The world's greatest trader has a useful and simple trading law - "Crocodile Principle". The rule stems from the swallowing mode of the crocodile: the quarry is trying to struggle, the more the crocodile gains. Assume that a crocodile bites your feet, if you try to break your feet with your arms, its mouth will bite your feet and your arm. The more you struggle, the deeper you will be. Therefore, in case the crocodile bite your feet, be sure to remember: your unique life opportunity is sacrificed a foot. If the language is expressed in the futures market, this principle is: When you know that you have made a mistake, it immediately came out! Can you find an excuse, reason or expect, hurry to leave! The necessity of stop loss and unpredictability are the most fundamental characteristics of the market. This is the basis of the market, and is the reason for the risk of risk in the transaction, which is a non-changeable feature. There is always no determinism in the transaction, and all analytical predictions are just a possibility. The transactions based on this possibility are naturally uncertain. Uncertain behavior must have measures to control the expansion of their risks, stop loss This is produced. Stop loss is naturally generated in the transaction process, not deliberately, is an entry of investors to protect their own instinct, and the uncertainty of the market has created the necessity and importance of stop loss. Successful investors may have their own different trading methods, but the stop loss is the common feature of them to obtain success. The World Investment Master Sorros said that investment itself has no risk, and it is risky investment. Learn to stop, don't talk to losses. The stop loss is much more important, because at all times, it is the first, the profit is the second, and the establishment of a reasonable stop loss principle is quite effective. The core of cautious stop loss is not allowed to continue to expand. Why is it difficult to stop the loss of stop loss? However, this is not the final result. In fact, investors set up a stop loss rather than the example, the tragedy that is swept away is almost staged almost every day. Why is stopped? There are three reasons: one, lucky psychology. Some investors also know that the trend has been broken, but because they are too hesitant, always want to see it again, wait until the first, lead to the good time to miss the stop loss; its second, the price of frequent fluctuations will let investors hesitate Not decregnated, the recurring misunderstanding will leave the investor to leave the memory, thus shake the determination of the next stop loss; its third, the implementation of the loss is a painful thing, it is a bloody The process is the challenge and test of human weaknesses. In fact, we can't determine that the right state is the correct state or the wrong state, even if it is profitable, we also have to decide whether it is immediately playing or holding a wait and see, not to mention it in a set. Humanity pursuit of greedy instinct can make every investor unwilling to win a few points, and you will not like to lose a few points. The programming stop loss is due to the above reasons, when the price arrives at the stop loss, some investors have lost the square, suffer from the loss, and the stop loss position is changed; some investors temporarily change, and they will add a position, trying to be alone. To recover the loss; some investors have simply adopted the "ostrich" policy after the loss expanded. In order to avoid these phenomena, the author believes that the programmed stop loss strategy can be taken. The international futures exchange usually provides stop loss instructions. Traders can set a price in advance. When the market price reaches this price, the stop loss command will automatically take effect. The domestic futures exchange currently has no stop loss instructions, but can use advanced futures trading tools, which is currently helping investors' simple and effective ways to strictly perform stop loss.
