tag:blogger.com,1999:blog-1914171719112585881.post8001641753455014391..comments2008-10-29T23:53:55.269-04:00Comments on A World in Review: Finance~christophany~http://www.blogger.com/profile/16004803748542045677noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1914171719112585881.post-52519734891567615482007-11-02T10:20:00.000-04:002007-11-02T10:20:00.000-04:00Let me say upfront, I've never actually tried to u...Let me say upfront, I've never actually tried to use Fibonacci series in stock trading.<BR/><BR/>My opinion is that it most likely doesn't work. Let me explain why I think that.<BR/><BR/>First off, if it did work as well as the websites with tools and computer programs promoting it say it does, then everyone would do it. I realize that's a pretty weak rationale to start, but success usually draws people in and keeps them, so eventually a large percentage of people would be applying that approach.<BR/><BR/>Second, on any given day only about 10% of the shares of a company are being traded. Usually large profits are made very quickly when the big money moves. The big money doesn't move on a whim, they usually change when they see a large shift in expectations, so trying to capitalize on the ups and downs of daily trading is possible but very hard to have success rate.<BR/><BR/>Third, large amounts of trading can be profitable but any gains will be highly taxed. The fact that you're trading a lot and taking brokerage fees is also counting against you. Usually in order to do that, you have to have 25K or more in your account so you can be considered a day trader and valuable enough to the brokerage for them to let you move your money around that fast.<BR/><BR/>Personally, I'm going to continue to promote the value investing approach.~christophany~https://www.blogger.com/profile/16004803748542045677noreply@blogger.comtag:blogger.com,1999:blog-1914171719112585881.post-7210166109677029802007-11-02T09:48:00.000-04:002007-11-02T09:48:00.000-04:00What are your experiences using Fibonacci series i...What are your experiences using Fibonacci series in stock trading? Does it actually work?Anonymousnoreply@blogger.com