Naked Trading - The Forex Way

 

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 indicators.

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 of.

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.


 

 

   Back to top     |      Print this page   |     Bookmark this page