The next MAGIC FIB level is $132.44. If price goes there before going up to the target profit, then the target price will net roughly $7,200. Of course, since price is random, I have no idea where it's going to go.
Time to get back into following you...I have not been so active the past month myself, moved to Germany and have been really busy, need to start getting back into trading again. Good to see you posting again, and I look forwarding to fibbing with you as well ;P
Cool, why'd you move to Germany? For work, family, or fun? Some of you may be drawing a down trendline here (see chart). No big deal, I'm just going to buy more if price goes down further. It could also be argued that right now price is hitting a known R point. But again, who cares, because price is random... at least to me. I sure can't predict it! So what's going on in this chart? 1) we've got the fib lines drawn 2) we've got a down trendline drawn (diagonal blue line) 3) we've got a known resistance point which may be flipping to S (orange line) I wonder if any of the fib believers are going to look at the orange line and say "DOOD LOOK IT MATCHES ALMOST XACTLY WITH THE 50% FIB LINE!!!! SEE???? FIBS ARE MAGIC!!!!" What does this mean for me? It means nothing. The downtrend line means price should go down. The R becoming S means price should go up. But I cannot predict price, so I don't even try to.
Long 1,000 @ $132. I know that's a little below the original MAGIC FIB LINE but when I checked the charts today price had gapped down and was at 132 so I entered with a limit order. Avg cost $132.70. So the target profit is $137 which will bring approximate profit of $7,740. Other alternatives if I'm feeling not so bullish: - Sell 18 $133 covered June calls for $1.55 ($2,790 proceeds) + $540 profit if the calls are exercised. - Sell 18 $135 covered June calls for for $0.72 ($1,296 proceeds) + $4,140 profit if the calls are exercised. The options forum tells me I don't want to sell covered calls too far out in the future because it's not usually worth the extra premium. Or I could always Sell 18 $137 covered June calls for $0.27 ($486 proceeds) which was my target profit anyway, so like an extra $486 less commissions?
I think the best way to make money with Fibonacci numbers is for the person on the other side of your trade to be using them.
Give me a symbol, I'll make a live call for you using fibos. I won't guarantee the fibs are the %s others use, just that I'll do it realtime and take a stop if I'm wrong .