The forex market is an investor’s dream come true. Many people have left high-flying careers to start making money in forex trading and become full time traders.

Sadly, just as many have lost their fortunes and bankrupted themselves in the same forex market. So what makes the difference between successful forex traders and failures?

There are a few essential things that successful traders live by to achieve and retain their long term success and achieve financial independence.

Study the Market

There are very many success stories about people who achieved financial freedom from the forex market. Some of them never went past high school, some started with a forex account of just a few thousand or even hundreds of dollars.

This may lead some beginner traders to think that trading on the forex market is easy. Well, they are right it is easy to make money from forex trading, and it is just as easy to lose all your money.

However, making good profits sustainably on the forex market is NOT easy at all. It involves a lot of study and patience.

It involves gaining knowledge and going through varied experiences. Part of a trader’s experiences is suffering losses.

To minimize the effects of such experiences and avoid wiping out your forex account, a trader has to learn all the intricacies of the market.

Learn what makes the market tick, the common terminologies used by forex traders, and how to make the best trades with the highest possibilities of profit.

Learn the Trade

Trading in the forex market takes continuous education. One has to learn what strategies are profitable. Learn how to conduct accurate market analysis and how to generate market signals. This site, www.forextradingbig.com, is equipped with lots of resources to enable you achieve this.

To make your forex trading sustainable in the long term, the trader should find out which brokers to use.

A good broker makes all the difference on your long term profitability and whether you will survive in the currency trading market.

Click here to read a review of some of the best brokers in the market.

Manage Your Risks

Every successful businessman and investor knows that one should always know what s/he stands to lose before counting any expected profits.

Calculate your risks before you make any trade orders and only enter into trades with a favorable risk to reward ratio.

One thing you should learn very early as a forex trader is that you may be the best trader in the world, with 99.9% of your predictions being accurate and making you huge profits.

But if you do not have a practical and reliable risk management strategy then all it might take is one losing trade and your whole account is wiped out.

A poor risk management strategy can not only wipe out your currency trading online account but can land you in debt and financial ruin.

Stay Informed

To maintain your forex growth, you need to keep abreast of what’s going on in the forex market constantly.

Get access to a constant flow of FX market news and news of any other related events.

Follow blogs from forex experts and be keen on major bank and government activities.

Keep watch over price trends whenever you can and either generate trade signals or find a reliable signal provider to keep you updated.

Accept Your Losses

Pride comes before a fall, and that is why you should not stubbornly stick to your pride when trading forex.

To make money from forex trading and achieve financial freedom, you need to accept your losses and move on. Every trader should realize that some of the trade s/he makes will come to a loss. Do not hold on too long to a losing trade in the hopes of a price reversal.

Price movements indeed do reverse at times on trades that you would previously have thought to be loss-makers.

However, if your trade strategy determines a point for placing a stop order, you should not shift your stops in the hopes of some miracle to rescue your trades.

That is simply the way the market works. You will not be profitable on every trade you enter into and the earlier you realize and accept that the better.

Master Your Emotions

Human beings are emotional beings and that is a good thing, most of the time. However, when it comes to forex trading, there is no place for emotions. Emotions such as greed, fear, and hope are the primary enemies of beginning traders.

Greed is an especially strong emotion for traders and the hardest to fight. It is what makes traders lose focus and chase profits that are beyond the trading strategy or even go against it. Greed makes a trader hold a winning position too long till it turns into a losing position.

Fear is the second worst emotion for a forex trader. It makes most currency traders develop inertia and the result is the trader missing many advantageous opportunities for profits.

Fear also makes a trader exit a winning trade too early in fear of losing what has been gained. To be highly successful and gain financial independence through forex trading, one should learn to rein in all emotions and trade on facts only.

Master One Strategy and Stick to It

If you want to gain your financial freedom by trading in the forex market, you need to have a plan for each and every trade you enter.

The best way to do this is to use a demo account extensively and develop a profitable working strategy.

With time, you will find a strategy that works well with your individual currency trading style.

Once you have developed a strategy that works well for you, trade it on your live account. Do not let greed or fear sway you from following your strategy. Be very careful when making any changes to your chosen strategy.

Photo credit: FxAffaan