"Losses" are an inevitable part of trading and investing for investors, and almost all traders will face losses. Trading profit is only temporary, loss is the main theme, and how to face losses, but investors are divided into different looks.

What would you do if your general investment account lost money? Generally speaking, there are three attitudes:

1. Be an ostrich, turn a blind eye and let nature take its course.

2, low cover, diluted cost,

3. Admit your mistake and walk away.

The first attitude is very common, and many investors are reluctant to check their accounts once they find that their trades have lost money, and choose to escape, and the results are predictable.

The second is one that many investors are very keen on. Many investors have this investment logic, operating the quilt, but not willing to admit defeat, even the most experienced traders can be affected by emotions. However, these negative emotions can lead traders to make illogical decisions and take revenge trading, and the result is often the deeper the set, the mentality will also collapse, the operation will become deformed, and the small loss will become large loss.

The third attitude, finding that they have a loss after a trade order, the courage to admit their mistakes, and promptly correct the mistake decisively stop the loss to leave the market, which is often proved to be correct, but only a few people can overcome the human nature of avoidance and fluke psychology. In fact, the world's successful traders have a common principle known as the "crocodile rule". What is Crocodile Law? It means: Suppose a crocodile bites your foot, if you use your hand to try to free your foot, the crocodile will bite both your foot and your hand. The more you struggle, the more you get bitten. So, in case the crocodile bites your foot, your only option is to sacrifice one foot. Apply this rule to the market, that is, if the trading mistake leads to losses, and the losses are still expanding, and continue to exceed your expectations, then the correct approach is that you should leave the market as soon as possible, let alone try to spread the cost by covering the position and adding the position.

In fact, if investors want to make profits, they can make small losses, but they must not make big losses, and in order to do this, it is particularly important to strictly set and implement stop losses.

It may be easy to stop a few orders, but what if you make a series of mistakes and need to stop your losses? Almost all traders have suffered, in that period of time can not follow the rhythm of the market, repeatedly failed.

When you suffer continuous losses, you must not redouble your efforts to try to recover the losing game and turn the situation around.

When a trade gets worse, the best solution is usually to liquidate the position altogether (or to protect the position by setting a stop loss, which eliminates the need to make a trading decision, and then to stop trading for a few days or longer.

Because clearing out your position restores your objectivity.

If you stay in the market and continue to trade, you will not be able to remain objective.

Because each loss makes your self-confidence further collapse, so continuous losses can make you produce negative emotions, depressed will and flagging spirit, at this time through the physical rest can eliminate all negative and negative effects. Emotional trading is the reason why most people fail in the market, and being swayed by your emotions can leave you vulnerable to greater risk for no reason.

When you take a break and start trading again, keep your trading size small; Until you regain confidence, you increase the size of the deal.