By the time he saw chapters 12 and 13 of "Memoirs of a Stock Dealer," Livermore was bankrupt again.

The bankruptcy made Livermore's situation very bad, Livermore's physical problems became nervous, and his mood continued to be low, and he could not think calmly.

This can't help but remind Zhang Yuanyi of himself in his previous life, those bad days, it turns out that misfortune is always similar, Zhang Yuanyi smiled bitterly in his heart.

From the first chapter to the thirteenth chapter, in Zhang Yuanyi's impression, Li Vermore has gone bankrupt N times, and when he was 20 years old, he earned the first $10,000 in his life, but he quickly lost it because of frequent trading; At the age of 22, he earned his first $50,000, but lost it again in less than a week because he didn't understand the new rules...... This time, after making his first million dollars, he went bankrupt again.

Zhang Yuanyi's mood also fell suddenly, and he kept asking himself a question: "Why does such a speculative genius keep going bankrupt?" ”

In his previous life, although he also experienced some twists and turns, he had never experienced a situation like Livermore, if he had experienced Livermore's bankruptcy so many times, would he still be able to stand up again many times like Livermore?

Zhang Yuanyi sighed, and at the same time felt that a cold sweat had broken out on his back.

Lin Danqing is going to talk about chapters 12 and 13 today, flipped through the "Memoirs of a Stock Dealer" in his hand, and closed it again.

There was a trace of desolation in his eyes, and then he looked at Zhang Yuanyi and asked lightly:

"Yuanyi, why would a speculative genius like Livermore go bankrupt so repeatedly? Why? ”

This question happened to be something that Zhang Yuanyi had been thinking about repeatedly in the past few days, and it could be said that it had been asked to Zhang Yuanyi's heart.

"I want to ...... It may be that Livermore made fatal mistakes at several very critical moments! Zhang Yuanyi also sighed.

"Why do people make mistakes, and how good would it be if they didn't?" Lin Danqing seemed to be muttering to himself, and seemed to be having a heart-to-heart exchange with Zhang Yuanyi.

"Master, how can people make mistakes," Zhang Yuanyi said helplessly.

"Dad, a genius like Livermore has gone bankrupt so many times, so we, at this level, are we only at this level at the moment, and if we participate in this market in the future, bankruptcy is inevitable?" As she spoke, Lin Shuang'er's eyes flashed with some melancholy and dimmed.

None of the three spoke, and there was a long silence......

After a long while, Lin Danqing opened the silence and said:

"So let's talk about a question today: how to avoid bankruptcy as much as possible?"

Then he smiled wryly and continued:

"Before I talk about this, let me ask you a question: should you rely on rationality or emotion in making stocks?"

"Rationality, of course." Lin Shuang'er blurted out.

"I think it's a terrible thing to speculate with emotion." Zhang Yuanyi also replied without hesitation.

Lin Danqing smiled and said:

"You're both right. Speculation requires rationality. However, man is a sensual animal by nature, and if you ask a naturally sensual animal to do something that requires absolute rationality, how do you think this problem should be solved? ”

"Uh...... This ......" Zhang Yuanyi was speechless when asked.

"Therefore, we need to set some mechanisms or rules to restrict transactions." Lin Danqing said seriously.

"Mechanism? Propriety? Zhang Yuanyi and Lin Shuang'er were a little puzzled.

Lin Danqing took a sip of tea, put down the teacup, and said slowly:

"Ever since I went bankrupt last time, I've been reflecting on finding a system that would allow the stock market to do as much as possible to remove the emotion."

"Did you find that?" Lin Shuang'er looked at her father with big eyes and asked curiously.

"It's an attempt, you all know that for a craftsman, the principal is his life."

Zhang Yuanyi and Lin Shuang'er both nodded.

"So, in the process of reflection and trying, I divided all the principal into four equal parts, and set aside one for living expenses to protect the basic living expenses; The second part is used for stock market speculation, and the other two are used to invest in products with stable and positive returns, such as time deposits or buying treasury bonds. ”

"Once the quarter of the money used for speculation loses more than 25%, the investment is terminated and the rest is reflected. After resting and reflecting, half of the funds invested in fixed income, that is, a quarter of the original total funds, will be merged into the futures account and continue to invest in the stock market. If the account is profitable, once the total funds in the account reach half of the original total assets, half of the original funds will be withdrawn, that is, continue to maintain a quarter of the total assets to invest in the stock market. If there is another loss on this account, the principle of 25% loss is still implemented, i.e. the termination of speculation. And so on until your stake is completely lost. That's my stock market investment quarter system. ”

Zhang Yuanyi listened carefully, it sounded a little complicated at first, but if you think about it carefully, it is actually very simple, that is, only take a quarter of the total assets to participate in the stock market, once the loss reaches 25%, then invest another quarter of the funds, so that even if you go bankrupt three times, you still have a chance to make a comeback with a quarter of the funds. Lin Danqing's method can be said to have given him three chances to be reborn!

"Master, why do you set the stop-loss line at 25%? Why not 50% or whatever? Zhang Yuanyi was very curious about this stop-loss ratio.

"That's a good question. At this ratio, I also read the biography of a domestic futures master, which brought me inspiration. You calculate, let's say you have 10,000 yuan, if you lose 80%, then you are given another 10,000 yuan to invest, and when you make 20,000 yuan of principal, how much do you need to profit? Lin Danqing asked patiently.

"The remaining principal of 2,000 yuan, plus an additional investment of 10,000 yuan, needs to make a profit of 67% to 20,000 yuan." Zhang Yuanyi quickly figured out the answer.

"Very good, you do the math again, let's say you have 10,000 yuan, if you lose 25%, then you will be given another 10,000 yuan to invest, when you make 20,000 yuan of principal, how much do you need to profit?"

"The remaining principal of 7,500 yuan, plus an additional investment of 10,000 yuan, needs to make a profit of 15% to 20,000 yuan." Zhang Yuanyi replied.

"Profit 67% or profit 15%, which is easier for you to do?" Lin Danqing asked with a smile.

"Of course it's 15%," Zhang Yuanyi and Lin Shuang'er almost said in unison.

"That's it, now you know, right?" Lin Danqing smiled faintly.

I see!

Zhang Yuanyi thought in his heart, the biggest advantage of the original master's quarter system is that it can not only minimize the possibility of bankruptcy in the stock market, but also help the operator to quickly recover all the principal to the greatest extent, which is a good idea!

"Master, but I still have one more question, that is, although your quarter mechanism is good, but once the big market comes, I only use a quarter of the funds to invest, will this affect the speed of making money?"

Zhang Yuanyi thought about the scale of making money.

"In fact, whether it is the stock market or futures, sometimes the most feared thing is fast! A lot of times, the synonym for fast is risk. The steeper the profit curve of your account, the more you should be vigilant, because the fast ones are short-lived, and the fast ones rise and fall quickly, so you must pay attention to the risk of being fast. ”

"You must remember that when you invest, it's not about who wins more, it's about who lives longer! Remember, cut close! ”

Lin Danqing admonished earnestly.