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Nial Fuller

NIAL FULLER
Professional Trader, Author & Trading Coach

Top 10 Forex Trading Tips for Beginners

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By in Forex Trading Articles Last updated on | 22 Comments

top10As a beginning forex trader, you can easily get lost, confused or overwhelmed with all the information you are bombarded with on the internet about trading. The best thing to do is to just take it slow, learn how to trade properly from an experienced professional and don’t rush it.

The following 10 forex trading tips are things that I wish someone had told me when I first began trading. So, with that in mind, I am giving you ten of the most important trading tips for a beginning (or any) trader to absorb before getting started in the market.

10. Learn the basics first

Many beginning traders try jumping right into the market with no real background knowledge on the markets they are trading. To build a solid trading foundation, you need to take the time to learn about how the Forex market works (or any market you’re trading) and really get a solid understanding of all the jargon, etc. before you actually dive in and start learning a trading strategy. You can gain this knowledge by taking my free beginners forex trading introduction course.

9. Learn one trading strategy, stick with it.

One of the biggest mistakes I see beginning traders make again and again, is changing trading methods too often. If you are using a logical, common sense trading method like my price action method, you need to really learn it and master it before you do anything else. If you jump from method to method because you think you’ll find some “Holy Grail” trading strategy, you are simply operating on false hope and being illogical, and you will lose money.

Also, don’t switch methods just because you had a few losing trades. Any method will have a certain amount of losers over a sample size of trades, this is normal and part of trading. You cannot let losing trades affect you too much; you really do need ice cold discipline to excel at trading.

8. Don’t get overwhelmed

It’s easy to feel overwhelmed with information and trading strategies as a beginning trader, it happens to all of us in the beginning. The best way to limit this or avoid it altogether, is to find a mentor, someone to learn from, and piggy back off their success. I have laid out all my trading strategies for you to learn in my price action trading course and in my opinion, the best thing you can do is block everything else out, forget everything you’ve learned, and start over with my teachings from a clean slate and focus only on that until you really know what you’re doing.

7. Don’t freak out when a trade moves against you

This one is big, because most traders, especially beginners, freak out or over-react at the first sign of a trade moving against them. This is much more of a problem in live trading than demo trading, due to the differences in emotion between them, but it is a problem and it needs to be addressed.

A trade moving against you is NORMAL. I’ve had trades move to within 5 pips of my stop loss and go on to be HUGE winners after that. If I had freaked out and closed them out before they hit my stop loss, I would have not only lost money, but I would have lost a lot of profit too. This is the main reason why you need to let your trades play out and not close them out early ONLY because they’ve moved against you.

It’s really pretty simple: Set your stop loss in a logical / safe place (more on this later), manage your position size so that your dollar risk is at a level you’re OK with losing, and LET THE TRADE GO. Don’t micro-manage your trades, just let the market do the work and you go play a round of golf, go to the gym or go to sleep…then check on the trade the next day. Doing nothing with your live trade is usually the best (and most lucrative) move, meaning set and forget it.

6. Focus on the price action.

There was a time once, believe it or not, when people traded without computers. Hard to believe I know, but it’s true. How do you think they did that? It wasn’t with RSI, MACD’s, Stochastics or some automated trading software obviously…it was with PRICE ACTION. They used to read the tape at the exchanges, or they would have the price movements posted up on big boards to read and interpret. They were interpreting price changes or price action. This method is the only ‘natural’ trading method and it’s been around since the 1700’s when Japanese rice traders invented candlestick charts to predict changes in rice prices.

It works, don’t over-complicate it. My unique take on price action trading has worked well for me and if you follow what I say in my course and use extreme discipline and logical thinking along with patience, it can work for you too! No need to clutter up your charts and mind with a bunch of messy and over-complicated indicators or news events. I don’t do it and neither should you because it’s a waste of time, mental energy and ultimately, your money.

5. Be realistic

Perhaps the hardest but most important thing for a new trader to do, is to be realistic. I’m sorry, but I have to tell you that you aren’t going to be able to quit your job and go work from a beach with a $2,000 trading account. If any other site or person is telling you something like this, you need to RUN from them because they are scammers and have no clue what they’re talking about.

