Naked Forex PDF

Alex Nekritin

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 Naked Forex
Master the Art of Trading Without Indicators
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About the book
Discover a streamlined and effective approach to forex trading
with "Naked Forex" by Alex Nekritin, a definitive guide to
mastering the art of naked trading—an age-old method that
forgoes technical indicators in favor of pure price action
analysis. While many traders rely on complex indicators
derived from stock and futures analysis, this book champions
the simplicity and efficacy of trading without them. By
focusing solely on the price chart, traders can develop a clearer
understanding of market movements, enabling them to quickly
hone their skills and achieve expertise. Dive into "Naked
Forex" and unlock the secrets of profitable trading through a
straightforward, indicator-free approach.

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About the author
Alex Nekritin is an experienced trader and educator with a
strong focus on forex trading strategies and market analysis.
With a passion for financial markets, he has dedicated his
career to teaching individuals how to successfully navigate the
complexities of foreign exchange trading. Nekritin's practical
insights and straightforward approach have made him a
respected figure in the trading community, and he is known for
his ability to demystify the forex market for both novices and
seasoned traders alike. Through his work, particularly in his
book "Naked Forex," Nekritin emphasizes the importance of
understanding market dynamics without the clutter of
excessive indicators, providing readers with a foundational
perspective to enhance their trading skills.

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Summary Content List
Chapter 1 : The Fundamentals of Forex Trading

Chapter 2 : Avoiding a Trading Tragedy

Chapter 3 : Back-Testing Your System

Chapter 4 : Identifying Support and Resistance Zones

Chapter 5 : The Last Kiss

Chapter 6 : The Big Shadow

Chapter 7 : Wammies and Moolahs

Chapter 8 : Kangaroo Tails

Chapter 9 : The Big Belt

Chapter 10 : The Trendy Kangaroo

Chapter 11 : Exiting the Trade

Chapter 12 : The Forex Cycle

Chapter 13 : Creating Your Trading System

Chapter 14 : Becoming an Expert

Chapter 15 : Gaining Confidence

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Chapter 16 : Managing Risk

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 Chapter 1 Summary : The Fundamentals
of Forex Trading

Section Summary

Introduction to Forex is the largest market globally, with daily exchanges of $4 trillion. It offers opportunities for
Forex Trading substantial profits but also carries risks of significant losses.

Understanding Forex involves exchanging currency pairs, where one currency is bought and another sold. Currency values
Currencies are determined by their relation to each other.

The Forex There are two main markets: the interbank market for institutions and the retail market for individual
Market traders, where many traders often incur losses.
Structure

Brokerage Forex brokers categorize traders as winners or losers, often expecting new traders to lose. Successful
Dynamics traders may be moved to the winner category, prompting brokers to hedge their trades.

Trading Traders use fundamental analysis based on economic indicators and news, or technical analysis focusing on
Strategies price movements to inform their trading decisions.

Naked Forex Naked trading avoids indicators, focusing on market price action. This strategy helps traders avoid
Explained confusion and concentrate on actual market movements.

CHAPTER 1: The Fundamentals of Forex Trading

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Introduction to Forex Trading

Forex, or foreign exchange, is the largest market in the

world, with $4 trillion exchanged daily. Whether it's suitable
for you depends on your trading goals. Forex offers the
chance to trade at any time, potentially earning substantial
profits quickly, though significant losses are also possible.

Understanding Currencies

Forex trading involves exchanging two currencies

simultaneously, indicating one currency is bought while
another is sold. Currency values are determined by
comparison; thus, trades happen in pairs. For example,
buying the EUR/USD means buying Euros and selling U.S.
dollars.

The Forex Market Structure

There are two main markets in forex: the interbank market,

consisting of banks and large institutions, and the retail forex
market, where most individual traders operate. The latter
involves competition with other traders and often results in
most traders losing money.

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Brokerage Dynamics

Forex brokers categorize traders into winners and losers,

generally assuming new traders will fall into the latter group.
If a trader begins to make consistent profits, they may be
moved to the "winner" category, and the broker will hedge
their trades in the interbank market to manage risk.

Trading Strategies

Traders can choose between fundamental analysis, which

involves analyzing economic indicators and news, and
technical analysis, focusing on price movement charts. Both
methodologies aim to inform trading decisions.

Naked Forex Explained

Naked trading is a strategy that avoids indicators, focusing

directly on market price action instead. Many novice traders
rely heavily on indicators, which can confuse and detract
from market reality. The naked approach encourages traders
to concentrate on market movements rather than secondary
thoughts about indicators.

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In the next chapters, the book will delve into the technical
aspects of trading and common mistakes traders make,
emphasizing the benefits of naked trading.

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Example
Key Point:Naked Trading Focuses on Price Action
Example:Imagine you're at the market and observing the
prices of fruits fluctuating. Instead of relying on
recommendations from friends or charts that tell you
when to buy, you simply watch how the prices change
in real-time. This is akin to naked trading where you
rely on the actual price movements and patterns rather
than complex indicators that might mislead your
decisions. In this way, you develop a keen sense of the
market dynamics and become more intuitive about when
to make your next trading move.

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Chapter 2 Summary : Avoiding a
Trading Tragedy

Avoiding a Trading Tragedy

Introduction to Trading Challenges

- Many technical traders face difficulties with indicator-based

systems in forex trading.
- Indicators process price data, converting it into different
forms to predict future market movements, but this can
complicate trading decisions.

The Nature of Indicators

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- Indicators are metrics derived from price data, serving as
tools for interpreting market direction.
- Traders invest heavily in finding indicators that promise a
competitive edge in the market, but results may vary
significantly.

The Problem with Indicators

- Indicators lag behind actual market movements, which can

hinder timely trading decisions.
- Early entries into trades are often missed due to the lag
inherent in indicator-based strategies, making naked trading
more attractive.

Naked Trading Advantages

- Naked trading relies solely on actual market prices without

the delays caused by indicators, allowing for earlier entries.
- This approach can reduce the significance of stop loss
distances, enhancing profit potential.

Psychological Accountability in Trading

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- Naked traders are forced to take full responsibility for their
trades, as there are no indicators to blame for mistakes.
- Trading with price action removes the excuse framework
commonly used by indicator traders when facing losing
trades.

Understanding Trading Responses

- Traders often experience psychological responses to market

dynamics, which affect their trading decisions.
- The way traders react to market feedback after entering a
trade can dictate their future strategies and mental resilience.

The Importance of Market Biofeedback

- Recognizing market biofeedback — the response to market

price movements after entering a trade — is crucial for
learning and improving trading strategies.
- Keeping records of trading thoughts and decisions can help
traders gain insights into their reactions, fostering personal
and professional growth.

Conclusion: Gaining Control through Awareness

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- By acknowledging market biofeedback, traders can develop
a better understanding of their tendencies and make informed
adjustments to their trading strategies.
- Transitioning to naked trading practices can provide
freedom from the complexities of indicators, promoting a
focus on current market conditions.

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Example
Key Point:The Importance of Trading Without
Indicators
Example:Imagine you’re about to enter a trade based on
an indicator's signal, only to realize that the market has
already moved against you due to the lag in data
processing. Instead of relying on potentially outdated
indicators, consider watching the price action directly.
This allows you to seize opportunities immediately as
they arise, making faster decisions based on real-time
data. By trusting the price movement instead of
indicators, you become fully accountable for your
trading choices. This shift not only empowers you to
react swiftly to market changes but also encourages
personal growth through each trade experience,
enhancing your resilience and knowledge in the trading
environment.

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Critical Thinking
Key Point:The reliance on technical indicators may
undermine a trader's decision-making capabilities.
Critical Interpretation:While Nekritin advocates for
naked trading over indicator-based strategies, readers
should consider that this stance simplifies a complex
trading landscape. Naked trading might appeal due to its
direct nature, yet it's essential to recognize that not all
traders thrive solely on price action. The effectiveness
of trading strategies varies significantly among
individuals, suggesting that a blended approach may be
more appropriate for some. Research in behavioral
finance indicates that reliance on historical data and
signals can sometimes enhance decision-making
processes, countering the idea that all indicators are
inherently detrimental (Kahneman & Tversky, 1979).
Thus, while stripping away indicators may foster
accountability, it may not universally lead to improved
trading outcomes.

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Chapter 3 Summary : Back-Testing Your
System

CHAPTER 3: Back-Testing Your System

Introduction to Expert Trading

- Expertise in forex trading is essential for consistent

profitability.
- Novice traders must practice to become experts, as simply
gaining knowledge is insufficient.

The Importance of Practice

- Practice is key to mastering trading systems; the successful

traders who profit consistently tend to practice extensively.
- Yet, a significant percentage of traders do not practice,
leading to poor trading outcomes.

Goals of Back-Testing

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1.
System Suitability
: Assess whether a trading system fits the trader’s style and
understanding of the market.
2.
Confidence Building
: Gain trust in the system through repeated use, facilitating a
more relaxed trading approach.
3.
Expertise Development
: Increase familiarity with the trading system through
extensive back-testing.

How to Evaluate System Suitability

- Different traders prefer different charting methods—align

your trading system with personal preferences and beliefs
about the markets.
- Lifestyle considerations like work commitments can also
influence the suitability of a trading system.

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- Traders should focus on experiencing diverse market

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 Chapter 4 Summary : Identifying
Support and Resistance Zones
Section Summary

Overview Price is key in trading; understanding historical levels helps identify support and resistance zones essential
for naked trading.

Characteristics
of Zones
Zones are broad areas, not exact points.
They grow more significant over time.
Repeated price reversals occur here.
Can represent extreme price levels.
Opportunities for traders arise at these zones.
Zones often persist unchanged.
Identified clearly with line charts.
Widely recognized by traders.

Concept of Zones act like broad areas on charts where prices reverse multiple times, requiring accurate identification as
Zones part of trading strategy.

Old vs. New Debate on the significance of new versus old zones; historical levels often show price reversal tendencies,
Zones reflecting the recycling nature of zones.

Finding Zones Utilize higher timeframe charts for significant zones; line charts may provide clearer reversal indications;
focus on areas with multiple price touches.

Identifying Minor zones indicate lower timeframe support and resistance but should not be marked on higher timeframe
Minor Zones charts to avoid confusion.

Tips for
Finding Zones
Utilize line charts for clear zone identification.
Avoid marking excessive zones; focus on major ones.
Recognize zones as flexible areas for reversals.
Accept minor zones for trade management but prioritize major zones for setups.
Understand that price can breach a zone without breaking it; focus on reversals rather than only
breakouts.

Importance of Critical for naked traders, as interpreting price behavior around these zones can lead to high-probability
Zones trading opportunities when paired with catalysts.

Conclusion Marking support and resistance zones is vital for successful naked trading; traders should remain vigilant for
setups as the market approaches these historically significant areas.

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CHAPTER 4: Identifying Support and Resistance
Zones

Overview

Price is critical in trading, and understanding historical price

levels can help traders identify key areas on charts known as
support and resistance zones, which are vital for naked
trading.

Characteristics of Zones

1. Zones are areas, not precise points.

2. They improve with age.
3. Repeated price reversals occur at these spots.
4. They can represent extreme highs or lows.
5. These zones are where traders identify opportunities.
6. They often remain unchanged over time.
7. Line charts assist in identifying zones.
8. Many traders recognize these zones.

Concept of Zones

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Zones, likened to "big fat beer bellies," represent areas on
charts where prices reverse multiple times. Unlike fixed price
lines, they encompass a range and require traders to identify
them correctly as part of their strategy.

Old vs. New Zones

Debate exists over the importance of newly established

versus older zones. Historical price levels frequently
demonstrate a tendency for prices to reverse, highlighting the
recycling nature of zones.

Finding Zones

- Use higher timeframe charts to identify significant zones.

- Line charts may offer clearer depictions of where price
reversals occur.
- Look for areas with multiple touches over time to define
critical zones.

Identifying Minor Zones

Minor zones represent areas of support and resistance on a

lower timeframe. These should not be marked on higher

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timeframe charts, as they can contribute to confusion and
dilute focus.

Tips for Finding Zones

1.
Use Line Charts
: Simplify zone identification by focusing on bends in the
line.
2.
Avoid Excessive Zones
: Draw only major, critical zones to maintain clarity.
3.
Leeway in Zone Drawing
: Zones are not fixed but represent areas for potential price
reversals.
4.
Accepting Minor Zones
: Recognize minor zones as useful for trade management, but
focus on major zones for setup.
5.
Understanding Market Behavior
: Price can breach a zone without breaking it; consider
reversals instead of strictly focusing on breakouts.

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Importance of Zones

For naked traders, identifying and reacting to these zones is

crucial. Correctly interpreting price behavior around these
critical areas can offer high-probability trading opportunities
when combined with catalysts — events that prompt price
movements.

