $100 lets you control $2000 worth of currency. It's basically just a fancy name for borrowing, although it's slightly more complicated than that.
So what I did was measure how a few currency pairs were performing over a given time. By graphing this performance, a wave can be seen, one with many highs and lows. When I looked at the big picture, I saw patterns - and if I looked at an even bigger picture, I saw those patterns repeating.
And that's what using Fibonacci numbers is all about: finding the pattern, and then predicting where the market currently is at in the pattern. The golden ratio (.618) and its derivatives are then applied to find certain jumping points, if you will - those places to sell just before a stock drops, or buy just before it rises in value.
It's not as intimidating as it sounds. Check out trading sites like Investopedia or TradersLog for some practical tips on how to make it work for you. Trust me; it's worth it.