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A Book of Five Rings by Miyamoto Musashi

A Book of Five Rings (or Go Rin No Sho) was written by the samurai legend, Miyamoto Musashi, in 1645. I read this text several years ago and while the central theme is ‘strategy’, the lessons that left a lasting impression concerned ‘true understanding’ and the importance of practice; of practising one’s arts, one’s discipline, one’s techniques. Practising until third nature becomes second nature, becomes first nature. In this age, when knowledge is plentiful and experience lacking, I believe there is much to be learned from Musashi’s wisdom:

The Kendo student practises furiously, thousands of cuts morning and night, learning fierce techniques of horrible war, until eventually sword becomes “no sword”, intention becomes “no intention”, a spontaneous knowledge of every situation. The first elementary teaching becomes the highest knowledge, and the master still continues to practise this simple training, his everyday prayer.

Study this book; read a word then ponder on it.  If you interpret the meaning loosely you will mistake the Way.

If you merely read this book you will not reach the Way of strategy.  Absorb the things written in this book.  Do not just read, memorise or imitate, but so that you realise the principle from within your own heart, study hard to absorb these things in to your body.

“To know the times” means to know the enemy’s disposition in battle.  Is it flourishing or waning? By observing the spirit of the enemy’s men and getting the best position, you can work out the enemy’s disposition and move your men accordingly.  You can win through the principle of strategy, fighting from a position of advantage.

…the way to understand is through experience.

You must bear this in mind.

Practise this well.

You must research this well.

You must appreciate this.

You must train constantly.

You must consider all this carefully.

Study this well.

You must train hard to understand it.

With detailed practice you should be able to understand it.

If you train well enough you will be able to strike accordingly.

You must train repetitively.

Learn this well.

14 Ways To Acquire Knowledge

14 WAYS TO ACQUIRE KNOWLEDGE

  1. PRACTICE

Consider the knowledge you already have — the things you really know you can do. They are the things you have done over and over; practiced them so often that they became second nature. Every normal person knows how to walk and talk. But he could never have acquired this knowledge without practice. For the young child can’t do the things that are easy to older people without first doing them over and over and over.

[…]

Most of us quit on the first or second attempt. But the man who is really going to be educated, who intends toknow, is going to stay with it until it is done. Practice!

  1. ASK

Any normal child, at about the age of three or four, reaches the asking period, the time when that quickly developing brain is most eager for knowledge. “When?” “Where?” “How?” “What?” and “Why?” begs the child — but all too often the reply is “Keep still!” “Leave me alone!” “Don’t be a pest!”

Those first bitter refusals to our honest questions of childhood all too often squelch our “Asking faculty.” We grow up to be men and women, still eager for knowledge, but afraid and ashamed to ask in order to get it.

[…]

Every person possessing knowledge is more than willing to communicate what he knows to any serious, sincere person who asks. The question never makes the asker seem foolish or childish — rather, to ask is to command the respect of the other person who in the act of helping you is drawn closer to you, likes you better and will go out of his way on any future occasion to share his knowledge with you.

Ask! When you ask, you have to be humble. You have to admit you don’t know! But what’s so terrible about that? Everybody knows that no man knows everything, and to ask is merely to let the other know that you are honest about things pertaining to knowledge.

  1. DESIRE (more…)

10 Rules for Rookie Day Traders

Here is our philosophy around trading rules:

Rule should be designed to promote growth, not create limitations.
Rules should make YOU better.
Rules need to be second nature.

1. The three E’s: enter, exit, escape

Disagree, I can’t explain for proprietary reasons.

2. Avoid trading during the first 15 minutes of the market open

I agree that the first 15 minutes is risky but the most important thing to a new trader is lasting as long as possible. You are going to be better the more time that goes by, but you learn faster by doing. It is a tough balance.

3. Use limit orders, not market orders

Limits keep you out of the market, which is important. But they can also keep you in a market, which is of importance too.

4. Rookie traders should avoid using margin

Agree. Your winning positions should be larger than losing position, but a new trader doesn’t usually know which is which.

5. Have a selling plan

Agree. (more…)