Stop Losses – My Biggest Downfall
September 21, 2025
One of the most common questions I get through my webinars relates to difficulties in sticking with stop losses.
Some traders don’t place a stop in the market at all, promising themselves they’ll exit manually at a certain level — but when price gets there, they always find a reason to stay in “just a little longer.”
Others place a stop at entry but later remove it, convincing themselves the trade will turn around.
This is such a common issue that when I received yet another message this morning — “Sticking to stop losses is my biggest downfall, any suggestions?” — I decided to share my full answer here.
Why Traders Break Stops
Firstly, don’t beat yourself up. Difficulty in sticking to stops is a universal trader problem. If you’ve recognized it early in your journey, you’re already ahead.
The root cause usually isn’t ignorance. Most traders understand stops are necessary. The real problem is fear:
- Not just fear of losing money on a single trade,
- But fear of ultimate failure as a trader,
- Fear of what that would mean for your self-image, your family, or your friends.
So even with good intentions, traders remove stops as price nears them. After all, markets are uncertain — maybe it will bounce back. And it’s easy to find technical, fundamental, or opinion-based “reasons” to justify holding on.
The truth? Until you learn to manage decisions despite emotions (not suppress them), this cycle will continue.
How to Fix It
Here are five practical ways forward:
1. Build Confidence in Your System
Thoroughly backtest and forward-test. When you know your edge is real, you’ll accept small losses as part of the process.
2. Compare Results With & Without Stops
Review your historical trades. See how account survival would have looked had you ignored stops. Just one or two “never came back” trades will show you the true danger.
3. Always Place Stops in the Market
If your broker doesn’t allow OCO (entry + stop + target) orders, switch brokers. Having a stop physically in the market is better than relying on willpower.
4. Follow a Documented Trading Plan
Write a clear plan with a step-by-step checklist for entries, management, and exits.
Sample Checklist:
- ✅ Stop placed at entry
- ✅ Position size matches risk rules
- ✅ No exceptions to stop removal allowed
- ✅ Review decision as both Trader and Boss (would your risk manager approve?)
5. Use an Accountability Partner
Share your trades with someone you trust. Show proof that you followed your rules. Create a consequence for breaking them. The fear of embarrassment often outweighs the fear of loss.
Final Thoughts
Overcoming the stop-loss problem is not about becoming emotionless — it’s about putting structures in place that keep your rational side in charge when emotions surge.
Your job is not to avoid losses.
Your job is to survive them — so you’re still there when the winners come.