"Shuang'er, that's why you've been losing more and more serious losses lately."

Lin Shuang'er's face turned red, pouted, and glanced at Zhang Yuanyi with a cute look.

"Therefore, I would never advise you to cover your position when you have a loss."

"You lose money as soon as you enter the test position, which means that the market is already warning you that you are doing something wrong! Regardless of whether your position wins or loses later, at least it shows that you are wrong now, so don't continue to increase your position at this time! ”

"At this time, you have two options: one is to stop the loss immediately, and the other is to continue to hold the test position for a few more days. But in any case, if your test position is not profitable within two or three days, do not hesitate to close it. Remember! Remember! ”

"Master, then if I do the first step right, buy it and make a profit, and then I add 10% of the position, or profitable, the market continues to rise, I increase the position, add to the 30% position, the market changes, begins to pull back, the original profit begins to face the possibility of loss, what should I do at this time?"

Zhang Yuanyi raised a problem that he had often encountered before, and this problem was also a problem that the vast majority of participants in this market often encountered.

"Don't let your already profitable orders turn into losses!"

Lin Danqing said without hesitation:

"This is an extremely important principle for investors in the stock market or futures market."

"Let's take the Shanghai and Shenzhen markets as an example, because in the Shanghai and Shenzhen markets, you can only make money by going long, according to what we just said, our positions are built step by step, so your holding cost is constantly increasing with the step by step position."

"Because you are in the process of participating in the floating profit position, so you should always be in a profitable state, and we should pay attention to one point in the profit list, that is, you need to set up a take profit point, which must be set above your holding cost."

In this way, once something happens in the market and the stock you hold fluctuates in the opposite direction, once the stock price touches your take-profit point, you should not hesitate to close the position and take profit. Even if you can't make much, you must not let the originally profitable list face the possibility of loss, this is a matter of principle, you know? ”

Zhang Yuan nodded, but still had doubts, and asked: "In case, I just took profit, and the stock price immediately returned to the original upward track, won't my single be lost, and won't the position be lost?" Master, isn't this contradictory to what we said earlier about not losing your parts easily? ”

"It's simple. Get it back! As Livermore said, "When I see a red flag, I don't argue with it." I'll get out of the way! In a few days, if everything looks good, I'll come back. It's like if I'm walking along the tracks and I see a train coming at me at 60 miles per hour, I'll jump off the tracks and let the train pass without stupidly standing still. Once it's gone, I can always get back on the tracks if I want to. ”

Lin Danqing is very familiar with "Memoirs of a Stock Dealer" and can say some sentences in the original text word for word.

"So if you pick up the chips you sold, do you still need to build a position step by step? Or can you just buy all the chips back at once? And will this increase the cost of holding a position? ”

Zhang Yuanyi asked very carefully.

"As long as you re-intervene, it's a new deal."

"So it's still necessary to build a position step by step. If you get all your previous positions back in one fell swoop, aren't you putting yourself in danger again? What do you do in case the market is volatile? ”

Zhang Yuan nodded, thinking about it carefully, this is indeed the truth.

"As for the cost of holding a position, it's not a big deal. If you're expecting a big market in mind, you won't care about the cost of raising by a few pips. Remember, you have to focus on the momentum rather than the price. As long as you have a floating win, go boldly increase your position! ”

"Master, I understand." Zhang Yuan nodded, constantly recalling every word Lin Danqing said.

Zhang Yuanyi reads every chapter of "Memoirs of a Stock Dealer" very carefully now. As he read chapters 9 and 10, one point caught his particular attention.

That is the point of view about the formation of the minimum resistance line of the market.

In Livermore's view, the formation of the minimum resistance line is the key to the formation of a trend.

"What exactly is the minimum resistance line?" Zhang Yuanyi has been thinking about this question.

In the next class, Zhang Yuanyi asked Lin Danqing this question very seriously.

After listening to Zhang Yuanyi's question, Lin Danqing smiled faintly.

He did not directly answer Zhang Yuanyi's question, but asked Zhang Yuanyi rhetorically:

"Yuan Yi, what steps do you think should be included in a complete trading process?"

Zhang Yuanyi thought about it seriously, and then replied:

"There should be four steps: the first step is to test the position, then to open the position, then to add the position, and finally to close the position."

"Oh, by the way, if the test fails, you have to stop the loss."

Zhang Yuanyi nodded with a smile and said, "You are partly right, there is a key step that you didn't mention." ”

"Ah...... Didn't mention the most important thing? Zhang Yuan scratched his head, feeling very defeated in his heart.

