It is also possible to set the error action preference on individual cmdlets, not just for the whole script. This is done using the parameter ErrorAction (alisa EA) which is available on all cmdlets.
Example
try
{
Write-Host $ErrorActionPreference; #Check setting for ErrorAction - the default is normally Continue
get-item filethatdoesntexist; # Normally generates non-terminating exception so not caught
write-host "You will hit me as exception from line above is non-terminating";
get-item filethatdoesntexist -ErrorAction Stop; #Now ErrorAction parameter with value Stop causes exception to be caught
write-host "you won't reach me as exception is now caught";
}
catch
{
Write-Host "Caught the exception";
Write-Host $Error[0].Exception;
}