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Nial Fuller

Professional Trader, Author & Trading Coach

How to Gain Confidence in Your Forex Trading Abilities

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By in Forex Trading Blog Last updated on | 3 Comments

Being a confident trader is not something that just happens overnight. It is the result of consistently doing many things correctly for a long enough period of time. In fact, you could even say that consistency is the main ingredient for confidence in a trader. Many traders experience fear, doubt, and indecision while interacting with the markets, there are a number of reasons why this happens, but it is primarily a result of one or two things; not knowing exactly when their trading edge is present and (or) not being disciplined.

• Trade the daily charts

Learning to trade the daily charts before you look at any other time frame is something that will contribute greatly to building your Forex trading confidence. Trading higher time frames drastically increases trading success because it allows you to slow down and get a clear and relevant view of the market. Time frames under the daily chart can often produce many more “false” signals and market “noise”, this tends to result in over-trading for most beginning traders, and over-trading will greatly inhibit your ability to become a confident Forex trader.

The daily chart also is much more accurate than any time frame below it. This means that any price action signal on the daily chart carries more weight than a signal on the 4hr chart, and the 4hr carries more weight than the 1hr chart. So, by learning to trade the daily charts first, you will be taking much higher-probability trade setups, and this will obviously make it easier for you to develop into a confident trader. If you start by trying to trade the 4hr or 1hr chart, you will probably not gain a clear understanding of how the daily chart works, and thus you will take many inferior signals, this will make it very hard for you to build your confidence as a trader. It makes much more sense to take a “top down” approach to the markets; meaning, learn and master the higher time frames before working lower.

• Master one price action setup at a time

By learning to trade successfully with just one of the price action strategy setups that I teach at a time, you will essentially become a “master” of it. You will know all the nuances of it and when it works best (in what market condition) and when to trade it and when not to. It is not just as simple as seeing a pin bar on a chart and trading it. You don’t always want to trade a particular setup just because it is present. In my Forex trading course, I teach traders exactly how, when, and why I trade all my price action setups, so you can take your time in learning to trade one at a time, then after you master one move on to the next. Before you know it you’ll have a very “sharp” set of Forex trading tools that will allow you to read and trade a “naked” Forex price chart.

Approaching my trading strategies with the goal of learning and mastering one at a time will help you to develop confidence as a trader. This is a much better approach than haphazardly trying to learn everything all at once. It is far better to be a “specialist” in this world than someone who just has a basic understand of many different things, at least financially speaking.

• Keep good records

In the opening paragraph of this post I mentioned that not being disciplined is one of the main causes of not attaining confidence as a trader. It is very true; not being disciplined in all aspects of your trading is a catalyst for inhibiting your ability to become a confident trader. So, what is the best way to achieve and maintain discipline in your trading?

Keeping good trading records is really the best way to stay on the path of being a disciplined trader. If you develop a concise yet comprehensive Forex trading plan, you will have a daily guide to steer you in the right direction and keep you from veering off course as you trade. This is very important for keeping your mind focused and avoiding emotional trading errors. The trick is that you need to actually make a trading plan and have it be a tangible thing that you use and read every day.

The other big thing you can do to help maintain discipline is to create a Forex trading journal that you use to record and track all of your trades. This will give you a tool to keep yourself accountable. Actually recording your trades and developing a track record will turn into something you enjoy doing, and it will show you very directly whether or not you are being disciplined and consistent in your trading activity. Once you begin to get a positive and consistent track record, you will not want to mess up all the hard work it took to develop it by becoming undisciplined, in this way it will help keep you on track and develop you into a more disciplined and confident trader.

• Learn how to read price action

You have to know and understand what price is doing if you want to build your trading confidence. You cannot begin to develop confidence as a trader if you are not using a trading method that allows you to understand price action. Basing your trades off indicators or computer programs is not going to give you the proper understanding of market mechanics. Being a confident Forex trader is something that depends upon you having a thorough understanding of how markets ebb and flow and how to trade them no matter what condition they are in. Price action trading gives you this ability, but you have to use it wisely and combine it with the proper amount of discipline and self-control.

You may ALSO be interested in the following recent forex lessons …

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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. In 2016, Nial won the Million Dollar Trader Competition. Checkout Nial's Professional Trading Course here.
  1. Alf January 21, 2015 at 5:15 pm

    A great article, a great advice!
    many thanks Nial.

