Enter the characters you see below Sorry, we just need to make sure you’re not a robot. Please forward this error screen to rookie mistakes with forex. Trading naked is a benchmark trading exercise that you can look back on to see how your entries and exits improve as you progress through the exercises, gain experience, and learn from your mistakes. Professional traders can gauge the market sentiment and even tell you how much is trading at each price just by watching their DOM.
Trading Naked Exercise Goal The game here is to get in and out of the market using the short term order flow. This generally means you are in the market for a matter of minutes. Use market orders sparingly if you think an opportunity is about to leave you behind. Only enter the market for good reason e.
A lot of absorption on the Bids, followed by aggressive buying. Exit the market when your reason for being in the market has been negated e. Get a feel for the motion of your market. There are many more nuances particular to each market that you will pick up on the more you watch trading activity in the DOM. Trust what you see and try to make the most of this information.
Even if you find you are out of sync with your market calls, you will review your trades at the end of the session to find out what can be done to improve. During this exercise your goal is to try your best to make ticks. 30 minutes based on short term changes in the order flow. Even though you might feel helpless with all the flickering of numbers, do your best to stay focused, form a bias from the order flow and actively look to take trades for 2-3 hours. Trading Naked Exercise Review This process is the same for the trading naked exercise and future exercises. It helps to complete your review with a fresh perspective after having taken a break or later in the day when you are relaxed.
The review shouldn’t take more than 10 minutes and if you record your trading screen during the exercise try and fast forward to when you know the opportunities were taken AND missed, make some notes and move on. Are you trying to play reversals by entering the market too early and getting run over? This is easily seen as getting long in the middle of a down bar or vice versa, or before the price action has obviously stopped. Try and implement some mental check-boxes in the next session e. Are you often missing out on good moves or getting whipsawed? This can be a case of looking for too much confirmation to take a move.
Try and adjust your timing in the next trading exercise session by getting in when you have just enough justification to take on a small amount of risk. This can also be a sign of fear of being wrong and waiting for too much information. Remember, trading involves taking risk AND losing trades. These generally result from lack of patience and trade logic.
The above review chart highlights a rookie sequence. Say you got long at what looks like a reasonable price when you look at your review chart. You then got shaken out for a few ticks loss. You get long again and once again are shaken out. Timing is always difficult but a rookie will tend to hold onto the breakout idea too long. The next exercise should help change this as you are limited by time and bias. If you look at your one minute chart and cannot remember the reasoning behind individual trades, this is a good sign that you took too many trades with weak reasoning.