Conclusion

Understanding and marking support and resistance zones is

essential for successful naked trading. Traders should focus
on key areas where price has historically reversed and remain
alert as the market approaches these zones for potential
trading setups.

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Example
Key Point:Understanding price zones is crucial for
effective trading strategies.
Example:Imagine you’re analyzing a currency pair's
chart, and you notice that every time the price
approaches a specific range, it tends to reverse direction
sharply. This range, recognized as a support or
resistance zone, helps you anticipate market
movements. You remember that similar scenarios have
played out repeatedly at this level over the past months,
indicating its strength. By planning your trades around
these established zones, you can increase your chances
of capturing profitable opportunities as the price reacts
predictably when it interacts with these historical levels.

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Critical Thinking
Key Point:Importance of Historical Price Levels
Critical Interpretation:The chapter emphasizes the
identification of support and resistance zones as vital
components of naked trading, highlighting how traders
can utilize historical price data to inform their strategies.
However, while this method seems effective, it's
essential for readers to recognize that reliance on past
data may not always predict future performance
accurately, as markets can be influenced by myriad
unforeseen external factors. For instance, behavioral
finance literature suggests that overemphasis on
historical patterns may lead to cognitive biases that
hinder objective decision-making (Thaler, R. H.,
'Misbehaving: The Making of Behavioral Economics').
Therefore, while the author presents a compelling
argument for understanding price dynamics through
historical zones, traders should exercise caution and
incorporate broader analytical frameworks in their
strategies.

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Chapter 5 Summary : The Last Kiss

Chapter 5: The Last Kiss

In this chapter, the author explains the components of naked

trading strategies, emphasizing the importance of identifying
support and resistance zones, waiting for the market to reach
these zones, and recognizing catalysts that initiate trades.
Catalysts are powerful price patterns evident at these zones,
and one of the key strategies discussed is the "last-kiss"
trade.

Market Phases

The market consistently oscillates between two basic moods:

a calm, choppy phase and a strong, trending phase.
Understanding these phases helps traders determine the
appropriate trading strategies, as most systems are optimally
effective either in a choppy or trending market, but not both.

Breakout Strategy

The breakout strategy, a well-known trading method,

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involves watching for periods of market consolidation before
capturing price movements once a breakout occurs.
However, this strategy is prone to "fake-outs," where price
initially appears to break through resistance or support but
quickly reverses back into the consolidated range.

Last Kiss Trade

The last-kiss trade capitalizes on the tendency of price to

return to a consolidation zone after a breakout, allowing
traders to enter positions with higher probability of success
while filtering out many fake-outs. This strategy employs the
"retouch principle," where price re-tests the breakout zone,
confirming its validity.

Execution Steps for Last Kiss Trade

1.
Consolidation
: Identify a box where price consolidates between support
and resistance zones.
2.
Breakout
: Wait for a price breakout beyond one of the zones.

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3.
Retouch
: Wait for price to return to the box and print a strong
candlestick in the breakout direction.
4.
Entry and Stops
: Place buy/sell stops based on the last-kiss candlestick and
set emergency stop losses at the midpoint of the
consolidation box.

Trade Management

The chapter outlines two types of stop losses: an emergency

stop loss and a secondary exit strategy if the price closes
back inside the consolidation box. Taking profit is generally
targeted at the next support or resistance zone.

Conclusion

The last-kiss trade offers a structured approach to trading

breakouts while minimizing the risks associated with
fake-outs. The chapter encourages traders to test this strategy
to see its effectiveness in filtering out unsuccessful trades.

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Example
Key Point:The importance of timing your entry in
the last-kiss trade.
Example:Imagine you’ve identified a strong breakout
from a consolidation zone. You patiently wait as the
price returns to that breakout point, creating a perfect
opportunity for you to enter your trade confidently, just
as the market confirms its bullish trend with a strong
candlestick pattern. This strategic patience helps you
filter out false breakouts, significantly increasing your
chances of success.

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Chapter 6 Summary : The Big Shadow

Chapter 6: The Big Shadow

The big shadow is a significant two-candlestick reversal

formation that serves as an important indicator for naked
traders. This formation appears at support and resistance
zones, where traders seek high probability trade setups,
providing signals that the market may soon change direction.
For a big shadow to be valid, it must print on these zones.

Formation Characteristics

The big shadow consists of two candlesticks, with the second

(big-shadow candlestick) completely overshadowing the
first. Key characteristics include:
- The big-shadow candlestick is larger than the preceding
candlestick.
- It features a wide trading range.
- It is the largest candlestick seen in a significant time period.

Is Bigger Better?

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Larger big shadows typically have a higher success rate than
smaller ones. Traders are advised to prioritize big shadows
with the widest range in recent candlesticks to increase
potential profitability.

Stop Loss Strategy

Place the stop loss beyond the big shadow:

- For bullish shadows, it should be a few pips below the low
of the big-shadow candlestick.
- For bearish shadows, a few pips above the high.

Entering the Trade

The best approach to entering a big shadow trade is to use

buy stops for bullish big shadows and sell stops for bearish
big shadows. This reduces the risk associated with entering at
unfavorable prices during market retracements.

Significance of Closing Price

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- For bullish setups, the ideal closing price should be near the
high to indicate strength.

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Chapter 7 Summary : Wammies and
Moolahs

CHAPTER 7: Wammies and Moolahs

Overview

In this chapter, the concepts of wammies and moolahs, which

are specific trading setups based on double-bottom and
double-top formations, respectively, are introduced. The
chapter outlines five key steps to understand these patterns,
emphasizing their importance for naked traders.

Understanding Double Formations

1.
Double Bottom

- A double bottom is characterized by two touches on a

support zone, leading to a significant market reversal
upwards.

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 - The market typically falls, finds support, rebounds, and
then falls again to touch the same zone before climbing.
2.
Double Top

- A double top formation consists of two touches on a

resistance zone, leading to a decline in price.
- The market rises, hits a resistance zone, dips, and touches
the zone again before moving down.

Identifying Wammies and Moolahs

- Wammies and moolahs occur across different timeframes

and markets. The key characteristics that differentiate these
setups from standard double-bottom and double-top
formations are discussed.
-
Market Truths
:
- The market often reacts to being touched twice at critical
zones.
- Patterns suggest either a market bottom or top, depending
on the direction from which prices approach the zone.

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How to Trade Wammies

- Wammies are identified by a second touch that is higher

than the first, indicating a higher low.
- The trading strategy involves:
- Entering a buy stop order above the high of a bullish
candlestick that follows the second touch.
- Placing a stop loss below the first touch to protect against
downside movement.
- Targeting profit at the next significant resistance zone.

How to Trade Moolahs

- Moolahs function similarly to wammies, but they are the

inverse, occurring at resistance zones.
- The setup for a moolah includes:
- A second touch lower than the first, indicating a bearish
market.
- Entering a sell stop below a bearish candlestick after the
second touch.
- Setting the stop loss above the first touch and targeting
profit at the next support zone lower.

Tips for Trading Wammies and Moolahs

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- It’s advisable to choose setups that display multiple
candlesticks between touches and those that exhibit strong
candlestick formations on the second touch.
- Select trades that occur in well-defined zones and those
with minimal nearby competition, ensuring greater distance
for profit targets.
By employing these strategies for wammies and moolahs,
traders can identify high-probability setups that may lead to
successful trades.

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 Chapter 8 Summary : Kangaroo Tails
Section Summary

Introduction to Kangaroo tails are candlestick patterns signaling potential market reversals, identifiable after
Kangaroo Tails practice.

Definition of a Consists of a long tail and a short body, indicating market excess and potential reversal.
Kangaroo Tail

Components of a Follows a single-candlestick formation; bearish signals occur when open and close are in the lower
Kangaroo Tail third, bullish signals in the upper third.

The Significance of Indicates market overextension and likely reversal, valuable near historical price reversal areas.
Long Tails

Kangaroo Tail Ideal tails are longer than surrounding candles; often arise from significant news events causing
Characteristics overreactions.

Placement of Should be close to prior price action; too far indicates trend continuation instead of reversal.
Kangaroo Tails

Evaluating Market Be cautious of kangaroo tails during strong trends; large preceding candle ranges may signal trend
Conditions continuation.

Entry Methods For bullish tails, buy above the tail’s high; for bearish tails, sell below the low to reduce risk.

Stop Loss Strategy Set stop loss beyond the tail to limit risk; close trades if nearing the stop loss to minimize losses.

Profit Targets Take profits at the next significant market zone for straightforward gains.

Tips for Successful Identify ideal characteristics and avoid tails with short lengths or poor contextual significance.
Trading

Conclusion Kangaroo tails are vital for identifying market reversals, enhancing naked trading strategy
effectiveness.

CHAPTER 8: Kangaroo Tails

Introduction to Kangaroo Tails

Kangaroo tails are powerful trading indicators that signal

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market reversals. They are characterized by a single
candlestick pattern, easy to identify after some practice.

Definition of a Kangaroo Tail

A kangaroo tail consists of a distinct price pattern featuring a

long tail and a short body. This formation indicates that the
market has moved excessively and may soon reverse.

Components of a Kangaroo Tail

-
Single-Candlestick Formation
: This price pattern comprises one candlestick with its
characteristics significantly affecting its validity.
-
Open and Close
: For bearish kangaroo tails (sell signals), the open and close
must be in the bottom third of the candlestick; for bullish
kangaroo tails (buy signals), they must be in the top third.

The Significance of Long Tails

A long tail suggests the market has overextended itself in

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testing a price zone and is likely to reverse. Trading
opportunities are more valuable when kangaroo tails occur at
significant historical zones where price reversals have
previously happened.

Kangaroo Tail Characteristics

-
Length
: Ideally, kangaroo tails will be longer than surrounding
candles. Longer tails with tiny bodies are the strongest
signals, indicating a robust reversal.
-
Reaction to News
: Kangaroo tails often appear following significant news
events, indicating market overreactions.

Placement of Kangaroo Tails

Kangaroo tails should be placed close to prior price action. If

too detached, it may suggest a continuing trend rather than a
reversal. Valid kangaroo tails should fit within the range of
the preceding candles.

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Evaluating Market Conditions

Beware of situations where kangaroo tails appear amid strong

trends. Candlesticks with large ranges prior to a kangaroo tail
can indicate the continued strength of the trend rather than an
impending reversal.

Entry Methods

-
Bullish Kangaroo Tail
: Enter with a buy stop above the high of the tail.
-
Bearish Kangaroo Tail
: Enter with a sell stop below the low of the tail. This strategy
reduces risk and increases the likelihood of success.

Stop Loss Strategy

Place the stop loss just beyond the tail of the kangaroo tail to
limit risk. Traders are encouraged to close trades if they
move significantly toward the stop loss to minimize losses.

Profit Targets

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Taking profit at the next significant market zone is a
straightforward tactic to capitalize on kangaroo tail trades.

Tips for Successful Trading

-
Ideal Characteristics
: Look for kangaroo tails with long tails, significant historical
context, and limited previous price activity.
-
Flags for Caution
: Avoid kangaroo tails with short tails, those not near
significant zones, or that follow large preceding candlesticks.

Conclusion

Kangaroo tails represent key insights into potential market

reversals and are essential tools for traders utilizing naked
trading strategies, helping to identify significant
opportunities in the forex market.

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Critical Thinking
Key Point:Caution Against Over-Reliance on
Kangaroo Tails
Critical Interpretation:While kangaroo tails are
presented as reliable signals for market reversals, it is
essential to recognize that all trading indicators come
with inherent risks and may not always guarantee
accurate predictions. Blindly following any pattern
without considering broader market conditions or
accompanying indicators can lead to significant losses.
The effectiveness of kangaroo tails can be influenced by
various macroeconomic factors, trader sentiment, and
market volatility, which are not encompassed within the
simplified model of a single candlestick pattern. As
emphasized by experts in behavioral finance, relying
solely on historical price patterns can overlook the
complexities of market dynamics (see sources such as
'Behavioral Finance: Psychology, Decision-Making, and
Markets' by Lucy Ackert and Richard Deaves). Readers
should adopt a holistic approach to trading that
incorporates multiple analyses and remains cautious of
developing overconfidence in any one strategy.

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Chapter 9 Summary : The Big Belt

CHAPTER 9: The Big Belt

Introduction to Big Belts

- Significant moments in trading can lead to profitability.

- Big belts are rare occurrences at support and resistance
zones, usually appearing on the first trading day of the week.

What is a Big Belt?

- A big belt represents a critical market event that signifies

potential profit opportunities for traders.
- There are two types: bearish and bullish big belts, with
setups being opposites of one another.

