Mental Stop-Loss

In contrast to a stop-loss order, a “mental stop-loss” means a trader has a downside exit price in mind, but doesn’t actually place a trade. Some active traders prefer this approach to allow for wiggle room based on price-action and activity before their mental exit price (on a bad trade) is reached. Traders may also avoid placing stop-loss orders because they are a common target of funds that like to trigger stop-losses to bolster the movement of their trade.