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.