Online Stock Trading | Sun Tzu - Art of Stock Trading?

Sun Tzu - Art of Stock Trading?


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Bud Fox and Gordon (GG) Gekko made famous, Sun Tzu’s Art of War in the 1987 Wall Street.  The famous work of warfare was brought into the business world and to our trading world.  How is a centuries old piece of brilliance worth a penny in today’s trading world?  There is one passage that I’ll take a look here:More...

Here is the passage:

Before doing battle, in the temple one calculates and will win, because many calculations were made;
before doing battle, in the temple one calculates and will not win, because few calculations were made; 
many calculations, victory, few calculations, no victory, then how much less so when no calculations? 
By means of these, I can observe them, beholding victory or defeat!

Here is my interpretation:

Before you make a trade, in your trading room one must calculate the probability and will have winning trades, because probabilities were calculated.
before making a trade, in your trading room one may calculate and will not win because too few probabilities were calculated.
many calculations, victory, few calculations, no victory, then how much less so when no calculations?
By means of these, I can observe them, beholding victory or defeat!

I follow Bill O’Neils CANSLIM method, therefore I do have a trading system or probability trading.  What I seek to do is find stocks who show characteristics of past explosive stocks.  Now, there are other ways to make money in the market so this Sun Tzu’s passage is perfect for all systems.  In a nutshell, if you don’t follow your rules you will not see victory or make money.

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