How to stop losses when trading stocks: The world's greatest traders have a useful and simple trading rule — the "Crocodile Principle." This principle stems from the way crocodiles eat their prey: the more the prey struggles, the more the crocodile gains. Suppose a crocodile bites your foot; if you try to free your foot by using your arm, its jaws will then.....
(注:此处省略部分内容可以根据上下文进行补充,例如描述鳄鱼原理的完整逻辑以及如何应用到股票止损中。)
The principle essentially highlights that once a loss begins in trading (like the crocodile biting), attempting to recover by further risking can lead to greater losses. Instead, one should cut losses early and avoid escalating commitment to a losing position.