Description
Alex Nekritin and Walter Peters in Naked Forex: High-Probability Techniques for Trading without Indicators provide an honest and effective presentation about forex trading that certainly beginners need, and that more experienced traders forget they need.
Introduction:
Naked Forex makes some powerful points about trading forex that really apply to other markets as well. First and foremost, price is the most important indicator of all. All indicators are derived from price. Many traders have forgotten this fact because computerization has made it easy to generate new indicators.
Indicators work more like training wheels for learning to ride a bicycle. They are temporary in their capacity to help traders build their skills. They actually limit the evolution of a trader’s performance because they provide a disincentive to “listen” to the market. Naked Forex goes into detail on how a trading signal that is indicator-based is inferior to what Nekritin and Peters call a “naked” signal.
Another key insight that the book provides is the importance of knowing one’s personality in trading. Trading systems that are based on untested algorithms that are purely technical will surely fail.
Nekritin and Peters argue that trading systems should reflect decisions that traders would make that are based on looking at charts. Manual backtesting, they suggest, is an effective way to identify a trading system’s strengths and weaknesses.
A third major focus of Naked Forex is the concept of identifying support and resistance zones. The fact is that with the trillions of dollars that float each hour through the currency markets, prices reach certain levels and stop.
One can try to figure out why they stop rising or stop falling. But the job of the trader is to observe accurately where the price is and where it came from. Price zones provide the naked truth about market sentiment.
If a price breaks through a zone, no matter what the reason, it is a signal—and a more powerful signal than any indicator.
Contents:
- The Fundamentals of Forex Trading
- Avoiding a Trading Tragedy
- Back-Testing Your System
- Identifying Support and Resistance Zones
- The Last Kiss
- The Big Shadow
- Wammies and Moolahs
- Kangaroo Tails
- The Big Belt
- The Trendy Kangaroo
- Exiting the Trade
- The Forex Cycle
- Creating Your Trading System
- Becoming an Expert
- Gaining Confidence
- Managing Risk
