The ancient Chinese classic called The Art of War by Sun Tzu, is a martial text on strategy in defeating the enemy in battle, but it also teaches us to take command of our own minds and to win the battle against our own shadow. The ultimate enemy is the mind, or our own shadow natures and if we can win this battle, then we will win all the others.
The Art of War was written around 2500 years ago, during the time of Confucius and Lao Tzu, the other two great masters of Chinese culture and philosophy. The topmost military general, according to the Art of War, is one who can defeat the enemy without actually even fighting. Indeed a “great general” knows how to be still and inscrutable. Here non action is prised as much as action, and being hidden, mysterious or unknowable, are all major talents to cultivate in winning the ultimate war against the illusory nature of reality or against the unruly mind.
The wisest person uses intelligence over brute force, and re;ies on good preparation to succeed. A famous reference from the Art of Ware tells us how victory is already decided before battle if you know your enemy and you know yourself. Self-awareness is the greatest insight for a general. Then s/he will pick their battles wisely, knowing who to confront and when to retreat.
If one has to do battle then the ideal is to strike quickly and avoid long protracted wars as they will inevitably wear you down. Also one should avoid needless or mindless destruction. Don’t destroy the enemy’s resources or troops when they could be used to your favor.
“The highest form of warfare is to attack strategy itself. The next, to attack alliances; the next to attack armies. The lowest form of war is to attack cities. Siege warfare is the last resort.”
I like to use these insights when tacking my battles in life, either against my own mind or in my trading strategy as a day trader or forex or commodities or cryptocurrency. Victory is, according to The Art of War, a product of measurement, estimation, calculation and comparison, just like trading.
In some battles it is also recommended to hide, use deception, propaganda and deception if necessary, especially against a superior enemy.
“When able, feign inability; when deploying troops, appear not to be. When near, appear far; when far, appear near.”
Also one needs to be adaptable to the ever-changing circumstances. Such is the way of the trader. We are always willing to revise our strategy with the constantly changing price action. The Tao tells us how life is in a constant state of flux or change, and so one needs to be adaptable and flexible at all times, ready to re-evaluate your position.
Seasons and terrain are constantly changing, as is the enemy. Even price action is constantly changing and so too is our entry and exit plan, based on the charts before us. Always observe the enemy, while simultaneously avoiding over-exposing ourselves to risk in the markets. Wait for the enemy or for the price to come to you, don’t chase or FOMO. Wait for price to reach your entry level, and then pounce like a sniper.
Different types of trading require different strategies too. Find balance and inner peace when going to war or to trade, don’t be triggered into meaningless battles, and be compassionate to your troops as well as yourself. Not all trades will be winners, not even for the best traders.
“There are five pitfalls to a general; recklessness, leading to destruction; cowardice, leading to capture, a hot temper, prone to provocation; delicacy of honour, tending to shame; a concern for his men, leading to trouble.”
The great general knows the enemy and themselves, and the trader knows the asset and the technical analysis as well as fundamentals or any commodity. We need to be as smart as the markets, and prevent suffering as much as possible. A wise general will lead with compassion, and will maintain discipline. Trading needs a strict strategy and the discipline to stick to it, so as to avoid emotional trading. Keeping a cool head is crucial.
By adopting the strategy of a general when trading, and using the philosophy of The Art of War by Sun Tzu, we can become successful traders and successful winners against the pitfalls of the mind too, so take advice wherever you find it and apply it to your art, and you will ultimately succeed.
(image pixabay)