Art of War - Can it be Applied to Trading?
Section 4 - Trading Routine
1. The Art of War – “Superior command structure within the army.”
Applied to trading – You need to organise and structure your trading to ensure you’re doing the right thing at the right time. For that, you need a detailed trading plan. Every ‘t’ must be crossed and every ‘i’ must be dotted to ensure that mistakes are kept to a minimum. This will help to minimise losses and maximise profits.
2. The Art of War – “Even the finest sword plunged into salt water will eventually rust.”
Applied to trading – Even the best traders will crumble if there is no support from those around them. Do not allow your desire to trade to have a negative impact on your family and friends, otherwise you run the risk of losing them.
The Art of War by Sun Tzu has inspired lots of people from many different walks of life and disciplines, ranging from business to sports and everything in between. Some commentators believe that there are wars that could have been avoided and battles lost that could have been won – had the politicians and military leaders followed the principles contained in this ancient text. This article is intended to offer a flavour of how the text might apply to trading. Indeed, your interpretations of the principles may be very different to those offered here – and that’s fine.
Regardless of your views about this article, there are two overriding principles that emerge from the Art of War that you could benefit from. The first is to look beyond your computer screen or the trading books on the shelves in your study for ideas and insights about how to trade the markets. There are lots of fields of human endeavour that utilize techniques and approaches that could be applied to trading. The second is that if you’re to be successful, then you need to approach your trading with the same degree of care, thought and attention to detail that Sun Tzu advises military leaders adopt when preparing for battle.
Ted Kwek can be contacted by email at Ted Kwek