Bearish Big Belt

- Occurs at market highs and characterized by a jump in

market price.
- Typically forms on the first trading day of the week,

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opening much higher and then closing near its low.
- Trading Setup:
- Entry: Sell stop below the low of the bearish big belt.
- Stop loss: Above the high of the bearish big belt.
- Exit: Target the nearest support zone.

Bullish Big Belt

- Occurs at market lows with the opening price lower than

the previous closing price.
- It indicates a potential upward movement, printing at
critical zones.
- Trading Setup:
- Entry: Buy stop above the high of the bullish big belt.
- Stop loss: Below the low of the bullish big belt.
- Exit: Target the nearest resistance zone.

Tips to Trading the Big Belt

- Both bearish and bullish big belts have similar rules but in
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- A candlestick must be present on a significant zone for the
trade to be effective.

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Chapter 10 Summary : The Trendy
Kangaroo

CHAPTER 10: The Trendy Kangaroo

Introduction to Trendy Kangaroo

The market often exhibits strong trends, which can provide

lucrative trading opportunities for traders. One effective
method to capitalize on such trends is by using the trendy
kangaroo trading setup. This setup allows traders to identify
and profit from trending markets, whether moving upward or
in freefall.

Definition of a Trendy Kangaroo

A trendy kangaroo is a variation of the kangaroo-tail trade

that occurs during a trending market. Unlike the typical
kangaroo tail, the trendy kangaroo takes shape amidst a clear
directional market movement, characterized by its
identification during either upward or downward trends

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without reliance on technical indicators.

Identifying a Trending Market

To determine if a market is trending, traders may involve a

child's perspective (a "consultant" aged 6-10), simplifying
the evaluation process: by examining a line chart and asking
if it trends mostly up, down, or sideways. This lighthearted
method emphasizes that traders do not need complex
indicators to identify trends.

Trading Trendy Kangaroos: Resting Spots

Once a trend is identified, traders look for resting spots

where the market pauses, characterized by several
candlesticks consolidating in a narrow range. Observing
these rests indicates potential for a trendy kangaroo to form.

Characteristics of Trendy Kangaroos

The defining feature of a trendy kangaroo is its prominent

tail that extends beyond the recent market pause. This
suggests a strong trend direction; the more pronounced the
tail, the better the trading setup. The trend should continue

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moving in the direction indicated by the trendy kangaroo.

Entering and Managing Trades

Bearish trendy kangaroo trades involve placing a sell stop

below the low of the trendy kangaroo and stopping loss
above its high. Conversely, bullish trades have buy stops
placed above the high of the kangaroo, with stops below the
low.

Practical Examples and Common Mistakes

Examples highlight the importance of distinguishing good

trendy kangaroos from poor setups. Ideal trades occur
without significant corrections beforehand and with clear
consolidation in the market. Traders must be cautious of
setups that appear promising but don't meet the defining
criteria.

Conclusion

Trendy kangaroo trades can efficiently harness market

movements during clear trends. By recognizing the
characteristics and applying the entry and management

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techniques detailed in this chapter, traders can become adept
at leveraging this strategy effectively for profit in trending
markets. Future chapters will explore additional exit
strategies for maximizing gains in such environments.

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Critical Thinking
Key Point:Use caution with trendy kangaroo
strategies due to inherent market unpredictability.
Critical Interpretation:While Alex Nekritin suggests that
the trendy kangaroo trading setup can efficiently
capitalize on strong market trends, it is essential for
traders to question the reliability of any strategy that
assumes clear and consistent market behavior. Recent
research by Randeep Sud, in 'The Challenge of Trend
Following', highlights that market trends can reverse
unexpectedly, thus emphasizing that reliance solely on
such patterns may lead to significant losses despite the
current strengths portrayed by the trendy kangaroo
setup. Furthermore, market dynamics are influenced by
numerous unpredictable variables, indicating that While
Nekritin's methodology may work in ideal scenarios, the
practical realities of trading demand a broader analytical
approach and risk management strategies.

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 Chapter 11 Summary : Exiting the Trade
Section Content

Chapter Chapter 11: Exiting the Trade

Overview of Trading Stages Six stages: Analysis, Planning, Entry, Managing, Exit, Learning

Goals of Each Stage

Stage 1: Evaluate risk vs. reward

Stage 2: Create a plan and adhere to it
Stage 3: Enter at a favorable price
Stage 4: Keep an open mind
Stage 5: Aim to profit
Stage 6: Enhance future strategies

Types of Traders

Runners: Maximize profits from big trades

Gunners: Seek high win rates with smaller profits

Exit Strategies

For Gunners:

Zone Exit: Exit at key reversal zones

Split Exit: Target different zones for flexibility

For Runners:

Ladder Exit: Dynamic exit adjusting with market movement

Three-Bar Exit: Trailing stop based on last three lows

Managing Exits Avoid second-guessing; stick to a consistent strategy

Conclusion Effective exit strategies are critical for success; avoid re-evaluating trade philosophy frequently

Chapter 11: Exiting the Trade

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Overview of Trading Stages

Trading consists of six stages:

1.
Analysis
: Assessing charts to determine trade viability.
2.
Planning
: Developing a trading plan, setting entry and exit strategies.
3.
Entry
: Deciding the point to start the trade.
4.
Managing
: Utilizing Market Biofeedback™ to respond to market data
during the trade.
5.
Exit
: This crucial stage determines profitability.
6.
Learning
: Evaluating the trade's execution and identifying areas for
improvement.

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Goals of Each Stage

-
Stage 1
: Evaluate risk vs. reward.
-
Stage 2
: Create a plan and adhere to it.
-
Stage 3
: Enter at a favorable price.
-
Stage 4
: Keep an open mind and learn from market information.
-
Stage 5
: Aim to profit.
-
Stage 6
: Enhance future trading strategies by reviewing past
performances.

Types of Traders

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Traders generally fall into two categories:
Runners
and
Gunners
.
-
Runners
: Focus on maximizing profits from big trades, often
accepting lower win rates for higher gains.
-
Gunners
: Seek high win rates with smaller profits per trade, favoring
quick and consistent gains.

Exit Strategies

Each trader must choose exit strategies that align with their
style.
-
For Gunners
:
1.
Zone Exit

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: Exiting trades when the price hits key zones where reversals
are likely.
2.
Split Exit
: Dividing a position to target different zones for profit
taking, allowing for more flexibility.
-
For Runners
:
1.
Ladder Exit
: A dynamic exit that adjusts with market movement,
targeting multiple zones.
2.
Three-Bar Exit
: Trailing the stop loss based on the lowest low of the last
three candlesticks, capturing profits in trending situations.

Managing Exits

Avoid the trap of second-guessing previous trades. Stick to a

consistent strategy based on your trading philosophy to
minimize losses and maximize learning. Participants should
identify their trading style and stick with their chosen exit

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strategy to avoid unnecessary frustration and loss of
profitability.

Conclusion

Effective trade exit strategies play a vital role in successful

trading practices. By understanding the different styles
catered to both gunners and runners, traders can tailor their
approach and improve profitability. Re-evaluating trade
philosophy based on past performance should be avoided to
prevent a cycle of doubt and inconsistency.

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Chapter 12 Summary : The Forex Cycle

Chapter 12: The Forex Cycle

Introduction

The chapter discusses the prevalent issue among forex traders

where most are unable to consistently achieve profits, leading
to a perpetual search for new trading systems. It emphasizes
that the problem lies not within the systems themselves but
in the traders' approach and mindset.

What is the Cycle of Doom?

The cycle of doom consists of three phases:

1.
Phase 1: The Search

Traders search for a new trading system, looking in various

sources. This phase concludes when a trader finds a system
they are excited to trade.

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2.
Phase 2: The Action

The trader begins to actively trade the chosen system with

high hopes. However, excitement can lead to a lack of proper
testing, and when losing trades begin to accumulate, doubts
arise about the system’s effectiveness.
3.
Phase 3: The Blame

The trader blames the system for the losses and decides to
abandon it, which drives them back to Phase 1 to find yet
another system.

Living in the Cycle

Many traders succumb to this cycle, believing that profits

stem from the trading systems rather than from their own
execution. The chapter stresses that personal responsibility
over trading outcomes is crucial to breaking free from the
cycle.
Install Bookey App to Unlock Full Text and
Defeating the Cycle Audio

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Chapter 13 Summary : Creating Your
Trading System

Creating Your Trading System

Introduction

- Trading is a process that transforms from excitement to a

boring routine once it becomes systematic and disciplined.
Success in trading often means developing a clear strategy
based on self-awareness.

Defining Who You Are as a Trader

- Understanding your personal beliefs about trading

influences your performance. It’s vital to create rules for your
trading system, establishing a methodical approach to
interaction with the market.

What Do You Believe?

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- Your beliefs shape your trading experience. If you feel that
a certain trading method (like scalping) is not viable,
focusing on other methods may be more productive.

The Importance of Rules

- Having a defined set of rules distinguishes deliberative

trading from gambling. A structured system improves
consistency and helps counteract psychological challenges.

Market Specialist vs. Trade Specialist

-
Market Specialist
: Focuses on specific currency pairs to understand their
unique behaviors and intricacies, thereby gaining deeper
insights.
-
Trade Specialist
: Concentrates on a particular trading setup applicable across
various markets, enhancing mastery through repetition.

Choosing Your Timeframe

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- Your trading personality and lifestyle greatly influence your
choice of timeframe. Different timeframes require different
levels of commitment and decision-making.

Risk Management

- Successful trading depends largely on effective risk

management, including assessing your risk appetite,
maximum drawdowns, and handling correlated trades.

Managing Your Trades

- Entry and exit management is subjective and can vary by

trader. Strategies must align with your style, lifestyle, and
psychological disposition.

Using Market Information

- Continuously adapting to market information helps in

managing trades effectively. Traders must decide how to
utilize market signals to inform their actions.

Knowing Your Trading Personality

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- Identifying whether you are more comfortable with
trend-following or reversal-based trading is crucial for
developing a trading system that feels natural.

Your Life, Your Trading

- The way you trade should accommodate your lifestyle,

ensuring you maintain physical and mental well-being to
support effective trading.

How Subjective Is Your Trading?

- The degree of interpretation in your trading system defines

how rules are applied. Clear rules may lead to better
performance through disciplined decision-making.

Conclusion

- Building a robust trading system encompasses many

components, including risk management, subjectivity, and
aligning with personal beliefs. Developing clear answers to
critical questions about your trading approach prepares you
for various market scenarios. Celebrating your successes
while maintaining disciplined risk practices is essential for
long-term trading success.

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Chapter 14 Summary : Becoming an
Expert

CHAPTER 14: Becoming an Expert

Introduction

Forex traders worldwide make money daily by employing a

simple yet powerful secret: they master simple trading
systems. Despite common misconceptions, one does not need
advanced mathematical skills or cutting-edge technology to
succeed in trading. What sets successful traders apart is
expertise gained through focused practice.

Motivation for Trading

Understanding your motivation for trading is crucial. If your

goal is to make money, you’re in the right place. However, if
you seek excitement or recognition, you may be better suited
to other pursuits. True traders manage their risks and adopt
calculated approaches instead of gambling recklessly.

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The Nature of Expert Trading

Expert traders follow strict risk management rules and

concentrate on one trading technique, which they employ
consistently. This strategy of focusing on a single market or
system repeatedly is key to profitability, making the trading
process mundane yet rewarding.

Six Steps to Becoming an Expert

1.
Get in the Comfort Zone

- Become adept at identifying trading zones on charts.

- Limit the number of zones to avoid analysis paralysis.
- Understand the importance of patience in trading.
2.
Decide on a Catalyst

- Choose a trading catalyst that aligns with your market

perception.
- Using a catalyst that resonates with your beliefs helps in
enduring market challenges.

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3.
Back-Test

- Validate your trading system by back-testing it to build

confidence.
- Aim to tripling your trading account while maintaining
low risk.
4.
Forward Test

- Apply your trading system in real-time through a demo

account.
- Embrace gradual learning and patience in this phase.
5.
Trade a Small Account

- Begin live trading with a small account made up of risk

money only.
- Focus on risk management and aim to triple this account
through continued strategy execution.
6.
Trade a Live Account

- Proceed with confidence to trade a standard live account,

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applying all previous learnings without altering your
successful strategies.

Doing It Again

Consider mastering a second trading system after reaching

proficiency with the first, but allow for sufficient time to
experience and become bored with your first system.

Boring Trading Equals Expert Trading

Boredom in trading often signifies consistent profitability.

Avoid the allure of excitement associated with risky trades;
expertise thrives on patience and stability.

