The decision between using a physical stop loss order or relying on a mental stop for managing trades depends on individual trading strategies and risk tolerance. Each approach has its own benefits and considerations.

In my opinion, traders should consider using physical stop loss orders to avoid unexpected market moves and mitigate the impact of heavy emotions. In fast-moving markets, where price fluctuations can be rapid and emotions can run high, relying solely on mental stop losses may not provide the necessary speed and efficiency to limit potential losses. By setting a specific price at which the trade will be automatically exited, physical stop loss orders provide a structured and immediate response to adverse price movements. This systematic approach to risk management helps protect traders against significant losses and allows them to maintain discipline in their trading strategy. Utilizing physical stop loss orders ensures that trades are managed according to predetermined plans, reducing the influence of emotions or subjective judgments during volatile periods. Overall, I believe that incorporating physical stop loss orders can provide traders with a sense of security, improve their ability to react swiftly to market changes, and help them navigate the markets more effectively.

Alternatively, relying on a mental stop involves monitoring price movements and making discretionary decisions on when to exit a trade based on personal assessment of market conditions. This approach offers flexibility and allows for subjective judgment in trade management. However, it requires constant attention and discipline to execute the stop loss at the appropriate time, especially during volatile market conditions. While some traders prefer the freedom and flexibility of mental stops, others, like myself, feel that using physical stop loss orders can help avoid unexpected market moves and maintain discipline in their trading.

Ultimately, the choice between a physical stop loss order and a mental stop depends on individual trading styles, risk management preferences, emotional biases, time availability for monitoring the markets, and adherence to trading plans. Considering my opinion, if you believe that using a physical stop loss order can help you avoid unexpected market moves and maintain discipline in your trading, it may be a suitable choice for you.

It is important to note that trading in financial markets carries inherent risks, and stop loss orders or mental stops do not guarantee protection against all losses. It is advisable to thoroughly research and understand the risks involved in any trading strategy and seek guidance from a qualified financial professional, if needed.