In the world of trading, understanding how to plan ahead is more important than frequent fighting.
This point has long been told to us in (The Art of War - Military Strategy).
Sun Tzu said:
"The highest military strategy is to win through strategy, followed by engagement, and lastly siege."
Trading experts do not enter and exit blindly every day, but think deeply and strike precisely.
Today, we will use the perspective of excellent traders to deeply analyze (military strategy), learning the true path to victory through intelligence.
The essence of military strategy - winning before taking action.
Sun Tzu believed:
Military strategy: Winning through intelligence, winning in strategy.
Military engagement: Disrupt the enemy's alliance.
Military engagement: Truly going into battle.
Siege: The most helpless and costly option.
Corresponding to our trading:
Military strategy: Anticipate the market's major trends and layout before turning points.
Military engagement: Identify chaotic market emotions, go with the trend, and avoid crazily chasing up or down.
Military engagement: Precise entry when necessary, quick victory.
Siege: The market is chaotic, engaging hard consumes a lot, has high risks, and is a last resort.
The highest level of trading is not frequent operations, but being as still as a maiden, and as swift as a hare.
Our "military strategy" in trading.
1. Plan ahead, rather than following up after the fact.
The true opportunity the market offers comes when it is not recognized by the majority. When many KOLs do not have a favorable view of the market, you should think the opposite.
Military strategy in trading means:
When large funds are quietly building positions, we can sense the clues.
When the main force is washing out positions, we will not be shaken out.
Before prices are about to explode, we have quietly ambushed.
For example, when BTC is consolidating in a certain phase, retail investors panic and flee, technical indicators are bleak, while fund inflow data shows that the main force continues to accumulate.
True strategists will layout during fluctuations, not wait until prices surge to chase high.
2. Psychological Warfare in the Market: The Way of Military Engagement
The market is an ocean of emotions.
Sun Tzu's military engagement means to disrupt the enemy's alliance.
In trading, you need to see through retail investor sentiment, avoid traps set by the main force that lure in or scare out, from 7:00-9:00 when Asia just opens, the direction is uncertain, and the main force likes to create false moves to stir up retail sentiment.
Common Market Sentiment:
Greed (period of market frenzy)
Panic (period of sharp decline)
Watchful (period of market fluctuations)
Smart traders always stand on the opposite side of sentiment.
"Be fearful when others are greedy, and be greedy when others are fearful." — Warren Buffett
3. Timing of Action: Military engagement without clinging to battle.
Only act when the trend is clear, the structure is defined, and the signals are complete.
Key points of military strategy:
Small victories do not cling to battles, and big victories do not indulge in greed.
Take profits when you win, do not blindly expand your gains.
Cut losses and withdraw, do not cling to battles with increased positions.
In trading, timely profit-taking and stop-losses are the best military strategy.
4. The Pain of Siege: The worst choice in trading
Siege in military strategy is a last resort, because:
Huge costs.
High costs.
Low success rate
The same principle applies in the trading market:
Blind trading in a volatile zone = hard siege.
Poor liquidity and high slippage mean that hard charging orders are equivalent to a siege.
Smart traders know to rest decisively when there is no chance of victory, avoiding meaningless "siege battles."
The "five-step check" before opening a position.
🔍 Before each trade, ask yourself five questions:
Is the current trend a trending market or a volatile market?
Is market sentiment greedy or fearful?
Is my strategy suitable for this situation?
What might the main force's intentions be?
After a loss, can I accept the cost of this trade?
If any answer is ambiguous, one should be cautious in taking action.
🧠 Remember: A wrong strategy cannot be saved by good tactics.
Risk control always takes precedence over offense.
Sun Tzu said:
"Victorious troops win first and then seek battle; defeated troops seek battle first and then win."
A true expert has already won before the trade begins, because:
Clear stop-loss level
Reasonable position size.
Confirm risk-reward ratio.
Stable psychological expectations
Victory or defeat is not decided at the entry point, but is already determined in the layout and preparation stage.
The trading wisdom of military strategy tells us:
The best trade is when you already have the winning ticket before taking action.
The worst trade is when the market is unclear, and you forcefully engage; the result is total failure.
Successful traders do not rely on frequent trades for profit, but on deep layouts, patient waiting, and precise strikes.
Just as Sun Tzu said:
"A good warrior wins before the battle is fought."
Trading is the same.
Win in easy places, avoid difficult places; plan carefully before acting, and win with intelligence rather than strength.
🎯 Trading is not about confronting the market head-on,
But instead, it is a battle of wits and courage with the market.
Plan carefully before acting; the wise win the world.
