Explanation of nouns \ x0d \ x0d \ This is one of the technical rules of economic transactions, which means: suppose a crocodile bites your foot, and if you try to get rid of your foot with your hand, the crocodile will bite your foot and hand at the same time. The more you struggle, the more you get bitten. So, in case a crocodile bites your foot, your only way is to sacrifice one foot. \x0d\ Because of the inherent weakness of human nature, it always affects our operation unconsciously. A big loss is enough to lose 99 times of the previous profit, so strictly observing the stop-loss discipline has become the only rule to ensure investors' survival in the risky market. Stop loss is a basic skill of securities investment. \x0d\ is also a useful and simple trading rule in the American investment community, that is, the "crocodile principle". All the successful securities investors in the world are training their understanding of this principle repeatedly before entering the market. This stems from the way the crocodile swallows: the harder the prey struggles, the more the crocodile gains. Suppose a crocodile bit your foot; It bites your foot and waits for you to struggle. If you try to get rid of your feet with your arms, its mouth will bite your feet and arms at the same time. The more you struggle, the deeper you get. So, in case a crocodile bites your foot, remember: your only chance of survival is to sacrifice a foot! \x0d\ Edit this paragraph \x0d\ Handling method \ x0d \ x0d \ If expressed in the language of the market, this principle is: when you know that you have made a mistake, you should leave immediately! Don't make excuses, expectations, reasons or take any other actions, and leave quickly! In fact, the trading skills of stock market, foreign exchange market and option trading are similar in this respect. The survival of the securities market sometimes requires patience and sometimes confidence, but patience and confidence do not mean luck. Don't investors who don't know how to stop losses just lose by luck? \x0d\ For example, in the stock market, the crocodile principle means that when you find that your trading deviates from the direction of the market, you must stop immediately, without any delay or luck. \x0d\ When you know that you made a mistake, quit the game immediately! Don't make excuses, expect, pray or take any other action, leave quickly ... Don't try to adjust positions, hedge or take other unnecessary measures, and admit the loss quickly!