In the unpredictable market, no one can be 100% correct. Therefore, it is necessary to test the warehouse. As Livermore said, sometimes trading is unreasonable, relying on instant inspiration and subconscious, and this kind of inspiration without theoretical support often makes investors afraid of heavy positions. At this point, the trading can adopt a trial position strategy, that is, invest a small sum of money (such as 5% of the total funds) first, and if the market moves in the opposite direction as expected, stop the loss and the transaction ends here. Because the position is very small, there will be no great loss. Once the market moves in a favorable direction after the trial position, and the previous investment has won, you can start to add positions in the inverted pyramid, just like Livermore, adding positions 1, 2, 4, 8, so that the positions will naturally come up. Remember, stocks are never too expensive to buy or too low to sell. After the first transaction, don't make a second transaction unless the first transaction is profitable.

Need to build a position step by step! Before the end of the market, any judgment of investors is just speculation, and there is the possibility of mistakes! Look at what Livermore said in the eighth section of his book and correctly judge the short-selling trend of the market. However, because he was too hasty, he did not take a step-by-step approach to opening positions, but put all his eggs in one basket, which led to the rapid bankruptcy of the market with only a few small rebounds. In the ninth section, Livermore accepted the lessons from the past, adopted a step-by-step way to open positions, and finally won a great victory, completing the first leap in life. Two kinds of the same market, two different ways of opening positions, the result is a world of difference.

If stocks want to make big money, the key is to seize the inflection point of market trend reversal, because only big fluctuations can make big money!

But the judgment of this turning point is the most difficult and the most error-prone. If the small reverse fluctuation of the original market trend is regarded as a turning point, investors will soon be in a passive position. At this time, the only thing that can save your life is the posture-low position, which is also the main reason for adopting the stepped posture.

Try to lighten your position when you make mistakes, and lighten your position when you make mistakes. When the long-term trend of a stock is expected to reverse, never do it in one step. Instead, you need to try positions, such as 5% of all funds. When real money is put into the market, the market will give immediate feedback. If the account is profitable immediately, it means that you have done the right thing, and continue to increase the position 10%. If you continue to make profits, increase your position by 20%, and so on, you can enter a virtuous circle. Of course, it is also possible to lose money as soon as you enter the test warehouse, indicating that the market is warning yourself that you are wrong. No matter whether you win or lose in the future, at least it means that it is wrong now. Don't continue to add positions at this time. At this time, there are two choices: one is to stop immediately, and the other is to have a look at the trial location. But in any case, if there is no profit within three days, don't hesitate to close the position.