Can you make a boat load of money trading the markets? Sure, of course. Perhaps no other profession in the world has as much upside potential as trading. But, that comes at a steep cost; it’s not easy, at least not mentally easy.

You are going to encounter all kinds of mental ‘traps’ and self-sabotage mistakes along the way on your trading journey. Being grounded and realistic is what will keep you on the path to trading success. If you start getting dollar signs in your eyes you’re going to over-leverage (risk too much) and over trade your account and lose money instead of make a lot of money. You don’t want that.

4. Don’t trade a lot.

Slow and steady wins the trading race, it’s cliché I know, but it’s so true. Trading with high frequency opens you up to a world of emotional trading mistakes that will destroy your trading account and your self-esteem.

I’ve written many articles on this topic, and I know that for many of you this will unfortunately not register in your mind until it’s too late, but you do not need to trade a lot to make a lot of money. To understand why more clearly, check out this article on high frequency vs. low frequency trading.

3. Focus on the daily chart

You need to learn how to interpret and trade the price action on the daily chart time frame before you do anything else. I’m not going to get into this too deeply here, because I have several other articles on it which you can check out here:

2. Don’t put stop losses too close

This one is big, and it takes most traders a while and a lot of lost money to figure it out; you have to place your stop losses at a ‘safe’ distance away from your entry price. If you place them too close you will get stopped out for a loss before the market really had a chance to move in your favour. In other words, your trade idea may have been right, but because you placed your stop loss too close, you got stopped out before the move you were anticipating occurred.

Here are a couple of articles to help you with stop loss placement:

How to place stop losses

How to use the ATR for stop loss placement

1. Don’t just jump in with no education

It’s always amazing to me how many people want to risk their money in the market without having obtained any training or trading education. Then later, after they’ve lost a bunch of money, they decide to get some education. This is backwards, it’s like trying to fly an airplane without going to flight school, then you crash the plane and almost die, then after all that you decide to go to flight school…many traders do this exact same thing with their trading accounts, don’t be one of them!

Save your money first for trading education; learn how to trade properly before anything else and the money will then become ‘attracted’ to you. Don’t try flying the plane before flight school!

Note: Trading Course SpecialUntil October 31st, Save 35% Off Nial Fuller's Professional Trading Course, Daily Trade Setups Newsletter, Live Trading Forum & Email Coaching - Click Here.

About Nial Fuller

is a Professional Trader & Author who is considered ‘The Authority’ on Price Action Trading. He has a monthly readership of 250,000+ traders and has taught 20,000+ students since 2008. Checkout Nial's Professional Forex Course here.
  1. Narnolia Securities Limited June 8, 2017 at 7:39 pm

    Thanks Nial for giving us this informative article.
    These are such helpful tips for me. Good points to consider for trading in the stock market, especially the one ‘Be realistic’. It’s so very true. This is really helpful for me. Thanks keep posting like this.

    Reply
  2. Chris W January 20, 2017 at 6:30 am

    Today is day three of my very first introduction into this Forex trading. It is very exciting, not real at all to me yet, and scary at the same time. This is the first article I have come across in my learning\researching process and it has already taught me and calmed me down. Thank you for taking the time to write this article for the new guys.

    Reply
  3. imran hossain sayed November 24, 2016 at 8:09 pm

    You did good article. It has helped many newcomers in forex world.

    Reply
  4. Prince Chukwuemeka Epum March 2, 2016 at 10:45 pm

    When i listen to your threads, i cant help imagining Donald Trump’s father guiding his son, Donald through the rigors and challenges of Estate business. I can only wish to be a disciplined and dedicated learner. Keep the good work up Nial!!!.

