Last week, the week of the 400 point DOW meltdown, was the week I have had trading since 2000's Internet collapse. On Tuesday, I woke up discussing China's 9 percent fiasco and the worries of it carrying over to our markets. Certainly stops could be triggered. Where would the marketplace stop for a breather? It was anybody's guess. Being a lover of hard stops - I believed that my mental stop strategy would work in my favor. My preference is to place mental stops if triggered, and close out positions in the close. This is a technique that I use to select the emotions out of my trading strategy.
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