Sun Tzu, known for his treatise The Art of War, would have made an excellent trader. The principles he taught for proper military strategy are just as applicable today on the stock trading battlefield as they were 2500 years ago when originally penned. I have taken the liberty to translate a few of his principles for the modern day stock trading warrior. Let me know what you think.
1. Now the successful trader prepares before he enters battle. The unsuccessful trader makes but a few, if any, preparations before he enters battle. Proper preparation leads to victory; a little preparation leads to defeat; and no preparation leads to ultimate destruction! The one who is properly prepared is the one who is most likely to win.
2. In trading, let your great object be a quick and decisive victory, not the slow death of a lengthy loss.
3. If you know who the enemy is and you know yourself, you will never fear the next trade. If you know yourself but not the enemy, you will win one lose one. If you do not know the enemy or yourself, you will lose on each trade.
4. The quality of entry is like a well-timed swoop of a falcon which enables it to strike and destroy its victim.
5. Proper preparation may be likened to the bending of a crossbow; decision, to the releasing of the trigger.
6. Just as water retains no constant shape, so in trading know the market is constantly changing.
7. Ponder and deliberate before you enter a trade.
8. To refrain from entering a market that is prepared to defend its current course is the art of practicing patience by studying current market conditions.
9. He who does not think through his trade while making light of the situation is sure to fall victim to a loss.
10. Do not trade unless you see there is an advantage in doing so; use not your money unless there is something to be gained.
11. The successful trader is heedful and full of caution. This is the way to have peace of mind and to live to trade another day.
12. What enables the wise and successful traders to trade and conquer, and achieve things beyond the reach of ordinary traders, is proper preparation.
A little wisdom never hurt anyone. See you later...IN THE CROSSHAIRS.