Can 5 pips a trade = Financial Freedom

If you start with a bank of £150 and capture 5 pips a trade 3 times a day = 15 pips a day at £1 a pip and increase to £2 a pip as your bank grows then to £3 a pip, you get the picture build slow and steady, trade safely. In less than 6 weeks you would be trading at £10 per pip, that’s 15 pips a day @ £10 = £150 per day Tax Free. 15 pips a day is all that you need for financial security why because 15 pits a day can equate to, well you can trade a pip from a £1 to £150 per pip, so you do the maths.
So all we need now is a trading strategy that will give us 5 pips + the spread within a trade. Thats what the charting software I use along with pivot points, support and resistance levels does. There is one unique indicator that is not found on any other charting software that identifies a potential trading candle within a 15 min chart using this with pivot points, support and resistance 5 pips is achievable on most trades. With carefull money management and tight stops I think I can do this, so lets find out.
I will be paper trading for the 1st few weeks, then if all is well I will start trading a £1 per pip.

Sunday, 11 November 2007

Fibonacci Sequences in Technical Analysis

Leonardo of Pisa, nicknamed Fibonacci was born around 1175 in Italy . Fibonacci was one of the greatest mathematicians of the 13th century. Fibonacci is known for discovering a series of numbers that was called after him the Fibonacci numbers or the Fibonacci sequence. 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233 ... In the Fibonacci sequence each term, except for the first two, is the sum of the two previous terms for example, 2+3=5, 3+5=8. Fibonacci and the Golden Ratio Fibonacci also found that dividing each number in this sequence by the one that precedes it produces a ratio of about 1.618 after the first four calculations. This number is known as the golden ratio. For example 233/144=1.618 Fibonacci Levels The ratio between any number and the next higher number approaches 0.618 for example 21/34=0.6176 Also, The ratio between any number and the two next higher number approaches 0.382 for example 89/233=0.3819 These ratios usually rounded off to 1.62, 0.62 and 0.38 and the percent of these ratios called Fibonacci levels. Fibonacci Indicators Fibonacci indicators help traders to anticipate support and resistance levels along with price targets. Trading software calculates and draws indicators automatically and you should learn how to use them. There are many Fibonacci indicators like the following: a. Fibonacci Arcb. Fibonacci Fan c. Fibonacci Retracement d. Fibonacci Extensions e. Fibonacci Clusters f. Fibonacci Time Zones g. Fibonacci Channel Fibonacci Arcs are drawn for predicting support and resistance levels; those are three curves that usually drawn between the high and trough in a given period.Fibonacci Fans are three straight lines that used for forecasting support or resistance areas.Fibonacci Retracements are based on a trendline drawn between a significant trough and high. If the trend is rising, the retracement lines will descend from 100% to 0%. If the trendline is falling, the retracement lines will ascend from 0% to 100%.For more information with images read this page: Fibonacci Sequences in Technical AnalysisBy Mostafa Soleimanzadeh. Learn to invest money in Stocks by reading Free Stock Market Investing Tips.
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