I am almost positive that you have heard the
expression "naked trading". If not, you may be wondering how in the world is taking my
clothes off supposed to help my trading? Relax, you can keep your clothes on, unless you think it
will help your forex trading career. :)
What trading naked essentially means is trading without
This kind of trading may be contrary to
what you have been programmed to think.
I know when I first started to trade, I immediately
thought that I had to flood my charts with every conceivable indicator I can get a hold
I would also look high and low for that magical
indicator that once you put on your charts it would just magically tell you when to buy and
sell without having to think about anything.
This is what many traders fall for. There are
literally countless of these indicators available, most of them for free. They usually
consists of putting an "up" green arrow for a buy or a "down" red arrow for a sell. Do
you really think trading would be that simple? I know most new traders hope so, but
that's just not the case.
If you want to learn forex
trading, I am afraid you are going to have to dig a little deeper than that. There are
countless people who are crashing their accounts because they are using these kind of random
and arbitrary indicators.
I can speak from experience because I have made the
same mistakes when I first started trading.
Then I decided to do some old-school naked trading,
when I did some simple research about how some of the most famous technical traders.
Legendary traders like Jesse Livermore became millionaires just by trading price action at the turn
of the 20th century on the stock exchange floor.
The amazing thing that not a whole lot has changed
since then. Sure, technology has improved and there are a lot more bells and whistles
nowadays, but the general concepts have not changed.