Nowadays, online forex trading is quite popular for it serves as a pretty good way to diversify a portfolio for traders. To do online forex trading successfully in the volatile forex market, it is paramount for traders to use proper ways to minimize their risk exposure while maintaining profit potential. Currency ETFs is a pretty good choice for it can simplify your onlineforex trading greatly and help hedge against potential risk. Forex online trading has obviously become the prevailing financial investment method for traders who want to maximize profits as much as possible. What is interesting is that almost 95% of the traders involving in the market are not able to have their expectation achieved. Definitel y that all traders want to be the top ones who can earn profits, then how they can do Forex online trading well with minimal losses? Here are generally some pips for your reference.
No.1: Start from demo account When Going for Real
Once a trader has done his or her homework, spent time with a demo forex account and has a trading plan in place, it may be time to go for real – that is, start trading with real money at stake. No amount of practice trading can exactly simulate real trading, and as such it is vital to start small when going live.
Additionally, a trading plan that performed like champ in back testing results or practice trading could, in reality, fail miserably when applied to the realforex market. By starting small, a trader can evaluate his or her trading plan and emotions, and gain more practice in executing precise order entries – without risking any of their hard earned money.
No.2: Find a Reasonable Leverage

Forex online trading is unique in the amount of leverage which is unavailable in any other financial markets. One of the reasons forex is so attractive is that traders have the opportunity to make potentially large profits with a very small investment – sometimes as little as $50. Leverage can bring traders great amount of profits if they are used properly but can also bring unexpected huge losses as well. A trader can control the amount of leverage used by basing position size on the account balance. While the trader could open a much larger position if he or she were to maximize leverage, a smaller position will limit risk.
No.3: Good Records are vital factors
A trading journal is an effective way to learn from both losses and successes in forex online trading. Keeping a record of trading activity containing dates, instruments, profits, losses, and, perhaps most importantly, the trader's own performance and emotions can be incredibly beneficial to growing as a successful trader. When periodically reviewed, a trading journal provides important feedback that makes learning possible. Without a trading journal and good record keeping, traders are likely to continue making the same mistakes, minimizing their chances of become profitable and successful traders.
No.4: Treat Trading As a Business
It is essential to treat forex online trading as a business, and to remember that it does not matter if you are suffering losses-remember it may just happen in the short term; it is how the trading business performs over time that is important. As such, traders should try to avoid becoming overly emotional with either wins or losses. As with any business, forex online trading incurs expenses, losses, taxes, risk and uncertainty. Also, just as small businesses rarely become successful overnight, neither do most forex traders. Planning, setting realistic goals, staying organized and learning from both successes and failures will help ensure a long, successful career as a forex trader.
Forex online trading is attractive to many traders because of its low account requirements, round-the-clock trading and access to high amounts of leverage. In conclusion, traders who want to do Forex online trading well have to be fully prepared in order to minimize losses as much as possible.