设立止盈止损时的小技巧（Tips for setting up margin stops）.doc

设立止盈止损时的小技巧（Tips for setting up margin stops） 1, the law of trade - Crocodile principle: So, since we mentioned earlier that risk avoidance is the last word, then how should we effectively control the risk? Introduce a universal crocodile principle; the worlds greatest trader has a useful and simple rule of trading - the crocodile principle. The law stems from the way crocodiles eat: the more prey they try to struggle, the more they gain. Suppose an alligator bit you on the foot, and if you tried to break it off with your arm, its mouth bit both your foot and your arm. The more you struggle, the deeper you fall. So, in case the alligator bites you, remember that your only chance to survive is to sacrifice one foot. In the language of the futures market, the principle is: when you know youve made a mistake, finish it immediately! No more excuses, excuses or expectations. Get out of here! Of course, this is just a theory of trading psychology, the most important thing is our application of stop profits and stop loss. This is the most important weapon for avoiding risks and protecting our profits. 2. What is stop loss? What is the need for it? (1) what is stop loss? Volatility and predictability are the most fundamental characteristics of the market, which is the basis of the existence of the market, but also the cause of risk in the transaction, which is an indispensable feature. There is always no certainty in the transaction, and all analyses are only a possibility. Transactions based on this possibility are naturally uncertain, and uncertain actions must be taken to control the expansion of their risk. Stop loss is thus born. (2) comparison of stop loss: Stop loss occurs naturally during trading and is an instinctive response by investors to protect themselves. The uncertainty of the market creates the need and importance of stop loss. Successful investors may have different ways of trading, or trading systems. But stops are a common feature to ensure their success