设立止盈止损时的小技巧（Small tips for creating stop-stop loss）.doc

设立止盈止损时的小技巧（Small tips for creating stop-stop loss） 1. Trade law -- crocodile principle: So, since the previous article mentioned that risk aversion is the hard way, how can we effectively control the risks? To introduce a universal crocodile principle; The worlds greatest trader has a useful and simple rule of trade - the crocodile principle. The law stems from the way crocodiles devour: the more they try, the more they gain. Suppose a crocodile grabbed your foot, and if you tried to break free with your arm, it would bite your foot and arm at the same time. The more you struggle, the deeper you sink. So, in case the crocodile bites your foot, its important to remember that your only chance of survival is to sacrifice one foot. In the language of the futures market, the principle is: when you know youve made a mistake, get out! No more excuses, reasons, or expectations, go away! Of course, this is just a theory of trading psychology, and the most important is our application of stop and stop loss. This is the main hedge against the risk of protecting our profits. What is the stop loss? What is the need for it? (1) what is stop-loss? Volatility and unpredictability are the most fundamental characteristics of the market, which is the basis of market existence and the reason for the risk arising from the transaction, which is an unchangeable feature. There is never a certainty in a transaction, and all analysis predictions are just one possibility. According to this possibility, the transaction is uncertain, the uncertain behavior must have the measure to control its risk expansion, the stop loss was born. (2) comparison of stop-loss: Stop loss is a natural reaction in the trading process. It is an instinctive reaction of investors to protect themselves. The uncertainty of the market creates the necessity and importance of stop loss. Successful investors may have different ways of trading, or trading systems. But stop loss is the common characteristic that guarantees