Art of War - Can it be Applied to Trading

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Old Jan 1, 2016, 1:00pm   #1
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Art of War - Can it be Applied to Trading

We've just published a new T2W article called "Art of War - Can it be Applied to Trading" by Razi Hammouda.

Quick Summary: Razi Hammouda discusses how the strategies and tactics used in war can be compared to success in trading.

PS. Don't forget to rate the article after you've read it and share your comments on this thread.
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Old Jan 3, 2016, 1:16am   #2
 
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Re: Art of War - Can it be Applied to Trading?

Good article but way to complex in some respects. What every trader needs is some tools and training, charting software and so on. The trader must be totally in confidence using these tools, think of a soldier going into battle, hardly the place to learn how to fire a rifle is it? A trader must know what his limitations are. Think again of soldiers going into battle, they will know what they are capable of attempting to achieve and will never attempt the impossible. Rather along the lines of "live to fight another day". Above all traders need to be disciplined in their approach with a clear plan to exploit their gains and cut short their losses. This is what makes good soldiers. Most of the Chinese soldiers I met in my life were a bunch of useless fookwits, indoctrinated by party promoting slogans so in my most miserable opinion the "Art of War" as published, certainly was not practised by the chinese at least during my lifetime. I am a consistently profitable trader, but I served in the British Army which is the finest establishment for training in the world.
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Old Jan 3, 2016, 1:47pm   #3
 
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Re: Art of War - Can it be Applied to Trading?

A good friend of mine, Julian Snyder, wrote a book for traders called The Way of the Hunter Warrior. Recently I asked him about the use of such a metaphor for trading, and he conceded that it's total nonsense in the light of what he now knows. "You have to trade without ego, and any contest elevates ego," he said.

I like to think of trading as sailing. Here you harness the forces that are there. You take into account the wind direction and velocity, the currents, and your destination. You've got your charts to guide you and you constantly adjust to nature's forces, sometimes pointing into the wind, sometimes running before the wind, sometimes tacking, but always in partnership with your boat, your crew, the wind, and the currents. Sure, storms can come up, but you can always let down the sail and anchor and wait out the storm. You work with the forces that are there, the forces that are much bigger than you, but you enjoy the journey, the day, the sport, and you're confident you can get to your destination, your port, your safe harbor.


Ruth Barrons Roosevelt

Last edited by dbphoenix; Jan 3, 2016 at 5:34pm.
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Old Jan 3, 2016, 5:25pm   #4
 
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I like to think of trading as sailing. Here you harness the forces that are there. You take into account the wind direction and velocity, the currents, and your destination.
There's a section in Sun Tzu all about the environment, and harnessing its forces when manoeuvring armies, not too dissimilar to the analogy on sailing above.
I actually think that section of sun tzu remarkably akin to reading the chart
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Old Jan 3, 2016, 6:02pm   #5
 
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Harnessing environmental forces and moving armies aren't quite the same thing as gauging wind and currents and adapting to them. The purpose of the first is, after all, to prepare for battle. But the market is not a battleground; it is simple a venue for facilitating trades. If one views it as a battleground and other traders as "the enemy", then the ego intrudes, as Snyder points out. This leads to a variety of self-sabotaging attitudes and actions in addition to adding fear to the mix.

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Old Jan 3, 2016, 6:27pm   #6
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A stock operator has to fight a lot of expensive enemies within himself.

It takes a man a long time to learn all the lessons of all his mistakes.

Jesse Livermore
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Old Jan 4, 2016, 8:13pm   #7
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A good book to read for trading, much better to have on your desk than many trading books.

Entering a trade is entering war and strategies are required to protect the General, of course as in any war the "yourself" can be the greatest enemy.

