If there is one things that is becoming a theme in this series is entry and exit points. Stop Losses and Take Profits are simply predetermined exit points. as discussed in previous entries some a major pitfall for new traders is not being willing to admit that they made a bad trade. when you put a stop loss on a trade and the trade market begins to approach that level its usually a good idea to leave the order alone. In many instances removing that stop loss can cause the trade to fall even further. When using a stop loss you can think of it as your safety net, ie. how much are you willing to lose on a give trade. are you comfortable risking 50 pips? 100 pips ? if you think that you are going to win on EVERY trade that you ever make you are wrong. One of the keys to successful trading is knowing when to cut your losses and get out of a bad trade.