Monday, June 15, 2009

Wisdom from the Tao Te Ching Pt 1 of many

Towards the end of chapter 14 the Tao Te Ching say:

. Wield the Tao of the ancients
. To manage the existence of today

Bingo! The book has some Market Tao in it; other cool things too! I'll be studying it thoroughly.

Chapter 8 includes:

. Governing with great administration
. Handling with great capability
. Moving with great timing
. Because it does not contend
. It is beyond reproach

To me, that sounds like consistently being on the right side of the trade, with an appropriate share size, affordable risk limits, then getting out when appropriate.

I need that.

Hmm... here's one from chapter 9:

. Holding a cup and overfilling it
. Can not be as good as stopping short

Today's wisdom says: Bulls make money, bears make money, hogs get slaughtered. The ancient version sounds much nicer to my ear.

This gives me some things to think about in my current trading paradigm.

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