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Nial Fuller

Professional Trader, Author & Coach

If You Read One Article about Forex Trading, Read this One

realityofforexWARNING – What you are about to read might shock you, it might not be what you ‘expect’ to hear about Forex trading. It might even make some industry ‘gurus’ and media outlets angry, because what follows is the unfiltered, uncut truth about the Forex industry that you NEED to know before making one more trade.

If you don’t want to get chewed up and spit out by the Forex markets and the Forex industry you need to continue reading…

Online media outlets and propaganda-based information are luring ‘fresh meat’ into the trading industry. Of course, YOU are the ‘fresh meat’ but they don’t want you to know that. Basically, the Forex industry wants you to trade without an education, without knowing what you’re doing, because they know that’s the fastest way they will get your money. We’ve all heard about the ‘churn and burn’ of most Forex traders.

Don’t get me wrong, that’s not to say you can’t be successful in trading and do well, but following the ‘herd’, which is what the industry wants you to do, is certainly not going to do you any favours.

Reading this article you’re obviously interested in trading, but you’re a little more analytical than most and you want to know what’s really going on ‘behind the scenes’, if you will. You want to understand how to start your journey and how you should progress in trading. Today’s article is going to dispel some common myths and misconceptions about the Forex industry and will equip you with the knowledge you need to make wise decisions and find the path to trading success…

Note: If you’re an absolute beginner and this is literally the first article you’ve read on trading, then stop right here and do yourself a favour and take my beginners course, because if you have no clue what’s going on, you need to get a clue to understand the basics or to understand any post on this blog.

The reality of how the Forex trading industry works

Here’s the straight-out version of Forex that you’re not gonna hear or see anywhere else…

You probably don’t know it, but you’ve been lured in by the Forex ‘machine’. There is a whole industry designed to hook new traders by only focusing on the positive aspects of Forex trading and ‘all the money you can make’. It’s sad, but true.

Here’s the truth: Blogs, forums, and various media outlets about trading all create hype and either directly or indirectly mislead traders as to the risks and rewards possible in Forex trading. Essentially, they are leading you to the ‘slaughter house’, which is the Forex market. The market and most brokers don’t care at all if you lose. You can get chopped up and minced into tiny pieces and they are still going to make money. When you trade with your broker, they’re going to make money whether you win or lose, which you may not have known. It’s an industry full of brokers who want as many clients to trade as much as possible. They don’t really care if you’re educated or not, or even if you don’t have a bloody clue about what’s going on.

Oh, and the less educated you are about trading and how to trade, the more money you are probably going to gamble away in the market, which is what they want. So, if you try trading a live account with no formal trading education, it’s equivalent to you walking through a minefield without knowing where the mines are.

Many of these media outlets, blogs, forum-based sites and brokers work together, leading new and unaware traders down the path to the ‘slaughterhouse’. Each of them may try to pick your pocket along the way; whether it’s getting you to pay for some ‘premium’ news alert service or ‘pit noise’ service or charging you $5,000 for some ‘in-depth’ training, they will get you one way or the other. That’s not to say no one should charge money for trading education, but everything should be within reason. There’s no reason why anyone should charge thousands of dollars for a trading course or try go get you to pay a high monthly fee to some signal subscription service when they could simply teach you how to trade and spot the signals for yourself, for a small one-time fee. There’s a difference between helping people learn to trade for a low reasonable one-time fee, and taking advantage of them for thousands of dollars.

Pull your head out of the clouds and be realistic

cloudheadSo, if you have big hopes and expectations about Forex trading, I am not really here to shoot them down, I’m just trying to bring you down to the ground and instil realistic expectations in you. After all, when our expectations don’t mesh with reality, that’s when we experience emotional pain.

You’ve probably already had the misfortune of coming across websites selling automated trading software that promises sky-high returns by simply purchasing and installing their software. They often show a nice looking track record of XYZ pips that their ‘system’ has returned over XYZ years. Well, guess what? These things can easily be photo-shopped. I believe it was Edgar Allen Poe who said, “Don’t believe anything you hear and half of what you see.” If it sounds too good to be true, it probably is.

Even the education industry is too full of positivity. They’re not really talking about the risks and pitfalls of trading as much as they are about the potential rewards and lifestyle of a rich trader.

