There is a maxim when you go camping: before setting up your tent, find out how the terrain behaves in the rain! It seems a bit obvious, but most campers, failing to observe this condition, tend to sleep in the dry and wake up in the mud. or in the pool.

In the financial market, especially the digital one, of cryptocurrencies, this maxim is very true too! When the terrain is not known, which in the financial case, has to do with the asset's history and the daily traded volume, it will usually end up in the mire as well.

In the fourth century BC a book appears, created by a true general named Sun Tzu, commander of Wu's army, called The Art of War. This book, enshrined in military circles, from 1990 onwards, has become a bedside book for commercial and financial managers.

The problem, just as the West does not understand oriental characteristics very well, is in the details: Asian oriental culture is based on discipline and order, respect for ancestral wisdom and hierarchy - whether constituted or not.

The book, therefore, makes use of the principle that those who are reading it are disciplined and organized, that they can plan and are patient enough to read as many variables as possible before entering the battlefield!

So the first problem with using this book as a strategy is to take into account the preconditions. Without these, the book is useless!

The question of discipline is classic (this one in the book):

Sun Tzu Wu was a native of the state of Ch'i. His “Art of War” caught the attention of Ho Lu, King of Wu.

Ho Lu told him: “I carefully read your 13 chapters. Could you subject your soldier management theory to a slight test?”
Sun Tzu replied, "You can."
Ho Lu asked: "Can the test be applied to women?"

The answer was yes. Arrangements were made for 180 women to be brought from the palace.

Sun Tzu divided them into two platoons and placed one of the king's favorite concubines in charge of each. Ordered them all to hold spears and told them, "I imagine you know the difference between 'forward', 'backward', 'left' and 'right'”?
The girls replied, "Yes."

Sun Tzu continued: “When I say 'Look ahead' you should look straight ahead. When I say “left, turn” you should turn towards your left hand. When I say “right, turn”, you should turn towards your right hand. When I say “turn around, turn around” you must turn around.

Again the girls replied in the affirmative. With the words of command properly explained, he distributed the swords and battle axes for training. To the sound of drums, he gave the order: "Right, turn back!" But the girls just laughed.

Sun Tzu said: "If the orders are not clear and direct, if the orders are not fully understood, then the general is to blame."

So he trained them again and this time gave the order "Left, turn back!" and once again the girls burst out laughing. Sun Tzu: “If the orders are not clear and direct, if the orders are not fully understood, the general is to blame. BUT if your orders ARE CLEAR and the soldiers still disobey, then your officers are to blame.”

That said, he ordered the leaders of the two platoons to be beheaded. The king of Wu was watching the scene from the top of an elevated pavilion; when he saw that his favorite concubines were about to be executed, he became alarmed and sent the following message: “We are quite pleased with our general's ability to command troops. If we are deprived of these two concubines, our drink and meals will lose their flavor. It is our wish that they are not beheaded"

Sun Tzu replied: "Having received His Majesty's commission to be the general of his forces, there are certain commands which, acting in that interest, I am unable to accept."

The two leaders were then beheaded and immediately the next two were placed as leaders in their places. The drums then sounded once more and the girls made all the evolutions, turning left and right, marching back and forth, kneeling and standing with perfect timing and precision, not daring to make a sound.

Sun Tzu then sent a messenger to the king saying: “Your soldiers, sir, are now properly trained and disciplined, ready for your majesty's inspection. They may be used for whatever purpose your sovereignty desires; command them to go through fire and water and they will not disobey”.

But the king replied: "Let our general cease training and return to barracks as we have no desire to go down and inspect the troops."

To which Sun Tzu said: "The king appreciates words but is not able to turn them into concrete deeds."

Ho Lu then saw that Sun Tzu was someone who knew how to handle an army and finally appointed him a general. In the West, he defeated the state of Ch'u and advanced to Ying, the capital; to the north he spread fear through the states of Ch'i and Chin and his fame among feudal princes.

*******The above text is a free translation/adaptation of Leonard Giles' 1910 translation for the Art of War, freely available from Project Gutemberg.

In this lesson, Sun Tzu demonstrated the effectiveness of discipline to both subordinates and the king.

Sun Tzu also states that invincibility depends on the person, defeating the enemy depends on the enemy's mistakes. So, the expert can become invincible, but he cannot take the enemy's vulnerability for granted. This is why it is said: "a person can predict a victory, but it cannot be forced"

In other words, having success, in this case, in the financial market depends on you regarding the right decisions, but it does not depend on you as to where the asset tends to. In other words, there is always the risk of getting lost! Is very!

These two concepts, I present in this article.

I will make further considerations from time to time.

Discipline and invincibility guarantee correct decision-making but do not guarantee, in all, the asset's gain!

Knowing and not doing is still not is Knowlegment!

Good war!