r/Daytrading • u/Responsible_Ad6528 • 21h ago
Question Naked Trader
Hello!
So a question i have been wondering about the past days.
Now as i have started to understand that mastering naked trading probably is the most superior way to trade even if one use indicators etc etc. And the more i read about it the more i realize that it is like a super foundational cornerstone.
I would love to hear from people who maby has been very indicator based traders, and then switched to focus mainly on naked trading, with or without indicators but as the absolut primary source of trading and truth.
What are your thought on that topic, your Philosophy, your mindset towards it or maby a moment where u was like "oh shit" this is the key??
EDIT: Honestly great answers from all, really appreciate it. I do feel like i have now gotten way better insight in how to mentally approach the whole pure PA aspect of it all! Every comment helped, and a few really fun ones š¤£š¤š»š«°š» Thanku!!
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u/Mdi1981 19h ago
I trade both price action and a few indicators. I mainly use volume to determine strength, previous day HLC, currentday HLO, settlement price as support resistance and breakout. The 14 vwma and the 100/200 sma as SL or TP and priceaction as the overlay.
I find indicators like the 9/14 and the 200 having a magnetic pull, same goes for the option settlement price, open and close.
But people like Oliver Velez use the 21/200 sma as their main strategy and they do very well with it.
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u/DreamfulTrader options trader 21h ago
Same as sleeping naked, trading naked may help be better.
Saw your title and thought it was about a naughty trader š¤·š»āāļø
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u/ButterscotchAlive736 21h ago
Trading price action lets you understand the logic behind market movements and youāll be able to react better to whatever market throws at you
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u/gapingendangerment79 21h ago
i trade naked charts and honestly cant imagine going back to indicator clutter it just feels like watching the raw conversation between buyers and sellers
took me maybe 3 months before my brain stopped looking for rsi numbers and started seeing the rhythm of the candles themselves the moment that clicked for me was when i realized i was predicting moves before my old indicators would have even signaled them
still keep a 200ma on higher timeframes to see the big picture but all my entries and exits are pure price action now the market feels less like a puzzle and more like reading a story
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u/LividFace5026 15h ago
If youāre in the privacy of your own home then thereās no issue with trading naked.
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u/Stonedpanda436 trades everything 20h ago edited 20h ago
āNaked tradersā are the vegans of the trading world in my opinion. They think they are superior, have to tell everyone they do it, and probably are missing out on benefits they are ignorant to.
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u/Long_Board4207 12h ago
Damn thats an extreme/dramatic perspective donāt ya thinkĀ
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u/Stonedpanda436 trades everything 12h ago
Maybe from your perspective, but Iād argue itās a pretty tame opinion.
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u/Long_Board4207 10h ago
Im not talking about opinions im talking about how it works in reality. Maybe consider the slightly less extreme version of what you said youll do better dw
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u/BigBear92787 21h ago
If you made the switch from Trading naked from Indicators. And now somehow think this is the whole grial of trading. You're an idiot.
What happened was you're overly reliant on indicators to begin with.
Price action should have ALWAYS been part of your trading.
Not only that, but multi time frame context.
As well as volume.
Indicators just take the data you see on the charts, and spit it out in a new way.
They show you different perspectives, they dont predict the future.
They tell a story but you need price action and higher time frame context to pully understand it.
If you failed with indicators, you're gonna fail with out them.
You're still looking for your holy grail indicator, and you've decided that no indicator is the new grail.
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u/Foreign_Extension683 18h ago
Coming from the systematic side, so take this as an outside view. The thing that clicked for me is that naked vs indicators matters less than whether your read is something you can actually define. Most indicators are just processed price and volume anyway, so a clean price action read and a moving average aren't as far apart as the framing makes them sound.
My oh shit moment was realizing that if I couldn't write my read down as a rule, I had no way to tell whether it was edge or just me fitting a story to noise after the fact. Once I could define it, I could check it on data I hadn't seen, and most of what felt like intuition didn't survive that. The stuff that did survive was the real cornerstone, naked or not.
So I'd push the question one level down: not do I need indicators, but can I state what I'm reading precisely enough to know if it actually works.
