If you're trading the FOREX (Foreign Exchange Market), proper planning requires that you use stop loss orders. If your stop loss order is triggered, you are stopped out of your position.
Plan Your Losses
On the FOREX, you never want to lose more money than you can afford. Proper planning ensures that your losses stay within a range that you can handle.
Take Profits
Even winning positions require proper planning. If a winning position begins to go against you, you want to have a plan in place to exit your position and take your profits.
Stop Loss Order
Entering a stop loss order with your broker ensures that your position never goes against you more than you had planned. It is automatically triggered at a predetermined price, allowing you to safely exit a position whether or not you are at your computer.
Stop Out
When you exit a position using a stop loss order, it's called a "stop out." Stop Losses Are Universal Stop losses are used on all markets, including the FOREX. They are part of any profitable strategy.
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