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

T2W Bot

Staff member
1,450 54
IntroductionMany 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...
Continue reading...
 
Last edited by a moderator:

Jamacia_Inn

Newbie
3 1
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.
 

dbphoenix

Legendary member
6,952 1,244
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:
  • Like
Reactions: Atilla and trendie

malaguti

Senior member
2,361 455
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
 

dbphoenix

Legendary member
6,952 1,244
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.

Db
 

kalott

Established member
678 57
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
 
  • Like
Reactions: Fugazsy

Fugazsy

Veteren member
3,661 677
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:
  • Like
Reactions: malaguti

aag100

Established member
613 35
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.
 

Aston1st

Active member
244 25
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?
 

Tytus_Barnowl

Member
92 7
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.:smart::smart::smart:
 

foroom lluzers

Veteren member
3,611 135
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.
 

malaguti

Senior member
2,361 455
one has to know about applying it before making comments on it.
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
 

Similar threads


AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock