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TRADING IS WAR. PREPARE YOUR WEAPONS

SUN TZU gives a very clear and succinct reason for his military treatise in the first three sentences when he says,

“The art of war is of vital importance to the state.  It is a matter of life and death, a road to either safety or ruin.  Hence it is the subject of inquiry which can on no account be neglected.”

Here is my interpretation for traders: 

“The art of trading is of vital importance to the success of the trader.  It is a matter of financial life and death, a road to either consistent profits or significant loss of income.  Hence it requires much thoughtful study that cannot be neglected.”

 SUN TZU and THE ART OF WAR                       THE TRADER and THE ART OF TRADING

Important to the State Important to the trader
A matter of life and death A matter of financial life or death
Road to safety/ruin A road to consistent profits/significant losses
Subject of inquiry not to be neglected Subject of thoughtful study not to be neglected

As we continue to explore SUN TZU’s ART OF WAR, keep the above table in mind for everything that follows in his treatise will be shaped by SUN TZU’s foundational premise, which is this: since war is a given fact whoever engages in it best be prepared because the warrior’s very survival is at stake.

Trading is war.  If you have been trading long enough I do not have to convince you that it is so.  Thoughtful study of the market and how we relate to it is the key to our success and our very survival.

SUN TZU’S ART OF WAR AND THE ART OF TRADING

This post will begin a new category specifically focused on the military principles of SUN TZU and their relevance for contemporary traders.  My goal is for you to find my interpretation of this 2500 year old military treatise as beneficial to your trading success as I have.

If you trade and study the market for a living as I do, or have a desire to do so,  I suggest you read SUN TZU’S ART OF WAR.  You can read the complete text here:

SUN TZU ON THE ART OF WAR: THE OLDEST MILITARY TREATISE IN THE WORLD

WHY SUN TZU?

Anyone who has attempted to trade the markets, and by markets I mean any number of financial instruments from oil futures, forex, equities, options, etc., has found out in short order how difficult trading can be. In fact, I would venture to say that trading is one of the most difficult endeavors any of us could ever attempt to master. It is estimated that only about ten percent of those who attempt to trade for a living ever succeed. The ten percent who do eventually succeed will most likely tell us that they lost a few fortunes along the way. It is hard emotionally, mentally, and physically. Only the strongest will survive on this battlefield and is the very reason we need the principles of Sun Tzu to help us along the way. 

Now you know the reason for my site’s motto:

TRADING IS WAR. PREPARE YOUR WEAPONS. (more…)