Why we should not move our stop loss?

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
24
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Canada
Traders will often widen their stops to avoid being stopped out of a position (losing), because of the natural aversion to being wrong. Stops should be placed where they are for a reason and if so, should not be moved. Widening stops leads to greater losses and destroys the all important risk / reward ratio for the trade.