Book Review: Naked Forex (Alex Nekritin and Walter Peters)
My own opinion about this book is rather ambiguous. The authors (Alex Nekritin and Walter Peters) fail to mention a lot of nuances and provide
What is it about?
Although, quite many subjects are involved in this book, its main topic is definitely the naked Forex trading methodology. The book is divided into three parts:
Naked Forex trading revealed
Basically, this part is dedicated to
It describes six different naked Forex patterns. They are actually six bullish and six bearish patterns but bullish and bearish are exact vertical reflections of each other. These six patterns are:
- the last kiss — a sort of
pull-backentry after breakout
- the big shadow — a sort of outside day
- wammies and moolahs — special cases of double bottoms and double tops
- kangaroo tails — a kind of pinbars
- the big belt — a more original candlestick pattern involving filled gap
- the trendy kangaroo — a
trend-continuationspecies of kangaroo tails
Additionally, some position exit strategies are introduced. Two exit methods are given for impatient traders who cannot sit with open position for too long (gunners): zone exit and split exit. Two exit methods are introduced for traders who prefer
The final part holds the juice of the book if you are not too interested in authors' candlestick pattern interpretations. Basically, you will learn the difference between expert traders and failing traders here. You will also learn to bridge the gap between your current (struggling) state and the state of expertise in Forex trading. You will understand how to avoid a vicious circle of changing your trading system constantly. You will find how to find or modify a trading strategy to fit your personality. You will learn the exact
The list of things I liked about Naked Forex is quite short:
- Working trading system giveaway. Even if they are not too different from some traditional candlestick patterns. Even if there is no statistics presented for their success rate. Which could also be a good thing as it stimulates backtesting.
- Emphasis on a trader, one's discipline, and commitment as the crucial ingredient for success in foreign exchange speculation.
- A call to action in a form of
six-steplist to becoming an expert trader. Although its effectiveness is debatable, it is a nice thing for those traders who are lost in their education and failed attempts to earn money.
- Nothing in this book will be too hard to understand even for a 10 years old child. Of course, it also creates a problem — see the relevant entry in disadvantages.
Here are some of the negative points you will encounter reading this book:
- For a book that costs more than $40 (for an electronic Kindle version!), it has too many ads. Why should anyone pay for reading ads? The authors pimp two of their websites https://www.fxjake.com/book/ and http://www.marketbiofeedback.com/ (which is now defunct). The former gets much more publicity than the latter. Anyway, both sites are annoying
- Those ads are completely useless. They seem contextual and the surrounding text in the book will make you believe that you will get to some interesting explanation if you click the link. Unfortunately, it will get you only to the same moronic
auto-playvideo with a form, whose sole purpose is to get your email address for further spamming with marketing trash.
- Unfounded claims. Yes, this book is definitely not a research paper, but occasional reference to experimental backtests or some other independent sources would help in many cases. Interestingly, one of the cases where Alex and Walter actually cite a source is also a gross example of statistics misrepresentation. They say that only 25.2 percent of traders are consistently profitable because Forex Magnates U.S. Forex Brokers Profitability Report for Quarter 2, 2011 features this figure. Since this figure is only valid for a period of 3 months, calling it "consistency" is a serious exaggeration.
- Repetitions. To make readers remember what they say and to inflate the size of the book, the authors repeat everything several times. Sometimes, it becomes so obvious that it even looks funny.
To buy or not to buy?
It looks like the answer is pretty easy here. If you are new to trading or if you are an experienced trader disappointed with the indicators, Naked Forex will be a great book for you. Otherwise, I would recommend to spend your money and time reading something else.
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