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Stop discipline (sacred stops)
Why moving a stop is the #1 account killer.
9 min · Beginner
What you'll learn
- Explain how moving a stop away from price destroys expectancy
- Distinguish a forbidden stop move from a planned trailing adjustment
- Set up hard stop orders so the rule does not depend on willpower
Key takeaways
- The stop marks where the idea is wrong, and it is set before entry when you are objective.
- Never move a stop away from price; move it toward price only by a pre-written rule.
- One moved stop can turn -1R into -3R, and a habit of it can turn a +0.35R edge into -0.20R.
- Use real stop orders, ideally bracket orders, instead of mental stops.
- After a stop-out, any re-entry is a new trade with new size and a new stop.
Glossary
- Hard stop — A live stop order at the broker that executes automatically when price reaches it.
- Mental stop — A stop price that exists only in the trader's head, with no order placed.
- Bracket order — An order that places the entry, stop-loss and profit target together, so the stop is live as soon as you are filled.
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