Trading Guru Nial Fuller Reveals His Final 5 Must Know Trader Journey Lessons
Entering the world of trading is definitely a double-edged sword.
What I mean by this is:
- You have no boss to answer to
- No commute to the office
- Unlimited profit potential
- Low barrier to entry
- Low running costs
However the flip side of the trading sword:
- There’s lots information to learn and understand
- Requires iron-clad discipline and self control
- Potential to lose lots and lots of money very quickly if you don’t achieve points 1 & 2
Trading is definitely not for everyone, however learning and mastering these skills can quite literally change yours and your family’s life for the better on so many fronts.
However like everything in life, success comes through hard work, perseverance and real life trading experience
The longer you trade, the more experience you gain, the more lessons you will learn and the more successful you will eventually become.
There’s a saying in trading that goes something like this, ‘Given enough time the market will teach you every lesson you need to know’.
But ask yourself this…
Do you have enough time, mental fortitude and of course money to stick around long enough, to gain that experience to achieve the success?
If you don’t check off any of the above, then what else can you do?
Using a quote from personal development coach Tony Robbins, “Success leaves clues”,
There are countless successful traders who’ve gone before you.
The ones with all those trading ‘battle scars’ that’ve endured but eventually prevailed!!!
Tapping into their knowledge, experiences, challenges and triumphs is always one of the best routes to accelerate your progress and results.
Trading Lessons Of World Leading Trader, Coach & Author
The previous issue I introduced you to Nial Fuller, a pro trader, coach and author who’s regarded as ‘The Authority’ in price action trading.
I revealed the first 5 of the 10 most important lessons he’s learned during his 18+ years trading career.
And in this week’s issue I’d like to reveal his remaining 5 must know lessons…so here goes.
#6- Trade Less to Earn More
It’s very common for most new traders to fund their first live account and then indulge in trading fest, entering trade after trade with little regard of the consequences.
New traders feel that they have to be in the markets as much as possible to earn as much as possible.
However, if you want to lose your money as quickly as possible then overtrading is one of the best routes to achieving it.
Its vital traders develop the discipline to trade with low frequency, doing otherwise will result in them losing at high-frequency.
According to Nial the key to developing this discipline is to focus on higher time-frames namely the daily charts.
Focusing on higher timeframes help filter out all the noise in the market, and by religiously following your trading plan it will naturally lead you to trading less.
#7- Can you pass the ‘Sleep Test’?
Risk management is probably the most critical element that differentiates all the successful traders from all those that struggle.
The per-trade (dollar/pound/euro) risk, commonly known as your R-number, is undoubtedly the most important risk measurement for a trader.
So how do you know if you’re risking too much on a trade?
The best way of doing this is to determine how pre-occupied you are with the outcome of the trade?
Are you constantly thinking about the trade even when you’re away from the charts?
Are you struggling to sleep at night thinking about the money you have risked? Are you checking the charts on your phone while you’re lying in bed?
If you’re finding yourself worried and unable to sleep then you’re probably risking too much on the trade.
If this is the case then you need to start minimising your risk per trade immediately until such time you can sleep soundly at night.
#8- Risk Money Only When You Know Your S###!
As crazy as this might sound, but lots of traders start trading with real money before having any understanding of their trading platform, or even a trading strategy.
In short these people aren’t trading, they’re GAMBLING!!!!
Before you ever consider risking your hard earned money it’s crucial you do the following:
- Master your strategy– Whatever strategy you use, it’s important you commit to it and master it.
- Master your Money Management– As in point 7 you must first figure out what risk per-trade number are you comfortable with, allowing you to sleep at night. Don’t deviate from this until you’re achieving consistent success and profits.
- Paper/Demo trade: According to Nial, you should demo for at least 2/4 months before risking real money. This will allow you to achieve the 2 sub points above as well as learn the mechanics of your trading platform
#9 Master Yourself and You’ll Master the Markets
This is the biggie!!
To have any chance of becoming a consistently profitable trader you must first deal with the mental & emotional weaknesses that you have.
Success in trading is far more about conquering those battles you have within your mind than the trading strategy, set-up or indicators that you use.
When trading it’s vital you keep your ego in check. If you don’t, the markets will eat you alive. It’s that simple!
#10- Confluence is Your Friend
There are never any guarantees in trading when it comes to winners or losers, however the more confluence a trade has, the higher the probability that trade will go in your favour.
In a nutshell, Confluence within trading is the combination of multiple technical analysis tools and indicators intersecting or aligning in support of a trade and whether it’s a trade worth entering or not.
So there we have it.
I hope you agree Nial has revealed some great insights from a trading career spanning over 18 years.
As I asked in Part 1 last week, do any of these lessons strike a chord with you and your trading?
Which ones have tripped you up?
Which ones have you overcome?
Or are there lessons that you’ve learned that haven’t been mentioned here?
Again if so, please let me know as I’d love to hear from you.
