A Complete Guide to Simplifying Your Forex Trading by Nial Fuller
My students’ number one issue is that they over-analyze and think too deeply about the markets. As a result of this over-analysis they are on the wrong track; many are still trying to trade with messy lagging indicator based trading systems or inflexible Forex trading “robot” systems. It is very common for beginning or even seasoned traders to be emotional wrecks; stressed and panicky like an out-of-control gambler with no plan. Today’s lesson will guide you in shifting your trading strategy and your trading psychology from complicated to simple.
Note From Nial – Do me a favor, and please click on the social icons below to share this on twitter & like it on facebook. When your done reading, please leave a comment below.
Changing your beliefs about Forex trading
Step 1 – Understanding why you’re losing money
The first thing you need to do in order to change the way you trade is to change your beliefs about trading. If you are losing money consistently, it’s probably safe to say that you are thinking about the market all wrong and that you need to totally change your beliefs about what Forex trading success is all about and how to achieve it.
There really are only two reasons why people lose money in the markets: over-trading and over-leveraging (risking too much). The reason you are losing money in the markets is because your beliefs are not in-line with reality. Trader’s who over-trade and over-leverage their trading accounts, are simply trying to control the markets, whether they are aware of it or not. Unfortunately for these traders, the reality of Forex trading is that YOU SIMPLY CANNOT CONTROL THE MARKET, the only variable you can control is yourself, that’s it. So, it goes to reason that if you want to make money in Forex you have to learn how to control yourself, because I promise you that no one else is going to be able to control your actions in the market; not me or any other Forex educator, you are the only one in charge.
Right now I want you to stop reading this lesson for a minute, go take a look at your trading account history for the last month or two, take a good long look at it, and decide for yourself whether it reflects the habits of a successful price action Forex trader. Did you do it? If not, you need to before reading on.
I’m willing to bet that if you are one of the masses of losing traders, you saw a lot of trades in your trading account history and you probably also saw inconsistent risk amounts between trades. These are the hallmarks of inconsistent traders who over-trade and over-leverage. Your trading account history should reflect a calm and confident trading mindset rather than that of an erratic gambler; you need to make sure that every trade you take is one you would feel confident explaining to me based off the concepts in my trading course.
You should be proud of your trading track record, and meticulously maintaining your Forex trading journal should be something you are passionate about. If you get a good enough track record over a period of three months or more you can find people to fund you, so don’t worry about not having a lot of money right now. I promise you that if you focus on mastering your trading strategy, and not on making tons of money right away, the money will eventually follow.
Step 2 – Accepting your new beliefs and moving forward
Next, you need to accept that you are trading too much and risking too much. You really need to put your ego aside for a minute and accept the reality of the situation if you want to grow and progress as a trader. If you do not accept your trading flaws you will certainly continue to repeat them until you do. Once you accept that you need to stop over-analyzing the markets, trading so much, and risking too much, you can make a plan of action to help get yourself on track. Now that you’ve accepted the reality of why you are losing money in the markets (you have accepted it right?), you need to take some time off from real-money trading and go back to the drawing board.
Changing the way you trade
Step 3 – Less is more
The first thing you need to do if you want to align your new simplified trading mindset with the reality of the markets is throw out all the junk Forex indicators or software trading robots that you are using and go back to the basics; plain vanilla price chart trading. You can click the previous link to learn why indicators are a waste of time; I’ve discussed this a lot so I won’t get into it much here except to say that if you want to truly simplify your trading you need to learn how to trade off of pure price action. At the very least you need to know how to read price dynamics and trade based off of them, even if you don’t make price action your primary trading strategy. All successful Forex traders have a solid understanding of price action and how to trade it, it’s a very effective stand-alone trading strategy and will only make any other strategy or system you may use in the future that much more effective.
Step 4 – Mastering simple trading strategies
After accepting that you need to learn how to trade based off simple price action strategies, you need to take the time and make the commitment to truly master them. I find that some of my students take my course and join my community and then don’t really follow-through with the education they have purchased. No one is going to learn how to trade for you. You have to put in time and make a solid effort if you really want to be a Forex trader; there is just no way around it. So, forget about getting rich quick by some “magic bullet” trading system you stumbled across on your Google search for automatic forex trading robots; I promise you that trading takes time and energy and you have to actually learn how to read the charts, there is no such thing as just downloading some software and pressing buttons to make tons of money.
