The Crocodile Rule

The original meaning is that if a crocodile bites your foot, if you use your hand to try to free your foot, the crocodile will bite your foot and hand at the same time. The more you struggle, the more you will be bitten. So, if a crocodile bites your foot, your only option is to sacrifice one foot.

For example, in the stock market, the crocodile rule is: when you find that your transaction deviates from the direction of the market, you must stop the loss immediately, without any delay and without any fluke.

Investment objective is to preserve capital while providing higher yield. Time cost is also a crucial factor that you must consider.