[Red Packet] Hundred Times Brother Reads "Tao Te Ching" Chapter 27: Why Do Experts Make Money Easily? Seeing Through the Ultimate Design Principles of Trading Systems

This is a very important chapter from the Tao Te Ching. It tells us why top experts can earn money effortlessly, calmly, and gracefully.

Chapter 27 Original Text

Good conduct leaves no trace, good words have no flaws;
Good calculation requires no planning;
Good closure has no key and cannot be opened;
Good binding has no rope and cannot be untied.
Therefore, sages often save others without abandoning anyone;
They often save things without discarding anything, which is called inheriting clarity.
Thus, good people are teachers to the not-so-good;
The not-so-good are the resources for the good.
They do not value their teachers nor love their resources, yet even with great wisdom, they remain deeply confused—that is called the ultimate subtlety.

In the previous chapter, we discussed the importance of roots over weight, stillness over restlessness, emphasizing that traders must adhere to rules, stay calm, and manage risk—never leaving their supplies, avoiding impulsiveness or recklessness—this is the fundamental for long-term survival in the market.

Chapter 27, Laozi teaches that the highest realm of top traders is to act without leaving traces, without effort, in harmony with the trend—neither rushing nor slow, silent and unobtrusive—simply earning money.

It also clarifies the principles of system design and highlights that masters are the best role models for us to learn from.

1. Good conduct, leaves no trace

Truly skilled walkers leave no footprints.

In investing, this means that top traders’ actions appear calm, natural, and silent—they don’t panic or rush, they don’t obsess over the screen—they drink tea when needed, rest when necessary, only operate within rules—when signals appear, they open positions; when trends shift, they exit—no hesitation, no struggle, no gambling, no emotional swings.

Like wind passing silently, water flowing quietly—everything unfolds naturally and logically. No deliberate effort, no pretension, no artificiality—simply earning money effortlessly. This is good conduct leaving no trace.

2. Good words, have no flaws

People who speak well have no faults or flaws.

Understanding worldly affairs is knowledge; mastering human relationships is art. Good speakers express themselves perfectly, avoiding offending anyone while conveying their meaning clearly.

In investing, this means system rules are simple, complete, clear, and implementable—free of loopholes and blind spots in risk control. This is crucial. Many investors’ systems are riddled with flaws or are just a haphazard collection of indicators, not true systems.

Every investor should ensure their trading plan and system rules are as clear, stable, and impeccable as natural laws. That’s good words with no flaws.

3. Good calculation, no need for planning

People who are good at calculations don’t need chips or tools—planning refers to ancient calculation tools.

In investing, this means understanding trends and cycles without relying on complicated or flashy indicators. We’ve written articles criticizing various market indicators—most are blindly copied and lack real reference value; using them can harm investors.

Investing is a science that can be understood and quantified, but many turn it into an unknowable mysticism. Professional investors focus on the market itself, not on superstitions, chaotic signals, or fanciful theories. They look at the simplest, most fundamental things.

The great way is simple.

Many things are like this. What seems complex isn’t truly complicated; it’s your lack of understanding of the real nature, your failure to grasp the fundamentals, that makes it seem so. Truth is often extremely simple.

4. Good closure, no key and cannot be opened

People who are good at closing have no locks—others cannot open them.

In investing, this refers to top risk management and extreme self-discipline.

It’s not the market forcing you to stop loss, nor others controlling your positions, but your system acts like an invisible door, firmly locking out risks.

Many investors misunderstand risk control—they think it relies solely on personal judgment, but that’s wrong. The best risk control comes from the design of the investment system itself. A complete, excellent system, from the start, keeps risks out.

No external force needed—by strictly following rules, you can maintain boundaries, control your hands, and keep a steady mindset. That’s the highest level of risk control: no key, no lock.

5. Good binding, no ropes and cannot be untied

People who are good at binding don’t need ropes—they cannot be untied.

In investing, this means deep alignment with the Dao, trends, and laws.

This principle is similar to the previous one. It’s not about forcing yourself to hold positions or stubbornly waiting; a good system naturally reflects market laws, trends, and cycles.

Strictly following the system rules, we naturally move in harmony with the trend and cycle—this connection becomes unbreakable.

6. Therefore, the sage always helps others without abandoning anyone; always helps things without discarding anything

A true person of the Way is good at discovering value—there are no useless people or discarded things.

In investing, this means there are no absolute good or bad markets, no absolute bull or bear markets—only whether they conform to laws and match your system.

Bull markets have their ways, bear markets theirs, and oscillations theirs. Masters see no wrong markets, only wrong methods; only those who don’t know how to use the right methods are at fault.

The market is always correct. Respect all its movements, follow, utilize, and match it—that’s helping things without discarding anything.

7. Called “inherit clarity”

“Inherit clarity” means hidden wisdom, innate insight, and understanding of natural harmony.

It’s not about clever tricks or hard calculations, but about deep understanding of laws, absolute trust in trends, and clear self-restraint. Some chapters have also discussed this.

This wisdom is subtle, unostentatious, and quiet, yet it allows one to succeed in the market without fail.

8. Therefore, good people are teachers to the not-so-good; not-so-good are the resources for the good

Those who excel are our teachers—humbly learn from them; those who are not so good are our mirrors—lessons to reflect on.

Not valuing teachers or resources, despite great wisdom, leads to confusion. Respect experience, cherish lessons—no matter how smart, everyone can be lost without continuous learning.

The biggest difference among people is whether they are good at learning and evolving. Lifelong learning and keeping up with the times prevent being eliminated by the market or the era.

Everyone is our teacher—whether they do well or poorly. We learn useful lessons from the successful, and lessons from the unsuccessful.

9. Called “most subtle”

This is the deepest, most delicate, and core principle.

This chapter emphasizes the importance of system design and that true masters learn from everyone.

Next, Laozi teaches us to understand strength and maintain humility—survival rules for the strong in investing.

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