While it is very true that successful Forex trading takes time and effort to achieve, the actual process of trading is really not that hard. Actually understanding and learning simple trading strategies like price action is really not a technically difficult thing to do and you don’t need to be smart to be a trader. What you do need is a trading strategy that is simple and effective and that actually teaches you something. For me, this strategy is and has always been price action. I too was a struggling trader early on in my career, but once I discovered the power and simplicity of trading off simple price action based setups, I never looked at any other indicator or trading software again. I cannot understand why anyone who has been exposed to price action trading would ever trade any other way, it simply doesn’t make any sense, it’s like trying to drive a car blindfolded; basically making something that’s relatively simple in nature much more complicated than it ever needs to be.
The best way to change your trading strategy from complicated to simple is to master one trading strategy at a time. I teach a number of simple price action trading strategies that you can focus in on and learn one at a time. You should really dedicate yourself to learning all the nuances of one price action setup at a time on the daily charts, once you do this and are making money consistently on a demo account you can then move on to the next price action setup. You need to be structured and methodical in all aspects of your Forex trading, otherwise you will end up over-complicating everything again. To learn more about simple price action trading setups and becoming a simple but effective Forex trader, check out my price action Forex trading course.
43 Comments Leave a Comment
so so wonderful,am happy to be here am willing to start over again. am among the very few people who have accessed this in my country Kenya.
It’s very well elaborated, well illustrated and very concise explanation. Thank you very much for this very useful guide.
Thank you . Thank you . Thank you and thank you again , dear Nial
I am very happy that I found out you Nial ! And one day I am shure I will ttake your course, even if I am not Forex trader.
your post is good! I like it! Thank you!
Thanks Nial for your wonderful lesson.I keep imroving in my trading since I started following your price action strategies.Please keep up with the good job.Posterity, no doubt has a huge place for your CALIBRE in FX annals.Always keep me posted with the latest from your educative stable. Mamudu O.
Great article as usual, well needed and timely advice. Thank you Nial.
Excellent lesson Nial. It’s good to be reminded of the basics to avoid getting off-track.
Excellent lesson Nia. It’s good to be reminded of the basic to avoid getting off-track.
Thaks Nial, another simple, but excellent and valuable lesson.
Thank you dude. As usual Great Article !
thanks for the article, I learn many things from the article.
I just want to say thank you Nial,for your course, web site,
all the time, dedication and support you give.
I wish you the very best.
All your articles are great learning tools, that make you stop and think about how i trade, and to develop the right mindset to be a successful trader. I now only trade off the higher time frames, using simple price action, set and forget,with no lagging indicators allows me to trade what i see and not what i don’t see, with yoda like clarity. Thanks Nial
Thanks for sharing, very helpful advise to us traders. I find your lessons very practical and very effective…..thanks again
Please keep the excellent article coming. I have learnt greatly from the course and through your daily commentary and interaction with forummers.
Trading Less is indeed more!
Excellent article as usual, I am really excited to be part of your community of traders. This has improved my consistency in trading and helped me to look at the bigger picture.
You are great educator, I find your lessons always interesting and down to erth. Thanks.
Great stuff Nial…..Yeap Always look in the mirror…the answer is mostly there..
Nial, is great! a true marketing wizard.
I have to say I’m a beginner and like most I thought trading to be a get rick quick and that I had to make trades every second but a week into your method and well 1, 2 trades that have made a difference. I’m learning the pin bar first and I’ve started to keep a trading journal. Most of all I like the way the system controls risk and reward man it works. So think you man I’ll be hustling even more this is a business and everything will come together with time and effort.
Keep up the great work
hi nial, really this topic will help a lot in the real trading life.thanks again for the good topics provided by you every time.
It’s human nature to seek the easy path and desire instant gratification. We (in the US anyway) have several generations now of “get it today”, “fix it now”, “pay for it later” living.
I too have learned the hard way that consistent small gains beat erratic big winners every time. Of course, I’m not referring to over trading, but rather consistent, high probability, small gains and managing risk aggressively.
My charts have evolved to simply price bars. Not indicators at all.
