Sometimes I place a loss limit of one hundred pips for an entry just a place to get your destination 10 points. Because I obeyed principle number one before. Not risking in the process when I can Odharb for the long term and I have room to move towards an agreement? The bottom line: You are putting a loss to a certain level so that if the market moves wider, you are safe if you lose your money and believe in the level of loss.