Tuesday, 29 May 2012

Sun Tzu Art of War

Most of us have heard of SUN Tzu. There was a ‘rumour’ Sun Tzu wrote a script on the Art of War. After his era, kings, prince, emperors, etc were searching for the script. Eventually the script was found.

One of Sun Tzu’s knowledge was related to understanding the weather. You may have heard how he used the weather to his advantage to win his battles (544 BC - 496 BC) during the Warring States Period.. In one battle he 'forecasted' the eclipse of the Sun to surprise the enemy.

Courtesy from Anonymous: Another well known strategist, Zhuge Liang (181–234; lived during the Three Kingdoms Era, of the China history; a latter period than Sun Tzu), who studied the stars, astronomy and weather patterns "borrowed" the East Wind to defeat Cao Cao at the battle at Red Cliff.

How does this relate to market trends?


The above is related to understanding the weather or climate. In this case, the financial equivalent is relating to the macros, economic data, geo-politics, music and noises happening in the financial market. And to filter/massage the actual events.

While most of you invest in counter stocks, foreign exchange, etfs, etc you are either ignorant or ignore the above or choose to ignore the above. But I hope the above would generate interest for you to equip yourself with the financial climate. Hence, you would have a better understanding why equities will behave more illogical than before!

Others in brief. The above is Understanding the weather.

·         Do you understand yourself? Risk profile, tolerant, patience, discipline,etc

·        Do you understand your terrain? Just stocks? Units trusts? Forex? Etfs? (For diversification)

·         Who’s your friend or enemy?

Without a ‘set’ of the above, how do you read the financial market? Who are your enemy? What sort of ‘terrain’ do you understand and use to your advantage? Etc...

If you admire Sun Tzu, his knowledge, the history he created and to relate how his Art of War manual can be used to your advantage in your personal investment, please equip yourself with knowledge, plan a strategy and execute your strategy with discipline.

In other words, please stop trading and investing blindly. I’ve witnessed

·         too many investors being slaughtered, time and again, without understand where is ignorance IS!

·        banks, investment advisors who does not have any idea what is/are financial markets, hence

·         without understanding the climate, how does he have a plan/strategy

·         how does he plan to go for a battle

·         What tools, strategy would he use, etc...?

·         How does he provide professional advice???

Remember and note: When you invest, you are strongly advised NOT to buy the stock, the Forex, the UT fund, the commodity, etc (all these are 'dead') but the 'advice' of your professional investment advisor because his best product is his advise!. Choose your investment advisor intelligently.

In conclusion, if you still do not understand what I am trying to relate, take my advice. Do not invest.


If you agree with the above AND you wish to help your friends, please forward the post to your friends such that they may understand investment better. The finance.sg is just one collection of financial bloggers. Your assistance and loyalty will enhance the blog and me and YOUR firends. This equates to a win-win-win situation!

On a separate post, Greece needs more than an AMD, in a situation where an individual is on a life support system, he is supported medically by life support machines. In this case, Greece had been financially unsound for three years on a life support system draining the finances of his siblings (Europe), currently has no government and a decision, whether to continue on the life support system in mid June through elections is NOT the solution to Greece problems.

Fortunately, Greece had a chance to 'wake up' from his 'coma' and decides on election day! There's more to this or the AMD...

I hope the above will assist you to relate the situation is Greece from an AMD point of view and the future of Europe and trading partners of Europe! 

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2 comments:

  1. The strategist at the battle at Red Cliff is Zhuge Liang. He is the one who is well-versed in observing weather patterns and "borrowed" the East Wind to defeat Cao Cao. He also studied the stars and is well-versed in astronomy. Zhuge Liang (181–234) lived during the Three Kingdoms Era of the China history which is in a latter period than Sun Tzu (544 BC - 496 BC) who lived during the Warring States Period.

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  2. Thank you for pointing out the grave error. How silly can i get!

    Your response demonstrates you are well versed in China's history. And if you understand how he borrows the East wind to defeat Cao Cao, my reading is that you'll do well managing your own investments.

    Thank you again for your contribution. You'd just nominated the second startegist to use the climate to win a battle. I hope the audience can identify more.

    Nonetheless, it is useful knowledge of understanding 'financial' climate to win battles in financial markets. Next is developing the strategy at the appropriate time taking in consideration the strength and weakness of both the enemy and the strategist and using the terrain to the strategist's advantage, etc....

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