Why Moving Your Stop Loss Is Costing You More Than You Think
Price is a few ticks from your stop. Your finger hovers. And then you do the thing you swore you’d never do again — you drag the stop lower, just to give it “room to breathe.”
You didn’t just move a line on a chart. You made a decision. A worse one than the decision you made an hour ago, when you set that stop with a clear head.
Here’s the part nobody tells you. The stop you set before the trade is the smartest version of you that will exist for the entire life of that position. You had no money on the line yet. No adrenaline. No sunk cost whispering in your ear. That version of you looked at the setup and said: if it gets here, I’m wrong. Then the trade opened, and every second after that made you dumber.
Terrance Odean studied 10,000 brokerage accounts and...
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