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Expert Q&A with No Nonsense Forex

Posted by BluFX



Expert Q&A No Nonsense Forex

Expert Q&A with No Nonsense Forex

We spoke to VP at No Nonsense Forex about the importance of backtesting, the reason the majority of traders lose money - and his three key pieces of advice for every trader. He created his blog in 2018, and also began a hugely popular YouTube channel, No Nonsense Forex. Check out some of the best forex YouTube trader channels we'd recommend on our blog!

This blog is part our new Expert Q&A series where we speak to successful traders about their trading practise - stay tuned for more! 

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Could you tell us how you began trading? What difficulties did you face at the beginning and how did you overcome them?

I was a penny stock trader, and a bad one.  I needed another market, and I found the Forex tab on iHub.  Went there, found the smartest guy on the board, and asked him to point me in a direction.  He showed me babypips.com/school, and I was hooked ever since.
My difficulties were the same as most people's.  Over-levereging, non-existent money management, pretending like my trading psychology was just fine.  Huge recipe for constant disaster, and it was a constant disaster for years.
The only way I overcame them was to be honest with myself and fix what needed fixing.

In your opinion, what are the essential elements of a good trading plan?

It has to have money management built in for one. Two, it needs to be tested thoroughly, backwards and forwards. Without those two things, you officially have a blueprint on how to lose money and nothing more.

If you could only give traders three pieces of advice, what would they be and why?

  1. Trade your system
  2. Stay the fuck out of the way
  3. Repeat
Why? Because this is literally all you have to do, but nobody can do it.

Psychology plays an important role in trading. What are the most common things, in your experience, that block a trader’s progress?

Bad psychology is the #1 barrier to success in Forex.  Problem is, and I'd say the top issue with this is how most people don't think they struggle here. Nobody wants to be told they're weak mentally and emotionally, even if they are.
But trading is an entirely different arena. The strongest-willed person on Earth would still struggle mightily in trading, especially early on.  So like a lot of things, accepting the fact there is a problem is #1.  
Beyond that, lack of discipline and patience are the main causes of bad trading psychology getting in your way.  We're all dumb enough to think forex trading is going to quickly get us out of a bad financial situation.  It never actually happens like that.

How soon should a trader move from a demo to a live account? What are the top three factors to determine the move?

6 months minimum on demo I would say, and make sure you've done the backtesting work first. You want to see how well your system performs in all market cycles. If you don't know this, you're going to be in for a rough one. Then, you're looking for ROI.  6% positive ROI in 6 months is a good starting point to shoot for, but again, it's useless without the backtesting. 

Strategy flipping is pretty common in trading. What’s the one thing traders should ascertain before they decide to change to a new strategy?

Just because it's a new strategy doesn't mean the same rules don't apply. Backtest, forward test, and then real-life test if you have to by putting some real money behind it before getting more serious with it. It takes patience, but you really don't have a choice here.

Where do you think signal services play a role within the forex trading industry?

Signal services are there to make traders realise just how bad of an idea it is to sign up for a signal service. I believe everyone out there has to get scammed once in their lives so they can remember the feeling and make sure it never happens again. I'm actually thankful these services exist.
They're downright sociopathic in nature, but it's a rite of passage I think every trader has to go through so they can come back to reality and stop chasing unrealistic returns, which just about every signal service promises.

Should a new trader use a % amount to configure their risk or a fixed dollar amount per trade?

Percentages are your friend. They adjust for more volatile currency pairs, more volatile markets, everything. Risking a fixed amount is a brain-dead approach.

Your most viewed video is based on the big banks which entails supply and demand. Should every trader understand this fundamental aspect with their strategy rather than relying on pure technical analysis?

It's a core concept, through and through. Banks move on the opposite side of where the majority is heading. This is antithetical to stock trading, which a lot of forex traders got their start, so absolutely. If you don't know why price really goes up and down, why are you even trading?

In your opinion, what’s the main reason such a huge percentage of traders lose money?

Terrible money management and even worse trading psychology. Most of their technical analysis isn't any good either, but that's not the main reason why they're losing.

There are new online prop firms cropping up all the time. When do you believe someone should make the move to trade a larger capital base?

After all the testing is done. Backtesting, forward testing, real-life testing. Not only do you need to see how well your system performs over time, but there are huge emotional shifts you're going to go through when you make the move from fake money to real money - and then again from real money into somebody else's money.
If you go too fast here, you're going to screw it up and ruin your chance. Once the curtain goes up, it's showtime, and if you left any of these steps out, you're going to get exposed. Go slow. Do it right. It's worth it.

You often hear traders saying you need to put the time in to become a consistently profitable trader - but where should a trader be putting in the most time? 

The hands-on part is ultimately the most important, but if you're not learning from a source which focuses heavily on money management and trading psychology, it's all going to let you down in the end.
Vet your learning sources out before just blindly diving into one. You're going to be investing a lot of time here, find one that makes sense instead of making empty promises.
Read the 8-Step Ultimate Trading Plan Checklist ⟶

Tags: Expert Q&As

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