My Top 20 Online Trading Currency Pitfalls (EMBARRASSING!)

11: Moving Stop Loss Order

Oh man! How many times I’ve moved my stop loss just because I didn’t want to suffer a trading loss. I’m guilty of this.

Moving your stop-loss order to avoid being stopped out is almost the same as trading without a stop loss in the first place. Worse, it reveals a lack of trading discipline and opens a slippery slope to major losses.

If you don’t want to take a relatively small loss based on your original stop loss, why would you want to take an even larger loss after you’ve moved your stop?

If you’re like most people, you won’t — and you’ll keep moving your stop to avoid taking an ever-larger loss until your margin runs out.

Move your stop loss only in the direction of a winning trade to lock in profits, and never move your stop in the direction of a losing position.

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