Mental Stops versus Hard Stops
If you're designing your own trading system, you'll need to decide whether to use hard stops or mental stops. Let's have a look at this argument from ...
mental stop - a reminder to reevaluate a stock if it falls to a specified level. The reminder can be a visual flag in an online portfolio or an e-mail message from the Web site that maintains the portfolio.
Mental Stop-Loss
A stop-loss order kept in your head instead of instructing your broker.
MESA
See Maximum Entropy Spectrum Analysis.
Using Mental Stops
Many traders prefer mental stops for protection. Some traders feel that by having a stop order resting on the floor, they are vulnerable to a run on their stop, and in many cases, they are correct.
mental Stop Loss if you prefer.
NOTE: As an alternative, you may also choose to place a Stop Loss or exit the
trade manually when the price crosses above the Middle or Upper Bollinger ...
When you use mental stops, there are two other considerations which you must ponder when placing your protective stop. They are: Your speed in placing the order, and the speed at which your broker can place the order. Let's look at each.
Only then would mental stops be okay to use, but we still HIGHLY recommend limit orders to exit the majority of your trades.
You can use a hard stop or a mental stop. A hard stop is when you set your stop loss at a certain level as you initiate your trade. A mental stop is when you set a limit to how much pressure or drawdown you will take for the trade.
So how can you market panic planning for intraday traders help you? Well, 1) instead of using mental stops, think about using an actual stop loss order and then if you want to exit sooner, ...
Note: I knew a trader that held to the concept of "mental stops".
He was lucky for a while, but when a power outage hit in his part of New York City, he couldn't get through to the floor.
A physical stop loss is an order to sell (or buy if you are short) that you place with your broker. A mental stop is YOU clicking the sell (buy) button to get out of the trade. From a technical perspective, it does not matter which type you use.
I've never placed a market order on a short sale, and don't recommend it under any circumstances. I use mental stops 90% of the time, because I'm in front of my screen all. I trust myself to take an exit when the time comes.
Don't use mental stops! Set it up on your trading software, and walk away!!!! If not, you will start second guessing yourself and the whole trading process becomes emotionally based. That is not trading, that is gambling!!!! ...
Some may not necessarily implement stop loss in their trading system, but they may choose to set a mental stop loss for themselves.
375, which is approximately 8% below $120. The stop keeps rising as long as the stock price rises. In this manner, you follow the rise in stock price with either a real or mental stop that is executed when the price trend finally reverses.
This approach works well with shares that behave in a normal way and if you are disciplined enough to stick to your mental stop losses.
Even though a stop loss can activate a sell order, the exact specified price may not always be realized due to market volatility, but it is a useful risk management tool and setting an maximum amount to lose is a must, whether using a mental stop or ...
In other words, have a real or mental stop-loss price and get out. Trend, Trend Direction(s) This is a verbal summary of portfolio status for the week, either "Up" or "Dwn.
 See also: Trading, Market, Stop, Trader, Chart
  
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