  2. Robert January 20, 2015 at 8:37 am

    Thank you Nial,
    Your newsletters are great. I have been searching for the Sniper article for a friend and haven’t been able to locate it. It is great advice too!

  3. Sanjay January 19, 2015 at 5:24 pm

    Great Article, you have make me wait for your article every week.
    This one is one of the best. An strategy to make 100 to 1000 is this one, wait for trade for weeks to align with Fundamentals & Technicals and when they align you don’t eat breakfast but you eat Six Month’s food in one trade by risking only what you are comfortable with.

    Thanks for Big Idea Sir.

    Lets analyse than Lets wait……..

  4. Wendy January 19, 2015 at 12:41 pm

    Hi Nial,

    Very good article. It is helpful to keep learning and readjust my mindset.



  5. Mzabalazo Nsibande January 19, 2015 at 6:19 am

    what are we in this world of trades without your guide and advisory articles ,much respect once again mr Fuller

  6. Amos January 18, 2015 at 2:00 am

    Great article to commence 2015 on the right trading path. I love you Nial and thanks a great deal for sharing your trading wisdom so selflessly. Education + mindset is the key. I have set my goal for this year and i am confident that with God, and your mentoring advice, i will accomplish my target.

    Once again, thanks a great deal.

  7. andy January 17, 2015 at 10:47 pm

    Wow, Nial. I don’t know how you do it but every time I take a wrong move along comes your weekly email almost telling me exactly what I did wrong. Early last week I decided to try a few lots on an oil short. It went very well and I made a great profit on it. I was euphoric! I was so excited I tried again. Loss. And again. Loss. Oil had turned around but I was ‘convinced’ it would still fall. No way, Jose. All the profit I’d made went within about 7 trades. Stupid! I will not be doing this again.
    I decided to go back to school and learn some more.
    Thanks for your articles. They’re absolute gems.
    Andy Moore

  8. Boby January 17, 2015 at 12:10 pm

    Your article really inspired me. I hope this year will be better than the previous year. thank you so much Nial

  9. jessey January 17, 2015 at 11:38 am

    Thank a lot Nial. you’re a protégé. you really do know how to get to one .am getting addicted to your blogging.

  10. Vijay Sonawane January 17, 2015 at 7:37 am

    Nice 1 Nial, thanks!

  11. demola January 17, 2015 at 2:05 am

    Really,your articles are always helpful.If one should stick to them, will be in the market for a long time.Vital info that boosts trading plans.Appreciate this

  12. Mr sha January 17, 2015 at 1:20 am

    You are the best Nial, you get to the point the fact, fun to read easy to understand
    I alway enjoy reading your letter, you are great keep up the good work

    Many thanks

  13. FrankyBoy January 17, 2015 at 12:46 am

    “One trade can make or break you” Tell me about it my matey. Despite all the hype for USD I have been shorting USD/CHF for the past week. Yesterday I a made a small fortune when CHF went ballistic! My secret? – Do my own research and ignore the news! Great start to 2015! What you say Nial is spot on!

  14. Pete January 16, 2015 at 11:23 pm

    Thanks Nial. You plainly state what a trader needs to learn. Discipline, skill, attention and belief. Only by having skin in the game can you truly appreciate the wisdom in the article.

  15. Hendrik January 16, 2015 at 9:05 pm

    Always good advice Nial.
    Adding to your article, spread your risk over multiple accounts and minimal 3 brokers. This is first level risk and money management.
    Decrease risk dramatically in this high volatility times or do not trade at all and wait when the storm is over. There are going to be plenty of new opportunities after this volatility storm.

  16. harpreet singh January 16, 2015 at 4:57 pm

    Thanks Nial, great article

  17. Lakes January 15, 2015 at 11:11 pm

    Thanks for the article. It’s a water to my soul. Good one!!!

    • Daniel Howard January 17, 2015 at 12:04 am

      I have to leave a comment concerning this comment. If you want to feed your soul, read the bible. Although I like Nial and what he says, this is just trading advice.

  18. oghenemaro paul January 15, 2015 at 10:08 pm

    good one nial. this article has just made my day


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