Livermore's breakthrough buying method:

(1) Buy 20% first;

(2) If you buy wrong, stop loss immediately when the price drops 10%, and the loss amount is 2% of the total position;

(3) If you buy right, add 20% immediately when the price rises 10%;

(4) Add another 20% immediately when the price rises another 10%;

(5) Add 40% directly for the last time;

(6) Expand the victory results, and then hold as long as it does not fall below 10%;

(7) Sell all positions immediately once it falls 10%.

The essence is to find high-probability opportunities to operate, choose the right target and the right time to buy.

Trend judgment and follow the trend

(I) Recognize the general trend

Livermore believed that making big money depends on the overall market trend, not the fluctuation of individual stocks. He actively identified the main market trends and the line of least resistance, and was not limited by the stereotyped thinking of "bull market" and "bear market". For example, he shorted first and then went long in 1907, and shorted near the high price in 1929, both of which made huge profits. Follow the trend: Buy when the market is rising and sell when it is falling, in line with the market direction. When the market lacks a clear trend, wait and see until a clear trend emerges before taking action.

(II) Timing

Wait for key trading points: Livermore patiently waited for key trading points. For example, when buying Bethlehem Steel, he waited six weeks until the stock price broke through 100 points before buying.

Act after confirming the trend: Don't enter the market prematurely, but act decisively after market changes confirm your views.

(III) Money Management and Position Control

Exploratory Trading: Start with a small position, such as buying 20% ​​of your planned position. Increase your position if you make a profit, and stop loss when losses reach a certain percentage (e.g., a maximum of 10%).

Avoid adding to losses: Avoid adding to losses to dilute your investment and avoid further losses.

Diversify your investments: Avoid concentrating your funds in one place to reduce the risk of a single bet. (IV) Strict Stop-Loss and Take-Profit

Resolutely stop-loss: Set a stop-loss point, such as a maximum loss of 10% on a single trade, and unconditionally close your position to prevent further losses.

Let profits run: When a currency price rises, don't be afraid of a pullback. Consider the reasons for the rise and don't rush to sell, allowing profits to continue to grow. $BTC $ETH #美国初请失业金人数 #BNB创新高