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To start off today’s trading lesson I want you to ask yourself the following question; “Am I currently doing everything within my power to be the best Forex trader I can possibly be?” The odds are that you KNOW you should have a detailed Forex trading plan that you stick to like glue as well as a Forex trading journal that you update meticulously, yet you probably don’t have either of them, if you do you probably aren’t using them. You probably also know that you shouldn’t over-trade or over-leverage your account, yet you probably do anyways.

So why do traders know what they need to do but still not do it? How can you conquer this problem and move forward to be the best Forex trader you can be? Today’s article will give you some solid insight into why you are not trading the way you know you should and how to stop this bad habit and start trading correctly.

Please Share it – When your done reading today’s lessons please leave a comment below. Then click the twitter & facebook buttons to share it & pay it forward.

Everyone has the potential to be a successful trader

In a famous trading experiment in 1983, Richard Dennis proved that a simple set of rules could be used to take people with little or no trading experience and turn them into very profitable traders. They became known as the “Turtle Traders”, and this famous experiment answers the question “Can Forex Trading Be Taught?” with a resounding yes.

So what’s the point? The point is that if you know you currently are not trading at your best and you’re having doubts about whether or not you have what it takes to become a successful trader, you should understand that you CAN be a successful Forex trader. Everyone has the potential to trade profitably, it just takes some people a little more work and effort than others, and unfortunately many of these people blow out their trading accounts or give up long before they develop the habits of a successful Forex trader.

The potential to make money consistently in the markets is inside of you, you just have to develop the correct habits. Trading induces lazy behavior in people because there is no boss; you have to discipline yourself and control yourself, no one but you will care if you lose all your money, so you have to somehow devise a way to stay disciplined and reinforce positive trading habits instead of negative ones.

No “guru” or educator can make you successful, only you can, because Forex trading success comes from within. So stop focusing on other variables and start focusing on yourself, because until you truly admit to your trading weaknesses and consciously devise a plan to conquer them, you will never make consistent money in the markets. So, there’s no better time than now to make the first step towards becoming the best trader you can be by admitting that you need to change the way you currently are trading.

Take some time off from the markets to “re-group”

One of the best things to do when your trading is not going how you want it to or you feel like you need to drastically change your trading approach, is to simply take some time off from the markets. Totally separating yourself from the markets for a week or more can do a lot of good for your trading mindset and can help to refresh your clarity of what good trading habits are all about.

Most traders lose focus of what they need to do to become the best trader they can be as they get engrossed in trading, even though they probably know in the back of their mind what they should be doing, as I discussed in the opening paragraph. So, by taking some time off from the markets and eliminating the temptation to trade and the emotions that go along with it, you can begin to refocus your mind on the components of trading that lead to long-term trading success, and formulate a plan of how to implement these components in your trading as soon as possible.

Stop trying to control the market

frustrated-traderUltimately, what traders do when they trade too often, risk too much, or trade without a trading plan or trading journal, is attempt to control the Forex market. Most struggling traders have a tendency to try and control every market variable they can get their hands on except their own mental variables. The ironic truth is that no matter how much you try and control “everything else”, until you truly learn to control and master your own mind and behavior in the markets, you simply will never make consistent money as a Forex trader.

So, what are some traits of traders who are not trying to control the markets and have instead turned inward in an attempt to focus on controlling themselves? Creating and actually USING a Forex trading plan is basically the “core” component of building a disciplined approach to the markets, and traders who are focused on controlling themselves and not all the other market variables will have a trading plan they follow religiously without fail. Obviously, you can only create a trading plan after you’ve truly mastered an effective trading strategy like price action.

Another trait of traders who are at the top of their game is creating and actually using a Forex trading journal. Trading is something you need to track, because your track record over time will reflect back your discipline and overall effectiveness as a trader. I have personally noticed that once most traders get into the habit of keeping a detailed trading journal that tracks every trade they take, they actually start to enjoy it and it becomes a sort of “manifesto” of discipline that they do not want to tarnish by trading emotionally.

Traders who are fixated on trying to trade lower time frames are also trying to control the market. In my opinion there is just never any need or point in trading any time frame under the 1 hour chart. Yet, I get emails every single day from traders telling me they are trading 15 minute, 5 minute, and even 1 minute charts and then wondering why they are not making any money. You absolutely have to understand that trading higher time frames drastically increases Forex trading success because each time frame acts as a filter of the one under it and thus you get a clearer picture of the market the higher up in time frame you go. However, we must be a bit realistic with this because we can’t logically trade off monthly or weekly charts most of the time due to the huge stop losses required and the fact that they form relatively few price action strategies. This is why most of my strategies are based on daily chart trading, the daily chart is THEE most important chart for any trader to use because it has the best combination of setup-frequency and lower time frame “noise” filtering of any chart.

