What is the most important part of your trading strategy? Is it when you get into the market and which direction you enter? Is it when to exit the market with a profit? Or is it managing risk?

If you plan on being a trader for many years and trading for a long time without ever bankrupting your account and drawing the balance down to the level of a margin call, it is important to take steps to minimize any potential risk so that you never jeopordize too much of your account balance on a single trade.

Trading with stop-loss orders is the most important part of your continued survival as a forex trader, and one of the best ways to identify optimal stop loss order levels is to look for strong support and resistance lines and put your stop a few pips above or below these levels, depending on the direction of your trade.