Saturday, December 4, 2010

the ART OF WAR

important themes by Sun Tzu 
applied to portfolio management 
and risk management challenges.




Strategic Planning And Rational Analysis


Information And Related Processing Capability


Knowledge, Wisdom, And Understanding
knowing self and opposition.



 

Study The Past, Market Analysis, 
Develop And Maintain An "Edge"

Strive to become the superior force in more than mere numbers. This is achieved through focused knowledge and experience, which, in turn, is gained by studying and observing situations, conditions, people, and events; remembering what was observed; comparing the observations to one another as well as to contemporary circumstances; and by disciplined application of the results of the observations in the pursuit of strategic objectives.

Know yourself, your opposition, and the environment within which interaction will occur.




Staying Focused On Strategic Objectives
Keep attention of all resources and related action focused on achieving strategic objectives as promptly as possible. Avoid becoming distracted by the nuances and intricacies of implementing complex strategies and tactics.



 

Suitability Of Strategies And Tactics To Situation
Match the suitability of strategies and tactics to the market's phase, section, pattern, and volatility.




 

Inherent Advantages And Disadvantages
Understand, and guard against, the inherent disadvantage in every advantageous situation. Likewise, be alert to capitalizing on advantages that occur in distressed situations.





Opportunistic Flexibility 

In Adapting Strategies And Tactics To Situation
The way to capitalize on the endless opportunities created by ever-changing market conditions, is to become engaged as a part of a well thought out trading plan and be flexible in adapting tactics to those ever-changing market conditions within the context of each pre-determined strategy.





Ethical Conduct
Be moral and ethical in all things.



Rely On Your Own Preparation
Rely on your own preparations. Do not hope for success based on the opposition not preparing.



Competent Management
Develop a balanced management skill set to enable prudent resource utilization.



Disciplined Emotions
Minimize emotional influences (hope, fear, greed).



Disciplined Organization And Financial Management
Discipline, efficient, and effective organization, and utilization of all resources (people, plans, tools, capital), in the capacity to which they are best suited, in all situations, is critical to success.

Ensure appropriate financing and provisioning of all activities (prior to and during).

 

Clear Communication
Ensure clear communication in all aspects of the development, testing, and implementation of strategies and tactics.


 

Deception And "Shaping"
Practice deception in plans, strategy, and tactics, and its corollary;



Avoidance Of Being Deceived And "Shaped"
Take precautionary steps to avoid being deceived by the opposition.



Reward, Replenish, And Invest In Support Structure
After a successful strategy, be sure to allocate appropriate parts of the profits to all resources employed in the portfolio management and risk management activity.




Patience, Positioning, And Timing
Develop patience and discipline in positioning and timing the use of all resources in adapting to ever-changing circumstances.



Avoidance Of Catastrophic Loss
Avoid catastrophic mistakes, by promptly adapting strategies and tactics to current circumstances, thereby, keeping the consequences of mistakes small and manageable.



Preservation And Protection Of Resources
At all times, and especially when strategies are in play, seek to keep all resources in profitable and advantageous positions. Likewise, quickly liquidate unprofitable positions and minimize exposure to situations with inordinate risk to uncertain market movements.







words of the buddha

You will not be punished for your anger, you will be punished by your anger

Endurance is one of the most difficult disciplines, but it is to the one who endures that the final victory comes.




Confucius is one of the few leaders who based their philosophy on the virtues that are required for the day to day living. Known as Master Kong to the Chinese, he taught people how to cultivate the value of modesty, planning, respect, moral behavior, honesty and sincerity, apart from common sense. He said that adopting these values was the only way a human being could lead a good life

Confucius was of the opinion that true happiness would only be brought from well-planned actions and helping of the fellow men. His philosophy was aimed at benefiting not only a few selected groups, but all the people of the empire he was a part of.



words of confucius

The superior man, when resting in safety, does not forget that danger may come. When in a state of security he does not forget the possibility of ruin. When all is orderly, he does not forget that disorder may come


If a man takes no thought about what is distant, he will find sorrow near at hand



 
WORDS OF harry truman  . US PRESIDENT

“In reading the lives of great men, I found that the first victory they won was over themselves...self-discipline with all of them came first.”


“If you can't convince them, confuse them.”





Aesop, or Æsop (from the Greek Aisopos), famous for his Fables, is supposed to have lived from about 620 to 560 B.C. Aesop's Fables are still taught as moral lessons

 words of aesop:


Better be wise by the misfortunes of others than by your own.  The gods help them that help themselves.


We often give our enemies the means of our own destruction



List of some fables by Aesop
The Lion and the Mouse
The Ant and the Grasshopper
The Tortoise and the Hare
The Fox and the Goat
The Fox and the Crane (or Crow)
The Fox and the Grapes
The Dog and the Bone
The Wolf in Sheep's Clothing
The Boy Who Cried Wolf
The Hen (or Goose) that Laid the Golden Eggs
The Town Mouse and the Country Mouse
The North Wind and the Sun
The Ass in the Lion's Skin
The Old Man and Death







Donald Trump Biography (Donald John Trump) :  
Billionaire Real Estate Developer
 

Famous for : 
Being a famous New York real estate developer billionaire, starring on the hit reality show 
                        and his words "You're fired!" Trump details : Born - USA June 14, 1946 Lives - USA

FAMOUS WORDS OF DONALD TRUMP:

"I have made the tough decisions, always with an eye toward the bottom line"


You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive.

Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you're generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don't make.
Sometimes by losing a battle you find a new way to win the war

With out passion you dont have energy, with out energy you have nothing.









No comments:

Post a Comment