The interesting part is that this figure contain latex commands. E.g., a point might be labeled "$p_1$".
In order for this to be processed later by latex, you need to choose the "special" value for the "Special Flag" of this label (the other possible value is "normal").
How to set special value:
> transfig -L pstex -m 0.5 myfigure.fig > make
The argument "-m 0.5" says to produce the figure at magnification 0.5 of the original, and can be omitted.
This command produces the files "Makefile" and transfig.tex". So, if you have your own "Makefile", it would be clobbered. To avoid this (it is good practice anyway), you better create a subdirectory (I like to use "figs" as subdirectory) in which you do these commands. See below for some hints on figs subdirectory.
Of course, the "make" will execute the Makefile and produce "myfigure.eps" and "myfigure.tex". These two files will be needed by latex.
First put the files "myfigure.eps" and "myfigure.tex" into a place where latex can find them. Let us assume they are in the subdirectory "figs" of the current directory.
Now, you just have to include "myfigure.tex" in your normal latex file. Here is the small example of how to include:
\documentstyle{article} \RequirePackage{epsfig} \RequirePackage{color} \begin{document} This is my figure: \input{myfigure} Isn't this cool? \end{document}Notice that we require the use of two standard latex packages (epsfig.sty and color.sty).