[Red Envelope] Brother Hundredfold reads Chapter 39 of the "Tao Te Ching": Laozi's concept of "attaining one"—how does it heal your trading anxiety?

Chapter 39 — The Original Text

In ancient times, the one who obtained “one”: Heaven gains “one” and thus becomes clear; Earth gains “one” and thus becomes at peace; Spirit gains “one” and thus becomes responsive;

Valleys gain “one” and thus become full, and all things gain “one” and thus生生; Princes and kings gain “one” and thus become the standard of the realm.

When it comes to bringing it about: If Heaven could not be clear, it would fear tearing apart; if Earth could not be at peace, it would fear collapse; if Spirit could not be responsive, it would fear exhaustion; if Valleys could not be full, it would fear depletion; if all things could not be thriving, it would fear extinction; if princes and kings could not be steadfast, they would fear stumbling.

Therefore, value lies in what is low as its root, and the high rests on what is beneath. So princes and kings call themselves “solitary,” “sparse,” and “not-valuable.” Is this not because what is low serves as the root? Not so? Therefore, the highest praise has no need for praise.

So you do not want to be glossy like jade, or dull like stone.

In the previous chapter, we talked about the highest virtue being not-acting, and after losing the Way comes disorder; we discussed that the levels of investing come down to whether you uphold the Way, whether you value the fundamentals, and whether you get rid of frivolous flashiness. True traders can only take root in rules, discard restlessness, and then stand firm amid market fluctuations to achieve steady growth in their accounts.

In Chapter 39, Laozi uses a brand-new term and gives the password for stable, profitable investing: obtaining “one.”

When I first read the Tao Te Ching, I was also confused by these terms and didn’t know what Laozi was truly trying to say. Later, I gradually understood Laozi’s earnest words: he kept repeating to us what the Way is, and how to walk in accordance with the Way. Once you truly understand it, and it sinks into your heart, you realize that there is not a single useless line in the Tao Te Ching.

This chapter is not a vague theoretical explanation either; every line strikes at the essence of trading—the foundation for whether an account can remain stable, whether your mindset can remain stable, and whether your system can remain stable all comes from “obtaining one.” One gives rise to the One; the One gives rise to Two; Two gives rise to Three; Three gives rise to all things. Holding on to “one” means holding on to the underlying logic of profitability, and the confidence to cross through bull and bear cycles. Lose this “one,” and trading becomes like a tree without roots or water without a source—losses are only a matter of time.

1. Those who obtained “one” in ancient times: Heaven gains “one” and thus becomes clear; Earth gains “one” and thus becomes at peace

When Heaven holds on to “one,” it can be clear and lucid, with the seasons in order. When Earth holds on to “one,” it can be peaceful and stable, carrying all things. And when traders hold on to “one,” they can achieve stable and profitable accounts. No matter how dramatically the market soars or crashes, or how the various kinds of messages fly around, you are always unpanicked and unflustered—staying true to your heart and executing the rules.

Since ancient times, all things that can obtain “one” can keep running in stability, completeness, and longevity. Here, “one” does not refer to any single k-line, any single indicator, or any fragmented, strategy piece. It is the fundamental law governing the operation of all things; it is the unified core guideline running throughout; it is the underlying logic that never changes no matter how things change. It is also the core trading system we must always hold onto in a market that is constantly shifting.

Put into our trading, this “one” is the closed-loop, executable, quantifiable core trading system each investor has. It is the fundamental trend and cycle law of how the market operates. It is the trading rules and risk-control bottom line engraved into each person’s bones. It is trend. It is cycle. It is risk control. It is the wisdom of knowing when to stop and never running out. It is the realm of acting in accordance with circumstances and doing what needs to be done. It is the foundation in your trading career that cannot be shaken—one iota must not deviate from it.

Once you read it enough, you’ll slowly find that the language of the Tao Te Ching is very beautiful—filled with rhythm and cadence, filled with philosophy and contemplation. I used to not like this kind of language; I felt those words were a bit empty, lacking substance, a bit abstract. But after fighting in battle and looking back to summarize experience and lessons, I found that there actually isn’t much in the concrete maneuvers that’s worth saying over and over. What is really worth repeatedly discussing is precisely these slightly abstract things.

