Can Two Things Do Four Things?

Hello Traders,

Another nice day trading (live sim) in the crude oil market … $870 net on 2 contracts.

Miyamoto Musashi“The following is a philosophical truth.  One thing does one thing, two things do four things.  Think this through.  If you are fighting a crowd or controlling a group, it is better to use two swords than one.” – Miyamoto Musashi

As I continue reading the Book of Five Rings, I stumbled across this passage in Musashi’s work.

If you think of only trading one contract, then your options are quite limited in what you can do as a trader in the markets.

If you think in terms of two contracts trading, then you have so many more options at your disposal.  To fight with two swords … then you can have four things.  This is an insight of pure wisdom and pure knowledge.

A lot of the Book of Five Rings can be interpreted to a day trader, trading the markets.  Miyamoto goes on to talk about two swords:  the long sword and the short sword.

Both of these swords has a purpose … the short sword for in-close combat – much like an early exit on a contract at a set profit target which the market will make more times than not.

In addition, the long sword is for ranged combat – much like you should have a runner on each trade to capture as much profit as you can …

Let Your Profits Run … but Take Profits on the Ride!


Good Trading,

David ‘Tiger’ Knight

P.S.  Week of June 18th to 21st, 2012:  Trade Summary Report



About The Author

David M. Knight

I am a 30 Year Futures and Commodities Trading Veteran. In addition, I enjoy games of skill and chance like: poker, craps, blackjack and roulette. During my professional career, I have developed and implemented successful trading strategies and methods; along with winning systems in games of skill and chance. Join with me on our mutual journey together.