🎯 In all military tactics, the whole nation is the priority, followed by the destruction of the country; the whole army is the priority, followed by the destruction of the army...
Thus, winning a hundred battles does not make one the best; defeating the enemy without fighting is the best.
✅ The best victory is not frequent trading for small profits, but rather fewer trades, hitting hard, and winning big battles.
In every trade, we are not aiming for 'one win,' but for 'the long-term stable growth of the overall system.' 'Trading does not require us to be right every time, but rather to earn enough when we are right and cut losses when we are wrong.'
> Our goal is to achieve a long-term positive expected value, rather than focusing on individual wins or losses.
We do not need to make money every day; as long as we make a significant profit in key market movements, we can preserve profits and avoid losses.
In trading, to do well in the 'combat section,' we must ask ourselves:
Do I have sufficient 'supplies'? (Capital allocation, stop loss settings, mental preparation)
Is position control too heavy?
Can you accept a loss on a single trade?
Am I prepared to endure continuous losses psychologically?
Is my 'tactic' efficient? (Entry points, profit-taking methods, position holding rhythm)
Do you have the ability to 'enter and exit quickly'?
Can I accept timely profit-taking and not be greedy?
Do I have a 'war of attrition mindset'? (Trading frequency, account fatigue)
Have you been trading too much?
Is my mental state starting to fluctuate and become anxious?
🎯 Long battles lead to national benefits, which has never been the case.
Therefore, if one does not fully understand the harm of using military force, one cannot fully understand its benefits.
✅ Long battles lead to disadvantages: 'Prolonged warfare is unfavorable,' corresponding to 'long-term holding, stubbornly enduring losses, and not adjusting stop losses' in trading.
Time = cost, the longer the holding time → the higher the opportunity cost → the greater the emotional interference.
1. Trading is a 'resource allocation battle.'
Sun Tzu said, 'The military is the wealth of the people,' and our trading also involves allocating 'limited resources.' Before trading, we need to prepare position plans, psychological expectations, and account management.
Capital (cannot be fully invested)
Time (cannot wait indefinitely)
Energy (cannot always be staring at the market)
Emotions (cannot be drained by emotions)
→ We must learn to 'gamble small for big, win quickly,' rather than trading in and out frequently.
2. Quick decision-making = high-quality trading.
Speed is crucial in warfare; take advantage of opportunities and attack where the enemy is unprepared. We should quickly realize profits from high win rate strategies and not become attached to the market.
The trading world changes rapidly; if we are slow by a step, the entry point, risk-reward ratio, and risk control environment have all changed.
Let me give you an example:
Seeing a three-push structure + EMA20 retracement + Morning Star formation → hesitating to place an order → hesitating for a minute, the price has already broken through → missing the whole situation.
3. Cost awareness is the lifeline of trading.
Sun Tzu repeatedly mentioned:
Daily expenses are enormous, and then a hundred thousand troops are raised.
This means: behind every military action, there is a huge logistical cost.
Every trade we make also consumes 'transaction fees + slippage + energy + time + emotions.'
This tells us that we must not fight recklessly and we must not place orders randomly. High-frequency traders especially need to pay attention to transaction fees, slippage, and mental exhaustion.
Three typical misunderstandings in the combat section.
❌ Scenario 1: Greedy for small wins, turning big wins into losses.
For example, if you profit 50% but hesitate to take profit, the market reverses and you end up with a stop loss.
What is the reason for this? It is due to a lack of understanding of 'battle resource management' and a lack of discipline.
Violation of combat principles: 'Be victorious but not arrogant, and decide battles quickly.'
❌ Scenario 2: Holding onto losses stubbornly, sinking deeper.
For example, not setting a stop loss, thinking 'I'll wait a bit and it will come back,' but instead losing more and more.
Reason: Not considering resource consumption and not understanding 'prolonged warfare leads to destruction.'
Violation of combat principles: 'Long battles lead to the loss of benefits.'
❌ Scenario 3: Overtrading, mistakenly viewing volatility as opportunity.
For example, trading frequently in a narrow market can lead to exhaustion from transaction fees + emotions drained by the market.
Reason: We lack a sense of battle rhythm, like 'soldiers swatting flies around the bushes.'
Violation of combat principles: 'Not fully understanding the harm, one does not know the benefit.'
Practical implementation methods.
Ask yourself five questions before each trade.
(Five-question method = pre-battle simulation)
Do I have sufficient 'supplies'? (Position, stop loss, plan)
If this battle is a 'prolonged war,' can I endure it? (Drawdown, time, emotions)
Is this battlefield worth fighting for? (Risk-reward ratio, win rate)
Is there a better battlefield? (Multiple targets, selecting the best from multiple time frames)
Am I currently in an 'emotionally imbalanced' state?
Trading is not about 'fighting every day' or 'fighting countless battles in one day,' but rather 'choosing the right battlefield and striking decisively.'
A true expert does not win every battle but knows how to choose battles, is not afraid to retreat, understands resource conservation, and waits for the next victory.
