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Nial Fuller

NIAL FULLER
Professional Trader, Author & Trading Coach

Five Things You Must Do To Succeed at Forex Trading

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By in Forex Trading Tutorials Last updated on | 29 Comments

Success_Next_Exit1Hey traders,

In today’s article I want to give you some practical tips that you can put to use immediately to improve your trading. I discuss five necessary components to successful Forex trading below, and I really hope you read this article carefully because there is some very valuable insight here. Enjoy…

1. Be realistic –
One of the biggest problems that infect many beginning Forex traders is not being realistic about how much money they can make given what they have to trade with. The truth of the matter is that if you are effectively managing your risk on every single trade you make, you simply will not “get rich quick” if you don’t have a large amount of money to fund your trading account with. Those traders who do manage to make a lot of money really fast from a small amount are definitely risking too much or over trading, and as a result of this their fast money will also leave them just as fast, if not faster. So, practicing effective money management in Forex is a necessary component to success in the market and it is what realistic traders do.

Another similar problem that is a result of traders not being realistic with themselves, is thinking they will be able to quit their job a month after they start trading and sit on the beach drinking margaritas all day. Now, your fantasy might not be exactly like that, but I am sure you have thought about how awesome it would be to trade fulltime and quit your job. It is not bad to have lofty goals, but you have to make sure that you are being realistic about how you will attain them.

You should measure your Forex trading success in increments; first you aim to be consistently profitable on a demo account, then you aim to follow your trading plan to the T and turn a profit each month, then you can aim to turn a profit each week, etc. The point is that you need to have smaller goals at first if you want to ultimately achieve your main goal of trading for a living. If you have a small trading account, you’ll need to have patience and just accept that you are going to have to slowly and consistently build your account over time. Work on building an impeccable track record, because even on a small account a consistently profitable track record is very impressive, and if you can earn money consistently over a period of months and prove it on paper, it won’t be difficult to find someone or some company to fund you.

2. Be consistent –
You need to be consistent in all aspects of your trading, from the amount you risk to your daily trading routine. Winning at Forex is about being well-prepared and consistent. If you do this you will be well ahead of the pack. Most traders do not properly prepare, and if they do they soon fall off the wagon of consistency and discipline, this is one of the main reasons why most Forex traders lose money. If you can manage to stick to your Forex trading plan and execute it consistently, you will find that time works to your advantage. This is in contrast to traders who “run and gun” with their trading accounts; time tends to work against them because they reinforce negative trading habits over time which ultimately forces them out of the game.

Being consistent even in the face of a string of losing trades can be difficult, but it is these moments that separate the winners from the losers. If you can manage to walk away after a losing trade and not jump back in on emotion to try and make your losses back right away, you will be working to reinforce positive trading habits. It is often the case in life that the best thing for us is also the hardest or most uncomfortable thing for us to do, like going to the gym consistently or not stuffing fast food in your face, but the long-term benefits always win against the short-term “fix”.

3. Learn to Manage your trades effectively –
If you want to succeed at Forex trading, one absolutely essential component is effective Forex trade management. Proper trade management consists of things like not over-trading or risking more than you are comfortable with. Also, not meddling in trades once they are live by adding to positions illogically or moving around stops and targets unnecessarily, is part of effectively managing your trades.

One of the most effective Forex trading management techniques that I teach is the set and forget Forex trading strategy. In this technique traders simple set up the trade and then literally forget about it for at least 24 hours. I like to trade off the daily charts, and I teach my students to do so as well, so checking on your trades once a day after the current trading day closes out is a good stress-free way to manage your trades. If you fully accept the risk on any trade you take, and are willing to let the market play out by either hitting your stop or hitting your target, you will find that you avoid a lot of silly trading mistakes. There is nothing wrong with locking in profit or trailing up your stop loss once a day, but the point of set and forget trading is to not sit there and dwell on your trades, this does not help.

4. Learn to control your emotions – Controlling your emotions as you interact with the market is paramount to accomplishing everything else discussed in this article. You have to learn to be objective and view the market in terms of risk reward. The market is simply a facility that you can use to execute your high probability trading edge, and if you execute it consistently and with the proper mindset, over time you should be profitable. Many traders mess this up by giving into their emotions, and therefore they lower the probability of their trading edge over time.

Some practical things you can do to help you keep your emotions in check are: making a Forex trading plan and following it to the T. You should reward yourself for following your trading plan each month; go out and by yourself something you’ve been wanting at the end of the month only if you’ve followed your trading plan religiously. Also, keep a detailed Forex trading journal, this will allow you to track your progress over time and will give you a tool to help you stay accountable. The process of recording your trades will turn into something you enjoy, and as you see your discipline pay off through your trading journal, it will act as positive reinforcement and you will not want to “screw up” your track record by acting emotionally, because even one emotional trading decision can ruin months of disciplined trading.

strategy5. Master a truly effective trading strategy –
Finally, one thing you have to do if you want to be a consistently profitable Forex trader is master a truly effective Forex trading strategy. If you are still trading with indicators or relying on some mechanical piece of trading software, you really need to learn how to trade with simple and clean price action strategies. Trading with a simple yet effective strategy like price action will make everything else discussed in this article much easier, because you will not be confused with a bunch of lines and colors all over your charts. Financial markets are ultimately represented by price action, so you need to learn to read this price action if you want to trade successfully.

