Before the dangerous signal, be patient and wait for the profit to develop by itself, so that you can make large amount of money

In the summer of 1924, wheat came to my so-called key price, and I entered the market to buy the first 5 million bushels. At that time, the wheat market was really large, so this order would not have the effect of pushing up the price at all. After the transaction of this order, the market immediately fell into silence, but the price never fell below the key point. Then, the market began to move up, the price was a few cents higher than the highest price of a few days ago, from this price the market did a normal pull-back, it spun and returned to silence for a few days, and then the price began to rise again.

When the price passed the next key point, I immediately bought 5 million bushels again with a higher price. The average transaction price was 1.5 cents higher than the key point. I could see from the transaction situation that the market itself was very strong. Why? Because the second order of 5 million bushels was much more difficult to buy than the first one.

The next day, it didn't pull back as it did in the first order. Instead, it went up another 3 cents, which exactly aligned with my market analysis. Since then, it launched a real bull market. I'm talking about a strong upward trend that I expected it to last for months. But I didn't see all the chances clearly for the future. So I walked out the market when I had a 25-cent profit on every bushel. As a result, I watched it rise another 20 cents in a few days. I knew at once that I was very wrong. Why should I be afraid of losing what I don't really have?

When I should have the patience and courage to wait for the market to settle down, I was eager to convert the paper wealth into cash. I know that when the trend reaches the critical point, I will receive the dangerous signal at the right time and have enough time to walk out the market calmly.