Most traders spend more time planning and contemplating entries than exits. While proper entries are important, most seasoned traders agree that trading success relies on how a trader exits their trades. A fact of forex trading is that most traders take their profits as a result of an emotional impulse instead of exiting the market at a pre-determined target or from a pre-planned exit strategy.

Forex risk management is one of the most debated topics in trading. On one hand, traders want to reduce the size of a potential loss, but on the other hand such traders also want to benefit by getting the most out of a single trade. It is no secret that in order to gain the highest returns you need to take greater risks. This is where the question of proper risk management arises.