Problem
Instead of taking the loss when your stop is hit, you move it further away. “I’ll just give it more room,” you tell yourself. But the loss grows bigger and bigger.
Cause
- Denial: unwillingness to accept being wrong.
- Hope bias: believing the market must turn back.
- Loss aversion: the brain hates realizing a loss.
How the Brain Works
- Loss aversion bias means losing €100 hurts twice as much as winning €100 feels good.
- The brain avoids pain → delaying the stop is like “postponing” the pain.
- In reality, it multiplies it.
Real-Life Example
Jonas places a trade with a -30 pip stop. Price goes against him, so he moves it to -60, then -100. Eventually, he blows 5% of his account on a trade that should’ve cost only 1%.
Practical Solutions
- Set & Forget – once stop is set, don’t touch it.
- Auto Stops – use platform hard stops instead of manual mental stops.
- Journal Expanded Losses – track how much larger losses become when stops are moved.
- Reframe Stops – see stop-loss as protection, not failure.
Key Takeaway: Moving stops turns paper cuts into deep wounds 🩸. Discipline with stops keeps you alive.