Don’t’ believe it, don’t believe people if all they talk about is the positivity but little to nothing about the risks. Don’t believe people that just flash the trader lifestyle and how much money you can make without providing a grounded foundation of the risks and rewards. Remember, they want you to have a false-view of what trading is all about so that you give them your money and give your broker money and start trading away.

False-confidence when you’re still naïve

Once of the big problems for beginning traders is having false-confidence when you are still new and naïve. I can’t even tell you how many emails I get from traders telling me they didn’t use a stop loss and lost half their account or more. Forex is a shorter-term game than say investing in stocks, so you have to set risk parameters to avoid large losses, you can’t expect to enter a trade and hold it forever with 1:100 leverage and never lose money.

But, again, the Forex industry preys on things like this. They know beginning traders will have false-confidence after a couple winners and then give back all their profits and then some.

Don’t try convincing yourself that you actually ‘know’ something about a market ‘for sure’. I’ve got news for you, it took me five years before I really started to make this work. So, whatever you do, don’t get too cocky too soon or you will give all your money to the Forex ‘machine’.

Having false-confidence leads traders to do crazy things like risking half their account on the ‘next big trade’ without using a stop loss. This type of behaviour is also caused by not having proper education or the proper mental foundation.

Many people think that because they were or are very successful in other professions that it will translate over to trading. But that’s often not the case as I have discussed in other articles. Just because you succeed in one part of life doesn’t mean you will in trading right away, so don’t make the mistake of getting overly-confident just because you are very successful lawyer, doctor or anything else. Trading, like any other profession, has a learning curve.

Ego vs. Insanity

Maybe you’re an experienced trader and maybe you’ve already been trading 2 to 5 year or more, but you’re still struggling. If this is you, it’s important that you realize you might be suffering some sort of trading addiction and you don’t even know it. Do you do the same thing over and over in the market and continue to lose yet you aren’t changing anything about yourself or your strategy?

Someone who is too arrogant to change will never become a successful trader. They’d rather just keep doing what they’re doing, losing money, because they feel ‘safe’ and comfortable not admitting they need to change and making an effort to do so.

Are you potentially addicted to trading? Too proud that you might have to change you’re strategy or how you’re managing your money?

Failure to address problems like this and look for solutions is a big reason many traders fail. Trading is really an on-going game of trial and error. You will never stop learning and you will never stop growing as a trader, at least you should never stop. If you find yourself doing the same things and making the same mistakes over and over, take it as a sign that what you’re doing isn’t working and you need to change.

Some of these on-going problems that traders have are things like strategy-jumping (where you jump from one strategy to the next at the first sign of a loss), risking irregular amounts per trade, trading for pleasure instead of profit, having a gamblers attitude / trading for the adrenaline rush.

Also, you need to consider that if you’ve been doing this for say, 5 years and losing money, maybe it’s time to hang up the boots…maybe trading isn’t for you?

So are you gonna be another number in the losers column or are you gonna stop what you’re doing and have the balls to change?

Don’t be fooled by the ‘next big thing’, you’ll only be disappointed.

twainIt’s clear after being in the industry across two decades now and knowing many traders from professional to part-time / hobbyists, that whilst trading can be mastered and there’s lots of money to be made, there’s obviously lots of money to be lost if you don’t know what you’re doing and don’t have your strategy and money management down-pat yet.

Just be careful, because its only human and very natural to keep looking for something else that ‘might work’ if what you’re doing isn’t working. I’m here to assure you that there is no ‘next big thing’, no system, strategy or ‘holy grail’ to make you rich in the markets.

The way that I personally trade and approach the markets is based on simplicity and logic and the ability to accurately read a chart, because if you can’t read a chart from left to right and actually understand and interpret it, it doesn’t matter how good your system is or what the ‘next big strategy’ is, you’re never gonna make it.

By now you probably know I trade price action, I trade off charts, after all my years in the market, this is what I’ve fallen back on because there’s nothing more certain than first hand-data, i.e. the price action we’re interpreting the market through and finding trades from.

Would you drive a car going forward while looking in your rear view mirror? No, you wouldn’t. Well, that’s pretty much what everything else is out there other than price action. If you cannot feel, read and interpret a chart, you‘re not gonna stand a chance. Remember, the greatest traders who have ever lived have been able to read these markets via price action.

