The Investment Philosophy in Sun Tzu's Art of War

Only when wealth gathers can it be dispersed and wealth can be gathered
the god of wealth has a way

I will start with the article on military struggle. Due to time and space constraints, readers and friends may not be able to fully express the meaning of the text. Please forgive me. If you have any questions, please leave a message. I will answer you as soon as possible. Begin the discussion of the body part.

​Sun Tzu said: The method of using troops is to be ordered by the emperor, to unite the army and gather the masses, to join forces and give up, nothing is more difficult than armies fighting. Those who are in trouble in the military struggle, use detours as straightness, and take advantage of adversity.

When we determine the trading variety, from the acquisition, screening, integration, market research and judgment of the entire transaction information to the synthesis of the trading plan, and then to the final transaction execution, I think the most difficult thing in the whole process is how to make the transaction before the transaction. Being able to use this information very efficiently and with high quality provides a winning opportunity for the success probability of the next transaction. If you want to gain a chance to win, the most difficult thing is how to turn the disadvantage into something that is beneficial to you. For example, we can't always find a better entry position and exit position. At this time, we can refer to the speculative sentiment of retail investors and institutions The position report and the trading strategy given by some intelligent trading signals. In addition, the shock indicator can also be used as a good emotional indicator for short-term trading. Finally, combined with your own thinking and comprehensive research and judgment, you can increase the profit probability of your trading strategy. After completing the transaction In your free time, you should strengthen your weak learning, which will help you better gain a preemptive advantage next time.

Therefore, those who don't know the plans of the princes can't hesitate to make friends; those who don't know the mountains, forests, dangers, and depressions can't march;

I think many traders come here because of the smell of high-yield foreign exchange, so many friends who enter this market start with high expectations or take a heavy position shortly after entering to win a "huge profit" and think that they are trading However, it turns out that many people are suffering from blood loss. We all know that in order to win, you must first understand: have you seriously understood the trading industry? Have you learned knowledge systematically? Know your strengths and weaknesses? Do you know what conditions are required to survive in this market and obtain good returns? Did you know your opponent before placing an order? Have you ever understood the difficulties faced in sticking to the road of trading? The last thing I want to emphasize is that I think it is very important that "you can't get benefits without a guide". It means that without a guide, you can't use the terrain effectively. Then, did you worship your teacher before starting the transaction? How about humbly seeking advice from teachers with real materials? Have you ever learned from experienced and capable teachers during the transaction process? Having good teachers and helpful friends before opening the way will help you get a head start.

Military contention is for profit, and military contention is for danger. It is not enough to raise an army to fight for profits, and it is too much to donate if you entrust the army to fight for profits. That's why when you roll your armor and move forward, stay away day and night, double the road and go at the same time, if you fight for profit for a hundred miles, you will capture three generals. , the method is half to the end; if it is thirty li to fight for profit, then two-thirds is to the end. Therefore, if the army has no supplies, it will perish, if there is no food, it will perish, and if there is no accumulation, it will perish.

Although trading can bring us huge returns, its risks are also the same. In trading, many of our novices and some friends who have been trading for a long time always like to trade heavily in the hope of earning a lot of money. In the end, most of them not only fail to achieve the expected return, but also end up in a mess, thus losing many better trading opportunities; Some traders friends are completely light-packed, there is no content or lack of content in their stomachs, so they also end up in tears; in addition, some traders friends always rush into the market and start without planning the whole transaction After placing an order, I felt a lot of painful tossing in my heart, and finally made the whole person depressed, and the vain dollars fell into other people's pockets; there are also some traders who always like to trade all the time, hoping to seize every trading opportunity and earn every dollar. Divide money, trade frequently in the market, and end up losing a lot of money and feeling disheartened. Therefore, before we make a transaction, we must have a wealth of knowledge and practice that can stand the test so that we can achieve better results in the transaction.

Therefore, soldiers use deceit to establish, use profit to move, and use division and harmony as change. Therefore, it is as swift as the wind, as slow as the forest, as plundering as fire, as immovable as a mountain, as difficult to know as cloud, as moving as thunder. To plunder the villages and divide the masses, to distribute the profits broadly, and to move by hanging power. The prophet's straightforward plan wins, and this is the method of military struggle.

In trading practice, we should grasp the side that can be seen clearly and is beneficial to ourselves. Before placing an order, we must evaluate the pros and cons of the entire transaction. For example, we should judge how we should allocate trading funds based on market research. It is better to distribute part of it and place it in the opposite variety or add another variety to reduce the risk. When we have made up our minds, we should lurk and wait for the opportunity when the market has not come. When the opportunity comes, we should attack decisively. If this transaction can bring us rich returns, then we should think about another question: These profit distributions maximize their interests and ultimately increase their wealth. I think this issue is worth pondering.

"Military Administration" said: "If you don't hear each other, it's the golden drum; if you don't see each other, it's the banner." The golden drum is the eyes and ears of the people. Since the people are single-minded, the brave cannot advance alone, and the timid cannot retreat alone. This is the method of using the crowd. Therefore, there are many golden drums in night battles, and many banners in day battles, so people's eyes and ears are changed.

In real trading, many traders and friends violate the consistency principle of trading, such as using the same take-profit and stop-loss points when trading in different frameworks, using the same strategy in different trading sessions, and the general command operations will be based on different Situations use different things to convey different operational instructions, we should also analyze the specific situation in detail, adapt measures to local conditions, and adapt measures to current conditions is the way to win.

Finally, what I want to share with you here is that as a trader, we must learn how to take the initiative to grasp the disadvantages of information and turn it into benefits. We must be as decisive as the general in giving orders, and as brave as the soldiers in combat, so that we can survive in this market and live a better life.

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Last updated: 08/23/2023 07:09

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