A mental stop is when a computer order is not placed to exit a trade for us, but instead we leave the position open with no offsetting order to control our loss. A stop order
is not placed, but the trader still has a level in mind where he or she will exit a losing position (or a winning position using a trailing mental stop).
A soft stop can also refer to a mental stop that is not at a fixed price. The trader may have a range
of values in mind where he or she will exit based on market conditions.
As opposed to a Hard Stop
See also: http://www.streetdirectory.com/trave...cal_stops.html