However, you need to make sure that you really MASTER price action trading; you cannot just have a basic understanding and think that you will become successful. You need to know beyond a shadow of a doubt EXACTLY what you are looking for every time you analyze the markets. Learning to trade off price action can give you this edge, but you have to truly master it and combine it with the other four points discussed in this article.

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. Mike September 5, 2011 at 9:46 am

    Excellent advice, Niall.
    I’m fifnding it difficult to detach emotionally from trades.
    Revenge trading particularly.
    Mike

    Reply
  2. rikus July 23, 2011 at 10:25 pm

    Hi Nial,

    Reading your articles repeatedly help me greatly. Thanks
    a lot.

    Rikus

    Reply
  3. sez elabor July 12, 2011 at 8:58 am

    Nial u d man sail on

    Reply
  4. john July 10, 2011 at 3:14 pm

    The price action method certainly makes sence so I’m most interested.
    Thanks

    Reply
  5. Eve July 8, 2011 at 12:29 am

    Nial you are only one who I will recommend everyone!

    Reply
  6. albert July 7, 2011 at 6:02 am

    thnaks i am happy

    Reply
  7. Steve July 6, 2011 at 9:12 am

    Hi Nial

    Part of my daily routine is to read one of your articles. This helps me to focus on the real important aspects of trading. It is all too easy for my mind to wander and get of track. You have the wonderful capability to bring me back to the true function of trading. Why I am here and what I am doing. For me it is a bit like you just turned on the light.
    Yes, I am a member and I wouldn’t trade that privilege for the world.

    Thanks again Nial

    Steve

    Reply
  8. andrew July 5, 2011 at 11:32 am

    hi, thanks. cheers andrew

    Reply
  9. shishir July 4, 2011 at 8:34 am

    Thank you very much Nial. I am so happy and getting point with your Forex trading course.

    Reply
  10. Geoff July 3, 2011 at 9:32 pm

    Hi Nail,this is a great lesson that every new traders must learn before they enter in real trading to avoid all losing trades.A piece of advise is that don’t lost control in your emotion or otherwise you lose everything.

    Many thanks for your valuable lessons again.

    Reply
  11. eric July 3, 2011 at 8:51 pm

    thanks nial, i’ve been try implement this 5 things and already has a nice benefit. thanks again

    Reply
  12. Mac July 2, 2011 at 6:20 pm

    Thanks Nail, for the article. I mean when you say, being consistent and realistic that’s certainly not me. This will be of great help. Thanks mate

    Reply
  13. Allan July 2, 2011 at 2:56 pm

    Hi Nial!

    Well written article as usual. Proper focus is often an underrated part of success in any field, it was a good point in mentioning the mastery of one strategy at a time. As us beginning traders usually want to be become a sponge and taking everything at once.

    Reply
  14. aj July 2, 2011 at 12:08 pm

    Once again, good, concise,simple trading advice.

    And the skill with which you relay it is that of a talented teacher.

    Reply
  15. Arnold Leyva July 2, 2011 at 1:25 am

    Thank you Nial.

    You continue to inspire the best in me by keeping me focused through your reinforcement of the end-to-end methodology of Price Action trading.

    Onward and upward!

    Reply
  16. Filopastry July 1, 2011 at 10:24 pm

    I have been trying to trade 6 pairs and getting confused at looking for the best PA set up. I have gone back to one pair only and really master it not “Think I have mastered it”,
    Thanks again Nial for being a guiding light,
    Filopastry

    Reply
  17. magbagbeola Adesola July 1, 2011 at 9:22 pm

    Thanks Nial,

    This is cool.

    Cheers

    Reply
  18. Ramli July 1, 2011 at 11:27 am

    Thanks Nial.

    I will absorb your advice.

    Cheers

    Reply
  19. Bruce July 1, 2011 at 7:01 am

    This is very realistic advice. Thanks for reminding me.

    Reply
  20. Shane July 1, 2011 at 6:50 am

    Great summary of the most important aspects of trading. Emotions are still my biggest problem but will continue to work on it.
    Thanks again for the great advice Nial!

    Reply
  21. Zack July 1, 2011 at 6:24 am

    Great stuff Nial. Aloha!

    Reply
  22. Eudes July 1, 2011 at 5:38 am

    Hi Nial. Thank you for more this lesson. I follow it what you said above. Regards.

    Reply
  23. Walter July 1, 2011 at 12:05 am

    Thank you from my heart. Every article you give us a lot.

    Reply
  24. Frank Page June 30, 2011 at 10:22 pm

    Nial you really are so brilliant. In fact I think you are the total dogs bollocks for newbie forex traders and the not so newbie!! Always good to read your sermons – keep them coming!!

    Reply
  25. Edward June 30, 2011 at 9:29 pm

    I am an attentive student to your methods and teachings. I am now trading better than ever, and it’s all thanks to you my friend Nial, thank you and I wish you all good luck.

    Reply
  26. olajubbu June 30, 2011 at 9:09 pm

    Thanks for your advice,everything you discussed are way to success in forest trading.you are too much

    Reply
  27. donald June 30, 2011 at 8:26 pm

    Brilliant piece !

    Reply
  28. Ugo Dosh June 30, 2011 at 8:12 pm

    Great article Nial. I have read your site and watched your videos extensively, but I keep messing things up cos of my emotions.

    Was consistently profitable on my demo account, but now that I’m trading real money, everything seems to be different. My patience seems to have weaken. Working hard at it.

    Thanks for this ultimate piece.

    Reply
  29. Stan June 30, 2011 at 8:01 pm

    Nial, i joined your course last week, i love it, cheers dude

    Reply

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