"What's the most important point, master?" Zhang Yuanyi asked shamelessly.

"Wait!"

"Wait?" Zhang Yuanyi and Lin Shuang'er's eyes widened at the same time, and they asked very puzzled.

"Yes, waiting, one of the most important steps in a complete trading process is waiting."

Lin Danqing looked at the two of them and said indifferently.

"Is waiting also a transaction?" Zhang Yuan glanced at Lin Shuang'er, and then looked at Lin Danqing.

"That's right! Await! Wait for the critical moment when the minimum resistance line of the market or individual stocks appears! ”

Lin Danqing turned the topic back to the question that Zhang Yuanyi had just raised.

He continued, "This is where Livermore set up the most important part of the trading system, and in Chapter 10, Livermore gives us a complete overview of how to complete the entire trading process as a stock trader. ”

"As you already know, whether it is the market, individual stocks or futures varieties, their trajectories are nothing more than three types: uptrend, downtrend or shock."

Zhang Yuanyi and Lin Shuang'er nodded and listened very seriously.

Lin Danqing continued:

"Livermore's operating system is only suitable for uptrends or downtrends, i.e. long or short."

"And what does Lee Vermore do, which takes up most of the trading time?" Lin Shuang'er blinked her big good-looking eyes and asked.

Lin Danqing smiled faintly and said: "On this point, Livermore said very clearly in his book: wait! Patiently wait for the critical moment when the minimum resistance line emerges, and only when the critical moment emerges, will the operations such as test position, position opening, position increase, and position closure just mentioned by Yuan Yi occur. That's why I said, waiting is the most important part of the whole transaction process, understand? ”

"I see, Daddy! No wonder I seemed to be right when I made an order before, but then I did it wrong, it turned out that it was because I didn't wait for that critical moment and always wanted to trade, which led to a large loss. "Lin Shuang'er is a little enlightened.

"Yes, yes, I also remember that in Chapter 8 Livermore had a similar discussion" Zhang Yuanyi's eyes lit up.

"Livermore once said that he had made this because he couldn't wait to make a big mistake, he once said this......"

Zhang Yuanyi flipped to the corresponding paragraph of chapter 8 and began to read: "I looked ahead, and I saw a big push forward, and there was a large pile of dollar bills, and next to it stood a sign that said, 'Please take it yourself!'" Next to it was a carriage with 'Livermore Transport Company' written on one side. I had a brand new shovel in my hand and no one around, so I didn't have any competitors when I wanted to dig for gold, which was the advantage of seeing the pile of money before anyone else. Of course, a lot of people can be seen if they stop and look at it, but unfortunately they were just following the basketball game or preparing to buy a car house with the money I saw. It was the first time I saw a large pile of dollars in front of me, so I naturally rushed towards it, but before I could get there, the wind started to turn against me and I fell. The dollar pile is still in the old place, but my shovel, my transporter, is missing. That's the price of starting too early! I wanted too much to prove that I saw it was a real dollar and not a mirage. I saw it, and I knew I saw it. I was only thinking about what this wonderful discovery would bring, but I forgot to think about the distance. I should have walked past, not raced past. That's the way it was, I couldn't wait, I didn't stop to determine if the timing was right and went all out to go short, and I ended up losing a lot. ”

"That's right, this paragraph is indeed a good proof of patient waiting," Lin Danqing said seriously.

"For a craftsman, it is good to do more wrong, to do less wrong, and not to do well. Do less, you will improve! How to do less? It's about being patient and waiting for the right time. ”

Lin Danqing began to recall with a little feeling, "Back then, I just failed in not doing less. Especially when you make a lot of money in the market, you start to believe that you are the master of the market, you start to expand your self-confidence extremely, you start to want to seize every opportunity in the market, you lose the patience to wait, at this time, you are not far from bankruptcy! ”

Then he turned to Zhang Yuanyi and said solemnly:

"Yuan Yi, if one day you also achieve great success in this market, you must remember that the more successful you are, the more cautious you must be, the more you must wait patiently, and be careful to sail the ship of ten thousand years."

Lin Danqing returned to the content of the lecture and continued:

"Of course, this wait is not a passive wait, but an active wait for the key point of the transaction. Once the candlestick trend tells you that the minimum resistance of the market has changed, that is, the moment when the key point is first revealed, you should not hesitate to test the position and seize the first trading point of the market. The next steps I have already explained in detail in the previous lesson, test positions, stop losses, increase positions, and so on. ”