Not so long ago, I was living from paycheck to paycheck - something all too many of us can relate to. But now I've got breathing room, and more. How? By applying the hottest new method in trading today. You may have heard of it:

Fibonacci numbers.

When my neighbor first mentioned those words to me, I was pretty confused, but he helped me to understand how trading works. And by applying certain ratios gained from Fibonacci numbers, he was able to predict what particular currency pairs would do.

Fibonacci's sequence starts like this: 0, 1, 1, 2, 3, 5... and so on. Each number is gained by adding the two numbers before it, so for the next number we would add 3 and 5 to make 8. Simple, right?

But the most useful part is the ratio between consecutive Fibonacci numbers, which is about 1: 1.618 - this is called the "golden ratio." There are many ways to apply this ratio to finances, but most often it's expressed in a percentage that indicates how far you should ride a certain dip or rise in a currency fluctuation.

That's just the basics, but don't be intimidated by the math. The three most common percentages applied to the market are 61.8%, 50%, and 28.2%. By measuring the high and low points of a particular currency's performance, you can divide the distance between those points by the three percentages I mentioned to predict how and when the pattern gets repeated. So just remembering those percentages is a big help.

I haven't quit my job just yet, but give me a little more time! Learning how to use the Fibonacci sequence was by far the best financial decision I've ever made.