The bottom line is this: You NEED a trading education before you start trading live. If you’re a complete beginner at least do a beginners course so you have a clue. Then, consider an advanced trading course such as the one I offer here, regardless, just get yourself an education so you have an idea of what’s actually happening before you start trading.

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Nial Fuller

About Nial Fuller

is a Professional Trader, Investor & Author who is considered ‘The Authority’ on Price Action Trading. His blog is read by over 200,000+ followers and he has taught 25,000+ students since 2008. In 2016, Nial won the Million Dollar Trader Competition. Checkout Nial's Professional Trading Course here.
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    Thank you Fuller for this worthy and expensive information. I would love for you to make the articles shareable in all social medias platform people need to read this and get informed.

  2. Mclain

    This article was just what I needed to read. I am in my fifth year or so of very unprofitable trading and have finally decided that something isn’t working. I signed up for Nial’s course three months ago and I have turned a profit every month since implementing his methods.

    I am profitable for the first time since I started trading years ago and it is 100% due to Nial’s teachings – particularly, and I emphasize, trading psychology and ACTUALLY applying his lessons. I was what was holding me back and causing the losses. Nial’s writings like this one, Lazy Trader, etc. ARE the “holy grail” of trading.

    Stop looking for solutions within the market or thinking the market is out to get you (some of the players sure are though) or that you can out smart the market. The market is what it is and there is money to be made for sure, but you need to get a handle on YOURSELF. Plain and simple. Nial can help show you the way I am confident of that.

  3. Atul Kapatkar

    Thanks Nial. Absolutely useful for beginners trader.

  4. Levy

    Hi Nial Fuller,allow me to take this opportunity and thank you for this well said information about the world of traders out there.Yes indeed,this is the type of information well known and professional traders out there wouldn’t want those who have interest in trading to be aware of. As a professional and mentor you were bold enough to just tell it like it is and I guess not I allow but others as well really appreciate your honesty. Would really love to hear from you in person with regard to this industry of traders,obviously to learn and take it further with you.By now I am sure you have my email,if you can can get back to me will really appreciate it. Regards.

  5. Babak

    Hi Nail! thank you very much for your kind efforts! as you say using indicators instead of knowing price action is exactly the same as driving a car going forward while looking in the rear view mirror!

    keep going Nail! Good job!


  6. Georgina

    Oh my!! I hope all newbies will come across this article!

    Not in a hurry anymore! Until I learn everything!!

    Thanks for this and God bless you…

  7. Ashesh

    What a wonderful article it is. Though I am trading since last four years I am still making mistakes you mention like jumping strategy, feeling overconfident … etc

    This article made me rethink what I am doing and what should I do

    thank you very much

  8. arin collins

    your articles are always insightful. thanks.

  9. Gye Bennetts

    Thanks Nial :)

  10. Derick

    This blog is simply the best forex education/training I’ve found to date.
    And that’s just the free stuff. I can only imagine how good the paid stuff is.
    Thank you Nial.

  11. Igor

    OK Nial! This is a true article about trading. You have to be realistic and not to trust the dealers, brokers and others who promise quick enrichment. Don’t be naive schoolboy. It is not possible. The trading profession is extremely hard work. Only years of hard work and continuous training to achieve a sustainable profit. Without special training, you will constantly lose money and time.

  12. Bhushan Arora

    Thanks for this eye opener

  13. kim

    This is correct …. how you read the play is so important. Finding the entry is critical and can save you from losses. I say trade the candle… every candle has an open with a high and low. A series of candles will form and complete the next time frame candle above with same an open high low or vice versa. I read the charts from top down … meaning monthly to weekly and so on to get familiar where the current monthly candle has been and I’m looking for what it has not done. Generally a candle Will make a retrace back towards its open to either fall short or penetrate to turn into a candle quiet the opposite to what was originally formed. It’s about getting in rhythm with whatever you are trading.

  14. raj

    Eye opener!! Always waiting for your new articles. And ever-ytime those open my eyes and takes me near to reality. Agree.. It’s a process and we change our trading systems then account size/markets but we are not easily ready to change our self to be a better trader. You are an amazing Mentor and honest person too. God bless you and your dreams!!

  15. Serge

    A great deal of truth to the article. However, I’ve personally come to realize that whether one is successful or not in this business is about 90% psychology and money management, and 10% strategy dependant IMHO.

