Lin Danqing continued: "That's it! In the case of the downward trend of the market and the general decline of individual stocks, unless you work hard and find the demon stocks that are contrarian, your losses may be far greater than the probability of profits. ”

"Therefore, it is necessary to follow the trend, so that it is more labor-saving and worry-free!"

"In the case of the market is as magnificent as a bull and individual stocks are rising, you do stocks, the risk is small, and you can buy stocks with more confidence; If the market has been going down and individual stocks are falling, but you want to copy the bottom, if you are not careful, you will be copied in the middle of the mountain, you are worried and afraid most of the time, why bother? ”

Lin Danqing taught earnestly.

"Will the main force take advantage of the market?" Zhang Yuanyi thought for a moment and asked.

"Absolutely. For example, if you were to operate a stock, would you choose to take stock when the market plummeted? ”

"Yes!" Zhang Yuanyi replied.

"Why?" Lin Shuang'er's beautiful eyes were like water, glanced at Zhang Yuanyi, and asked.

Zhang Yuanyi thought for a while and said: "Most retail investors like to watch the market, as soon as the market plummets, there will be panic, regardless of whether their individual stocks fall or not, they will sell stocks, because they are worried that their stocks will also fall with the market." ”

Lin Danqing smiled and said, "That's right! The atmosphere of a market correction or plunge can make it easy for you to get enough cheap chips. ”

"Therefore, the decline of the broader market index provides a kind of leverage, and the main force can easily use this leverage to complete the opening of positions, so you will see that when the stock price of some stocks is at the bottom, or before the rise, there will always be a see-saw situation, and the main force will use the market to plunge and suppress the stock price downward, so as to obtain the maximum effect with the least effort."

After hearing this, Zhang Yuanyi nodded and said, "Understood!" Master, listening to your words is better than reading a book for ten years! ”

"You're starting to pat yourself again!" Lin Danqing laughed.

Zhang Yuanyi smiled.

"In addition to the relationship between the market and individual stocks, what else do you think impresses you?"

"Be confident in your trading ideas and don't be influenced by other people's advice." Zhang Yuanyi replied.

"To open a position, you should gradually build a position, and then increase the position." Lin Shuang'er also turned on the rush answer mode.

Lin Danqing nodded with a smile and said:

"Well, you've said it all this time, and this section is very topical. However, you still only know one and don't know the other, you have to learn to draw inferences from the book when you read books, and Livermore mainly wants to tell us in this chapter and also want to tell us an important principle of winning by speculation! ”

"Principles? What principle? Zhang Yuanyi was puzzled.

Lin Shuang'er also pouted and said, "What kind of principle, why didn't I see it?"

"This principle is: if you want to win in speculation, you must dare to place a heavy position when you do it right under the premise of market cooperation!" Lin Danqing said in a deep voice.

"Heavy position?" Zhang Yuanyi read it out unconsciously.

He remembered that many people in this market went bankrupt because of heavy positions, and also remembered the heavy positions in his previous life, which made him a failure, and now when he mentioned these two words, he was a little panicked in his heart.

Seeing that Zhang Yuanyi and Lin Shuang'er were a little puzzled, Lin Danqing immediately explained, but continued to ask:

"You saw in Chapter 6 that Livermore made 250,000 dollars by shorting Union Pacific in a few days, do you know why he was able to do this?"

"Why," Lin Shuang'er asked puzzled.

"The reason is that he dares to take a heavy position!"

"Oh!" Zhang Yuanyi and Lin Shuang'er fell into deep thought.

Lin Danqing further explained:

From 1,000 shares, to 2,000 shares, to 5,000 shares, and then to 10,000 shares, he did not hesitate at all, but decisively increased his floating profits, and finally held a heavy position in the Pacific Ocean! That's the key to his big win! ”

"I need to remind you here that if you participate in the futures market in the future, you need to understand that one of the biggest differences between futures and stocks is leveraged trading. A full stock position can only be leveraged by one time, but futures can often reach a multiple of 10 times or even more. Therefore, when to use high leverage is one of the most important principles for winning futures. ”

"So how can you cultivate this ability to dare to take heavy positions? Every time I make an order, I don't dare to take a heavy position, I always feel that the risk of a heavy position is too great, and I don't dare to increase the position," Zhang Yuanyi scratched his head and asked.

Lin Shuang'er also nodded again and again, expressing her agreement with Zhang Yuanyi's speech.

The German military theorist Clausewitz once said a classic sentence: A person who is born without the emotional strength of courage can never become an outstanding commander-in-chief. The same applies to stocks and futures. A person who is not born with guts will never be a great stock dealer! ”

When he said this, Lin Danqing accentuated his tone and said seriously.

"Guts? That is, isn't guts innate? Can we cultivate it the day after tomorrow? Zhang Yuanyi asked.

