Hi, it's Stuart McPhee here and I'm joined today by Nial Fuller... Nial thanks for
joining us. I just thought we'd spend a few minutes with you and talk
about your trading. you and I have known each other for a few years
now and I I know you're 24 years old, and you've been trading quite actively for
five or six years and I also know because you and I talked often
you don't trade stocks, can you give us a bit of an inkling as to what you do
trade ? ... Short answer, looking at things that are liquid, moving a lot.
At the moment, stocks are not doing a lot, just going straight down, currencies move up and down always
they are liquid markets, volatile, I know I can get in and out anytime, possibly
holding over the weekend without the risk of being stopped and slipped
so currencies is usually friendly and good to develop systems on so I have to say
currencies are a favorite market next to maybe stock indices
probably avoiding direct CFDs on shares as well, high leverage can be a little
bit of a problem... even though the currency market is leveraged you''re
still required to put up a decent margin, but I definitely say at
the moment especially with markets the way they are...staying away from highly
leveraged products I know you'd agree with that as well. Okay i know you've been
trading quite actively for five or six years you've obviously learned a lot
of things on your journey, what do you think makes a trader ?
what's the key ingredient what makes a successful trader in your eyes ?
Keeping it simple, keeping is very clear to. A defined set of rules for entry
and exit. The biggest problem that traders are having is finding their
system and their method I have to say forget the system think about the word
method and a rule set. So a method is a rule set, just a way of looking at the
market. People need to stop looking on the internet and books and seeking
mentors that want to teach them mechanical trading systems.
Find a way to look at the market, a way to feel about a chart and develop
a relationship with your favorite market. What people are doing all over the
internet is promoting trading systems for all different markets whereas I will
trade 3 instruments. The Euro, the dollar Swiss, the dollar yen
and I'll fall in love with those markers and I'll have them on my desktop and
I'll develop methods and a way of looking at these markets, so I'd have to
say that is the way to be successful is to focus, write down your rules and
develop a method as opposed to a system. Okay and then in the first words
out of your mouth was keep it simple keep it simple and avoid indicators on charts
and you know magical formulas and you know there's a lot of people out there
promoting the exact opposite. Because I know you one for just
looking at basically price, raw price price data, and your a big fan of that.
do a search for price action and there's not a lot on the internet, do a search for you know a macd
and a moving average crossover and there's plentiful. Okay so keeping it
simple with a rule price chart works. okay see you always, all right so that's
I guess a key ingredient for you, what are perhaps some of the biggest
mistakes traders make. Not having your stop-loss I'd say if you asked a
broker, but for me I'd have to say that the people I'm talking to because I'm
already successful, it's almost hard to to know what my faults are at the moment
even though I do have them. The people that come to me through my website
they're looking too deeply at the market they're making it too complex for
themselve but chopping and changing and not believing in what they have okay so
I might be able to teach someone a system, sorry a method, there I go using that
it's hard to get rid of that word system... a method and yet whilst it might
work for five trades in a row, it'll lose for five trades in a row and they'll not
want to follow it, they'll ditch it, yeah. Wouldn't say so much back testing
because there we go again we're trying to go a proven mechanical
system, I'm talking something that's logical I can teach someone yet
they'll go home and do the exact opposite to what I've said and it's
actually having the self belief in your mentors
and what you're learning or even learning you're learning on your own
time so you keep giving it simple developing a plan and a method and then
believing in it. Okay so self belief, yer self belief, subconscious. So what your saying, is
somebody has a method, they have five great profitable trades, they then follow
that with five losing trades and then just going to lose their believe in it
you'd be surprised how many people I meet that email me how wonderful they're
doing and then they drop off at face of the planet when they lose. Do you think
been through that yourself when you've lost belief in an approach a method? I go
through it, I go through the emotion the psychology of every week when I lose a
trade, it's impossible and I don't know anyone that can buck the feeling
when you lose when you go to a casino and you have a big win you're in high
the exact opposite is true for a loss it's a euphoric feeling and that's
associated with you know things from, I mean the psychologist that talk about
going back to your childhood looking in all this complex things that happened in
your mind that are manifested from problems with money in your past you
might associate loss with debt or marriage breakup, business, but it's a
cost of execution a loss and yeah I mean it's it's just part of trading
yes it's impossible to lose of feeling that managing it. So that's real bit
of real key to you then you know exactly the feeling you've got and why you've
got it be you're able to look beyond that and deal with it. just like you know
to stop at a red traffic light what to do the rules of an intersection, when you have a
loss and the feelings coming, you know what to do
you have a plan to deal with the emotion, okay, for me it's to just turn off the
screen go watch a movie go and play golf, whatever you want to do, not that
I play golf. I'm sure, i'm sure people have an outlet and
that's another brings me to another point, have an outlet have something
else to do than sit in front of the screen and overtrade. yeah, no no
can't do that. um, finally, over trading no no definitely don't want to force the action
Your not a day trader are you? Not at all. Um, finally alot of people are interested in
Entry, right we talk about indicators and different setups in there, are you able
to give us a bit of a feel for the way you look at your entry and methodology ?
sure the key things you look for well you know I look at price action but what
price action is is a study of raw price, yes, so all my entry and exit rules are
based on daily and high timeframe charts, weeklies probably as low as an hour
chart to 240 minute charts. I avoid intraday charts. What I'm looking at
doing is identifying short-term trends using counter trend movements to enter
within these trends and look for price action signals there's too many to list
but let's say I have a trading plan of 10 proprietary trading setups based on
price action I will define my risk in the market to find my target risk reward
scenarios if they meet the conditions I'm in the trade, I walk away and i'm either
stopped or the targets hit. And what's the sort of reward to risk or whatever
ratio you're after ? Two to one minimum but I'm hopefully looking for
three and four, obviously with a break-even stop-loss you can let your trade run
I don't promote scaling in or scaling out of positions. Your just in and out?
Just in and out I mean scaling in would be more favorable than scaling out if
you want to have mostly position as the trades in profit. Okay. If you're with me
Okay if you can't identify perhaps a level of risk or potential target in
that trade so you can't really do that calculation risk reward, do you still
push it if, do you take the trade ? What I do is I have a setup
and I identify a level or you know if there's a setup
it requires a stop in a certain place and I can't get it there, yes, within the
capital management model, yes, I won't to take that trade. Good, okay that's another
point that really needs to be hit home to the novice traders, don't trade just
to make a trade, mm, there's always tomorrow, the market will repeat itself over
and over, you get another go. yeah don't overtrade, don't force it
don't over trade and again find something else to do because this is not a game
it's you know it's not a sport, it's a business. Terrific.
all right, Nial thanks for that, I know it's only a very quick chat with you but thank
you very much of that insight into into what you do. Look if people out there want
to learn a little bit more about yourself and what you do what can they do
where can they go ? well my primary focus is trading I dow
run a education website for aspiring traders, novice and advanced, dealing
primarily in price action analysis and my setups. I do trading videos have a
trading course or forum everyone to get together and then talk about the market
the website, bottom of the screen www.learntradethemarket.com
okay terrific. Nial, thank you very much for your time, terrific to have a listen to
the way you do things, thanks very much, take care