    Reply
  5. oghenemaro paul July 13, 2015 at 4:59 am

    your article has really build me. thanks nial

    Reply
  6. Jotex July 10, 2015 at 1:06 am

    Hmmm….that’s a nice and eye opening article you’ve posted.Thanks Nial

    Reply
  7. Jendy Jasper July 9, 2015 at 3:25 am

    The ‘oracle of price action’ has written yet another useful post

    Reply
  8. Chaminda July 8, 2015 at 3:18 pm

    Another astonishing article thanks Nial

    Reply
  9. lube jubo July 8, 2015 at 10:39 am

    Nial, should i focus to 1 Pair only? or can trade a lot pair

    Reply
  10. Mark July 8, 2015 at 9:23 am

    Thanks Nial. I just got your course in May and have been implementing the simple approach you use. Instead of the old confusing, “busy-chart” method I previously used (unsuccessfully) I’m looking for specifics you outlined in the course. I set up a practice account in mid-May (5K AUD) and at the end of the thirty days it was just over 7,400 AUD. Eleven trades. Never more than 400 at risk (most were 200-300) and I was only right on 6/11 (+13 on month). They key for me was properly sizing my trades and being patient enough to wait for set-ups to hit me over the head. Thanks! I’m doing another month of practice using your methods and if I can prove to myself that I am patient enough to accept what the market gives me, I hope to go live with a small account. I’m really grateful for your mentoring and I’m excited about what lies ahead. Cheers!

    Reply
  11. Brian July 8, 2015 at 8:27 am

    Thanks Nial, I always learn so much from your articles.

    Reply
  12. Matt July 8, 2015 at 5:01 am

    Almost all beginners, even some seasoned traders , are guilty of one or more of the above. Its good to read this article again and again just to remind us what to do and what not to do.

    Reply
  13. Gilbert July 8, 2015 at 3:30 am

    As always, you’re right on the money. Thanks’ Nial.

    Reply
  14. malusi July 8, 2015 at 12:45 am

    thank my brother i have been following you since i started to learn about trading few years back even though i am stil struggling but there is a light at the end of the tannel.

    Reply
  15. marisa July 7, 2015 at 11:09 pm

    Thank you Nial, what you say is very true. I haven´t completed your trading course yet but I do enjoy reading all articles in your blog and member´s area. I highly recommend your course to any beginner and all those who wish to keep on learning. It contains valuable tips one can put into practice. Thank you for sharing all your expertise. marisa

    Reply
  16. Ben July 7, 2015 at 11:01 pm

    Thanks coach, I love to read all your articles , in fact I have read them all many times over, and every time they inspire me even more, it has been a tough road for me but I am improving all the time, I know and I feel it that I will get there.

    keep up the good work and thanks again.

    Ben D’limi

    Reply
  17. Michael Brown July 7, 2015 at 8:32 pm

    Another helpful, must read article especially for beginners. Although I haven’t quite ‘made it’ myself yet, I am a lot closer thanks to this website and I would highly recommend any trader to thoroughly read every word!

    Michael
    Uk

    Reply
    • Nial Fuller July 7, 2015 at 10:27 pm

      Thanks for the kind words Michael, please pay it forward and share with other traders.

      Reply
  18. FARHAN July 7, 2015 at 4:51 pm

    very nice brother keep it up very good information giving by you

    Reply
  19. Patrick July 7, 2015 at 4:10 pm

    Great article as always Nial. Superb.

    If only more people knew the vast amount of incredibly honest and effective Trading knowledge on this website that was forged through years and years of experience in the Market. But if you wanted it that way I’m sure it would be that way. And that is what is great about you. Teaching isn’t about the money, it’s about giving back, and that is Gold.

    Thanks always.

    Reply
    • Nial Fuller July 7, 2015 at 10:43 pm

      Pat, thanks for your kind words of appreciation and support. In fact, today we have earned the largest readership of any forex education site online. That’s because our sole objective is to provide traders with real knowledge and ideas on trading. To do this for so many years requires more motivation than just money, it’s about giving back as you have already pointed out.

      Reply
  20. Mark Finigan July 7, 2015 at 1:42 pm

    Hi Nial
    Good advise, if you ignore the basics you can find yourself in a loosing run and blow your account.
    Cheers Fino

    Reply

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