Sun Tzu & the art of trading

Sun Tzu was an ancient Chinese military general and strategist, serving under King Helü of Wu, who lived c. 544—496 BC.

He was brilliant and great trainer as well.

The following legend related to him is a fine example.

The king of Wu tested Sun Tzu's skills by commanding him to train a harem of 180 concubines into soldiers.

Sun Tzu divided them into two companies, appointing the two concubines most favored by the king as the company commanders.

When Sun Tzu first ordered the concubines to face right, they giggled. He reiterated the command, and again the concubines giggled.

Sun Tzu then ordered the execution of the king's two favored concubines.

After both concubines were killed, new officers were chosen to replace them.

Afterwards, both companies performed their maneuvers flawlessly.

He wrote 'The Art of War' based on his tested expertise.

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Given below are 11 of his finest quotes which are deadly effective and applicable in stock trading.

* All war is based on deception.

* He who knows when he can fight and when he cannot, will be victorious.

* Invincibility lies in the defence; the possibility of victory in the attack.

* Opportunities multiply as they are seized.

* Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.

* The general who wins the battle makes many calculations in his temple before the battle is fought. The general who loses makes but few calculations beforehand.

* The good fighters first put themselves beyond the possibility of defeat, and then wait for an opportunity of defeating the enemy.

* The opportunity to secure ourselves against defeat lies in our own hands, but the opportunity of defeating the enemy is provided by the enemy himself.

* There is no instance of a nation benefitting from prolonged warfare.

* To see victory only when it is within the ken of the common herd is not the acme of excellence.

* Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.

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“There are five dangerous faults which may affect a general:

(1) Recklessness, which leads to destruction;

(2) cowardice, which leads to capture;

(3) a hasty temper, which can be provoked by insults;

(4) over-confidence in self being invincible;

(5) over-solicitude (anxiety) for his men, which exposes him to worry and trouble.

These are the five besetting sins of a general, ruinous to the conduct of war."

-Sun Tzu