It took a while to finally realize that “indicators” only tell you what price has done in the past. There are NO truly predictive indicators (i.e. holy grails). Even the venerable Moving Average is touted by describing how prices “seek” the moving average line. Hogwash! The MA is mathematically drawn (literally and figuratively) to price, not the other way around.
As usual Nial, you have presented the message clearly. But let us hope that not too many people see the light. After all, professional traders depend on stupid money from hopeful crowds to fuel the markets.
Lest someone take offense at that, consider that big and small business alike advertise and market every second of every day to extract maximum profit from customers.
In every exchange someone gains something. It may be money (or something of value), or it may be an experience. We are fortunate to be able to choose which side we want to be on.
Another great article. Infact I thought you were writing about me. I have been trading daily on daily (end of day & 3/ 5 minute charts for scalping. Do okay but very stressful and time consuming. After reading this article I did a trade on the eur.usd with a 4 hour chart and made a ton!! I also walked away from the computer to attend a neibhours party while the trade wa made. I have now revised my chart times to weekly, daily and 4 hour!. Thanks you are definitely the big dogs bollocks!!!
Nial, I must comment that you are a person of uncommon wisdom!
I have only had your course for a little over a week(and found you and your course quite by accident, as I live over on the other side of the world. But as I looked over your site, I could see the value and wisdom in your blogs and videos. I have been trading forex for almost 7 years and learned from some very good mentors, including Steve Nison, who brought Japanese candlesticks to the west(went to his workshop). I must admit I do have a weakness for MacD, and stochastics, but all these things have not helped me in being consistent, as well as having a penchant for dwelling on the lower timeframes(even though I do a proper top down analysis starting with the daily chart).
You truly are bang on with respect to simplifying your forex trading, as well as really focusing on the daily and 4 hour charts to make your trading decisions.
The sad thing is, this knowledge has been in me for a long time, and I have let it slip away to the more trivial (ie lower timeframes for day trading) You have truly re opened my eyes to focusing on the higher time frames and focusing on your price action strategies.
I am enjoying your course tremendously. Keep up the great work. :-)
Thanks Nial. Simple to understand and very well written.
The truth is always simple, just look at reality without destorting lenses. Thank you Nial.
I read your lessons and commentaries every week and am just amazed how each lesson is a hit, straight to the point and worth keeping every time. Thanks so much.
tanks for this article. i must say i am yet to see a mentor like you in my 3 years of trading forex. fantastic keep it up, my friends must see this
Thanks for the valueble imfo that can enhance my trading forex strategy
if there’s one thing i love most about your teaching, it is the fact about throwing out the junk of indicactors…. You are a great mentor and teacher, keep it on……
Thanks a million, this is resounding old song that never goes away.A new and clear picture every time.
Great confidence boost in this artical – stick to ones plan. I more then often get the urge to “make money” even though there is no trade to take, and reading this artical gives me a real boost that my ability to rationalise this urge says on im the right track.
From the depths of my trading account – thank you.
Fantastic material, thanks for it.
I am so far not been interested in forex, invest only in stocks and futures.
But I would like to move my knowledge on forex
techniques are the same so we’ll see
So True, I have been part of LTTTM since April. Only in last month my trading has improved. It’s a difficult transition from reading the course to internalising PA.
Tops article Nial. I do like a cheeky trade every now and then.
So true. Great and straight farward article as always Nial. Thanks. When I was NooB, I also started off by looking for the “Holy Grail” systems and even waisted money on a few. What BS. haha. I guess most people fall into that hole of illusionment. What Nial has to offer and in the community is all you need. And the best of all is, you actually learn valuable lessons not only about trading, but for life as well. (Patience, Self-Discipline, Confidence…)
Nial I joined Up to your forex Course recently, it’s the best I have seen in my 3 years of taking many training courses around the place. I really wanted to say thank you for all your hard work and for teaching me strategies that make sense. I also Love to read your daily commentary. Your site is the best. thanks
I have stopped losing money after joining your course.
Wow!..what else can i say? Keep it up mate this is exceptional, informative and educating,Am twitting it righ away! Good job.
Nial, thank you for this great lesson, and thank you for your ongoing dedication and support to traders. I visit your blog and forums daily. I have gained so muck knowledge from your teachings and this has helped me become a much better trader. Keeping it simple is the only way! Please keep up the good work. Shane.