From Newsgroup: alt.philosophy.taoism
aye <
user8028@newsgrouper.org.invalid> posted:
Mahjong fan posted:
IrCOve cranked out a dozen of these over the past two daysrCo
sharing one with those who resonate.
I have no idea what MACD is
nor why you are posting it to a Taoist group.
Unleashing hidden profits sounds like capitalism.
{Stock selection logic: price in weak adjustment,
but momentum has turned strong, and price below 10-day MA}
So, it's some sort of stock market company.
How does it pertain to Taoism?
We can understand the "Tao" in the stock market through several core dimensions of Taoist thought:
1. Tao Follows Nature: Respect the Market and Go with the Flow
Taoism teaches, "Man follows the earth, earth follows heaven, heaven follows the Tao, and the Tao follows what is natural." "Natural" means being as it is, existing in its own state.
In the stock market, the "Tao" is the objective law of the market's own operation. It is something no one can create or control. An operation that aligns with the "Tao" is not about predicting tops and bottoms based on subjective assumptions, nor is it about trying to fight against trends. Instead, it is like water, "going with the flow." When the trend is up, don't fear high prices; when the trend is down, don't try to catch a falling knife. Respecting the natural power of the market and not opposing the general trend is the first rule of survival in the market.
2. Reversion is the Movement of the Tao: Understand Cycles and Manage Risk Laozi said, "Reversion is the movement of the Tao." This means that the movement and development of things always tend to turn towards their opposite, moving in cycles and repetitions.
The core principle of the stock market is cycles and reincarnations. What goes up must come down, and what goes down must come up; extreme optimism breeds risk, and extreme pessimism breeds opportunity. Those who understand this "Tao" can stayu+aoaA when others are greedy and see opportunities when others are fearful. This profound insight into cyclicality is the foundation for controlling risk and seizing big opportunities. The so-called "standing firm" is precisely about being able to exit in a timely manner during periods of frenzy and preserving capital during times of depression.
3. The Soft and Weak Overcome the Hard and Strong: Maintain Resilience and Avoid Risk
Taoism esteems the wisdom of "softness" and "weakness," holding that "the softest thing in the world overcomes the hardest thing in the world." Water is the softest, yet it can wear down stone and erode metal.
In the stock market, operations that seem "hard and strong"rCosuch as going all-in, using high leverage, or stubbornly holding onto a losing positionrCoare often the ones that break most easily. Those who survive by aligning with the "Tao" understand the wisdom of "softness and weakness" : they use position management to maintain flexibility, use stop-losses to admit mistakes, and adapt to market changes like water. By not being overly assertive and not stubbornly holding on, they can flow and avoid impacts when risks arrive, ensuring they "don't die," thereby waiting for the next opportunity.
4. Action Through Inaction: Reduce Unnecessary Action and Focus on the Essence The Taoist concept of "Wu Wei" (action through inaction) does not mean doing nothing, but rather refraining from acting against the nature of things.
In the stock market, many losses stem from "acting against nature": frequent daily trading, trying to capture every fluctuation, and impulsive buying based on tips. These actions are rooted in anxiety and greed, deviating from the essence of investing. Investors who align with the "Tao" know what to do and what not to do. They only act when an "opportunity window" aligns with their own standards and rules; the rest of the time, they wait patiently. This "Wu Wei" allows them to filter out market noise and return to the "original heart" of rationality and discipline.
5. Knowing When to Stop: Understanding Gains and Losses Leads to Longevity Laozi warns us: "Know contentment, and you will not suffer disgrace; know when to stop, and you will meet no dangerrCoyou can then endure."
The most seductive and harmful aspect of the stock market is that it constantly stimulates human desire. When you profit, you want to profit more; when you lose, you want to win it back. The wisdom of the "Tao" lies in "knowing when to stop" rCowhether it's taking profits off the table after a gain, decisively exiting after a loss, or staying in cash when market uncertainty is high. Understanding where to stop, and not pursuing the perfection of squeezing out the last penny of profit, is how one avoids the subsequent risks and achieves long-term survival.
In summary:
In the market, the "Tao" is the high unity of objective laws (market trends, cyclical patterns) and subjective mentality (discipline, emotional control, risk management) . Those who can make significant money and stand firm for a long time are, in essence, aligning their actions with the fundamental laws of market operation through their behavior. They haven't conquered the market; they have become a part of the market's inherent rhythm.
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