Face the market with your new attitude and trading plan

successNow that you’ve accepted your trading flaws, taken some time off from the markets to reflect and re-group, mastered an effective trading strategy, and created a comprehensive Forex trading plan and trading journal (you need to do ALL of these things if you want to become the best trader you can be), you can face the market with your newly forged arsenal of trading weapons.

Your next step after doing everything we’ve already discussed is to just stay on-track and avoid becoming lazy in regards to following your trading plan, keeping your trading journal up to date, and generally remaining in the proper trading mindset. The good part is that if you really do everything I’ve discussed in this article it will forge new and positive trading habits within you, in essence the “correct” trading habits, aka the ones you don’t have now. Once you develop these habits they will become easier and easier to maintain because you will start to see them pay-off over time and this will reinforce your desire to continue implementing them. This is your chance to change the way you’ve been trading, stop losing money and get on the right track by doing everything I discussed in today’s trading lesson.

nialfuller

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 15,000+ students since 2008.
Checkout Nial’s Professional Forex Course here.

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36 Comments

  1. Craig says:

    Great lesson once again Nial,thanks.I’m tired of taking shortcuts and getting frustrated about my self-inflicted bad trading habits that doesn’t get me anywhere.Acquiring discipline and following a trading plan is one of the hardest things to do yet I KNOW I have to achieve this to become a successful trader.

  2. Pete says:

    Hey Nial,

    Another excellent lesson from u. I Have learnt alot and appreciate the educational materials u made available.

  3. david says:

    nail you are still the best pls keep it up may God bless you thanks

  4. ASLAM says:

    Hi Nihal,
    Thank you for your wonderful advices.
    Really appreciated..

  5. Geoffg says:

    Very wise information. After nearly 3 threes of up and down trading I was moving to a higher time frame of trading. Problem: never enough money to trade with. So I’m taking a break to get a job to replenish me trading account. I’m certainly going to keep a trading journal. Thanks Nial

  6. Douglas says:

    Nial,
    I really enjoy your post/blogs/lessons. They have helped me a lot. I am fortunate/blessed to have more than the average person to trade with and if I did lose it I would still be fine financially. Thanks to your advise and firm lessons you give. If I were to say what the biggest lesson that I learned from you/others is that MONEY MANAGEMENT and letting your profits run is key.I have learned to let the good ones keep going and that has been a huge difference. All through your lessons. Thanks a million. Really.

    Douglas

  7. Steve says:

    NIAL ……..

    Brilliant!

    Without my Trading Plan and Trading Journal I would be all over the place. Today’s article has brought me back to reviewing my plans and focusing on the job at hand.

    Happy trading

  8. AMIN MALIK says:

    NAIL! Thank you for your straight talk with TOTAL clarity.
    your each LESSON is valuable & helpful.

    Your honest efforts to help others is laudable,it certainly
    adds prestige for the people of AUSTRALIA.

    Thanks and regards
    AMIN MALIK

  9. Anton says:

    Thanks Nial, I extremly enjoy your new lesson and I can confirm, that little break from trading quite help to find an overview. Your articles and your course is the best I have ever read about trading.

  10. Emea Egwu says:

    Thank you for Nail your support and i must said you have tried so must to me but i can’t overcome the habit of overleverage and overtrade. It actually affecting me so must. Advise me

  11. Jdog says:

    Great Article.

    I now ask myself this question everyday. I will continue to ask myself why i am not until the day i die.

    so simple:-
    Trade Plan – get you in to a trade in stable mental state
    Trade journal – get you out of a trade in stable mental state

    All backed up with a solid price action edge.

    Nial your best. These simple yet hugely powerful tools have been working like magic on me and my trade capital.

    JJ

  12. Shyam Thapa says:

    ONE OF THE BEST TRADING GURU FOUND IN AUSTRALIA.

  13. Ramli says:

    Thanks

    Excellent texts.