"Born accounts for more than 90%, and it can also be cultivated, but it is mainly cultivated on an innate basis. It's not about cultivating guts, it's about discovering your own! ”

"There is a saying that the artist is bold, which means that when your professional skills are superb, your courage will naturally be great, there is some truth in this, but from my personal experience of reading people for many years, most of the courage is indeed innate!"

"Courage like Livermore, a genius in the speculative world indeed!"

"Of course, then again, even if you're a genius, rigorous training in guts is essential!"

"And how do you train?" Zhang Yuanyi wondered.

"How to train? Take me as an example," Lin Danqing said with a faint smile.

"When my teacher, that is, your master, trained me to overcome the fear of heavy trading, he once let me fully trade high-frequency trading every day for five months!"

"It turns out that there are masters and masters," Zhang Yuanyi muttered in his heart, and Zhang Yuanyi's eyes couldn't help but light up.

"Master, didn't you encounter any risks in your full trading?" Zhang Yuanyi asked curiously.

"Why is there no risk, I finally blew up more than a dozen accounts!"

Speaking of this, Lin Danqing couldn't help but blush.

"But the benefits of this training are slowly becoming apparent, and slowly, I have become accustomed to heavy trading. When you are in a heavy position, there is no fear in your heart, everything is a game! ”

"Of course, this is only one of the ways to train courage, there are other training methods, if you have time in the future, I will let you experience it yourself in the actual combat training stage."

Lin Danqing said lightly.

"So since it's a heavy position, why does Livermore have to gradually build a position? Why can't you re-position all at once? Wouldn't that be easier? Lin Shuang'er asked curiously.

"That's because no one can guarantee that they're right. As we've said before, speculation in stocks is all about probability! No one can say they can make a profit every time! ”

"Only the profit and loss numbers in the account will tell you whether you are right or wrong, if you make a profit, you will increase your position, and if you lose, you will stop your loss! Both of you should remember that in any case, you must let the profits run and let the losses end as soon as possible, this is the only rule of speculation. ”

Zhang Yuanyi and Lin Shuang'er nodded again and again.

Lin Danqing took a sip of tea and continued to explain:

"You know, both stocks and futures are the science of probability, and no one can get it 100% right. That's why we need to test positions. ”

"You should have seen when you read the book, Livermore said in Chapter 6 that sometimes there is no reason for trading, it may only rely on a momentary inspiration, relying on the subconscious, and this kind of inspiration without theoretical support often makes the stock or futures industry dare not take a heavy position."

"So what about trading at this time, we need to test the position, we need to place a small transaction first, such as 10% of the total capital, if the market goes in the opposite direction of our expectations, then we will stop the loss, and the transaction ends here, because our position is small, we will not have a big loss."

"However, once the market moves in our favor after we test the position, and we make a profit, then we start to increase our positions in the inverted pyramid, just like Livermore, 1, 2, 4, 8, so that your position will naturally come up."

"Remember, a stock is never too high to be bought, as long as the trend is just out of the initial phase, even a high-priced stock is worth buying."

"Of course, on the other hand, there is no stock because the price is too low and can not be sold, in this market some people like to buy penny stocks, feel that penny stocks often mean opportunities, but we must pay attention to a situation, if a penny stock although low, but has experienced a large increase in the early stage, such as from 1 yuan to 4 yuan, although it is still low, but if the trend begins to reverse downward, even if the price is low, you must sell! Do you understand? ”

"Therefore, buying stocks is not because the price is high or low, and increasing positions is not because of the stock price."

"Then master, under what circumstances can I increase my position?" Zhang Yuanyi looked at Lin Danqing and asked.

"Under what circumstances can I increase my position? After you have made the first trade, you can't make a second trade unless the first trade is profitable. Remember! ”

"Hmm" Zhang Yuanyi and Lin Shuang'er nodded in unison, doing stocks is sometimes the same as doing business, you buy a batch of goods, it's not easy to sell, will you continue to enter? Generally, not.

"Master, I think of a question"

"You say"

"In Chapter 6, Livermore said many times, that is, he sometimes relies on his sixth sense to make stocks, Master, you just mentioned that Livermore sometimes relies on inspiration to make stocks, and Livermore said that he has wanted to ignore this impulse many times, but if he ignores this impulse, he will always regret it afterwards."

"He said that if he hadn't overcome his impulses so rationally, he would have made money"

"Master, what I want to ask is, what is the inspiration for Livermore?"

Lin Danqing didn't expect Zhang Yuanyi to ask this question, thought for a while, and explained:

"I think Livermore's so-called sixth sense or impulse is actually a kind of subconscious, and it is his creative mind that is at work, and under the influence of this creative mind, there is often a stroke of genius."