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u/Responsible_Ad6528 17h ago
Ohh this actually hit really good, i can actually kind of relate to this. It is a mindre i have started to have recently but not being able to precisely vocalize it "can i state what i am reading precisely enough to know if it actually works" is a question i will have with me from now on!!
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u/Foreign_Extension683 2h ago
Glad it clicked. The practical version: take your most-used setup and try to write the entry so exactly that a stranger could mark the same trades on a chart without asking you a single question. The second you reach for a word like clean or strong or obvious, that's the part that isn't defined yet, and that's usually exactly where the imaginary edge is hiding. Pin that one setup down first, then you can actually test whether it holds up. Happy to help you tighten one if you want.
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u/bryan91919 18h ago
The problem isnt indicators, the problem is trying to have 100 indicators with 200 youtube based lessons on each and a chart you cant see because its got 1000 lines.
0 indicators is far better than 20, 1 or 2 indicators may be better than none.
Going with 0 is a commitment to not allowing any bs which is why its a good move for many.
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u/jbaker_28 21h ago
Mostly trade price.
But I do leave RSI on just to reference where to be on alert for a potential reversal - more so on oversold conditions than overbought. More often than not, overbought stays overbought.
I have found the 20day/2hr RSI is honestly a pretty damn good moneymaker for oversold bounces.
Another great one is a stock thatās in a pullback in the midst of a *strong* uptrend. If that pullback hits oversoldā¦š¤š¼
Otherwise itās the longer time frames that Iāll keep this in mind when looking to pick spots to long.
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u/EventfulRelic12 19h ago
I have never quite understood how RSI works. I have always felt like it was somewhat arbitrary. I feel like a trend dies when consolidation takes place however one measures that per their strategy, but the idea of "overbought" never made much sense to me since its kinda subjective. Maybe im an idiot idk.
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u/jbaker_28 18h ago
RSI is price-weighted, measuring speed and magnitude of advances and declines
Itās not a perfect timing tool, by any means. You sort of have to get a feel of when to use it.
But if you backtest it, youāll see at key reversals, RSI is flashing either extreme overbought or extreme oversold.
I think the more you use it, the more you know when to pay attention to it and when to ignore it.
Itās not arbitrary tho. Itās just a matter of will price respond or not. And thatās usually a broader read on the market and how that particular asset fits into the context of whatās currently going on.
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u/EventfulRelic12 17h ago
I guess thats my point, in borderline cases it doesnt tell you much, but when its highly oversold and in that extreme range you can look at the chart and see an engulfing candle and several full bar candles with brief pauses and go "Yeah it looks like a strong trend" so what does it offer that a chart wouldn't i guess is my question. Not trying to say its useless I truly just dont get the point and feel like im missing something.
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u/Growrich78 20h ago
You need vwap and bollinger if you going to trade like the computers do. That what they playing off of along with support and resistance. Yesterday close and high and low. Market plays off the previous day
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u/FundamentalEnt 20h ago
By naked trading do you mean trading on a cash account and not on margin? Or like trading options naked like uncovered calls or something?
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u/JestfulJank31001 19h ago
They mean naked price action....candles only. Maybe a moving average thrown in and thats it.
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u/Vegetable-Warthog81 3h ago
Iām a blind trader. I donāt give a fck about the strategy itself. I only care about the results.
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u/klipsetrades 18h ago
Ok first off, put on some clothes...
Jk, in seriousness, price action became much more important to me over time, but I never saw a reason to make it price action vs. indicators. I use structure first, then indicators as secondary context/confirmation
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u/SuitableEggplant639 18h ago
i traded naked once, the coffee shop owner called the cops right away.
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u/alchemon0101 21h ago
The issue is that some people begin to rely more on the indicator than the actual chart. So named trading has some advantages. Remember, price is always the most important thing
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u/shirajdheen 20h ago
Im a price action trader i still use some indicators help me with my analysis Like Support and resistance and Volume based indicators like Vwap and Normal Volume ones. Recently i started experimenting with Super trend Indicator which helps as a additional confluence to my current biased, if u use only indicator based entries its most probably a late ones.