[Red packet] Hundred Times Brother Reads the Tao Te Ching Chapter 31: Warfare is Inauspicious, Investors Must Avoid Reckless Gambling Impulses

Let’s continue our discussion of the Dao De Jing.

Chapter 31 Original Text

War is an ominous tool; some despise it, so those with the Way do not dwell in it.
The gentleman, when at home, values the left; when using weapons, values the right.
Weapons are ominous tools; they are not the tools of a gentleman.
Only when absolutely necessary should they be used, with calmness and simplicity as the priority.
Victory that is not beautiful, and those who find beauty in it, are fond of killing.
Those who enjoy killing cannot achieve true success in the world.
Auspicious affairs favor the left; inauspicious affairs favor the right.
The deputy general is on the left; the chief general is on the right, and they are treated with funeral rites.
When killing many, mourn and weep; after victory, treat it with funeral rites.

In the previous chapter, we discussed not conquering the world through force, returning good for evil, and that strength and abundance lead to aging—mainly warning traders not to be aggressive or reckless.

Today, Laozi talks about the often-overlooked virtues of reverence, compassion, and restraint in investing.

1. War is an ominous tool; some despise it, so those with the Way do not dwell in it.
   Weapons are inauspicious objects; all things dislike them. Therefore, those who follow the Way do not use them lightly.
   This reflects a unique Chinese view of war: not eager for conflict, loving peace, and avoiding battle unless absolutely necessary.

In investing, “war” refers to heavy leverage, overtrading, going all-in, stubbornly holding positions, frequent trading, emotional trading, and contrarian attacks—showing a lack of reverence for the market.

These tactics may seem sharp and quick to profit, but they are inauspicious tools that harm both others and oneself. Fast gains often lead to faster backlash. As Chinese, applying the principle that weapons are inauspicious and avoiding unnecessary conflict can strengthen our reverence and restraint toward the market.

All things dislike danger; markets dislike extremes. A wise investor avoids rule-breaking operations and dangerous strategies, never putting their account at risk of collapse.

Frequent trading accelerates losses; profits gained through leverage and heavy positions are ultimately illusions. Only wealth maintained through discipline and trend-following can be stable and lasting.

2. The gentleman, when at home, values the left; when using weapons, values the right.
   At peace, he values gentleness, calmness, and tranquility; in warfare, he emphasizes seriousness, decisiveness, and severity.

In investing, patience, waiting, observation, and moderation are valued during normal times; only when clear trends and signals appear should one act.
When signals are absent, remain patient and unmoving; once signals emerge, act swiftly and decisively.

A gentleman does not easily resort to violence; a master does not hastily place buy or sell orders.
As a professional investor, most of the time should be spent quietly observing, only acting when trends align with rules.

3. Weapons are inauspicious tools; they are not the tools of a gentleman. Only when unavoidable should they be used, with calmness and detachment.
   Investing is similar: trading is not the goal, profits are not a cause for celebration, but following system rules and trend-following are natural outcomes.

Many novice investors misunderstand this—they are reluctant to give up opportunities and want to trade at every chance.
But professional investors do not chase wild rabbits; they patiently wait for opportunities that meet their rules before acting.

Statistically, novices trade far more often than professionals but have much lower success rates—this warrants reflection.

4. Victory is not to be overly proud of, nor should one glorify or celebrate it.
   If victory is seen as a joyful achievement, it reveals a love for killing and harm.

In markets, this speaks directly to the heart: after profits, do not be overly excited, boast, or become arrogant.
True experts win without arrogance. Profits are just the natural result of following rules and trends, not personal bravery.

5. Those who love killing, aggression, and bloody battles cannot long succeed in the world.
   Those who love heavy positions, all-in bets, or reckless trading may make quick profits short-term, but cannot go far in the long run.

In the investment world, some obsess over extreme tactics—besides investing, they have no other hobbies.
Though they may earn a lot, they often burn out physically and miss the changing seasons outside the window—an unfortunate loss.

6. Auspicious events favor the left; inauspicious events favor the right.
   In warfare, treat victory and defeat with a funeral mindset—serious, mournful, and respectful.

This may be hard to understand, especially the idea of approaching with a funeral attitude—it’s about the difference between war and investment, and reflects compassion.
For investors, every trade—opening, holding, or betting—should be approached with seriousness and reverence.

Do not treat trading as entertainment, do not treat opening positions as games, and do not take risks lightly.
Experts approach each trade with caution, as if walking on thin ice, trembling with respect and awareness.
They know markets are dangerous, and gains or losses are merciless; a single careless move can lead to total loss.
Treat every trade with a funeral attitude—not out of pessimism, but out of utmost respect, clarity, and self-control.

7. Even after winning and making big money, maintain a solemn and calm mindset—do not celebrate wildly.
   In investing, even if we profit greatly, we must understand that gains come from trends, not solely from our ability; from rules, not from bravery; and sometimes from luck, not from conquering the market.

Remain humble, respectful, and composed.

Chapter 31 emphasizes that investing requires reverence, moderation, and restraint.

Next chapter, Laozi teaches that the Dao is always nameless; simplicity, though small, can rule the world. The simplest truth is the most invincible.

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