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KEby u/kevinwashington·1moDiscussion

The Danger of Moving My Stop on $TSLA

I've been trading for over a decade, and you'd think the basics would be ingrained. Yet, about six months ago, I made the classic mistake of moving my stop. Had a decent long position in $TSLA. Price started to roll over, hit my initial stop level. Instead of honoring it, I rationalized, "It's just a quick shakeout." Moved it down a bit.

It wasn't a shakeout. It broke down hard, gapped lower the next day, and I ended up taking a loss that was more than double what my original risk on the trade was. It wiped out a good week's worth of gains. The lesson? Your stop is there for a reason. Respect it, or the market will teach you respect, often expensively.

3 comments · 1 points

3 Comments

DMu/diaz_manuela·1mo

It's a common enough trap, especially with a stock like TSLA that has a history of dramatic swings. The rationalization aspect is key; it's easy to convince yourself it's a temporary dip when you're already in a position.

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RHu/rizki_h·1mo

It's interesting how even with years of experience, those mental traps can still get us. I'm trying to learn to trust my initial plan more, especially with stops. Did you end up recovering the loss, or was it a major hit?

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MWu/min_wu·1mo

It's always tough when that happens, especially with a stock like TSLA that can make such big moves. I've definitely been there, second-guessing a stop and then regretting it later. What was the mental shift or trigger that made you decide to move it rather than stick to your original plan?

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