Fibonacci Trading

Good old “fibos” are so important in trading.

I’m not too proud to say that although I’ve known about them and used them for well over a year – I haven’t been using them like a pro. Like most things, there is so much information and misinformation out there – its easy to get totally lost and confused.

If you’re not familiar – the name Fibonacci comes from Leonardo de Pisa, who was the son of Guilielmo Bonacci. In Italian, “figlio” means son,  therefore you get “Tiglio Bonacci”, which was shortened through the years to Fibonacci. He is one of the most famous mathematicians and came up with the fibonacci sequence. Long story short – fibonacci principles are found all throughout life from the great pyramids to the proportions of your body to this beautiful shell…

Back to trading – there’s the 38%, 62%, 50%, 78%, 23.6% fibos, etc, etc.  There are all types of advanced courses and methodologies and I have taken quite a few. So, did they help me become profitable?  Nope.

Over the last couple weeks I have been introduced to the principles of legendary trader Joe Dinapoli. I highly recommend his book Dinapoli Levels which is very comprehensive and yet easy to understand. Joe has shown me an easy and smart way to use fibs. I don’t use all of his techniques (I really dislike stochastics), but I’ve adopted a couple and wow are they good. Joe’s been trading since the 70′s and really knows his stuff. AND – he keeps it simple which is really important.

What I’ve learned recently will help me capitalize on situations where the “dumb money” is getting clobbered and also help me pick up lots of easy pips everyday.  I highly recommend Joe’s book and video seminars.

Whether you believe in it or not, Fibonacci is a huge part of trading and not knowing about these key levels is like driving your car blind – you’re going to get hurt!  Before I knew about these levels but I wasn’t really getting how to trade with them properly.  I’m not going to get into the specifics of it here, best for you to go right to the source. All I can say is that my fibonacci trading is a lot simpler and a lot more profitable. Thanks Joe!

A quote from Joe’s book:

“Conservative Carl had purchased some unriped bananas the day before. That was enough risk for him so he decided to sit this one out.”