Sun Tzu on the Art of War
by Sun Tzu, translated by Lionel Giles
Quick Summary
The oldest military treatise in the world, translated by Lionel Giles in 1910, presenting Sun Tzu's ancient Chinese principles of strategy, deception, intelligence gathering, and resource management. Though written for warfare, its principles of strategic planning, knowing one's adversary, adapting to conditions, and conserving resources are widely applied to trading and competitive business strategy.
Categories
- Personal Development
- Strategy
- Military Strategy
Detailed Summary
"Sun Tzu on the Art of War," translated from the Chinese by Lionel Giles, M.A. (Assistant in the Department of Oriental Printed Books and MSS at the British Museum), first published in 1910, is the definitive English translation of the world's oldest and most influential military treatise. Written approximately 2,400 years ago by the Chinese military strategist Sun Tzu, the text has been adopted by traders, business strategists, and competitive professionals across disciplines as a framework for strategic thinking.
The Giles translation, which this edition presents, was the first rigorous English rendering of the text, replacing the inadequate earlier translation by Capt. E. F. Calthrop (1905) and the French translation by Father Joseph Amiot (1782). Giles provides extensive critical notes and commentary that contextualize Sun Tzu's principles within Chinese military history and philosophy.
The thirteen chapters cover the following strategic domains:
"Laying Plans" establishes the five fundamental factors that determine military success: the Moral Law (unity of purpose), Heaven (timing and conditions), Earth (terrain and geography), the Commander (leadership qualities), and Method and Discipline (organization and logistics). For traders, these map directly to conviction in one's thesis, market timing, market conditions, trader skill, and systematic execution.
"Waging War" addresses the economics of conflict, warning that "no country has ever profited from protracted warfare." Sun Tzu emphasizes the importance of swift, decisive action and the devastating cost of extended campaigns. In trading terms, this parallels the cost of holding losing positions, the erosion of capital during drawdowns, and the importance of decisive entries and exits.
"Attack by Stratagem" introduces the famous dictum: "The supreme art of war is to subdue the enemy without fighting." Sun Tzu argues that the best victories are won through superior strategy rather than brute force. For traders, this emphasizes preparation, analysis, and patient waiting for high-probability setups rather than forcing trades.
"Tactical Dispositions" discusses the difference between defense and offense, arguing that "security against defeat implies defensive tactics; ability to defeat the enemy means taking the offensive." The concept that one should first make oneself invulnerable and then wait for the enemy's vulnerability directly parallels the trading principle of risk management first, profit seeking second.
"Energy" and "Weak Points and Strong" cover the concentration of force at decisive points and the exploitation of an opponent's weaknesses. Sun Tzu's principle of attacking where the enemy is unprepared and appearing where not expected mirrors contrarian trading strategies and the identification of market inefficiencies.
"Maneuvering," "Variation in Tactics," and "The Army on the March" address adaptability - the ability to modify strategy based on changing conditions. Sun Tzu's insistence that "there are no constant conditions" echoes the trader's need to adapt to changing market regimes.
"Terrain" and "The Nine Situations" classify different strategic environments and prescribe appropriate behaviors for each, analogous to market regime classification (trending, ranging, volatile, quiet) and the adaptation of trading strategies accordingly.
"The Attack by Fire" discusses the use of powerful but dangerous weapons, paralleling the use of leverage and derivatives in trading. "The Use of Spies" emphasizes intelligence gathering as the foundation of strategic advantage, corresponding to the trader's need for superior information and analysis.
Throughout, Sun Tzu's core principles - know yourself and know your enemy, concentrate force at decisive points, maintain flexibility, use deception, and never fight battles you cannot win - have direct applicability to trading and remain as relevant today as they were millennia ago.
