What is Naked Forex Trading? Is it advisable?

When it comes to Forex trading, there are no restrictions on how one can trade and what rules should one follow on the live market. Each trader follows his or her own strategies and gains mastery over the same by spending time working out these strategies.

To succeed in executing the best Forex trading strategies, most traders rely on technical analysis books written for stock, futures, and option traders. They may even scour the internet for expert tips and use the same in order to improve their performance while Forex trading in Indonesia. However, using no strategies can also be a strategy. It is, in fact, the oldest strategy that has been used in online trading.

Naked Trading

Naked Forex trading is a style where traders shun all of the technical analysis tools and the indicators and only focus on the price chart. It is a simple way of engaging in trades where traders seek to keep the chaos and confusion caused by multiple indicators at bay and focus on what the charts actually show.

It is also known as price action trading as the traders predominantly focus on the candlestick chart patterns and other patterns. Whilst this form of speculation is not considered nontechnical, it barely uses technical analysis tools to trade and relies almost entirely on ‘price action’ theories to speculate on future currency price movements.

Benefits of Naked trading

• It is a very simple and rudimentary style of Forex trading
• It helps traders avoid the hassle of juggling through multiple charts and instead lets them focus on a single chart.
• Traders can avoid the chaos caused by the market noise and just focus on what is happening in real time.
• It helps traders keep away from all the confusion caused by multiple indicators
• Traders can learn how the market operates in greater detail by just following its price trends. This can help them mature as a trader and improve their performance

The aforementioned benefits show us why naked or price action trading is the best method for traders. But to pull off such a simple style of trading it takes enormous learning and practice. Novice traders who are looking to try this strategy can approach reputed Indonesian Forex brokers like WesternFX who can offer the guidance and rigorous training required for this strategy.

How can setting short term trading goals help traders build self-confidence?

For traders who are beginning Forex trading in Indonesia, confidence may not be an easy thing to come by. Confidence in the Forex trading industry is quite effervescent. Traders may feel comfortable while they are on a success spree. However, at the hint of the first loss, their confidence may vaporize leaving them searching for ideas.

At this juncture, it is always important for traders to understand that the best way to gain confidence is to go back to the playing field and win again. So, how can they accomplish this? The best step would be to start by setting goals for short term trades and trying to win at them. 

How can Short Term trades be used to gain back confidence?

- Analyzing trades: 

By analyzing the activity carried out in the past weeks, traders can gain more insights into how their Forex trading strategies have borne results. Performing an analysis of short period trade activity will help learn more about their mistakes in a shorter time frame. This is beneficial. 

- Learning to interpret trends: 

Trading on the basis of trends helps traders understand better about the market dynamics and how they perform in the short term. This helps them fine tune their fundamental skills.

- Mindset: 

Mental preparedness and mindset are two important attributes for successful trading. Engaging in short-term trading improves the focus of traders as they have to look out for minute price movements. This helps them better their skills.

- Routines and Processes: 

To successfully pull off short-term trading, traders need to develop a routine that keeps pace with the requirements of the online trading market in Indonesia. Sticking to this routine helps them understand the processes better and mold themselves better to develop confidence in their trading skills.

Working the requirements mentioned above can help traders develop their confidence and engage in long-term trading successfully. Following these steps is vital as they help focus on the trading activity more and reduce distraction which is vital to improve their understanding of the market. However, for traders who feel that they still lack in a confidence and want to improve their Forex trading skills for trading in a competitive market, partnering with reputed Indonesian Forex brokers like WesternFX can help them gain back the lost confidence.