Data Driven Investor: 5 Trading Lessons from the Greatest Samurai

Investors looking to improve their returns may want to look at different philosophies and how they can apply to the stock market.

One philosophy that may hold some clues to improved investment success is the samurai code of conduct, known as Bushido, or way of the warrior. It brings together ideas such as discipline, focus, and mental fortitude in a way that can help avoid common investment mistakes.

One core idea of Bushido is that one should strive to perfection, but recognize that it can never be achieved.

Even great investors will miss the mark on some investments. One such example is Warren Buffett’s investment in airline stocks ahead of the pandemic.

Financial markets are complex and ever-changing. They can be influenced by many factors. And that may change over time.

Looking to continuously improve and not get frustrated by those changes can help in several ways. The biggest is that an investor avoid being caught on the wrong side of a market change.

Another core idea is constant training and preparation. Investors and traders alike should know before making an investment the potential risks.

They should also think about the potential rewards, including when to take profits. That can ensure that a paper profit doesn’t turn into a real loss when markets change.

To read the full list of trading lessons from the Bushido, click here.