I know there are traders who are wiling to do anything to make money in the forex market.   So please don't misunderstand the term "trading naked". This does not mean you are trading without any clothes on.  Although, I bet if that helped you make more pips, you would probably do it, right?

What I am talking about when I say "trading naked", I mean to trade without indicators.  The benefit of doing this, is that you are eliminating the middle man in trading.

You see, when you use indicators when you trade, it's like using an intermediary when there is no need for one.  Instead of following your own instincts, you are taking advice from some arbitrary formula, because you think that it provides some kind of insight to the market, which it clearly does not.

If you don't believe me try it out for yourself.  If you are an avid follower of indicators, sit down and think about what it is they are really helping you with? 

For instance, if you use indicators like Stochastics, ask yourself what is this actually telling me???

Is it really telling me that the market is overbought or oversold. If so, how does it go about determining that kind of information?  Doesn't it seem a little random and arbitrary to you?

If you really want to dig a little deeper into the forex market, you are going to have to become the indicator.  You are the one that has to be able to look at the price of a currency and instantly know where the future price is headed.  Don't worry it's not as hard as you think it is.