The main meaning of crocodile effect, the so-called crocodile effect, should be heard by many people. The main meaning is: the crocodile bites your foot. If you push it away with your hand, it will bite your hands and feet. The longer you wait, the more parts you will eventually be bitten. So when a crocodile bites you, it can only sacrifice its own feet first, and then it can save its life.
But unfortunately, human nature is inherently flawed in life, and sometimes it will inevitably affect people's operations. Even if the front has been constantly winning, if you accidentally suffer losses, the top 99 profits will be buried inside. The central meaning of crocodile effect is to stop loss in time.
The crocodile effect is related to the stock market. Like the wallet paradox, the crocodile effect is also related to gambling. Of course, it is not necessarily the same as stock market gambling. In the market, it is always changeable and unpredictable. Sometimes it's best to get out in time if you feel something is wrong, and don't think about the opportunity for change.
Of course, having said that, very few people can really do this, otherwise so many people will go bankrupt every year because of the stock market.
The real meaning of timely stop loss
Stop loss is not an intentional act, but for some investors to better protect themselves and protect their interests to the maximum extent. Because the market is very uncertain, there will be all kinds of accidents. Only by stopping losses in time can we finally seize the opportunity and become stronger.
However, although everyone basically understands the truth of timely stop loss, there are still relatively few people who can really do this. Only a few people can keep their basic rationality, and these people will be the ultimate winners.
In the stock market or other investment markets, investors should learn to understand the crocodile effect and make rational judgments at critical moments, so as to obtain the final income.