    Cheers

  14. akshaya kumar dash says:

    ur all the lesson is very good. and after huge loss i recovered some by using ur pin bar statergy.pl.send me some lesson about false pin bar

  15. Joseph says:

    Thanks, Nail. I’ve mucked about forex for 11 months. Day one of journaling, and daily planning, Bam !!!! 21,795. In two days, No worries, fun, Freck’s amazing, Needless to says, I’m a new and very appreciative fan… See ya soon, on a daily basis… Thanks for the finest site, on the globe to take my trading to best, I can be… You rock… Thank you so much… Cordially, Joseph…

  16. kotijett says:

    Thanks Nial for your words of encouragement. Another great article to help me maintain focus.

  17. Tshitso says:

    Hi Nial
    The message is clear man I value the information and support you provide. Thanks alot

    Regards
    T-Man

  18. Steve says:

    Thank you for your insight
    I have started using a strategy that I have mastered
    With a detailed trade plan and to top it all a comprehensive
    Trade jounal …..my result have gradually improved the trade
    Journal helps me see what I can do to improve my trading
    My trade plan removes the emotion from trading…..

  19. amy says:

    Each morning when i open my email. i always look forward to something intersting from you (hope that doesn’t stress you), be it the daily market update or a lesson that serves as a little reminder to us little naughty little boys and girls, such that now its becoming a habit and its like my must-have breakfast, very refreshing, very intersting, very enlightenting.

    keep it up!

  20. Walter says:

    Hi Nial,
    Thanks for the new mindset food. All problems that you mentioned are my nightmare. Although I have done every thing bud didn’t follow them. You are quit right, I need regroup every thing. Thank you again.

  21. Mike says:

    So true it is, Nial. Another help that may be to have a partner or community to enforce and reminder each other. We all know how tough it is to have that discipline of maintaining the plan and journal. With a help of a mate, it may work.

  22. Colin says:

    Thanks Nial This is me all over at the moment

  23. Peter Miller says:

    Nial,You hit so many nails on the head that if i do not control my discipline i’m sure that i will end up being a carpenter!!!
    Seriously , you are so right all of the time you really are the master coach.
    Thanks very much
    Peter

  24. Olusola says:

    Prof. Nial,thanks for the insight.You struck the nail on the head.The main reason why 95% of forex trader including my very self are still struggling.This article gave me the rays of hope that very soon,I will have a good story to tell about forex trading.Once again,thanks for the good work.Rgds.

  25. Kejmil says:

    I’m really hooked by your articles Nial. I guess you are the best tutor I have ever had, even only via internet so far :) keep doing good job. Thanks

  26. Darrell J says:

    Thanks for the motivation

  27. musa says:

    Hey Nial. Kind of every topic you raise get a place in my heart, this is exactly what is happening to me. great work.

  28. Greg says:

    Thanx Coach!!! Greg

  29. Steve says:

    Ouch! I think this is me.

  30. Nabil says:

    Seems that you write this article for me…

    Thanx Nial

  31. yogarajah says:

    Neil
    You are a wonderful mind reader. Excellent article and I am going to print and keep it. If these rules are followed I am sure everyone can be a successful trader. This gave me the confidence not to give up. Keep up your good work.
    Many Thx

  32. Sanjay says:

    Nial – I cant agree more.

    I keep a trading journal and trading check-list on hand every time I approach the markets. I write everything in it. Why i did or did not take a trade, but most importantly what was my thinking and how I acted.

    When away from the markets these notes give great insights to the way I work and what I need to do to get better.

    This has to be one of your greatest artical – prob because Im involved in this topic loads currently.

    I want to be the best!

    Sanjay

  33. Filopastry says:

    Timely article. I am still mastering a 2nd price action strategy so I haven’t traded for 2weeks. Very hard to stay out with all The action going on but I am sticking to my plan which is The greatest asset.
    Thanks for great article Nial. Truely LTTTM provides The best PA strategys.

  34. Uche says:

    Thanks mate! This is another beautiful writeup,i fully appreciate this and am sharing it on my facebook and twitter. Keep it coming iam improving everyday through following your mentorship with discipline and strictness. GOD bless you Nial!

  35. Frank says:

    Nial, your trading lessons and strategies are second to none. As of last week, I am now a proud member of your trading community and enjoying your members lessons and commentary very much. keep up the good work, Frank

  36. Hlengiwe Madonsela says:

    Thank you Nial for the trading setups.I took a trade today using 4hour and my signal was an inside bar.I never thought I could this good.thank you again and Ohh I have stopped controlling the market.

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