Moving a stop is loss aversion in action

[Amanhasnoname]

A stop gets moved farther away because the pain of taking the loss feels worse than the risk of a bigger one. The logic sounds reasonable in the moment, perhaps price is about to turn, but the pattern is destructive.

A stop is a decision made when the mind was calm. Moving it means replacing that decision with one made under stress, usually a worse one.

Tracking stops that were moved and comparing the outcomes with trades where stops were honoured tends to show a clear gap. Moved stops lead to larger losses on average.

A strict rule helps: stops may be tightened but never widened. Some traders go further and place the stop at entry with no ability to modify until the trade closes.

The discomfort of taking small losses is the price of survival. Learning to tolerate it is a core part of the job.

Is there a rule against widening stops, and how often has it been broken?