The 2nd stage of finger training is the use of a Yin liniment or a cold liniment which is known as Water training. This liniment causes the Chi to condense deeper into the bones and bone marrow. Masters have said that only after the energy or the acupuncture meridians are opened and free of obstructions can the chi condense and be driven deeper into the levels of the hands.

With the finger training and the 2nd level liniment it condenses and deepens the heat which has been built up by the hot liniment and condenses the energy but also allows more chi to flow to this area. It is said that though the effects of diligent training from the hot liniments is subdued, that it is more subdued in the 2nd stage and not eradicated. Since the cold liniments create such an increase in the fingers for its ability to retain heat or chi that it is primarily for finger training at this stage which will not cause any energy stagnation.