Article Art of War – Can it be Applied to Trading?

[T2W Bot]

Introduction
Many traders think that to make consistent profits in the markets, all you need is a holy grail. From my experience, a trading methodology or system is only one of the ingredients of success. The advancement of technology blinds us into thinking that all we need to be successful is state-of-the-art kit and the latest software. After all, banks fit into this category and they tend to do pretty well. However, technical wizardry is only of value if you know what to do with it. Does Warren Buffett rely on the latest technology to make his investments, or does he put his faith and his money into time tested principles of yesteryear? Modern technology is a useful tool for many traders, but to ensure it’s used wisely and to full advantage, they may benefit from studying some military principles dating back to around BC500.
The Art of War is an ancient Chinese military treatise attributed to Sun Tzu (also referred to as “Sun Wu” and “Sunzi”), a high-ranking military...

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[0007]

Lots of common sense in this article. As an ex military person I've long applied these principles succesfully - treat your trade as a combat mission and you'll do ok. Forget the Top Gun & other military crap you see on the media - it's the quality of planning, execution and debriefing that makes the money.

 

[nunrgguy]

Victory comes to him with the biggest weapon

Second sentence "From my experience, a trading methodology or system is only one of the ingredients of success". Yes but you are not a succesful trader otherwise you wouldn't be penning all this stuff and would be trading, therefore this sentence is fantasy based on acquired read 'knowledge' and the rest of the article can be discounted. It's only junk quoted from someone else's writing anyway.

 

[NVP]

sorry - T.A.O.W. is a very overused concept to sell books

sorry guys ..............Poor Sun Tzu would turn in his grave if he saw how widesprwead his ideas are now used by consultants and experts selling their businesses

that reminds me - I must finalise my latest book

"Sun Tzu and the Art of Cooking - 100 Recipes for a busy mom with an army to feed"

NVP

 

[0007]

Re: Victory comes to him with the biggest weapon

It's only junk quoted from someone else's writing anyway.

That tends to be the case with so much stuff doesn't it? And of course that's how so many urban myths come into being. Although I do believe there is good stuff in the article (and that's only because in my particular case it resonates with the way I work) there is a limit to what all these "self-help" writings can do for you as a trader. I don't believe there is any substitute for getting out there and doing your own research the hard way and finding out what, if anything, works for you to make you a successful trader.

 

[NVP]

agreed 0007.........Sun Tzu's book is a master piece ....but in the right place for the right purposes

 

[justtrader]

agreed 0007.........Sun Tzu's book is a master piece ....but in the right place for the right purposes

The Taliban must be using it
as they seem to kicking US ass with very little firepower, as did the vietnamese and the north Koreans

 

[0007]

The Taliban must be using it
as they seem to kicking US ass with very little firepower, as did the vietnamese and the north Koreans

Dealing with guerilla tactics is one of the world's most difficult military problems. Was it not the British in Malaya in the 1950s that has been one of the few (possibly only) successful example?

 

[scose-no-doubt]

I reckon maybe trade2win should focus more on getting content regards The Art of Finance and maybe The Art of Financial Mathematics or even The Art of Economics. I've heard that this stuff is used successfully in some circles.

 

[meyouus]

Dealing with guerilla tactics is one of the world's most difficult military problems. Was it not the British in Malaya in the 1950s that has been one of the few (possibly only) successful example?

They did it by slaughtering anyone and everyone who looked like a guerrilla; men, women, children, civilians. (The official version was that they were "relocated" but that's much like Jews being relocated by the Germans.) Even then, the Malayan communist movement wasn't extinguished until 1989.

There are actually plenty of examples of guerrilla forces which have been defeated. The key, however, rests more with the quality of the guerrilla movement than their opposing force. If guerrillas don't have the support of the indigenous population, they don't have a guaranteed line of supply and an accessible sanctuary, they will never succeed. If they have these 3 things, they cannot be defeated; no matter what.

There's a very good wikipedia article on guerrilla warfare here Guerrilla warfare - Wikipedia, the free encyclopedia

 

[TeaPoJap]

Lateral thinking applications

Interesting, but a more condensed summary/conclusion could be more so. Congratulations, TeaPoJap

 

[Pat494]

Dealing with guerilla tactics is one of the world's most difficult military problems. Was it not the British in Malaya in the 1950s that has been one of the few (possibly only) successful example?

The Yanks were too arogant to learn from others and have paid the price over and over.
It's all happened before more or less. If the US administrations had 1 learned historian onboard they would not have made all the classic mistakes of empire. Bush didn't even know where Afghanistan was on the map. An historian could have told the chump it's where mighty empires have perished.

 

[0007]

The Yanks were too arogant to learn from others and have paid the price over and over.
It's all happened before more or less. If the US administrations had 1 learned historian onboard they would not have made all the classic mistakes of empire. Bush didn't even know where Afghanistan was on the map. An historian could have told the chump it's where mighty empires have perished.

yes, it's amazing isn't it! We (UK) first learned about Afghanistan in the 19th century: but never mind -- we will stay there until the end of 2014 because our politicians know it's the right thing to do

 

[Pat494]

yes, it's amazing isn't it! We (UK) first learned about Afghanistan in the 19th century: but never mind -- we will stay there until the end of 2014 because our politicians know it's the right thing to do

:lol

 

[Pat494]

I reckon maybe trade2win should focus more on getting content regards The Art of Finance and maybe The Art of Financial Mathematics or even The Art of Economics. I've heard that this stuff is used successfully in some circles.

Apparently it is too difficult for mathematicians to do ! So we are stuck with the 'O' level maths of Macd etc.