The legendary woman who was reborn from the ashes
Chapter 87: Sun Tzu's Art of War: The Way to Total Victory and Financial Transactions 2
The vast commercial market is filled with smoke and the trading market is turbulent. Whether it is a passionate recruit, an ambitious small merchant, or a novice leek who has just entered the market, they are all in the same arena. There is no boundary of identity, no gap in experience, and no disparity in strength. Here, every participant needs to show his or her skills with his or her own wisdom and courage.
A green recruit may encounter a battle-hardened special forces soldier on a battlefield filled with smoke. The shock and pressure are self-evident.
Similarly, on a bustling commercial street, an inconspicuous small merchant may rub shoulders with world-class multinational groups and Fortune 500 companies, and feel the strong business atmosphere and competitive pressure.
In the ever-changing trading market, a novice who has just entered the market may also encounter those experienced capital giants and experience the ruthlessness and fierceness of the market.
"The Art of War" is a classic known as a masterpiece of war. The profound philosophy contained in it is not only applicable to war, but also to our daily trading activities.
First of all, Sun Tzu mentioned "to examine it with five things, to check it with strategies, and to seek its truth". In trading, we also need to consider five aspects: trading philosophy, economic cycle, trading space, trading psychology, and trading system and technology. These are all indispensable factors when we formulate trading strategies.
Secondly, "trend is the power to control according to the benefit". In the trading market, we should also be good at taking advantage of favorable conditions, being flexible and taking the initiative in trading. Whether it is the advantage of funds or the grasp of information, we should make full use of it and transform it into a trading advantage.
Furthermore, "attack when the opponent is least prepared and take advantage of the situation". In trading, we should be good at finding loopholes and opportunities in the market. Often, those places that are overlooked by everyone are hiding huge business opportunities. At the same time, we should also be good at creating surprises to catch the opponent off guard, so as to achieve a successful transaction.
In addition, "the one who wins before the battle has made more calculations". Before trading, we need to conduct sufficient analysis and prediction and make a careful trading plan. Only in this way can we be invincible in trading.
Finally, "If one does not fully understand the harm of using military force, then he cannot fully understand the benefits of using military force." In trading, we should fully realize the risks and uncertainties of the market, deeply understand the nature and laws of the market, and better grasp the opportunities and profits of the market.
The essence of "The Art of War" is not only applicable to war, but also to trading activities. Only by deeply studying and flexibly applying these philosophical ideas can we stand out in the fierce market competition and achieve trading success.
Trading tips: Before entering the financial market, you must be fully aware of its inherent risks. If you are ignorant, the future success will be nothing but a mirage. Especially for those transactions involving leverage, the risks are like a sword of Damocles hanging over your head, which must be carefully considered.
Sun Tzu's Art of War says: Therefore, there are five ways to win. For traders, these five wins are also crucial.
First, you need to know when to enter the fight and when to retreat, so that you can be invincible.
Second, you need to have insight into market trends and know when to strike hard and when to proceed lightly so that you can operate with ease.
Third, the key to trading is self-discipline. You need to always control your trading desire, stick to your own trading system, and not be swayed by temporary fluctuations.
Fourthly, you need to understand the rhythm of the market and know when to wait with an empty position and when to attack with a full position, so that you can grasp the pulse of the market.
Fifth, the general is capable but the king does not control him, that is, the trader needs to have the ability to make independent judgments and not blindly follow the opinions of others in order to achieve the ultimate victory in the transaction.
Sun Tzu's Art of War also says: "If you know yourself and the enemy, you will never be defeated in a hundred battles." This is also an iron rule in trading. Only by deeply understanding your own circle of competence and grasping the trading opportunities in the market can you be invincible in the market.
If you only know one thing but not the other, then it will be hard to predict whether you will win or lose. If you don’t know either, then every transaction will be a risk, and the result is predictable.
People who are good at trading know that they must first make sure they don’t lose too badly, that is, they will only lose a small amount or no amount, and then wait for the market to turn around.
