by : John Templeton
If you've just started to get involved in trading, the phrase "trading naked" may sound really weird. You are probably saying "What?!?! Why would I trade without my clothes on?" Actually, that may not be a bad idea, but that's what it means. In a nutshell, it means trading without indicators. You can still take off your clothes, if you want. That's your call. LOL.
Trading naked is essentially how most technical traders used to trade the market. What you are doing is getting rid of the lagging information that indicators have. The main goal by doing this eliminating the filler and seeing the market the way it was naturally intended to be seen.
When you trade without indicators, you eliminate the middle man from the transaction. This is because you are no longer focusing on what your indicators are telling you. Instead, you are focusing on what your own perception of the market is, and base your trades off of that.
What's most surprising is that a lot of traders are scared to death to see the market in this way. They think that the indicators they are using are actually helping.
All you have got to do is sit down and think about it, and you'll realize that's just not the case. It's only formula. Nothing more and nothing less. Doesn't it seem weird to trade the SAME formula over an over again. Do you really think the markets are that mechanical? I certainly don't.
Do yourself a favor. The very next time you open up your trading software and you put an indicator like Stochastics, really ask yourself, "is this really helping me?"
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. You too could trade forex the right way.
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