ancient-commercial-strategy

name: ancient-commercial-strategy description: "Use when applying ancient Chinese trading principles (白圭/计然 method). Covers counter-cyclical buying (旱则资舟水则资车), price cycle recognition, inventory rules for perishables, and the four merchant virtues (智勇仁彊)."

Ancient Commercial Strategy (白圭/计然 Method)

Overview

Time-tested commercial principles from ancient Chinese merchants, emphasizing counter-cyclical trading, inventory management, and market timing.

Core Principles

1. Market Timing

• Know the cycles: "知斗则修备，时用则知物"
• Track agricultural cycles:
  • 金年: Abundant harvest
  • 水年: Destruction/floods
  • 木年: Famine
  • 火年: Drought
• Pattern: 6 years abundance, 6 years drought, 12 years major famine

2. Counter-Cyclical Trading

• "旱则资舟，水则资车" (Stock boats during drought, carts during floods)
• Buy when others sell; sell when others buy
• "人弃我取，人取我与"

3. Price Management

• Grain at 20: Hurts farmers
• Grain at 90: Hurts merchants
• Optimal range: 30-80 to benefit both parties
• "平粜齐物" (Equalize prices through balanced sales)

4. Inventory Rules

• "务完物" (Maintain quality goods)
• "无息币" (Don't let money sit idle)
• "腐败而食之货勿留" (Don't hold perishables)
• "无敢居贵" (Don't hoard at high prices)

5. Price Cycle Recognition

• "贵上极则反贱" (Extreme high prices reverse to low)
• "贱下极则反贵" (Extreme low prices reverse to high)
• "贵出如粪土，贱取如珠玉" (Sell high as if discarding dirt; buy low as if acquiring jewels)

Required Qualities

To succeed, one must possess:

1. 智 (Wisdom): For strategic variation
2. 勇 (Courage): For decisive action
3. 仁 (Benevolence): For fair giving and taking
4. 彊 (Strength): For maintaining position

Expected Outcomes

• Consistent profit through market cycles
• Stable supply chains
• Wealth accumulation over time
• Reputation for reliability

Verification

• Confirm trading decisions align with counter-cyclical principles (buying when others sell, selling when others buy)
• Validate that grain prices are maintained within the optimal 30-80 range to benefit both farmers and merchants
• Check that inventory follows the rules: no idle money (无息币), no hoarding perishables, and no holding at peak prices (无敢居贵)