EPTI'm trying to convert the Art of War into a sensible trading manual.
The Art of Profit
Chapter 1: Laying Plans
The Art of Profit is vital to acquiring equity.
It is a matter of wealth and poverty. There are five components of a good trader:
The Moral Law; Heaven; Earth; The Commander; Method and Discipline.
Moral law is a sense of believing in oneself. One should not only be confident in his plan, but he must be able to execute it as many times as oppurtunity allows.
Heaven refers to time. When your sun is not up, another's sun is up.
Earth is terrain, whether one deploys chartism or not. Mass fear and greed can ripple the ground.
The commander is at peace with himself in life. He does not trade when tragedy strikes his family, nor when he has just married his wife.
Method and discipline refer to outside of trading. One can not trade money he spent on hookers and drugs last night.
Every successful trader has mastered each of these concepts. Every trader who doesn't master these concepts is doomed to be margin called.
Every trade has a buyer and a seller:
Which of the two is imbued with moral law?
Which one has favorable conditions? (Heaven and Earth)
Is one side motivated by fear or greed?
Which side is stronger? (supply and demand?)
Which side is consistent with profit and loss? (big winners and small losers)
According as circumstances are favorable, one should modify one's plans.
All warfare is based on deception.
Hence, when able to attack, we must seem unable; when using our forces, we must seem inactive; when we are near, we must make the enemy believe we are far away; when far away, we must make him believe we are near.
The trader who wins a trade makes many calculations in his temple before the trade is entered. (This will be tied to other chapters)
