Here are the ten forex trading fundamental landmines that almost any trader falls for. Compare your trading method with the writing below. If you don’t follow the most or even all of them- you are in a very risky position regarding any forex transaction.

A) Raise your time perception – If you are not a professional forex trader, you should only look at price chart which the time frame is over 60 minutes for planning any trades. Any less than that you will get confused and lost with all the random numbers and statistics crossing in front of you.

B) Cut your position amount to 5 percent maximum- It is very risky and even stupid to put more than 5 percent of your capital into one transaction.

C) Wait after making a trade – give your trade some time to work, the forex market changes in very dramatic moves. Make sure that it’s really in a bearish movement before closing a trade, a stop loss can kick you out of the trade right before it turns in your direction.

D) Add more flexibility to your account – if you’re whole amount is less than $50,000 you should ask your broker for permit mini-lots.

E) Don’t trade more than two currency pairs at the same time – Beside that, stick with the major currency pairs and avoid trading the more exotic crosses. The currency pairs value changes mainly according to fundamental data and reports. If you want to forecast their movement you need to follow basic information from each country involved. Trading too many currencies will make it hard to follow all the statistics and fundamental data from each county. The best way for an individual forex trader is to get experience on one- max. two currency pairs.

F) Trim down your reliance on technical indicators – Always remember that technical indicators get their data from past events. They have no ability to forecast the future. The big forex traders use those indicators for forecasting the market, not by what they say- but by how they think the traders will react to the indicators.

G) Be aware to future releases of economic reports and statistics – prepare yourself before any data that is pending release. The recommended strategy is to exit your position before major report releases. The reports can often affect the market by large and sudden trends, even if momentary but still noticeable.

H) Find out the trend direction and get aboad – The best way to trade currencies is by trying to forecast potential trends and market movements. You don’t need to catch big movements; it is enough to recognize a small price movement to see the big picture and to invest accordingly.

I) Do not be greedy, know when to collect a profit – The forex market is very unstable. You can see a certain trend that can flip back in matter of minutes. So a winning position probably won’t stay winning for long- don’t hesitate to take your profit at approximately 25 pips. The advantage of trading the forex market is that due to being unstable you are able to average into and out of positions by numerous entry and exit points for the same position.

J) Do not believe the so-called forex “Gurus” – Don’t believe anything you hear. There are too many “Gurus” that offering you their opinion by saying they can forecast the market. They are only giving you their opinion and nothing more; even though they can show you a lot of data, trust only your own instincts.

Guest post written by Liam Winter from http://www.besteuroexchangerate.com/