A Simple Trick to Gain Expertise

Engage in an exercise of observing candlesticks for several

hours to enhance your market understanding and anticipate
movements. Take sequential snapshots of price action and
analyze the outcomes to gain practical experience.

Conclusion

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You now have the framework to become an expert trader by
following systematic steps and focusing on closing prices in
trading setups. Mastery of these elements will boost your
confidence and lay the groundwork for a successful trading
journey. The next chapter will address confidence in trading
and handling setbacks effectively.

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Chapter 15 Summary : Gaining
Confidence

CHAPTER 15: Gaining Confidence

Introduction

In trading, confidence is essential for success. While many

may focus on systems and tools for trading, confidence
remains the crucial component. Traders often face two main
confidence issues: a lack of confidence in the trading system
or in themselves.

The Origin of Confidence Issues

- Losing streaks are common and can lead to feelings of

inadequacy.
- Often, the issue lies in how the trading system is applied
rather than the system itself.
- Common problems include poor risk management and
discipline issues.

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Risk-Management Issues

- Inadequate risk management can worsen drawdowns,

making losses difficult to bear.
- Traders need to manage risk properly to maintain
consistency in their profits.

Problems with Discipline

- Discipline among traders, especially in banking, is crucial

as they have systems in place to enforce it.
- Retail traders lack a risk manager but can create
accountability by finding someone to oversee their trading.

Changing Systems

- Traders may overreact to losses, leading to poor decisions

regarding their trading systems.
- Keeping a trading journal can help track progress and
maintain consistency.
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Missing Out on Trades Audio

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Chapter 16 Summary : Managing Risk

CHAPTER 16: Managing Risk

Introduction to Trading Psychology

Risk taking is essential in trading, but it’s inherently

associated with failure. As traders advance, they begin
exploring trading psychology, recognizing the impact of
emotions on trading outcomes. Understanding the emotional
triggers linked to risk is crucial as both risk and psychology
are intertwined.

Your Risk Profile

Traders often overlook their beliefs and their influence on

trading behavior. An individual’s belief in their worthiness
for profits plays a vital role in their trading success. Personal
beliefs about money can shape trading outcomes; positive
beliefs generally lead to better performance, while negative
beliefs can hinder success.

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Money Attitudes

Understanding and addressing personal beliefs about wealth

is essential. Questions regarding money perceptions are
essential for traders to answer honestly, as these beliefs
directly impact trading behavior and success.

Trading Psychology and Risk Management

Improper risk management can lead to significant emotional

trading problems. The repercussions of risking too much on a
trade can manifest regardless of the trade's outcome.
Effective risk management is vital for maintaining emotional
stability and adhering to trading rules.

Emotional Trading

Emotional responses can derail trading decisions, leading to

irrational behavior. While emotional trading is often
considered destructive, the true issue lies in inconsistent
adherence to trading rules.

Worst-Case Planning

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Planning for maximum potential loss on each trade helps in
maintaining emotional control and fosters more consistent
trading execution over time. Gradually adapting to this risk
leads to improved tolerance and focus on effective execution.

Encouraging Trading Tolerance

To encourage trading tolerance, traders should calculate and

familiarize themselves with their worst-case scenarios.
Regularly risking the same percentage of the trading account
will cultivate a sense of normalcy around risk.

Risky Money Traps

Several reasons contribute to traders' failures in achieving

consistent profits, primarily stemming from risky money
traps such as unprotected accounts, the belief that more
screen time leads to success, and unrealistic expectations.

Your Account is Unprotected

The ability to protect one’s trading account is vital for

success. Many traders underestimate the significance of
defensive trading strategies.

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You Need More Screen Time

The misconception that more screen time equates to better

trading can lead traders to make poor decisions, such as
leaving stable jobs before being adequately prepared.

Your Job is Holding You Back

Abandoning a stable career to pursue trading can pressure

traders to perform without sufficient readiness or experience,
often leading to failure.

You Need a Bigger Account

The belief that larger accounts guarantee success can be

misleading. Many traders find success with smaller accounts,
focusing on accurate execution rather than the dollar amounts
involved.

Thinking That Trading is Easy

Underestimating the complexities of trading can lead to

overconfidence. Successful trading requires extensive

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preparation, including back-testing strategies and developing
thorough plans to navigate inevitable setbacks.

Conclusion: Determination

Determination is key to overcoming adversity in trading.

Successful traders share a common trait: a relentless pursuit
of their goals, commitment to preparation, and resilience
during challenges. It is essential to remain focused on
improving trading skills to achieve success as a trader.

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Best Quotes from Naked Forex by Alex
Nekritin with Page Numbers
View on Bookey Website and Generate Beautiful Quote Images

Chapter 1 | Quotes From Pages 28-44

1.If you want a market that never sleeps, if you want
the opportunity to trade at any time of the day,
forex may be for you.
2.In forex, you may take relatively large trades with small
amounts of money because of the favorable leverage
requirements.
3.The unique (and often difficult to understand) aspect of
forex trading to keep in mind is this: Each forex transaction
involves the buying of one currency pair and
simultaneously the selling of another currency pair.
4.How would you like to make the jump from the group of
losing traders to the group of winning traders?
5.Naked traders, by definition, focus on the market, which is
very different.
Chapter 2 | Quotes From Pages 45-73

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1.Out of intense complexities, intense simplicities
emerge.
2.All indicators are created from price data.
3.Naked traders may only blame losing trades on poor
execution (the trader's fault), or poor luck.
4.Paying close attention to how the market behaves after you
enter a trade is one of the best learning tools available to
you.
5.Naked traders have a true advantage because the focus of
the trade is the current market price.
Chapter 3 | Quotes From Pages 74-114
1.You need to continue to gain expertise, but avoid
thinking like an expert." —Denis Waitley
2.Simple does not mean easy, because many traders expect to
become experts without practice, and sadly, they never
achieve expertise.
3.Consistently profitable trading is yours if you practice
trading and become an expert.
4.Your job is to find out how you should be trading, and trade

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 only what makes sense to you.
5.If you can walk away from your computer after making a
trade, you have confidence in your system.
6.The choice is yours; you may decide to join the group of
struggling traders who jump from system to system, or you
may decide to join the successful traders, the profitable
group who spend time back-testing their systems.
7.Your goal should be to pull out of the novice trader stage
and into the expert level as quickly as possible.
8.An automated back-test may clarify the worthiness of an
automated trading system, often involving hundreds, or
thousands of trades... however, the trades are all taken by
computer and will not lead to trader expertise.
9.You must approach back-testing as you would any skill you
are working toward.

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Chapter 4 | Quotes From Pages 115-151
1.You have to pay close attention to one thing on the
chart if you trade naked: price. Price is king. Price
will tell you all you need to know.
2.The market will tell you where the sweet spot is on the
chart. These sweet spots will be the foundation for
everything you do as a naked trader.
3.Zones are just like beer bellies.
4.The age of zones, and the importance of the age of a zone,
is a hotly debated topic among traders.
5.Price has a memory. This is true for any market, on any
timeframe.
6.The line chart is your friend.
Chapter 5 | Quotes From Pages 154-177
1.To me, there is no greater act of courage than
being the one who kisses first. —Janeane Garofalo
2.These catalysts are only useful when they print on a zone;
catalysts that are not located on a zone are simply
interesting price formations—they are not high-probability

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 trade set-ups.
3.A very simple and extremely powerful catalyst is the
last-kiss trade.
4.This means that you must keep in mind which type of
market your chosen trading system is designed to work
well in, and try to restrict the application of your chosen
trading system to only this type of market.
5.The last-kiss trade is a specific subset of the breakout trade.
Not every breakout trade is a last-kiss trade, but every
last-kiss trade is a breakout trade.
6.Test the last-kiss trade; you may be surprised at how well
this trading system filters out fake-outs.
Chapter 6 | Quotes From Pages 178-205
1.Never fear shadows. They simply mean there's a
light shining somewhere nearby.
2.The big shadow is a two-candlestick reversal formation and
an important catalyst for the naked trader.
3.Big shadows are only valid when they appear on zones.
4.The closing price is the most important price for the

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 big-shadow candlestick.
5.Would you like to find the trade that captures a critical
turning point in the market?
6.The more room to the left, the more likely this spot is a
long-term high or long-term low.
7.The very best big shadows will print at an area on the chart
where the market has not recently traded.

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Chapter 7 | Quotes From Pages 206-237
1.The market usually prefers to hit a zone several
times before moving away from that zone.
2.Double bottoms are reversal formations, and they are much
more common than other reversals, such as the big belt or
kangaroo tail.
3.The wammie trade is a simple but powerful trade.
4.Wammies and moolahs occur on any timeframe, in any
market.
5.Choose the set-ups with many candlesticks between
touches.
Chapter 8 | Quotes From Pages 238-268
1.Whenever you find that you are on the side of the
majority, it is time to reform.
2.The kangaroo tail is an extremely powerful catalyst. It is an
obvious clue to the naked trader that the market has gone
too far.
3.The long tail suggests that the market has extended too far
into a zone and is likely to reverse.

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4.Kangaroo tails exhibit extreme market behavior.
5....the naked trader is using price patterns that are
clues—hints, about where the market may be headed.
Chapter 9 | Quotes From Pages 269-288
1.There are a few moments in life that eclipse all
others.
2.These critical, beautiful moments come and go, but you
must be ready for them at any time.

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Chapter 10 | Quotes From Pages 289-309
1.Any trader who scrolls back through the charts
will notice these exciting times and may wish for a
method of capturing easy profits from these
trending markets.
2.This is a way for you, the naked trader, to identify the trend
and capture healthy profits from a trending market.
3.Once your consultant has filed his report, you will know
precisely if the market is trending.
4.If the trendy kangaroo candlestick does not have a tail that
sticks out from the market pause, it is not an ideal trendy
kangaroo.
5.Beware of trendy kangaroos that print after a large
correction; they may not be ideal trendy kangaroo trades.
Chapter 11 | Quotes From Pages 310-342
1.It means leaving what's over without denying its
value.
2.You make your money when you make your exit, and your
paycheck is received.

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3.Runners look at strong trending charts and think, 'now, that
is a trend that I would love to capture.'
4.It is only important that you stick to your chosen style of
trading, stick with what you believe.
5.Every trade is an independent event.
Chapter 12 | Quotes From Pages 345-358
1.Insanity is doing the same thing over and over
again, but expecting different results." —Rita Mae
Brown
2.The problem is this: Profits do not come from trading
systems. Profits come from traders.
3.The first step toward profitability is identifying that you
have been stuck in the cycle of doom.
4.The key to breaking the cycle is to recognize that the
trading system is not responsible for trading profits or
losses. You are responsible for trading profits and losses.
5.You must want to become a professional trader.

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Chapter 13 | Quotes From Pages 359-404
1.When you listen, you learn. You absorb like a
sponge—and your life becomes so much better
than when you are just trying to be listened to all
the time.
2.Successful trading often is boring.
3.Your beliefs will drive your trading.
4.The rules of your trading system will define how you
interact with the market.
5.Market specialists are some of the most profitable traders
on the planet.
6.The exit is where the money is made.
7.It is important for you to define what your system rules are,
if only for the fact that having them in front of you will
help to remind you that you have a method for extracting
profits.
Chapter 14 | Quotes From Pages 405-432
1.If you want to trade because you want to make
money, perhaps trading is for you. If, however, you

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 want to trade because you want excitement...then
perhaps trading is not for you.
2.Profitable trading is boring. Profitable traders are experts,
and these expert traders do one thing over and over again.
3.The key to breaking the cycle of doom is to decide what
makes sense to you, which of the trading systems in this
book resonate with you.
4.You can do the same thing hedge fund traders do. You can
become just like a bank trader. You can be a professional
trader.
5.The most important thing at this stage is to duplicate what
you have been doing. Just because you are trading a
standard account does not mean anything changes.
6.If you find yourself bored with your trading, you are
probably consistently profitable.
Chapter 15 | Quotes From Pages 433-456
1.Action breeds confidence and courage.
2.Confidence is the most important ingredient for trading
success.

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3.Most losing streaks are due to the misapplication of the
system, caused by the trader, and not the system itself.
4.Without proper application of risk management rules, a
trading drawdown may be exacerbated and, therefore, may
be very difficult to handle for many traders.
5.The only traders who do not have to concern themselves
with the psychology of trading are those traders who use
automated trading systems.
6.The fasted way to regain your confidence is to back-test in
a forex tester.
7.There are many reasons that a trade may not make money.
These reasons include poor system execution, changing
market conditions, or bad technology.

