What does set -e mean in a bash script?

From help set :

  -e  Exit immediately if a command exits with a non-zero status.

But it’s considered bad practice by some (bash FAQ and irc freenode #bash FAQ authors). It’s recommended to use:

trap 'do_something' ERR

to run do_something function when errors occur.

See http://mywiki.wooledge.org/BashFAQ/105