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Nial Fuller

Professional Trader, Author & Coach

Why Simplicity is Overlooked in Forex Trading

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By in Forex Trading Tutorials September 17th, 2010 | 20 Comments

The epidemic of over-complicating Forex trading…

SimplifyThe tendency of Forex traders to over-complicate how they think about and trade the market is also the very reason that most of them fail to make money on a consistent basis. This tendency is especially prevalent among beginning traders as they search hopelessly for that one “perfect” trading system that will make them rich over night. This on-going search for the one trading system that will bring instant success is something that many beginning traders spend immense amounts of time and money on, only to eventually realize that the particular system they are using was never really the problem.

So what is behind this natural urge to want to over complicate Forex trading? The primary catalyst behind this behavior lies in the fact that to be a consistently profitable trader requires a disciplinary skill set that most aspiring traders simply do not posses yet or are not aware of. What it takes to become successful as a Forex trader is also quite different from what is required to excel in other areas of life. For example, to become a successful doctor or an engineer you will need to make it through college and then continue to learn and stay current in your field. Typically success in high-level jobs such as these requires reading many complicated books and understanding very technically complicated concepts, so many people think that forex trading success should be similar.

No college degree required…

People naturally assume that becoming a consistently profitable trader must be difficult because success in most other fields is difficult, requiring years of study and schooling. This causes them to over-complicate something which really is technically very easy and does need to be approached from a complicated perspective. Because of the fact that the biggest part of becoming a successful forex trader is dependent on consistent self-discipline, adding more indicators to your charts, spending more money, or similarly making your forex trading more complicated than it needs to be, will ultimately have no bearing on you becoming consistently profitable, in fact it will only likely inhibit this goal.

So the main factor that causes people to overlook simplicity in the forex market is the fact most novice traders do not realize that trading does not need to be technically complicated like success in most other fields. Success in the forex market is instead dependent upon having a unique perspective on the market that is born of simplicity, combined with the proper self-discipline to make sure you do not risk too much or over trade. Most aspiring traders do the opposite; they have very little self-discipline and are using a method that is built on complicated indicators or trading software that is simply unnecessary and confusing.

Implement simplicity…

So now that you know why many traders overlook simplicity in forex and what it really takes to become a consistently profitable trader, the next issue to discuss is what type of trading strategy is conducive to simple yet profitable forex trading. When it comes to forex trading strategies, there is simply nothing to be gained from adding copious amounts of indicators to your charts or using the latest and greatest piece of trading software. These analysis tools give you no advantage over the trader who has mastered the unique type of self-discipline it takes to become a consistently profitable trader. Most professional traders use simple trading methods, because they have long since realized that technically complicated trading methods are unnecessary and actually inhibit trading performance. Instead, professional traders typically use simple chart reading skills that require only a naked price chart and a thorough understanding of forex price dynamics. This is known as price action trading, and once you learn how to trade just a couple effective yet very simple price action setups, you can literally become a stress free and consistently profitable trader, assuming you combine your knowledge of price action with the proper amount of self-discipline.

To learn more about trading with simplicity check out my forex trading course for some very simple and effective price action setups or you may like to watch my Forex Tutorial Videos Here  or read some great Forex Strategies Articles Here.

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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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  1. Sanjay

    Great to see so many good members doing well, i have not had such luck as yet, and maybe the reason is i,m not disciplined. But Nial,s words are always with me, wish me luck!!!

  2. phillip.t

    I know what to do but my brain still has other ideas. Having to design a trading plan and sticking to it is harder than I first thought. Great article.

  3. yvan

    Nial ALL your artcles are hits and should be compiled in a book. I’d be the first to buy it!!
    God bless you brother!

  4. andrew

    thank”s cheers andrew

  5. JEE

    Nice article about the simplicity and powerful price actions
    strategies in Forex trading..

  6. eddie

    nice article as usual.

  7. rani

    thank you for this wonderful article

  8. Mike O.

    As usual an excellent and highly pragmatic article Nial, thanks! I can see common sense is always high on your list and this is what made me choose your course over many others.
    Please keep training and motivating us!

    Mike O.

  9. Mithun Girishan

    It is a wonderful article Nial. Always keep it simple and cool !!

  10. Jimix

    All totally agreed — there is something pleasantly addictive to that core consistent endeavor to realize actions according to simple ideas and how most of the Universe really is that simple — and therefore the price patterns and their statistically giving relationships gradually surmount one’s self administered skeptical beliefs and fears. If one is seeing emotion inhibit their ability to execute discipline, the first emotion to deal with is FEAR. To best let fear go a trader should primarily develop a SIMPLE risk profile. Time with an excel sheet can show one that a maximum loss per day is best to not exceed 2% of total equity. One simply establishes a “no fear zone” by risk management which will then allow them stay in the game long enough to learn – and earn.

    Many of those “complicated” systems out there also delude the new trader to “believe” that its okay to risk 10% or more of equity in a trade or two… Yikes…

    Simply start with good risk management!

  11. Najeeb

    What a beauty! greatly informative. Thanks Nial.

  12. gbenga

    good quality stuff,your methods increase confidence in trading

  13. PCZ

    Thanks Nial,thats the pure true,slowly get in there :)

  14. abayomi m akanmu

    Hi Nial, the reason i am your fan is because off the simplicity of your trading method. You have greatly improved my confidence in trading. Prior to discovering your method, i was one of those who thought Elliot waves and all kinds of indicators is what makes a good trader, guess what you are the best. I cant wait to join the forum. See you soon.

  15. Anthony

    I truly appreciate your consistant message regarding simplicity. The opposite has plagued my equity and FX trading for many years. I have been reviewing your website daily picking up tips and implementing them immediately. I have already experienced revelations in my trading. I cannot wait to begin your course. Keep up the great work Nial, much appreciated.

  16. ironn

    Thanx nial!Another good one!

  17. Youness

    Well said Nial.
    I jsut started forex trading (2 weeks) based on your course, and I’m doing well.

    Self descipline is the hardest thing novice traders will struggle with. I’m fortunate enough to be very self controlling yet, I find myself sometimes tempted to temper with my trade but then I refrain myslef (by switching off the computer) and ‘let the market take you’ as you expressed previously.

  18. Doug

    Nice article on simplifying trading. Have been trading for a few years and althouhg I never blown out an account I was never really profitable either.I made it to hard. I see after becoming a member of yours how seriously simple it is if one just can grasp the fact that TRADING can be simple. I love it. Nice work as usual.


  19. galen

    Thank you Mr. Fuller for the K.I.S.S

  20. DRS

    Yet another great article that cuts to the chase and avoids boggling the reader with complicated strategies & software usage. Thanks.