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Chapter 16 | Quotes From Pages 457-485
1.Every battle is won before it is ever fought."
—Sun-Tzu
2.Your beliefs drive your behaviors. This includes your
trading behaviors.
3.The only destructive trading is trading that is not according
to your rules.
4.Without this, you have no chance.
5.Your money attitudes can determine how much money
comes your way.
6.You simply must have determination to succeed in trading
(or any other endeavor).
7.If you believe you are worthy of trading profits, you will
find they come much more easily.
8.There are no beliefs worth more than your entire trading
account.

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Naked Forex Questions
View on Bookey Website

Chapter 1 | The Fundamentals of Forex Trading|

Q&A
1.Question
What are the main advantages of forex trading?
Answer:Forex trading offers a unique opportunity
to trade 24 hours a day, providing flexibility to
traders. The large liquidity of the forex market
allows traders with small capital to take significant
positions through leverage, presenting the potential
for high returns. However, this also comes with the
risk of large losses.

2.Question
How does forex trading differ from stock trading?
Answer:In forex trading, transactions always involve
currency pairs, where one currency is bought and another
sold, compared to stocks that deal with shares of companies.
The forex market is much larger and more liquid than stock

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markets, with $4 trillion traded daily compared to around $75
billion in the New York Stock Exchange.

3.Question
What is the structure of the forex market?
Answer:The forex market consists of two main segments: the
interbank market, where major institutions trade currencies,
and the retail market, which is where individual traders
operate. Most individuals participate in retail trading,
separate from the larger interbank market.

4.Question
Why do most retail forex traders lose money?
Answer:Many retail forex traders fail because they lack the
necessary knowledge and skills, and often enter the market
with the presumption that they will win. Forex brokers
typically assume new traders will lose money, and for the
most part, this assumption holds true.

5.Question
What is the significance of economic news in forex
trading?
Answer:Economic news and reports serve as vital indicators

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for fundamental traders, affecting currency valuations
significantly. Traders who stay informed about these
developments can make better trading decisions based on
current economic conditions.

6.Question
What is 'naked forex' trading?
Answer:Naked forex trading refers to a method where traders
operate without relying on indicators. This approach
encourages traders to focus directly on market price
movements rather than getting distracted by potentially
misleading indicators, leading to clearer trading decisions.

7.Question
How can traders improve their chances of becoming
profitable?
Answer:To improve odds of trading success, a trader should
focus on developing a comprehensive trading plan,
understanding market dynamics, and learning the difference
between fundamental and technical trading strategies.
Continuous education and adapting to the market conditions

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are essential for joining the minority of winning traders.

8.Question
What are some common misconceptions about forex
trading?
Answer:A major misconception is that forex trading is a
quick way to make money. Many novice traders
underestimate the complexity of the market and overestimate
their ability to profit quickly, often leading to significant
losses.

9.Question
How important is psychological readiness in forex
trading?
Answer:Psychological readiness is crucial in forex trading, as
emotional decision-making can lead to poor outcomes.
Successful traders must be disciplined, patient, and able to
manage their emotional responses to market fluctuations.

10.Question
What role do brokers play in retail forex trading?
Answer:Brokers facilitate trades in the retail forex market,
but they also profit from the losses of traders. While some

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brokers may match trades, the majority assume that most
new traders will incur losses, which can create a conflict of
interest.
Chapter 2 | Avoiding a Trading Tragedy| Q&A
1.Question
What is the main issue with trading based on indicators
according to the author?
Answer:The author points out that indicator-based
trading can be difficult because indicators lag
behind actual price movements. This delay can
result in missed opportunities or misleading signals,
causing traders to enter trades late or exit too early.
Naked trading is presented as a solution, allowing
traders to react to market movements more quickly.

2.Question
How can traders improve their market entries according
to this chapter?
Answer:Traders can improve their entries by adopting naked
trading strategies, which rely on current market prices and

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price action rather than indicators. This allows for earlier
entries, tighter stop losses, and potentially higher profits.

3.Question
Why does the author advocate for taking responsibility
for trading results?
Answer:The author emphasizes that naked traders, unlike
those relying on indicators, take full responsibility for their
trades since they are trading based on market actions rather
than blaming indicators for losses. This accountability is said
to be liberating and encourages traders to learn from their
experiences.

4.Question
What is 'Market Biofeedback' and why is it important?
Answer:Market Biofeedback refers to the psychological and
behavioral responses traders have to price movements after
entering a trade. It is important because it helps traders learn
from their experiences and adapt their strategies accordingly,
ensuring that they become more effective over time.

5.Question
How should traders respond to a series of losing trades?

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Answer:Traders should assess their approach and review
their trading strategy critically. Instead of blaming external
factors like the market or their trading system, they should
learn from the drawdowns and adjust their trading behaviors
based on insights gained through Market Biofeedback.

6.Question
What is the core philosophy of naked trading as described
in this chapter?
Answer:The core philosophy of naked trading is simplicity
and directness—traders focus solely on current market prices
and price action without the complication of indicators. This
approach allows for immediate responsiveness to market
changes and minimizes the lag typically associated with
indicator-based trading.

7.Question
What common pitfalls do indicator-based traders fall into
according to the text?
Answer:Indicator-based traders often blame their trading
systems for failures, engage in constant adjustments to

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settings, and can mistakenly believe that the market itself is
'wrong' when they experience losses. This cycle can lead to a
lack of accountability and failure to learn from past mistakes.

8.Question
What role does psychological awareness play in trading
success as suggested by the author?
Answer:Psychological awareness is crucial for trading
success because it enables traders to recognize their
emotional responses to market movements, learn from their
experiences, and adapt their trading strategies. By
maintaining awareness of their reactions (Market
Biofeedback), traders can cultivate discipline and improve
their decision-making.

9.Question
What does the author mean by comparing indicators to a
wristwatch?
Answer:The comparison of indicators to a wristwatch
highlights the idea that while indicators transform raw price
data into a more interpretable format, they often lag behind

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real-time market movements. Just as manipulating a
wristwatch to show a different time is counterproductive,
relying solely on indicators can lead traders to poor
decision-making due to the delay.
Chapter 3 | Back-Testing Your System| Q&A
1.Question
What is the primary secret to becoming a consistently
profitable trader?
Answer:The primary secret is practice. Practice
your craft and trading system extensively to gain
expertise, which will help in becoming a consistently
profitable trader.

2.Question
How can one ensure their trading system fits their
personal style and beliefs about the market?
Answer:By back-testing extensively, one can determine how
suitable a trading system is for their trading personality and
how it aligns with their view of market behavior.

3.Question
Why do most traders struggle to make profits in forex

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trading?
Answer:Most traders lack expertise because they do not
invest the time in back-testing and gaining experience with
their trading systems before live trading.

4.Question
What are the three goals of back-testing your trading
system?
Answer:1. To identify the suitability of the trading system for
your personal trading style; 2. To develop trust in the trading
system and the ability to let go of trades; 3. To gain expertise
by accumulating trading experiences.

5.Question
How does one build confidence in their trading system?
Answer:Confidence comes from extensive back-testing,
taking thousands of trades over various market conditions,
which allows traders to trust their system and manage trades
more efficiently.

6.Question
What's the difference in expertise between manual
back-testing and automated back-testing?

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Answer:Manual back-testing allows traders to gain real
experience and expertise through hands-on practice with their
trading strategies, while automated back-testing, although
efficient, does not provide the same level of experiential
learning.

7.Question
What are some pitfalls of manual back-testing?
Answer:Common pitfalls include allowing hindsight bias,
wherein traders use future information unknowingly, and the
temptation to cheat by advancing the chart too quickly
instead of trading live data.

8.Question
What is the importance of maintaining a simple trading
system?
Answer:A simpler trading system avoids the complexities
that can lead to too many variables, increasing the chance of
failure when market conditions change.

9.Question
How can back-testing help a trader during market
drawdowns?

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Answer:Back-testing gives a trader a clear understanding of
their system's historical performance, enabling them to
maintain confidence and not abandon their trading strategy
during tough periods.

10.Question
What does the 74.8% figure signify in forex trading?
Answer:This statistic indicates that a majority of traders
(74.8%) do not practice their trading systems regularly,
which correlates with their lack of profitability in the forex
market.

11.Question
Why is it recommended to take back-testing sessions in
short increments?
Answer:Shorter sessions help keep the mind fresh and
focused, reducing errors and ensuring that each session
maintains high quality, which is crucial for accurate results.

12.Question
What is one major advantage of back-testing software
over manual back-testing?
Answer:Back-testing software allows for rapid testing of

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trading systems and better recordkeeping, enabling traders to
focus on the actual trade signals rather than the
administrative task of manual tracking.

13.Question
What is the real work involved in back-testing a trading
system?
Answer:The real work lies in analyzing the results of
back-testing to validate trading systems, identify behavioral
patterns, and refine strategies for future trading.

14.Question
What fundamental change occurs in a trader’s mindset as
they move from novice to expert through back-testing?
Answer:As traders gain experience through back-testing,
they shift their focus from merely understanding if a signal
qualifies as a trade set-up to efficiently managing trades that
are already in play.

15.Question
How can understanding market psychology enhance a
trader's back-testing process?
Answer:By comprehending that the market is driven by

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habitual behaviors, a trader can refine their approach to align
with how collective trader psychology influences market
movements.

16.Question
What is the significance of cultivating a trading 'style'
during back-testing?
Answer:Developing a personal trading style ensures that
back-testing results are relevant and meaningful, leading to a
more effective strategy that resonates with the trader’s own
behaviors and acumen.

17.Question
Why is consistency emphasized in back-testing practices?
Answer:Consistency in back-testing results leads to effective
strategy validation and helps traders develop a reliable
trajectory for profit-generation in their live trading.

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Chapter 4 | Identifying Support and Resistance
Zones| Q&A
1.Question
What is the significance of support and resistance zones
in naked trading?
Answer:Support and resistance zones, referred to as
zones, are critical for naked traders because they
represent areas on the chart where price has
reversed multiple times. Recognizing these zones
helps traders identify potential trading
opportunities, as price is likely to react at these
historical turning points. Just as traders study a
person's history to predict future behavior, they
analyze past price movements to inform their
trading decisions.

2.Question
How can understanding the historical nature of price
levels benefit traders?
Answer:Understanding the historical nature of price levels
allows traders to anticipate where price might turn in the

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future. Markets tend to revert to significant historical zones,
indicating they may serve as support or resistance again. This
'memory' of price behavior provides traders with a powerful
tool to forecast potential market movements.

3.Question
What is the analogy of a 'beer belly' when discussing
support and resistance zones?
Answer:The 'beer belly' analogy illustrates that support and
resistance zones are not fixed price points but rather broad
areas where price fluctuates. Just as a beer belly has a firm
center that offers resistance when pushed, these zones can be
pushed into but typically provide a barrier where price reacts.
This emphasizes the concept that zones are 'squishy' and can
often be breached temporarily.

4.Question
Why are 'old' zones considered important for current
trading?
Answer:'Old' zones remain important in trading because
price often revisits these historical levels, reflecting the

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market's tendency to remember past significant price actions.
Even if a zone has not been tested in years, it can still
influence current market behavior as traders react to these
levels.

5.Question
How do higher timeframe charts assist in identifying
critical zones?
Answer:Examining higher timeframe charts is essential
because they reveal significant support and resistance zones
that might go unnoticed on lower timeframe charts. By
identifying these major zones on a higher timeframe, traders
can gauge the most critical areas for trading setups on the
lower timeframe they choose to trade.

6.Question
What should a trader do if they encounter too many zones
on their chart?
Answer:If a trader finds themselves with too many zones
marked on the chart, they should be cautious. It often
indicates confusion and may lead to excessive trade signals

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or poor trading decisions. The solution is to focus solely on
marking critical zones that have been tested multiple times
rather than marking every minor point.

7.Question
What is a key takeaway for traders when reacting to price
movements near zones?
Answer:A key takeaway for traders is to exercise caution and
observe how price interacts with zones rather than
automatically executing trades solely based on price touching
these levels. Waiting for additional confirmation, such as a
price action catalyst, enhances the chances of executing
successful, high-probability trades.

8.Question
Why is the closing price significant in forex trading?
Answer:The closing price is significant because it reflects the
last agreed price of the trading day, influenced by both
European and North American market participants. This
price serves as a reference point for traders, impacting their
decisions about holding or closing trades and often indicating

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market sentiment as it transitions to the interbank market.

9.Question
Why might minor zones not be useful for drawing on a
trading chart?
Answer:Minor zones, while visible on lower timeframe
charts, are often less significant than major zones. They can
clutter the trader's perspective and lead to confusion about
potential trade setups since they may not represent critical
levels where price consistently reverses.

