Why are War Strategies Relevant to Traders ?
In ancient China , Sun Tzu guided his military generals to wars using timeless concepts such as :
“think before you act” and ..
“act only when you are sure of a favorable outcome”
Do you think the above statement is very applicable to trading ?
Much of Sun Tzu’s teachings are focused on “the enemy.” If there is an enemy for investment and trading , then it is likely to be the enemy within - your own human emotions , that is - yourself.
Sun Tzu believed that anger and greed are the fundamental causes of defeat. He taught his followers that it was the unemotional , reserved , calm , detached warrior who wins , not the hot-head seeking vengeance and not the ambitious seeker of fortune. The Stock Market is like a battlefield. There is no room for “gut-feel” when it comes to investing. It requires rational and logical thinking in the midst of chaos , and decisions based on probabilities , not emotion.
Investors and traders should benefit from developing an appreciation of the ancient …
