65-Day Academy · Day 30 · Risk & Position Sizing
The Discipline Layer — Moving Stops
The only legal moves
Stops may move IN YOUR FAVOR (trailing up as higher lows form — locking gains) or by explicit NEW analysis with recalculated size. Stops may never move AWAY from price to "avoid" the hit: that single act converts a defined 1R loss into an open-ended one and is the mechanism behind nearly every blown account.
Why the rule exists
The stop was set by your calm, pre-trade self using structure. The urge to move it comes from your in-trade self under loss-aversion (day 35) — a worse decision-maker with money on the line. The rule is a pre-commitment device: it removes the worst version of you from the decision.
What you'll practise
True or false: widening your stop during a losing trade is acceptable if your original analysis "still holds."
10 XP in the app · introductory
Sources
- Trading in the ZoneMark Douglas
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All lessons are for educational purposes only and are not individualized financial advice, a recommendation, or a solicitation to buy or sell any security. Options involve substantial risk and are not suitable for every investor.