10.Question
What should a trader focus on when price pushes beyond
a zone?
Answer:When price pushes beyond a zone, traders should
remember that it doesn't necessarily indicate a true breakout.
They need to assess the market's overall behavior and closure
around that zone; often, as long as price does not firmly close
above or below the zone, it may still be considered valid for
trading decisions.
Chapter 5 | The Last Kiss| Q&A

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1.Question
What is the main concept behind the last-kiss trade
according to Chapter 5 of 'Naked Forex'?
Answer:The last-kiss trade is a specific type of
breakout trade designed to avoid fake-outs by
confirming a breakout's validity through the
retouch principle. It involves waiting for a market to
break out from a consolidation box and then return
to retouch the edges of that box before entering a
trade.

2.Question
Why is patience emphasized in breakout trading
strategies?
Answer:Patience is crucial because breakout trading relies on
waiting for the market to consolidate before making a move.
Many traps, like fake-outs, can occur when traders jump into
trades preemptively before the market confirms its intentions.

3.Question
How does the last-kiss trade help in avoiding fake-outs?
Answer:The last-kiss trade focuses on the retouch principle

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where the price returns to kiss the support or resistance zone
after breaking out. This serves as a confirmation that the
breakout is genuine, filtering out many of the bad trades
typically caused by fake-outs.

4.Question
What visual signals should a trader look for to identify a
successful last-kiss trade?
Answer:Traders should look for a strong candlestick pattern
in the direction of the breakout at the edge of the
consolidation box after the retouch. This pattern indicates
that the market is likely to continue moving in the breakout
direction rather than returning to the consolidation zone.

5.Question
What common mistake do traders make when employing
standard breakout strategies?
Answer:Traders often fall victim to fake-outs when they
trigger trades immediately after a breakout signal, without
waiting for confirmation. This leads to many losing trades as
the market frequently retraces back into the consolidation

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zone.

6.Question
How are support and resistance zones utilized in the
last-kiss trade strategy?
Answer:Support and resistance zones create the boundaries
of the consolidation box where price movements are
contained. These zones are critical for identifying breakout
points and the subsequent retouch, allowing traders to
effectively time their entry into trades.

7.Question
What key steps are involved in executing a last-kiss
trade?
Answer:1. Wait for price to consolidate between two zones,
marked with at least two touches on each side. 2. Wait for a
breakout beyond one of the zones. 3. After the breakout, wait
for price to return to the consolidation box and print a
last-kiss candlestick. 4. Initiate either a sell stop or buy stop
based on the candlestick's position.
Chapter 6 | The Big Shadow| Q&A

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1.Question
What is a big shadow in trading, and why is it significant?
Answer:A big shadow is a two-candlestick reversal
formation that appears on support and resistance
zones, indicating a potential turning point in the
market. It is significant because it forms at critical
price levels where traders look for high-probability
trade setups.

2.Question
How can you identify a valid big shadow setup?
Answer:A valid big shadow setup requires that the formation
appears on a zone, consists of two candlesticks with the
second one being much larger than the first, and generally
has a wide range compared to previous candlesticks.

3.Question
What are the ideal characteristics of a big shadow
candlestick?
Answer:The ideal big shadow candlestick has a wide range,
is the largest candlestick seen in a significant time, and
ideally has the greatest range among the last five

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candlesticks. It should also have a closing price near its high
for bullish shadows or near its low for bearish shadows.

4.Question
How should a trader handle stop losses when entering a
trade based on a big shadow?
Answer:For a bullish big shadow, place the stop loss a few
pips below the low of the big shadow. For a bearish big
shadow, place it a few pips above the high of the big shadow,
protecting against adverse price movements.

5.Question
What is the importance of the closing price in a big
shadow candlestick?
Answer:The closing price is crucial; for a bullish big shadow,
the ideal scenario has a close near the high, while for a
bearish big shadow, the close should be near the low. A
closing price that is not in the ideal location may indicate a
higher likelihood of trade failure.

6.Question
What does 'room to the left' mean in trading, and why is
it important?

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Answer:'Room to the left' refers to the absence of price
action to the left of a significant turning point on the chart. It
indicates that the market may not have traded at those levels
for a while, which increases the probability of a reversal and
the potential success of a trade at that point.

7.Question
How does recent price action affect the likelihood of a
successful big shadow trade?
Answer:If there is recent price action around the area where a
big shadow prints, it may indicate that the market has not
reached the exhaustion necessary for a reversal. Ideally,
traders should look for big shadows in areas that have not
seen trading activity for several candlesticks, indicating an
opportunity for capturing significant market moves.

8.Question
What are some common exit strategies for a big shadow
trade?
Answer:A simple exit strategy is to set a take-profit target at
the nearest support or resistance zone, ensuring to place it at

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a few pips away from that level to secure profits as the price
moves in your predicted direction.

9.Question
How can traders improve their skills in trading big
shadows?
Answer:Traders can enhance their skills by back-testing the
big shadow strategy, getting familiar with its characteristics
and setups, and practicing on live trades to gain confidence in
entry and exit decisions based on this formation.

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Chapter 7 | Wammies and Moolahs| Q&A
1.Question
What are wammies and moolahs in trading?
Answer:Wammies and moolahs are specific trading
setups derived from double bottom and double top
formations, respectively. A wammie is defined by
two touches of support that increase in price (higher
low) while a moolah involves two touches of
resistance that decrease in price (lower high). They
aim to help traders identify likely turning points in
the market.

2.Question
Why is the concept of 'zones' important in the context of
wammies and moolahs?
Answer:Zones represent critical support and resistance levels
in the market. Wammies and moolahs frequently occur
around these zones, as the market often validates these areas
by touching them multiple times before reversing direction.
This behavior allows traders to anticipate potential market

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movements based on historical price interactions.

3.Question
How do wammies differ from standard double bottoms?
Answer:Wammies differ from standard double bottoms
through a critical feature: the second touch must be at a
higher price than the first. This indicates that the market is
making a higher low, typically suggesting a decline in
downward momentum and the potential for an upward trend.

4.Question
What should a trader look for in the second touch of a
wammie?
Answer:In the second touch of a wammie, a trader should
look for a strong bullish candlestick, which indicates decisive
buying power. This candlestick should close near its high,
showing that buyers are in control.

5.Question
What are the seven important characteristics of a
wammie?
Answer:1. The market touches the support zone twice. 2. The
second touch is higher than the first touch. 3. There are at

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least six candlesticks between touches. 4. A bullish
candlestick is printed on the second touch. 5. A buy stop is
placed a few pips above the bullish candlestick. 6. The stop
loss is set below the first touch. 7. The profit target is the
next zone above the wammie.

6.Question
What does a typical moolah trade involve?
Answer:A typical moolah trade involves a pattern where the
market touches a resistance zone twice, with the second
touch being lower than the first. The trade is entered with a
sell stop below the bearish candlestick following the second
touch, while the stop loss is set above the first touch, aiming
for profit at the next zone below.

7.Question
How can traders filter out subpar trades when identifying
wammies and moolahs?
Answer:Traders can filter out subpar trades by focusing on
setups with a higher number of candlesticks between touches,
ensuring the second touch is significantly distanced from the

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first, and confirming the presence of strong bullish (for
wammies) or bearish (for moolahs) candlesticks.

8.Question
What is the significance of candlestick patterns in
identifying entry points for wammies and moolahs?
Answer:Candlestick patterns are crucial as they provide
visual confirmation of market sentiment at the zones. A
strong bullish candlestick after the second touch for
wammies signals strength, while a strong bearish candlestick
after the second touch for moolahs indicates weakness,
guiding entry decisions.

9.Question
What risks are associated with trading double bottoms
and tops like wammies and moolahs?
Answer:The risks include the possibility of false signals,
where a wammie or moolah may fail to lead to a market
reversal, resulting in losses. Not all formations will yield
profits, so it is vital for traders to apply risk management
strategies such as placing appropriate stop losses.

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10.Question
How does a trader determine the optimal exit for a
wammie or moolah trade?
Answer:The optimal exit for a wammie or moolah trade is
typically set at the next significant zone above (for wammies)
or below (for moolahs) where the price had previously
encountered support or resistance, allowing for a targeted
profit based on historical price action.
Chapter 8 | Kangaroo Tails| Q&A
1.Question
What is a kangaroo tail in trading terms?
Answer:A kangaroo tail is a distinct price pattern
represented by a single candlestick that signals
potential market reversals. It comprises two parts: a
long tail indicating extended price movement and a
small body located at one end.

2.Question
Why is the length of the tail important in identifying a
kangaroo tail?
Answer:A long tail suggests that the market has extended too

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far in one direction, indicating a potential reversal. It implies
extreme market behavior and a likely rejection from a price
zone.

3.Question
What characteristics define an ideal kangaroo tail?
Answer:An ideal kangaroo tail has a long tail, a small body
near one end of the candlestick, and opens and closes in the
extreme parts of the candle, either in the top or bottom third
depending on whether it is bullish or bearish.

4.Question
How can a trader use kangaroo tails effectively?
Answer:Traders can look for kangaroo tails appearing at
historical reversal zones, as these patterns serve as
high-probability reversal signals. Proper placement and
confirmation through nearby price actions are crucial for
successful trades.

5.Question
What does it mean when a kangaroo tail has 'room to the
left'?
Answer:'Room to the left' means that the kangaroo tail is

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situated at a price zone that has not seen trading activity for a
significant period. This suggests a stronger reversal potential,
as the market may not quickly return to this price level.

6.Question
Why should traders beware of giant candlesticks prior to
a kangaroo tail?
Answer:Giant candlesticks preceding a kangaroo tail may
indicate ongoing trend momentum, leading to potential
failures in reversal signals. Ideal kangaroo tails should have a
range larger than surrounding candlesticks.

7.Question
What entry strategy is suggested for trading kangaroo
tails?
Answer:The recommended entry strategy involves placing a
buy stop a few pips above the high of a bullish kangaroo tail
or a sell stop a few pips below the low of a bearish kangaroo
tail to ensure the market has moved in the desired direction.

8.Question
How should a trader manage stop losses with kangaroo
tail trades?

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Answer:Stop losses should be placed just beyond the tail of
the kangaroo tail to limit potential losses. Traders are also
advised to monitor the trade and consider closing it if it
approaches 75% of the stop loss.

9.Question
What is the significance of taking profit at the next zone
after a kangaroo tail pattern?
Answer:Taking profit at the next zone allows traders to
capitalize on expected price reversals effectively. This
strategy harnesses the momentum established by the
kangaroo tail and aligns with historical price behavior at
reversal zones.

10.Question
What are some tip-offs for identifying high-quality
kangaroo tails?
Answer:Look for long tails, significant movement indicating
strong market reactions, and ensure they print at price zones
that have not seen activity for a long time. Avoid tails with
short bodies, positioned away from recent price action, or

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preceded by large candlesticks.
Chapter 9 | The Big Belt| Q&A
1.Question
What is the significance of recognizing a 'big belt'
moment in trading?
Answer:Recognizing a 'big belt' moment signifies
identifying a major market occurrence that can lead
to significant trading opportunities. It is crucial to
be prepared for these moments as they can lead to
profitable trades by indicating potential market
reversals at important support and resistance zones.

2.Question
How does a bearish big belt differ from a bullish big belt?
Answer:A bearish big belt occurs at a market high, opening
near the high and closing near the low, signaling a price
reversal down. Conversely, a bullish big belt occurs at a
market low, opening near the low and closing near the high,
indicating a potential price reversal upwards.

3.Question
What are the key characteristics of a bearish big belt?

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Answer:The key characteristics include: an opening price
higher than the previous closing price, a closing price near
the low of the candlestick, it must print on an important zone,
and the stop loss is placed above the high of the candlestick.

4.Question
Why is it important to place a sell stop below the low of a
bearish big belt?
Answer:Placing a sell stop below the low of a bearish big
belt ensures that the market must confirm its downtrend by
making a new low before triggering the trade, thus reducing
the chance of false signals.

5.Question
What should be considered when trading bullish big
belts?
Answer:When trading bullish big belts, it is important to
ensure the opening price is near the low, the closing price
near the high, and it needs to print on a significant zone.
Traders should also set a stop loss below the low of the
candlestick.

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6.Question
What strategies can be applied following the
identification of a big belt?
Answer:After identifying a big belt, traders should consider
setting profit targets at the nearest zone or key levels where
price action has previously reacted. Consistency in using
daily charts for these setups is also advised to maintain a
high win rate.

7.Question
Why is it advised to focus on major currency pairs for big
belt trading?
Answer:Focusing on major currency pairs allows traders to
capitalize on higher volatility and reaction to price levels,
increasing the chances of successful big belt formations and
profitable trades.

8.Question
What is a critical takeaway regarding the timing of big
belts in relation to the trading week?
Answer:Big belts often show up on the first trading day of
the week after a period of market reflection over the

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weekend. This timing is crucial for traders to watch for
potential setups.

