One of the biggest things in trading is the placement of Stop Losses in your trades. Part of any money management system, Stop Losses orders bring discipline to Forex traders. Any Forex trading strategy starts with planning. To manage future Forex trades, traders plan both the entry and the exit. While the aim is to profit from every trade, the reality tells a different story. Losses are part of the trading game. And, they happen quite often. The secret is to manage them. Or, how to react when they appear.

Many traders do not fully understand when it is safe to enter a trade, so they often get into the market at the wrong time, and a stop loss is used to limit their losses if the trade moves against them. A great deal of trading education and material that is shared with learning traders focuses on finding the right places to enter trades. The entry is very important, but good trade management – i.e.