Our courses rest on two layers that support each other but are not the same thing. One is a way of reasoning: first principles. The other is three philosophical traditions, used for discipline and trading psychology. This page keeps them apart, so you know exactly what you get.
Layer 1: first principles reasoning
Instead of memorising rules passed down by word of mouth, or patterns repeated without a reason, first principles asks directly: what is this, and what mechanism produces it?
A candle is not a mysterious symbol. It is four numbers (open, high, low, close) that record the outcome of an auction over a period of time. Volume is not a side indicator; it measures how much money actually took part in that auction. Every course starts from what something is before moving to how to use it.
Every course is built this way, from I Am a Trader to FX CFD Trading and Technical Analysis. The exception is Trading System Design, which reasons just as strictly but centres on data testing rather than on what the market is.
Layer 2: three philosophical traditions, one test, one strategy layer
When we draw on philosophy, we use three traditions:
- Buddhism: the Four Noble Truths, the Noble Eightfold Path, the Three Marks of Existence and Dependent Origination.
- The Tao Te Ching, by Laozi.
- Stoicism, from ancient Greece and Rome.
They grew up independently in three civilisations, yet reach the same conclusions about greed, fear and attachment. On top of them sit two layers that keep their use honest. A verification layer asks when a view is well founded enough to put money behind it. A strategy layer draws on Sun Tzu's The Art of War. Beyond that, we add nothing.
They are not taught as philosophy for its own sake. Each appears only when a specific psychological problem of trading needs solving, and we always name the source rather than speaking of "Eastern wisdom" in general. This is a tool for discipline and self-awareness. It is not spiritual content, and it has nothing to do with fortune-telling about markets.
The Four Noble Truths
Suffering exists, it has a cause, it can end, and there is a path to its end. Applied to trading: accepting losses as a normal operating cost of the craft rather than proof of personal failure. This is the ground for cutting a loss as planned instead of holding on and hoping.
The Noble Eightfold Path
Eight practices in order: right view, right intention, right speech, right action, right livelihood, right effort, right mindfulness and right concentration. Applied to trading: a frame for system discipline and for review after each trade. Mindfulness and concentration underpin the trading journal; right effort underpins the patience to wait for a valid setup.
The Tao Te Ching
Laozi's ideas of wu wei, acting without forcing, and of the soft overcoming the hard over time. Applied to trading: not chasing a market that has already moved, and not forcing a setup that is not ready. Wu wei here means the discipline of waiting, not passivity.
Stoicism
The dichotomy of control, as taught by Epictetus, Seneca and Marcus Aurelius: separating what you control (your process, your discipline, your position size) from what you do not (the outcome of any single trade). Applied to trading: staying composed through sharp moves, and keeping your ego in check after a winning streak. You judge yourself by how well you followed your process, not by the result of each trade.
What problems the philosophy addresses
| Common problem | Source | How it is applied |
|---|---|---|
| Chasing a market that is already running | Eightfold Path · Tao Te Ching | Right effort and wu wei: wait for the setup instead of chasing price. Not trading is an active decision too. |
| Not cutting a loss because price "will come back" | Four Noble Truths | Losses are part of the game. Cutting a loss as planned is discipline, not an admission of failure. |
| Oversizing or holding too long after a winning streak | Stoicism | The dichotomy of control: a winning streak does not change the odds of the next trade. |
| Revenge trading after a big loss | Tao Te Ching · Eightfold Path | Wu wei and mindfulness: stop and observe before reacting. Trading to win it back is forcing, not following a system. |
| Relying on other people's signals instead of your own system | Eightfold Path | Right view and right intention: understand the odds and the edge of the system you use, instead of borrowing belief from others. |
| Complacency after a long winning period | Four Noble Truths · Stoicism | Impermanence and memento mori: any edge can disappear when conditions change. Keep the journal whether you are winning or losing. |
Where each layer sits
First principles runs through every course. The philosophical layer goes deeper and is concentrated in Risk Management and Trading Psychology, where technical knowledge alone is not enough to keep a trader following their own system across many market cycles.