Nial Fuller is Considered an Authority on Price Action Trading & Technical Analysis. You Can View Nial Fuller’s Bio Page Here To Learn More.
Video Synopsis – Nial Fuller Interview
The video opens with Stuart Mchpee asking Nial what he trades. Nial does not trade stocks because they aren’t as liquid as currencies. Nial trades currencies because they are liquid, easy to get in and out of, and good to develop systems on. Currencies are Nial’s favorite market along with stock-indices, not actual stocks themselves though. At the time of this interview global stock markets were in fast decline, therefore Nial was recommending against people over-leveraging themselves in stocks which can decline very quickly during times of economic uncertainty. Whereas, with forex you know your risk before hand and have to put up a good margin to enter the trade, risk is much more clearly defined in forex compared to most other securities.
What makes a successful trader?
Keeping it simple, having a defined set of rules for entry and exit. The biggest problem many people have is defining systems and methods. Systems are mechanical trading, forget the system. Think about methods and rule sets, which are simply a way of looking at the market. Don’t look for people teaching mechanical trading systems. You want to develop a way to think about the market rather than a strict trading system.
Nial trades a few markets and masters them by developing methods of looking and thinking about them, as opposed to a system. Avoid indicators and magical formulas. Nial is promoting raw price action, keeping it simple with a raw price chart, no indicators.
Biggest mistakes traders make?
Not having a stop loss if you ask brokers. Most people look too deeply at the market however, making it too complicated for themselves by not believing in themselves. Self-belief in the particular method you use is very important.
Many traders cannot get past the feeling of loss…successful traders know how to manage this feeling and not let it overcome them. Have a plan to deal with the emotion. Have an outlet for you emotion; don’t sit in front of the screen and over trade.
Can you give us a feel for your methodology?
Price action is the analysis of raw price movement. All entry and exit rules are based on higher time frame charts. Nial looks at identifying short term trends using counter-trend movements to enter within the trends, and price action signals to enter. Define risk in the market, define target, risk to reward scenarios. If they meet the conditions Nial is either in the trade, the stop is hit or the target is hit. Risk to reward should be 2:1 minimum, ideally 3:1 or 4:1. Nial doesn't typically scale in or scale out; scaling in is better however so you have most of your position as the trade is profitable.
Don’t trade just to make a trade, there is always tomorrow, the market will repeat itself over and over.