2. Spirit gains “one” and thus becomes responsive; Valleys gain “one” and thus become full; all things gain “one” and thus生生

When the spirit holds on to “one,” it can remain in a state of clear-minded understanding—never disturbed by stray thoughts, always alert and rational. When streams and valleys hold on to “one,” they can gather all rivers, never-ending and ever full. When all things hold on to “one,” they can follow natural laws, sustain life and never cease—and they will never be extinguished.

This logic maps to investing with the same precision and depth:

Mindset holds on to “one”: without wavering, without getting tangled, without self-exhaustion, you can maintain a sharp insight into the market; you won’t be led around by short-term price swings, by messages filling the air, or by market sentiment; you won’t be pulled by greed and fear.

Trading system holds on to “one”: without clutter, without conflicts, without fragmentation, you can make sure every trading action has procedures to follow and every execution has clear rules—achieving a continuous profitability closed loop.

Rhythm holds on to “one”: without chasing rallies, without cutting losses by panic selling, without acting recklessly, you can follow the market’s bull-and-bear cycle and survive for the long term through a long trading career.

Looking at most people who lose in the market, the root usually lies in failing to do “obtain one.” Today they’re obsessed with that indicator, tomorrow they chase that concept; today they go all-in to gamble, tomorrow they stand on the sidelines watching; today they believe in value investing, tomorrow they blindly follow rumors. With a system that is disorderly and a mindset that keeps swinging back and forth, at its core they have deviated from “one.” Ultimately, amid the market’s chaotic fluctuations, they lose direction, and the principal shrinks the more they trade.

3. Princes and kings gain “one” and thus become the standard of the realm

When a ruler holds on to “one,” they can become the core of the realm’s order and a benchmark for the people—leading all directions with a posture of uprightness and justice, achieving lasting stability and long-term peace.

When a trader holds on to “one,” they can become the master of their own account—standing firm in a market that changes endlessly, and remaining unshakable.

Obtaining “one” is fundamentally about holding the root, holding to the one focus, and holding on from beginning to end. Practicing single-mindedness to the extreme means you have the confidence to withstand market fluctuations. Carrying the守一 idea through to the extreme means you achieve a stable closed loop in your trading career.

The market will always change, hotspots will always rotate, and every行情 will always have fluctuations. But we don’t need to be swept up by other people’s noise from the outside. We don’t need to be influenced by someone else’s profit-taking rhythm. We only need to always hold on to the market’s fundamental laws, hold on to our own trading rules. No matter which way the winds blow—east, west, south, or north—I will remain unmoved. Unhurried, unflustered, neither rushing nor dragging. If it’s time to buy, buy; if it’s time to sell, sell. Make independent judgments about your own trades, dare to walk through narrow doors, and be willing to walk through narrow doors—never affected by the outside world.

4. As for bringing it about, Heaven cannot be clear, so it will fear tearing apart

Conversely, if you cannot obtain “one,” and if you cannot hold on to “one,” everything will collapse and be destroyed. If Heaven cannot hold on to “one,” it will crack apart. If Earth cannot hold on to “one,” it will fall into collapse. If all things cannot hold on to “one,” they will violate natural laws and ultimately perish. If princes and kings cannot hold on to “one,” then the realm will descend into chaos, and in the end they will be overthrown.

This lesson is especially ruthless in investing: not holding on to “one” is the beginning of the destruction of your account.

If your trading system doesn’t hold on to “one,” today you use this strategy and tomorrow you switch to that method—logic contradictions and strategy conflicts will naturally appear, and ultimately your trading actions will become completely chaotic. You will buy wrong and you will sell wrong.

If your trading mindset doesn’t hold on to “one,” today you covet too much, tomorrow you fear losses—greed and fear will alternate and play tricks on you. You will inevitably see frequent decision mistakes, and your executions will completely deform: places where you should cut losses but don’t, and places where you should take profit but don’t.

If your trading actions don’t hold on to “one,” today you chase rallies, tomorrow you sell into weakness; today you go all-in, tomorrow you go flat. You will inevitably fall into a vicious cycle of chasing rallies and then panic selling. Your principal will be continuously consumed by frequent wrong operations.

If your risk-control bottom line doesn’t hold on to “one,” today you break through position limits, tomorrow you loosen the stop-loss standards. You will inevitably ignore the boundaries of risk, and most likely face the fatal consequences of being deeply trapped and getting liquidated. One mistake could wipe out all the profits you made before.

