Trading Naked - Trading Without Indicators

by : John Templeton

If you are completely new to the Forex market, you probably have absolutely no clue what I mean when I say "naked trading". "I'm sure you are trying to figure out how does trading without clothes help me?" That's not really what naked trading means, although I bet if I told you it would help, you would probably do it, right?

But naked trading has nothing to do with clothes. You can keep your clothes on. It has to do with your indicators. Those are the things you are going to strip away.

This is how the majority of "purist" traders prefer to look at the market. When you get rid of the indicators you are getting rid of all the white noise that distracts so many traders, and you are watching the market, as it was intended to: with price action.

Think of it like this: When you get rid of your indicators, you are getting rid of the middle man. Since most people use indicators as a way to tell them what is happening in the market, when you don't use them, you have to rely on yourself.

For some strange reason that I don't understand, a lot of traders think that indicators provide some kind of insight into the market. Quite frankly, that is just not the case.

I know it can be tricky to get rid of your indicators when you are so used to using them, but the next time, you feel the urge to use them, just ask yourself "are these indicators actually useful to you ?"

John Templeton has been a successful Forex trader after learning how to trade price action. Once he understood that all he needed to trade Forex was on a plain chart with no indicators, his profits soared. He created a forex trading system called Trading In The Buff.

Source: http://EzineArticles.com/?expert=John_Templeton