    There are plenty of solid trading strategies out there, whether one is a winner or loser overall is going to come down to their dicipline and whether they can truly be honest with themselves and take resposibility for their trading decisions.

  16. Emeh Matthew E.

    God bless the day i came across your write up for the first time. what i have taken from this write up is that : if you cannot drive a car front by focusing on your rear mirror, then it makes no sense trading forex based on what the indicators, most of which are lagging are saying. You are the greatest. Thanks

  17. PERI

    After joining in Nial Full Time Membership, my trading arena has changed
    a lot from loss to neutral to now positive.

    I am very fortunate having joined in your course under your mentorship.

    I read all your newsletters everyday and it is greatly changing my thinking about trading
    profitably without any pain or stress on mind.

    Great area for learning ! Keep it up !

  18. Momina

    Very True Nial. Most of the websites now displays Ads in the page stating making money through forex is as easy as eating and walking. And it has indeed succeeded pulling lots of people into forex trade without any knowledge on this two sided sword. Thanks for this article

  19. Barry Hall

    Thanks sir you are best.

  20. Dotty

    Hi Nial,
    Great article
    I am doing your advanced course and it is a must if you want to take forex trading seriously .I do realised now to take your time and learn it properly . You would have to be the most straight up and honest mentor out there.
    So much appreciated , thank you

  21. Len

    Like any addiction, the truth can clobber us in the head with a sledge hammer repeatedly but we’ll still chose to ignore it. Listen to what’s said in these articles or stay away from trading. It will surely be the end of you if you don’t. I speak from experience.

  22. Sparrow

    Perfect article. And it helped me when you said it took you 5 years to start getting it. I have been studying Forex for a long time, almost 4 years. I don’t think I was really getting any traction until I ran into Nial. Really the only sincere person out there I have come across teaching this stuff. And I look at Nial as my Life Coach as well.

  23. Adriana Ghidau

    Thank you Nial for another great article and make me to understand that I’m doing very well what I’m doing in trading ..!first: I’ve learnt to be patient !! and arming myself with good knowledge of trading and good tools (computer, desk, my office and good trading platform)to start my live trading with the right feeling..
    I don’t miss reading any of your articles , watching your videos and I’m happy to be a life member of your course ..never finish to learn .
    Your sincerely Adriana

  24. Roman Russia

    learn, learn, learn and learn again as Lenin said

  25. TJ

    Well Nial, everything has been said.

    Right to the point, many beginners don’t understand nor want to hear this reality. But the thruth coming from a seasoned trader, like you are, is the best way to teach them.

    Good job Nial, keep going!

  26. RC

    Thank you Sir Nial.

    A word to the wise out to be sufficient.

    Nice to finally be on board, with my part. Fair exchange for the wonderful service your newsletters and articles have provided. Stumbled upon your initial article on position Sizing and Stop lost December 2013.

    All in All, thanks and kudos to you, on your (*)InsideBar & PinBar calls(*) measured over a year has been over 75% accurate on a method that has 55% “D1 hit-rate” without adding any consideration to trend and other aspects of daily Confluence.
    Proves that Daily time frame (D1) though less frequent leaves you more consistently profitable. Once-A-Week is a gem!

    Hope this makes it to the light of day in it’s entirety(no aspersions, just my prayer). Just completing the (verbal) promise to make public, my opinion/experience with your service (prior to membership).


  27. Jonathan

    When beginners traders start, there is overflow of emotions and dreams of making millions within a short time. By then, advice from pro traders about risks, money and trade management look boring.
    BUT when we get burnt out, we begin to realise what the pros told us were the pure truth.

    I am not in a rush anymore. No one has to tell me to be patient anymore before I inculcate that habit.

  28. Richard

    You make too much common sense, BUT keep doing it,Thank You


  29. phumon

    Hi Nial !

    It is so true about “If you cannot FEEL, READ and INTERPRET a chart, you‘re not gonna stand a chance”.

    And I think this is the real meaning of “go with the flow” and “the trend is your friend”.
    Not only reading the trend with moving averages, but also FEELING the force behind the developing trend.

    Thank you so much !

  30. reggy

    Great stuff! For once someone who tells it as it is! I couldnt agree more with you. Thanks

  31. dima

    Very powerful post! Thank you very much, Niall!

  32. Kuma

    This article contains very important facts about Forex Market and warn new traders to be careful in trading.

  33. Braveheart

    Thanks Nial well said…