Great way to increase your earnings via Fibonacci Multiplications - Page 54

1. ## Great way to increase your earnings via Fibonacci Multiplications

I have a good way that i always used to reduce the lose using Fibonacci multiplication.
first for those whose don't know about this type of multiplication you enter the first trade with lot 1 and the next with lot 2,3.5.8.13.21 and so on.

Now how I use this way to earn.
lets say i have a trading system that gave me a buy signal and i will never close it before a sell signal then I enter the first BUY order with lot 1 from 1.1110, with a take profit of 30 pips but the price goes down for 20 pips and i get a sell signal then i don't close the buy one but I will open a sell position with a lot of 2 from level 1.1090 now the price started to go back again and after 25 pips I get a Buy signal then i open a buy position of 3 lots from level 1.1115 and with take profit of 30 pips too.

Now I get the take profit level hits at 1.1145, now you will see that you have 2 buy positions
lot1 from 1.1110 closed at 1.1145 earned 35 pips
lot3 from 1.1115 closed at 1.1145 earned 30pips*3=90 pips
total earnings of 125 pips

and one sell position

lot2 from 1.1090 closed at 1.1145 lost 55 pips*2=110 pips

Now the total earnings will be 125-110=15 pips

let's see what will happens if we closed all the orders with stop loss level without using this method.

first order lost 20 pips
second one lost 25 pips
third order won 30 pips

total of -15 pips and keep in mind that in the second way you opened a 3 lots and you will earn a rebates of 3 lots only
but with Fibonacci you will open a 1+2+3=6 lots which mean you will get a 15 pips earnings and also a rebate for 6 lots too.

just try it and ask me if you have any questions.

2. Hmmmmm! my dear friend, i think that you will be biting more than you can chew if you are trading the forex market like this because you will be having a multiple orders in the market if you refused to close open trades and you keep adding to them according to your trading projection.The highest number of trades i can advice any trader to have in the market at once is two and that will be under some strict condition because it is not having multiple orders that bring success in the forex market . Think of what happen if the market take a reverse against you.

3. fibonacci multiplication can lead to making of good money because the trader will find many levels that help him to find more chances of trading and so the trader will be able to make more and more money and will set tight stop loss, the trader should try to find the best chances that let him to make good trading to avoid loss of money always.

4. Fibonacci is really a great tool for analyzing the market.i have used it for trading in GOLD,SILVER and Crude oil and it is great for such high volatility pairs.i would recommend the traders to use Fibo at bigger time frames like D! or W1 and for smallest time frame H4 is also good but it would not work better in more smaller time frames.Fibo tool give great support and resistance levels for long term trading.

5. it is the advantages of Fibonacci we can use the limit provided as a trading reference and placing limits on losses, and fibonaci tells the reference limit for rewrad where take profit is to be applied to the reference boundary, all the information on Fibonacci is dependent we want to use which limits. and if the reference limit is not reached we can order again from seeing the boundary.

6. ctting, It is very limited use i read many article from trader but the very rare use of it , but we use sometime complete trust on it is not good that may put yourself in deep trouble , there is not any clear level where we set our take profit or stoploss , this will comes trader own decision which will help to achieve success .

7. Fibonacci has not exactly formed part of the indicators that I have selected for trading, I don't understand exactly the way the multiplication work but it sounds Complicated from the explanation, Fibonacci is a great indicator that can be used for various purposes, sometimes it can act as the reversal generating signals that we can trade when a trend has ended.

8. This is a kind of good indicator the most important thing for every indicator is do not trust on it completely , we get used and make a simple trade strategy same rule if applied on Fibonacci use then i think there will be noting impossible we get used it for find the support and resistance level and also we take our profit target according to the finonacci levels .

9. @tejaravi
for understanding the placement and execution of an action indeed we will have difficulties if we emulate from others, something that is out of action for ourselves and adjusted also with yourself not someone else, therefore between money management one trader with another is not the same, from my journey a very rational one is starting from the mindset, the mindset of some traders must be different so the accumulation of money management is different in adjusting the capital owned and again drawing a line from the mindset that has been made.

10. Fibonacci retracement is a great indicator.it calculates the market critical levels for trading in effective manner. Forex online trading is not very easy way to make money because it is always risky and this business is profitable after proper learning and practice. We need to develop a better trading system and work in planned manner for safe and secure trading. Fibonacci retracement is highly accurate for analysis and it gives better results.

11. It is a good indicator we have use for support and resistance sometime ,i used it for make analysis like my trade is based on candlestick pattern or other technical tool but the results must be good only if i consider all the other side as well that will help to make our trade plan perfect which easily give chances of earning with minimum risk .

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