Every forex trader should commit to always using a stop loss because survival matters more than being right. The forex market is highly leveraged and unpredictable. Prices can move sharply due to news, low liquidity, or sudden sentiment shifts. A stop loss defines risk in advance and ensures that one bad trade does not wipe out weeks or months of effort.

Using a stop loss protects trading capital, which is a trader’s most valuable asset. Without capital, there is no opportunity to recover or improve. A stop loss limits losses to a predefined amount, keeping drawdowns manageable and allowing traders to stay in the game long enough for their edge to play out. It also prevents emotional decision-making, such as holding onto losing trades out of hope or fear.

Stop losses support discipline and consistency. They force traders to follow their plan rather than react impulsively to market noise. Over time, this consistency leads to better performance and clearer evaluation of what strategies actually work. Even experienced traders are wrong frequently, and a stop loss accepts that losses are part of the business.

Most blown accounts share one common mistake: trades left unprotected. A stop loss turns uncertainty into controlled risk. It does not guarantee profits, but it guarantees survival. In forex trading, survival is what makes long-term success possible.