9.Question
How can traders ensure they are ready for trades after a
big belt occurrence?
Answer:Traders can prepare by regularly reviewing charts
post the first trading day of the week, understanding the
market context, and ensuring they have a defined entry
strategy that includes stop-loss placements based on the
characteristics of big belts.

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Chapter 10 | The Trendy Kangaroo| Q&A
1.Question
What is the purpose of using the trendy kangaroo trading
method?
Answer:The trendy kangaroo trading method is
designed to help traders identify trends and capture
healthy profits from trending markets. It allows
traders to take advantage of clear upward or
downward market movements, maximizing their
potential for gains.

2.Question
How can one identify a trending market without technical
indicators?
Answer:One can identify a trending market simply by using a
consultant, preferably a child aged 6-10, to analyze price
charts. By pointing to a line chart and asking whether the
trend is mostly up, down, or fluctuating, the consultant can
provide a straightforward answer that determines the market's
trend without needing technical indicators.

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3.Question
What characteristics define a trendy kangaroo
candlestick?
Answer:A trendy kangaroo candlestick is defined by its tail
sticking out beyond the recent market pause indicated by
previous candlesticks. This candlestick always moves in the
direction of the trend and exhibits little room to the left since
it forms during the trend. The more pronounced the tail, the
better the trade setup.

4.Question
What do traders need to be cautious about when
identifying trendy kangaroo setups?
Answer:Traders must be cautious of setups that do not stick
out from the consolidation range of the market pause.
Additionally, they should avoid trades that follow significant
market corrections as these may indicate the trend's end
rather than a continuation.

5.Question
What are the primary components of executing a bearish
trendy kangaroo trade?

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Answer:For a bearish trendy kangaroo trade, the necessary
components include: confirming that the market is in a
downtrend, identifying a pause with consolidating
candlesticks, ensuring a trendy kangaroo prints above this
consolidation range, placing a sell stop below the low of the
kangaroo candlestick, and positioning a stop loss above the
high of the candlestick.

6.Question
Describe the entry strategy for a bullish trendy kangaroo
tail trade.
Answer:In a bullish trendy kangaroo tail trade, first ensure
the market is in an uptrend with preceding candlesticks
showing consolidation. The bullish trendy kangaroo should
print below this range. Then, you would place a buy stop
above the high of the trendy kangaroo, with a stop loss set
below the low of the candlestick.

7.Question
Why is it important to recognize the minor zones in the
context of trendy kangaroo setups?

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Answer:Recognizing minor zones is essential because they
indicate potential support or resistance levels where price
action has historically reacted. This knowledge allows traders
to set more informed entry and exit points, increasing the
likelihood of successful trades.

8.Question
What should be your strategy if you identify a trendy
kangaroo candlestick after a large market correction?
Answer:If a trendy kangaroo candlestick appears after a large
market correction, it may signal a potential exhaustion of the
trend. In such cases, the trade should be approached with
caution, as this candlestick might not represent a
continuation of the trend, and traders should consider waiting
for clearer confirmation before taking action.

9.Question
How does one measure the effectiveness of a trendy
kangaroo setup?
Answer:The effectiveness of a trendy kangaroo setup can be
measured by how well the candlestick’s tail sticks out from

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the previous consolidation range, its formation during a
strong trend, and whether it appears near significant support
or resistance levels. Ideally, a strong reaction in price
following the trade would confirm its effectiveness.

10.Question
What lessons will be covered in the following chapter
regarding trends?
Answer:The following chapter, Chapter 11, will cover
various exit strategies for capturing profits during trending
markets, specifically tailored for trendy kangaroo-tail trades.
This will help traders maximize their gains once they identify
and enter trades based on the trendy kangaroo method.
Chapter 11 | Exiting the Trade| Q&A
1.Question
What are the six stages of trading and their goals?
Answer:1. **Analysis**: Determine if the risk is
worth the reward.
2. **Planning**: Create a trading plan that you will
adhere to during the trade.

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3. **Entry**: Enter the market at a price that
confirms the trade opportunity.
4. **Management**: Use market data to adapt to
new information while holding the trade.
5. **Exit**: Make money from the trade by exiting
effectively.
6. **Learning**: Identify weaknesses in the
previous stages to improve future trades.

2.Question
How do you choose an exit strategy as a trader?
Answer:Decide whether you identify more with 'runners' or
'gunners'. Runners prefer huge winning trades and have
confidence in long-term holds, while gunners focus on a high
win rate with smaller, consistent profits. It is crucial to
commit to your chosen style and strategy.

3.Question
What is the 'Zone Exit' strategy, and when is it used?
Answer:The Zone Exit strategy is used by traders to exit a
trade at predefined zones where the market tends to reverse.

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It’s particularly useful for 'gunners', as it allows for quick
profits at significant levels on the chart where price is often
attracted.

4.Question
What distinguishes the 'Split Exit' strategy?
Answer:The Split Exit divides the trading position into two
parts, allowing the trader to take profits at different target
zones. This strategy is suitable for gunners who want to
capture more profits from trades that may move beyond
initial targets.

5.Question
What makes the 'Three-Bar Exit' strategy unique?
Answer:The Three-Bar Exit is based on the price action of
the last three candlesticks rather than fixed exit points. This
means the exit strategy adjusts dynamically with short-term
price movements, focusing on trailing the stop loss beneath
the lowest low of the previous three bars for buy trades.

6.Question
How should traders manage their exit strategies to avoid
poor results?

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Answer:Traders should avoid re-trading based on previous
trades' outcomes. Each trade should be treated independently,
maintaining consistency in strategy without adjusting for past
performance. This helps to create a disciplined approach
rather than falling into the cycle of second-guessing.

7.Question
Why is it important to define whether you are a runner or
a gunner before trading?
Answer:Identifying with one philosophy helps shape your
trading approach and exit strategies. It ensures you remain
aligned with your goals and avoids emotional responses
based on market fluctuations outside your chosen strategy.

8.Question
What should a trader do if they feel tempted to change
their strategy after a loss?
Answer:Reassess your strategy without being influenced by
previous trades. Stick to your original plan, as each trade is
unique and should be executed based on established criteria
rather than emotional responses to past performance.

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9.Question
How does the philosophy of 'runners' affect their trading
results?
Answer:Runners emphasize patience and the potential for
large wins, often accepting smaller losses during periods
without significant trends. This long-term perspective allows
them to capitalize on major market movements when they
occur, leading to more substantial overall profitability.

10.Question
What common mistake do traders make regarding their
exit strategies?
Answer:A common mistake is re-trading based on the
performance of the previous trade, leading to inconsistent
strategies and missed opportunities. Traders must maintain
discipline in their exit plans to avoid creating a cycle of
frustration.
Chapter 12 | The Forex Cycle| Q&A
1.Question
What is the Cycle of Doom in trading?
Answer:The Cycle of Doom consists of three phases:

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the Search, the Action, and the Blame. Traders often
find themselves stuck in this cycle, continuously
seeking a new trading system to escape their losing
streaks, believing that the system is responsible for
their profits or losses.

2.Question
How can traders break out of the Cycle of Doom?
Answer:Traders can break out of the Cycle of Doom by
understanding the cycle itself and recognizing that the
problem often lies with the trader, not the trading system. By
taking responsibility for their trades and developing
confidence in a tested trading system, traders can move
toward consistent profitability.

3.Question
What should a trader do during Phase 1: The Search?
Answer:In Phase 1, traders actively search for a trading
system that excites them and that they believe will lead to
success. The phase is marked by a quest for a 'fool-proof'
system, but it is important that traders recognize this phase

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can trap them in the cycle if they do not progress.

4.Question
What typically happens during Phase 2: The Action?
Answer:During Phase 2, traders begin to actively trade the
system they have selected, often driven by excitement and
hope. This phase can lead to initial profits, but traders may
also face drawdowns without having adequately tested the
system beforehand.

5.Question
Why do traders often blame their trading system in Phase
3?
Answer:In Phase 3, traders enter the blame phase after
experiencing losses. They often feel frustrated and conclude
that the trading system is at fault for their inability to make
consistent profits. This leads them to discard the system and
return to Phase 1, perpetuating the Cycle of Doom.

6.Question
What is the key insight the chapter provides about profits
in trading?
Answer:The key insight is that profits do not come from the

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trading system itself but from the trader's ability to execute
trades effectively. The trader's mindset, discipline, and
decision-making play a crucial role in achieving consistent
profitability.

7.Question
How does the author relate to the Cycle of Doom?
Answer:The author shares personal experiences of being
trapped in the Cycle of Doom for years, highlighting the
struggle of consistently losing money and the eventual
realization that achieving profitability is possible with the
right approach.

8.Question
What is suggested for traders who haven’t back-tested
any trading systems?
Answer:If traders have not back-tested any systems, it
suggests they might not be ready to commit to trading yet.
It’s recommended they wait for a system that resonates with
them before testing and committing to it.

9.Question
What is the importance of back-testing a trading system?

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Answer:Back-testing a trading system is crucial for building
confidence and understanding the system's potential. It
allows traders to see how the system performs historically
and helps them feel more secure in their decision to trade it
live.

10.Question
What recommendation does the author give for creating
confidence in one's trading approach?
Answer:The author recommends that traders stick to a
trading system they truly believe in and, if necessary,
develop their own personalized trading system to avoid the
pitfalls of the Cycle of Doom. This ensures that the system
aligns with their trading style and philosophy.

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Chapter 13 | Creating Your Trading System| Q&A
1.Question
Why is it important to define who you are as a trader?
Answer:Defining who you are as a trader is crucial
because it influences your trading style, system, and
overall approach. It helps you identify what trading
strategies resonate with you personally and enables
you to develop a trading system that aligns with
your personality and risk tolerance.

2.Question
What does the author mean when he says that successful
trading can be boring?
Answer:The author means that once you have developed a
solid trading system and learned to execute trades
systematically, trading ceases to be the high-stakes,
adrenaline-fueled activity that it can initially appear to be.
Instead, it becomes a consistent process of following your
predetermined rules, which may not be exciting but is
essential for long-term success.

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3.Question
What are the key components to establishing a trading
system?
Answer:Key components include defining your market
specialization (whether you focus on specific currency pairs
or trading strategies), setting clear rules for entering and
exiting trades, determining your risk management strategies,
and understanding your trading personality. These elements
create a structured approach to trading.

4.Question
How do beliefs impact trading performance?
Answer:Beliefs can significantly impact trading performance
because if you hold negative beliefs about a trading method
or strategy (e.g., thinking you cannot make money with
scalping), you may sabotage your efforts or avoid the method
altogether. Positive beliefs, in contrast, can reinforce
commitment and persistence.

5.Question
What are the types of trader profiles mentioned in the
chapter?

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Answer:The chapter mentions two basic trader profiles:
market specialists, who focus on a specific market or
currency pair to learn its intricacies, and trade specialists,
who focus on specific trading setups or strategies regardless
of the market.

6.Question
Why is having a well-defined trading system important?
Answer:Having a well-defined trading system is important
because it provides structure and consistency in your trading
approach, which helps to prevent impulsive decisions based
on emotion or market fluctuations. A clearly outlined system
also aids in evaluating performance and making
improvements.

7.Question
What should traders do when experiencing a drawdown?
Answer:Traders should have a predetermined plan in place
for dealing with drawdowns, such as taking a break from
trading, back-testing their system, reviewing their trading
records, and evaluating whether their system still works. This

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structured approach helps in returning to trading with a fresh
perspective.

8.Question
How can exercise and physical health affect trading
performance?
Answer:Staying physically fit and getting enough sleep can
enhance mental clarity and focus, which are critical for
making sound trading decisions. Engaging in regular exercise
can also help to manage stress and maintain the stamina
needed for successful trading.

9.Question
What is the difference between a 'runner' and a 'gunner'
trader?
Answer:A 'runner' is a trader who lets their trades run to the
stop loss or profit target without intervening, while a 'gunner'
is more proactive, often manually closing trades before they
hit the stop-loss point to avoid further losses or to secure
profits.

10.Question
What is the significance of choosing your timeframe in

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trading?
Answer:Choosing the right timeframe is significant because
it must align with your trading style, available trading time,
and psychological comfort. Traders need to select timeframes
that fit their schedule and personality to maximize their
potential for success.

11.Question
How does back-testing relate to creating a trading
system?
Answer:Back-testing is essential for validating your trading
system and gaining confidence in its effectiveness. It allows
you to test your strategies against historical data to see how
they would have performed, helping you refine the rules of
your system.
Chapter 14 | Becoming an Expert| Q&A
1.Question
What is the core reason motivating you to trade?
Answer:You should want to trade primarily to make
money, not for excitement or recognition. If you seek

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thrill or status, consider other pursuits instead.

