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    Category: The Art of War

    08
    Mar
    2007

    Are you staying on a losing trading strategy for too long ?

    Filed under: The Art of War

    One of my good friend , Adwin , wrote this article …

    The United States of America has its fair share of misfortunes in recent years: From the dramatic tragedies of September 11, to the ongoing battles its armed forces had to bear for the past four years since American troops first stepped onto Afghan soil (and subsequently, the invasion, ouster of Saddam Hussein), the US military has, for the first time since its withdrawal from the Vietnam debacle (a serious, major loss of face after two decades of fighting the Vietcong’s army of farmers and peasants), the American public has begun to feel towards the Bush Administration. This was reflected, no less, when the Republicans lost their mid-term elections for the Senate Committee, and as a result, the Republicans have faced formidable opposition with regards to its war policies.

    Indeed, the mounting casualties inflicted on a daily basis on American troops, plus seemingly insurmountable difficulties that American and Allied troops have to face in Iraq, clearly indicates an error of judgment on the Bush Administration’s part. The so-called “war on …




    02
    Feb
    2007

    Why are War Strategies Relevant to Traders ?

    Filed under: The Art of War

    investmentIn 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 …




    12
    Nov
    2006

    The Art of War on Investing

    Filed under: The Art of War

    Came across this book ( Sun Tzu on Investing , Author - Curtis J. Montgomery ) when I was browsing some trading books in a local bookshop. The book title caught my attention as I like reading similar books and topics about “The Art of War” . Most of these books were wriiten in Chinese , tough nowadays there are many translated copies. The author’s name ( Westerner ) gave me second thoughts. And I was thinking very hard how could Sun Tze’s strategies for War in ancient time be applied to Trading and Investment … and written by a Westerner ?

    I stood there browsing and reading few chapters. Eventually I bought the book , main reason is that certain explanation inside this book really described and matched my bad trading behaviour and psychology that I needed to correct. Second reason is that there are many wise words or nice quotes in this book that I could use to improve my trading psychology. I found that topics about trading psychology is hard to read and remember in text form …