What is a Mental Stop Loss?
Mental stop loss is that stop that you are supposed to have in place, but you usually don’t. Mental stop loss is one of the biggest detriments to successful trading.
This is also the level that you are bound psychologically to get out of a losing trade.
Example: Let’s imagine you place a long trade on the EURUSD at 1.1000. Your mental stop loss is at 1.0000, which is 100 pips below.