I’ve seen many retail investors: they go from tens of thousands to hundreds of thousands, from hundreds of thousands to several million, and then from several million and hundreds of thousands down to zero. All the huge losses, all the account blowups, and all the loss of control over trading—when you trace them to their source, at bottom they all deviate from the market’s core laws. They lose their own trading foundation and abandon that most crucial “one” they should have坚守.

5. Therefore, what is valuable uses what is low as its root; what is high uses what is beneath as its base

With the noble taking what is low as its root, and the high relying on what is beneath as its basis—this is the simple wisdom Laozi conveys. It is also the top-level lesson in humility that traders should engrave deep in their bones.

In the world of investing, no matter how high your profits are, no matter how strong your level is, and no matter how complete your system is, you must always take humility as the root, take reverence for the market as the foundation, and treat rigid risk control as the lifeline. Even if your short-term returns are great— even if you consecutively catch several daily price limit-ups— even if your account multiplies by several times—you still need to begin with rational analysis. No arrogance, no conceit, no blind self-confidence. Always remember: the money we make is given by the market, not because we are that capable.

If you are not humble, if you have no reverence, and if you don’t take risk seriously, then no matter how high the profits are, they are just castles in the air. As long as there’s one unexpected burst of market volatility—one black swan event—then in a single night you can go back to zero, and all your previous efforts will be wasted. Only by putting down arrogance and always revering the market can you hold onto long-lasting returns and live in the market for a lifetime.

6. That is why princes and kings call themselves “solitary,” “sparse,” and “not-valuable.” Is this not because what is low serves as the root?

In ancient times, kings called themselves “solitary, sparse, and not-valuable.” This was not degrading their status; instead, it was a proactive decision to put themselves in a “lower” position, treating “low” as the root and “beneath” as the foundation—so they could constantly remind themselves and keep the world at a reverent distance.

Put this onto traders, and it means never being self-satisfied, never being arrogant, never being reckless or conceited. Always place yourself below the market and place the laws above yourself. Always admit your own smallness and admit the market’s greatness. Always remain on edge, like walking on thin ice. Always keep a reverent mindset toward the market.

The more skillful a person is at crossing through bull and bear cycles in the market, the more humble and low-key they are. The more someone makes a little money in the short term, the easier it is for them to become arrogant and self-important, to assume they can see everything and be above others—and ultimately the market will give them a harsh lesson.

7. Therefore, the pursuit of highest praise has no need for praise. You don’t want to be glossy like jade; you don’t want to be dull like stone.

So, pursuing the highest praise is not as good as letting go of an obsession with praise. Don’t be a beautiful jade that everyone admires. Prefer to be a hard, plain, silent, and unremarkable boulder.

When mapped to our investing philosophy, this means: we don’t chase showiness, we don’t chase empty reputation, we don’t chase being watched by the crowd. We don’t do that glamorous, short-term high-profit speculation that appears for a moment and then vanishes. We only do what is plain and hard—those who uphold the Way, cross bull and bear cycles, and maintain long-term stability.

Top-tier traders would rather be boulders than be beautiful jade. They keep the plain, keep the dull, keep the hard, keep “one.” They are not tempted by the flashy allure of short-term high profits, and they are not misled by the halo of some stock god’s fame. They just stubbornly hold on to their own trading system, hold on to their own competence circle, and steadily earn the money they can understand.

Chapter 39 is a key chapter in the Tao Te Ching about foundations, stability, unity, and upholding the root. The entire text revolves around one character: one.

Laozi uses Heaven and Earth and the myriad things as metaphors to tell us a simple truth: when all things obtain “one,” they are stable; when they lose “one,” they fall into chaos. From this, we can also summarize the way of trading: holding on to one leads to success, while falling into chaos leads to losses.

In the market, most people who lose do so mostly because today they chase short-term trades, tomorrow they switch to long-term trades; today they trust indicators, tomorrow they listen to messages; they shout that they’re following the trend, but in their hands they blindly catch bottoms against the trend, stubbornly holding on to death. Their mindset swings between excitement and despair, and their actions lurch between left and right. When the heart is not stable and the actions are not consistent, they can’t hold onto their own foundation. Losing their own “one” is the root of losses.

In the next chapter, Laozi teaches us that what opposes the Way is how the Way moves, and the weak is how the Way works. He talks about the cyclical law of stock market gains and losses—how to seize opportunities and avoid risks during the transformation between yin and yang.