As part of any trade strategy and to preserve our trading capital for future trading. when trading forex online we always need to identify where to exit a trade if the market doesn`t move in the direction we expect getting out of a bad trade is a good option. Time has to be devoted to pinpointing that level as we need, always keeping in mind that a lot of short-term price action can be stop-loss driven.
We try our best to anticipate that key technical and price levels is what trading markets spend a lot of time doing. For this reason, we like to factor in a margin of error in placing our stops, based on the individual currency pair and the current market environment. No trader is right all the time, so getting stopped out is simply a part of trading reality. Traders who apply intelligent and disciplined stop-loss orders occasionally may suffer setbacks, but they`ll avoid getting wiped out, and they`ll still be around to trade the next day. Traders who fail to use stops, or who move them to avoid having them triggered, run the risk of getting wiped out if the move is large enough.