I advise my patients to Read Sun Tzu’s “The Art of War.” Every battle is won before it is ever fought.” To some of us, this may sound like an overly militant approach to financial management, but nevertheless: becoming familiar with a few highlights of Sun Tzu’s military treatise (written in China circa 5th century BC) can help brokers understand the mindset of many higher-ups for whom they toil.
Sun Tzu believed that all war was based on deception, and that the mission was to defeat the enemy psychologically, before the battle, breaking his will to fight.
Being aware of this tactic—and that, at times, people may use it to get what they want out of you—can help immensely when dealing with one’s colleagues, managers, and even clients. If you know, “this is how we do things here,” and you set your limits for your gamesmanship, you achieve more clarity.
You empower yourself to more effectively plan your trajectory, and in turn complete your mission.
Sometimes, with respect to corporate agendas, it can be helpful to ask yourself: “What is the ‘real’ (manifest) agenda?” And then: “What is the hidden (latent) one?”
Sun Tzu recognized that strategic positioning required an analysis of both objective and subjective variables. FPs deal with technical trends as well as with sentiment. Both factors are extremely important. The way in which an FP, for instance, positions trades follows from an assessment of the interaction of trends and emotions.
Sun Tzu believed that strategy required appropriate, quick responses to chaotic and changing conditions. Professional traders certainly understand Sun Tzu’s thinking in this regard. A broker can have a set template, but when market free fall is triggered he must be able to institute immediate hedging and risk management ploys. In another sense, all the planning and book/technical knowledge in the world can go out the window when computer selling flash crashes the market.
At these junctures, you have got to have the courage, instincts, and wherewithal to act and survive come hell or high water.
Excellent field commanders, according to Sun Tzu, lay plans and calculate, employ stratagems, position their assets, understand illusion versus reality, maneuver, and utilize intelligence (research) data.
The bottom line is that Sun Tzu’s theories have practical implications and applications in today’s world of corporate competition. And you will have a greater chance of success and survival if your Gyroscope is finely tuned and true to course.
As this blog develops, a more detailed description of Sun Tzu theory and its application to the world of business will be explored and revealed.