2.Question
What distinguishes a trader from a gambler?
Answer:A trader implements strict risk management and
follows a trading system, while a gambler risks large
amounts without a plan and often loses quickly.

3.Question
Why is focusing on one trading system beneficial?
Answer:Expert traders thrive by honing a single trading
technique and practicing it repeatedly, which leads to
consistent profits through dull but effective trading.

4.Question
How can you determine if you are ready to trade live
accounts?
Answer:After succeeding in back-testing and demo trading,
you should only use risk capital to begin live trading,
gradually increasing your investment as you gain confidence.

5.Question
What is the true nature of a trader's success?
Answer:True success in trading often lies in boring

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repetition—consistently applying a well-tested system
without the thrill of constant action.

6.Question
What role does back-testing play in developing a trading
system?
Answer:Back-testing allows you to verify and build
confidence in your trading system, ensuring that it performs
well before risking real money.

7.Question
Why is it essential to choose a trading catalyst that
resonates with your beliefs?
Answer:Choosing an approach that aligns with your beliefs
helps you remain committed during drawdowns, reducing the
risk of falling into a cycle of inconsistent trading.

8.Question
How can patience and discipline contribute to your
success as a trader?
Answer:Patience allows you to wait for the right trading
setups, while discipline ensures adherence to your trading
system, improving long-term profitability.

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9.Question
What significance does the closing price have in trading?
Answer:The closing price is crucial as it determines the
validity of trading signals; it’s more important than the
opening price in price action analysis.

10.Question
What should you do if you find trading becoming too
exciting?
Answer:If trading feels overly exciting, it could indicate too
much risk or an untested system; recalibrate your approach to
focus on strategy and consistency.

11.Question
What is the ‘simple trick’ for gaining expert insights
quickly?
Answer:Engaging in a live observation exercise—taking
snapshots of candlesticks and analyzing movements
sequentially—can rapidly enhance your market
understanding.

12.Question
Can you diversify into multiple trading systems?

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Answer:While it is possible to become an expert with
multiple systems, it’s advisable to master one thoroughly
before adding another to avoid dilution of focus.

13.Question
What are the 'Six Steps to Becoming an Expert'?
Answer:1) Get comfortable with drawing zones. 2) Decide
on a catalyst. 3) Back-test your strategy. 4) Forward-test in
demo accounts. 5) Trade a small account live. 6) Trade a
standard live account.

14.Question
How does repetition in trading contribute to expertise?
Answer:Repetition solidifies knowledge and boosts
confidence, leading to instinctual responses in trading
decisions over time.

15.Question
What is the 'cycle of doom' and how can it be avoided?
Answer:The cycle of doom describes the pattern of
inconsistent profits; it can be avoided by sticking to a proven
trading system and maintaining discipline.

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16.Question
How can experience be gained without actual trading?
Answer:You can gain experience by observing market
movements in real-time, analyzing fluctuations, and
predicting outcomes of candlestick formations.
Chapter 15 | Gaining Confidence| Q&A
1.Question
What is the most important ingredient for trading success
according to Chapter 15?
Answer:Confidence is the most important ingredient
for trading success. Without confidence, even a
brilliant trading system cannot lead to success.

2.Question
What are the two different types of confidence problems
faced by forex traders?
Answer:The two types of confidence problems are: (1) a lack
of confidence in the trading system, and (2) a lack of
confidence in oneself.

3.Question
How can a trader gain confidence after experiencing a

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losing streak?
Answer:Traders can gain confidence by back-testing their
trading system with historical data, which helps to put losing
streaks into perspective and reinforces the reliability of their
trading strategy.

4.Question
How does improper risk management affect a trader's
confidence?
Answer:Improper risk management can lead to exaggerated
drawdowns, making it more challenging for traders to regain
confidence during difficult periods.

5.Question
What should traders do to maintain consistent trading
routines?
Answer:Traders need to create a written routine that includes
when to look for trades, how to calculate trade sizes, and how
often to check charts and manage trades.

6.Question
How does one's perception of wealth affect their trading
confidence?

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Answer:A trader's beliefs and feelings about wealth impact
how they execute trading decisions; aligning personal beliefs
with trading goals is essential for maintaining confidence.

7.Question
What is a simple way to combat the problem of missing
trades?
Answer:Utilizing technology for mobile trading and alerts
can help traders avoid missing significant trading
opportunities.

8.Question
What is the value of maintaining trading records?
Answer:Maintaining trading records or journals is invaluable
for self-assessment, allowing traders to understand their
decision-making processes and detect erratic behavior.

9.Question
According to the chapter, what role does discipline play in
trading success?
Answer:Discipline is crucial as it helps traders adhere to their
trading systems and prevents them from making emotional or
impulsive decisions.

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10.Question
How can traders overcome the feeling of inadequacy
following a losing streak?
Answer:By acknowledging that losing streaks are part of
trading and focusing on the probabilistic nature of trades,
traders can view these situations with a more rational
perspective.

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Chapter 16 | Managing Risk| Q&A
1.Question
What is the intrinsic relationship between risk and
trading psychology?
Answer:Risk and trading psychology are two sides
of the same coin. Your emotional responses to
trading are often skewed by how much you risk on
each trade. Understanding this interconnectedness
can help you manage both your financial risk and
emotional stability.

2.Question
How do your beliefs influence your success as a trader?
Answer:Your beliefs drive your behaviors in trading. If you
believe you are deserving of profits, you are more likely to
achieve them. On the contrary, if you think you do not
deserve success, this belief may inhibit your ability to make
money.

3.Question
Why is it critical to have a sound risk management
strategy?

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Answer:A sound risk management strategy is paramount
because improper risk management leads to emotional
trading problems. Without managing risk correctly,
regardless of winning or losing, your emotions may follow
irrational patterns that can cloud your judgment.

4.Question
What does 'worst-case planning' entail and why is it
beneficial for traders?
Answer:Worst-case planning involves preparing for
maximum loss on each trade by setting appropriate stop
losses. This strategy helps traders become accustomed to the
risk levels they are taking, making them more confident in
executing trades without emotional interference.

5.Question
How can you cultivate trading tolerance?
Answer:To cultivate trading tolerance, calculate your
worst-case scenario for a trade, add 20% to this amount, and
use this as a standard risk for all trades. Over time, this
practice will make the associated risk feel less significant,

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allowing you to focus on trade execution rather than the
monetary aspect.

6.Question
What are the risky money traps that traders should be
aware of?
Answer:Traders often fall into risky money traps such as
thinking they need more screen time, wrongly believing they
will succeed only with a bigger account, or having unrealistic
expectations about trading profitability. Recognizing these
traps is crucial to maintaining a healthy trading mindset.

7.Question
What was the significance of the lottery winner story in
the context of trading?
Answer:The story of lottery winner William Bud Post
illustrates how beliefs about money can influence financial
outcomes. Even with sudden wealth, his inability to manage
money due to deep-seated beliefs led him back to poverty,
highlighting the need for a healthy relationship with wealth
in trading.

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8.Question
What role does determination play in trading success?
Answer:Determination is a critical factor in achieving trading
success. Successful traders persist through challenges and
setbacks, utilizing their determination to refine their
strategies, learn from mistakes, and cultivate their trading
skills.

9.Question
Why is emotional trading not necessarily destructive?
Answer:Emotional trading itself isn't always destructive; it is
trading that deviates from your set rules that leads to
problematic outcomes. Emotions can actually inform your
decisions, but they must align with your trading strategy to
remain constructive.

10.Question
What should a trader focus on rather than the dollar
amounts involved in trades?
Answer:A trader should focus on executing their trades and
adhering to their trading system rather than fixating on the
dollar amounts. Concentrating on improving skills and trade

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management will lead to better long-term financial results.

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Naked Forex Quiz and Test
Check the Correct Answer on Bookey Website

Chapter 1 | The Fundamentals of Forex Trading|

Quiz and Test
1.The Forex market sees $4 trillion exchanged daily,
making it the smallest market in the world.
2.In Forex trading, one currency is bought while another is
sold, meaning that currency values are determined by
comparison.
3.Naked trading involves using various indicators to inform
trading decisions.
Chapter 2 | Avoiding a Trading Tragedy| Quiz and
Test
1.Technical traders often find indicator-based
systems simple and effective.
2.Naked trading allows traders to enter trades earlier than
with indicator-based strategies.
3.Keeping records of trading thoughts and decisions is
unnecessary for traders.

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Chapter 3 | Back-Testing Your System| Quiz and
Test
1.Expertise in forex trading is essential for
consistent profitability.
2.Practicing trading is optional for novice traders as gaining
knowledge alone is enough to become an expert.
3.Automated back-testing methods provide the same level of
experiential learning as manual methods.

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Chapter 4 | Identifying Support and Resistance
Zones| Quiz and Test
1.Support and resistance zones are precise points on
charts.
2.Old zones are generally more significant than newly
established zones according to historical price behavior.
3.Line charts do not assist in identifying support and
resistance zones.
Chapter 5 | The Last Kiss| Quiz and Test
1.The last-kiss trade involves identifying support
and resistance zones and waiting for the market to
enter these zones before initiating a trade.
2.The breakout strategy is always effective in both choppy
and trending market phases, guaranteeing successful trades
in any market condition.
3.The last-kiss trade relies on the retouch principle, where
price re-tests the breakout zone to confirm its validity
before entering a position.
Chapter 6 | The Big Shadow| Quiz and Test

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1.The big shadow is a three-candlestick formation
that signals potential market reversals.
2.When trading big shadows, the closing price of the
big-shadow candlestick is not significant.
3.Larger big shadows generally have a higher success rate
compared to smaller ones.

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Chapter 7 | Wammies and Moolahs| Quiz and Test
1.Wammies are identified by a second touch that is
higher than the first, indicating a higher low.
2.A double top formation is characterized by two touches on
a support zone, leading to a significant market reversal
upwards.
3.Moolahs function similarly to wammies, but occur at
resistance zones with a second touch lower than the first,
indicating a bearish market.
Chapter 8 | Kangaroo Tails| Quiz and Test
1.Kangaroo tails are indicators that signal market
reversals and consist of a single candlestick
pattern.
2.For a bullish kangaroo tail, the open and close must be in
the bottom third of the candlestick.
3.Kangaroo tails should be placed far away from prior price
action to ensure accurate trading signals.
Chapter 9 | The Big Belt| Quiz and Test
1.Big belts represent critical market events that

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 signify potential profit opportunities for traders.
True or False?
2.Bearish big belts always occur at market lows. True or
False?
3.Bullish big belts indicate a potential downward movement
in the market. True or False?

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Chapter 10 | The Trendy Kangaroo| Quiz and Test
1.A trendy kangaroo is defined as a type of trade
that occurs during a trending market without the
need for technical indicators.
2.A trader can identify a trending market by using complex
technical indicators and exhaustive analysis.
3.The tail of a trendy kangaroo is a crucial feature, and the
more pronounced the tail, the worse the trading setup.
Chapter 11 | Exiting the Trade| Quiz and Test
1.Trading consists of six stages including Analysis,
Planning, Entry, Managing, Exit, and Learning.
2.Runners in trading seek high win rates with smaller profits
per trade.
3.Effective trade exit strategies play a vital role in successful
trading practices.
Chapter 12 | The Forex Cycle| Quiz and Test
1.Traders often succeed by constantly changing their
trading systems instead of improving their own
approach and mindset.

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2.The Cycle of Doom consists of multiple phases where
traders search for new systems and often blame them for
failures.
3.To succeed in forex trading, it is essential for traders to take
personal responsibility for their trading outcomes.

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Chapter 13 | Creating Your Trading System| Quiz
and Test
1.A defined set of rules in trading helps distinguish it
from gambling.
2.Focusing on specific currency pairs is less beneficial than a
broader approach that applies to all markets.
3.Risk management is not a significant aspect of successful
trading.
Chapter 14 | Becoming an Expert| Quiz and Test
1.Forex traders need advanced mathematical skills
to succeed in trading.
2.Expert traders often employ multiple trading techniques
simultaneously to maximize profitability.
3.Consistent profitability in trading can sometimes be
associated with a sense of boredom and stability.
Chapter 15 | Gaining Confidence| Quiz and Test
1.Confidence is unnecessary for success in trading.
2.Proper risk management can help maintain consistency in
profits.

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3.Retail traders can create accountability in their trading like
institutional traders do.

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Chapter 16 | Managing Risk| Quiz and Test
1.Risk taking in trading is always associated with
success.
2.Personal beliefs about money can significantly impact
trading outcomes.
3.Having a larger trading account guarantees success in
trading.

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