They understand that whether they can make money is not entirely up to themselves, but more of a gift from the market. Therefore, they never force it, but go with the flow and overcome hardness with softness.
When there are no clear trading opportunities in the market, they will choose to defend, formulate and implement strict risk control measures. They know how to be cautious in the downward trend, not blindly enter the market below the important moving average, and set a reasonable stop loss point after buying to ensure the safety of their funds.
Good traders know the wisdom of winning over easy wins. They never pursue high-risk and high-return transactions, but choose those opportunities that are easy to understand and grasp.
As Buffett said, they prefer to easily jump over low hurdles rather than risk trying to jump over towering obstacles. This steady and pragmatic trading philosophy is the key to their long-term success in the market.
The profound wisdom in Sun Tzu's Art of War can be interpreted from the perspective of modern trading, and its practical value will be discovered. We use more vivid and specific examples to show the application of this wisdom in the trading world.
Sun Tzu said: "Thus, he who is good at warfare stands in an invincible position, and does not miss the opportunity to cause the enemy to be defeated."
Excellent traders always plan ahead and make careful plans in advance. By deeply studying market trends, company financial reports and other information, they ensure that every step of the transaction is under control, so they can maintain profitability in the long run.
On the contrary, those investors who are unprepared are often panic-stricken in the face of market fluctuations, unable to resist risks, and losses are inevitable.
Sun Tzu said: "In any war, the right tactics should be used to win the war." The same is true in the trading market. A good trader not only follows the market rules and operates step by step, but also dares to win the war by surprise when the market fluctuates abnormally.
For example, at critical moments such as when the liquor industry encountered the plasticizer scandal and the epidemic caused the market to oversell, these traders were able to keenly seize opportunities, make decisive bets, and thus obtain generous returns.
Furthermore, Sun Tzu emphasized: "Thus, the momentum of a good warrior is like rolling a boulder on a mountain thousands of feet high. It is momentum." In trading, investors who are good at taking advantage of market trends are like pushing a boulder down from the top of a mountain. Their momentum is unstoppable. They know that only by entering the market when the market trend is clear and the momentum is sufficient can they maximize their chances of winning.
In addition, Sun Tzu mentioned: "Thus, a good warrior attacks others but not himself." This sentence also applies to trading. Good traders can control their own trading rhythm and will not be disturbed by short-term market fluctuations. They know how to enter and exit the market at the right time, and always keep a clear mind and sufficient ammunition.
Sun Tzu said: "Thus, those who are good at attacking make the enemy unaware of where they are defending; those who are good at defending make the enemy unaware of where they are attacking." Traders who are good at attacking can make profits with the power of trends; while traders who are good at defending can close their positions in time when the market is unfavorable to avoid losses. They know that trading is not only a process of pursuing profits, but also a test of wisdom and patience.
The wisdom of Sun Tzu's Art of War is also instructive in the trading market. An excellent trader should be like a general who is good at fighting, who should think carefully, plan carefully, be flexible and take the initiative to remain invincible in the complex and ever-changing market.
You'll Also Like
-
Global Flooding: I built a city
Chapter 726 1 hours ago -
Enter the world of female immortality novels
Chapter 205 2 hours ago -
People are sailing: Breathing on the opening sign-in day
Chapter 715 2 hours ago -
I, the steady Jinwu, just want to get married and live a good life!
Chapter 337 2 hours ago -
Elf System: I, the strongest champion of the league
Chapter 1359 6 hours ago -
Football: What is a mad dog full-back?
Chapter 121 6 hours ago -
Dragon Ball: Saiyan Transformation Era
Chapter 349 6 hours ago -
The soft and sticky crown princess is reborn and throws herself into the arms of the crown prince
Chapter 283 6 hours ago -
Rebirth: Those Years When I Was a Bad Student
Chapter 118 6 hours ago -
I've been reborn, who would still raise a son from another family? Go away
Chapter 561 6 hours ago