Last edited by Fugazsy; Jan 4, 2016 at 8:38pm.
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Old Jan 5, 2016, 12:47am   #8
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the art of war from centuries ago can no longer be applied to war now nevermind the markets.
its just romanticising and lamenting over something that is a formidable foe.
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Old Jan 5, 2016, 9:28pm   #9
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Originally Posted by Jamacia_Inn View Post
Good article but way to complex in some respects. What every trader needs is some tools and training, charting software and so on. The trader must be totally in confidence using these tools, think of a soldier going into battle, hardly the place to learn how to fire a rifle is it? A trader must know what his limitations are. Think again of soldiers going into battle, they will know what they are capable of attempting to achieve and will never attempt the impossible. Rather along the lines of "live to fight another day". Above all traders need to be disciplined in their approach with a clear plan to exploit their gains and cut short their losses. This is what makes good soldiers. Most of the Chinese soldiers I met in my life were a bunch of useless fookwits, indoctrinated by party promoting slogans so in my most miserable opinion the "Art of War" as published, certainly was not practised by the chinese at least during my lifetime. I am a consistently profitable trader, but I served in the British Army which is the finest establishment for training in the world.
What Regiment did you served in?
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Old Oct 30, 2016, 10:47am   #10
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Originally Posted by Jamacia_Inn View Post
Good article but way to complex in some respects. What every trader needs is some tools and training, charting software and so on. The trader must be totally in confidence using these tools, think of a soldier going into battle, hardly the place to learn how to fire a rifle is it? A trader must know what his limitations are. Think again of soldiers going into battle, they will know what they are capable of attempting to achieve and will never attempt the impossible. Rather along the lines of "live to fight another day". Above all traders need to be disciplined in their approach with a clear plan to exploit their gains and cut short their losses. This is what makes good soldiers. Most of the Chinese soldiers I met in my life were a bunch of useless fookwits, indoctrinated by party promoting slogans so in my most miserable opinion the "Art of War" as published, certainly was not practised by the chinese at least during my lifetime. I am a consistently profitable trader, but I served in the British Army which is the finest establishment for training in the world.
Brilliant,BRILLIANT. A very clever and thoughtful article.
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Old Jun 11, 2017, 12:53pm   #11
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Brilliant,BRILLIANT. A very clever and thoughtful article.
agreed.
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Old Jun 11, 2017, 12:54pm   #12
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the art of war from centuries ago can no longer be applied to war now nevermind the markets.
its just romanticising and lamenting over something that is a formidable foe.
one has to know about applying it before making comments on it.
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Old Jun 11, 2017, 12:59pm   #13
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Originally Posted by foroom lluzers View Post
one has to know about applying it before making comments on it.
Good luck with it.let me know how it goes,travelling light,foraging off the enemies lands,leaving scorched earth behind you et al
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Old Jun 11, 2017, 12:59pm   #14
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Originally Posted by malaguti View Post
There's a section in Sun Tzu all about the environment, and harnessing its forces when manoeuvring armies, not too dissimilar to the analogy on sailing above.
I actually think that section of sun tzu remarkably akin to reading the chart
Do you really think this is map reading?

Applied to trading – As a trader, you must have a winning mindset and focus on the big picture. Do not allow small setbacks in the form of inevitable drawdowns to shake your confidence or weaken your resolve. Even small winnings can set you of the big picture which should be good Risk/ Reward Ratio.

Applied to trading – Try to maintain your momentum and do not get sidetracked and depressed after a string of losers or overexcited after a string of winners.

3. “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.”

Applied to trading – Traders don’t need to trade every day or every minute to make money. Always wait for correct setup before entering the market.

These are just a few of the mindset psychology traits of a succesful trader.There are many others on google search.This is not technical anylysis road map.
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Old Jun 11, 2017, 1:45pm   #15
 
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Quote:
Originally Posted by foroom lluzers View Post
one has to know about applying it before making comments on it.
Quote:
Originally Posted by foroom lluzers View Post
Do you really think this is map reading?

Applied to trading – As a trader, you must have a winning mindset and focus on the big picture. Do not allow small setbacks in the form of inevitable drawdowns to shake your confidence or weaken your resolve. Even small winnings can set you of the big picture which should be good Risk/ Reward Ratio.

Applied to trading – Try to maintain your momentum and do not get sidetracked and depressed after a string of losers or overexcited after a string of winners.

3. “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.”

Applied to trading – Traders don’t need to trade every day or every minute to make money. Always wait for correct setup before entering the market.

These are just a few of the mindset psychology traits of a succesful trader.There are many others on google search.This is not technical anylysis road map.
i haven't mentioned anything about map reading dummy
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