The Wisdom of Sun Tzu's Art of War in Financial Trading

2023-08-16 731 words 4 mins read


This video explores the profound wisdom of Sun Tzu’s “The Art of War” and its application to modern financial trading. Focusing on the first chapter, “Laying Plans,” the video draws parallels between ancient warfare strategies and today’s trading tactics. Key insights include the importance of planning, adaptability, understanding market signals, and maintaining discipline in trading. The reading of the first chapter further emphasizes these principles, offering valuable guidance for traders seeking success in the financial markets.


hello Traders today we’re taking a fascinating journey into the wisdom of Sun Tzu’s The Art of War and exploring its relevance to financial Trading. We’ll focus on the first chapter, laying plans, are drawing parallels between the strategies of Ancient Warfare and the tactics we use in the modern financial markets.

The Importance of Planning and Strategy

Point one, the importance of planning and strategy. Firstly, Sun Tzu emphasizes the importance of strategic planning in Warfare. He said, “The Art of War is of vital importance to the state. It is a matter of life and death, a road either to safety or to ruin.” This is a concept we’re all too familiar with in financial Trading. A well-thought-out plan is crucial. We, as Traders, must understand market conditions, evaluate risks, and anticipate potential Rewards. Just as a general makes many calculations before a battle, we must meticulously plan our trades.

Adapting to Changing Circumstances

Point two, adapting to changing circumstances. Sun Tzu advises modifying plans according to favorable circumstances. He said, “according to his circumstances are favorable, one should modify one’s plans.” In trading, this means adjusting our strategy based on market trends and fluctuations. Being flexible and adaptable is key to navigating the ever-changing financial markets.

The Element of Deception in Warfare

Point three, the element of deception in Warfare. Sun Tzu emphasizes the use of deception. He said, “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.” In trading, while we don’t encourage deception, it’s crucial to understand that market movements can sometimes be misleading. A sudden rise in a Stock’s price might seem like a good time to buy, but it could also be a sign of an impending crash. We must learn to discern the true signals from the noise.

Understanding Strengths and Weaknesses

Point four, understanding strengths and weaknesses. Sun Tzu talks about understanding the strengths and weaknesses of oneself and the enemy. He said, “the commander stands for the virtues of wisdom, sincerity, benevolence, courage, and strictness.” In trading, this translates to understanding the strengths and weaknesses of the assets we’re trading, as well as our own strengths and weaknesses as Traders. Successful trading requires a clear-eyed assessment of where we stand.

The Importance of Discipline

Point five, the importance of discipline. Sun Tzu mentions that discipline should be rigorously enforced. He said, “on which side is disciplined most rigorously enforced?” In trading, discipline is key to sticking to our trading plan and not letting emotions Drive our decisions. A disciplined Trader is a successful Trader.


In conclusion, the wisdom of Sun Tzu’s The Art of War offers valuable insights for financial trading. By applying these principles, we can navigate the financial markets more effectively and increase our chances of success. Remember, as Sun Tzu said, “the general who wins a battle makes many calculations in his Temple before the battle is fought.” Let’s make those calculations and plan for victory in our trading battles. Thank you. If you find this video helpful, please give it a thumbs up and subscribe to our channel for more.

Reading of Chapter 1: Laying Plans

Now, let’s read the first chapter, laying plans. Sun Tzu said, “The Art of War is of vital importance to the state. It is a matter of life and death, a road either to safety or to ruin. Hence, it is a subject of inquiry which can on no account be neglected.” The Art of War, then, is governed by five constant factors to be taken into account in one’s deliberations when seeking to determine the conditions obtaining in the field. These are the moral law, Heaven, Earth, the commander, method, and discipline.

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Authored By Jesse Lau

A freelancer living in New Zealand, engaged in website development and program trading. Ever won 1st ranking twice in the Dukascopy Strategy Contest. This article is licensed under a Creative Commons Attribution 4.0 International License.

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