Plato's Best Quotes (Greek Philosopher)

Plato was an Athenian philosopher during the period of ancient Classical Greece.

15 Important Plato Quotes:

1) Human behavior derives from three main sources: desire, emotion, and education.

2) The greatest wealth is to be able to live happily with little.

3) Most virtuous people are those who are happy being virtuous without seeking to appear as such.

4) A personal opinion is an intermediate between knowledge and ignorance.

5) All the gold under or over the land is not enough to be exchanged for virtue.

6) Good people do not need laws to act with responsibility, while bad people will always find ways to bypass the law.

7) If a man neglects his education, he walks lame until the end of his life. Ignorance is the root and stem of evil.

8) At a touch of love, everyone becomes a poet.

Read more: Best of Plato

The terms “smart money” and “dumb money” are used to describe different groups of market participants. Institutional investors and market insiders are labeled “smart money”, on the other hand, small retail traders and short-term speculators are labeled “dumb money”. Dumb money tends to buy and sell at the worst possible time, and it is wise to trade against it.

What is smart and dumb money?

There are many ways to define smart and dumb money in the global financial markets. Generally speaking, smart money refers to investments made by people with expert knowledge of the market. These experts may be successful hedge fund managers, wealthy individuals, or even insiders who have access to illegal inside information. On the other hand, dumb money mainly refers to retail investors who have limited knowledge of the market. Dumb money tends to follow exhausted market trends by applying high capital leverage. In many cases, small speculators and leveraged traders are usually referred to as ‘dumb money’.

According to statistics in a two-decade period, the average retail investor performed 2.75% less than the general market (each year). The following analysis focuses on several tools that can help traders identify the movements of smart and dumb money.

• The goal is to position in line with Smart Money (hedge funds, institutional investors, market gurus, insiders) and contrarian to Dumb Money (retail traders, leveraged traders, small speculators)

  Read more: Dumb Money vs Smart Money (Key Indicators)

Confucius (551-479 BC)

Confucius (孔夫子) was a famous Chinese thinker, politician, and philosopher of the Spring and Autumn period of Chinese history.

The Superior Man for Confucius

1) The superior man makes demands on himself. The lower man makes demands on others

2) The superior man is hard on himself. The inferior man is hard on others

3) The superior man thinks only of justice. The inferior man thinks only interests

4) The superior man understands perfectly the critical issues. The inferior man understands perfectly insignificant details

5) The superior man seeks to be slow in words and quick in actions

6) The superior man feels completely comfortable. The inferior man is always angry

Read more: Best of Confucius

Gann's Law of Vibration

William Delbert Gann (1878 -1955) claimed he had discovered a repeating pattern of time and price that allowed him to predict market tops and bottoms. Collective behavior creates cycles through time, and that is what Mr. Gann called the “Law of Vibration”.

Vibration’s Theory in Financial Trading

If group behavior creates a repeating pattern, by calculating where the pattern appears next, you can make precise predictions regarding where the general market is heading. However, no one has ever precisely explained how Mr. Gann's law of vibration actually works. In this article, we are going to investigate the Vibration theory and its implications in financial trading.

From Pythagoras to Gann -The Ancient Origins of the Vibration’s theory

Vibration theory’s origins go back to the fifth century BC. The school of Pythagoras (570 BC –490 BC) thoroughly examined the natural frequencies of several fundamental systems (strings, vessels, etc.) and concluded that the natural vibration of a system is a pure property. A key feature that appears independently from any excitation. According to Pythagoreanism, everything in nature is connected. The movement of one thing generates harmonic associations (vibrations) to all other things in the system. The key to revealing the truth behind these natural associations is observation and mathematics.

Later, the legendary analyst William Delbert Gann developed the “Law of Vibration” and use it to predict the broad movements of equity and commodity markets. WD Gann was a very successful trader that used mathematics and astrology to investigate key patterns and time cycles due to certain market events.

Natural associations create patterns: “The pattern is said to emerge as a result of discontinuities in the perpetual processes of expansion and contraction within the cosmos. According to Mr. Gurdjieff, the discontinuities are a function of the Law of Seven, and the forces of expansion and contraction are a function of the Law of Three.” {Tony Plummer (2013)}

Read more: A Modern Trading Approach to the Law of Vibration (W.D. Gann)

Famous Quotes -Albert Einstein {1879-1955}

Albert Einstein was a German-born Jewish theoretical physicist and Nobelist who developed the theory of relativity. He was awarded the Nobel Prize in Physics (1921) "for his services to Theoretical Physics, and especially for his discovery of the law of the photoelectric effect." His work is also known for its influence on the philosophy of science.

How can a trader get a benefit from Philosophy? If you want to be a great trader you must first become a great man, and philosophy may take you there...

Albert Einstein's Best Quotes

Life:

1. Imagination is far more important than knowledge

Read more: Albert Einstein

Jesse Livermore Trading Method

Jesse Livermore is a legendary stock-market trader who made a fortune by short-selling during the American stock market crashes of 1907 and 1929. Jesse Livermore became world-known through the book written by journalist Edwin Lefèvre “Reminiscences of a Stock Operator (1923)”.

Jesse Livermore Rules

Livermore used to say: "Whatever happens in the stock market today has happened before and will happen again”

Here are some key rules by Jesse Livermore:

1. Markets are never wrong opinions often are. Back your judgment and don't trust your opinion, until the action of the market itself confirms your opinion
2. Few people ever make money on tips, beware of inside information. If there was easy money lying around, no one would be forcing it into your pocket
3. Money is made by sitting, not trading. It takes time to make money. Don't give me timing; give me time
4. Buy right, sit tight. Big movements take time to develop. Men who can both be right and sit tight are uncommon
5. Money cannot consistently be made by trading every day or every week during the year
6. Nothing new ever occurs in the business of speculating or investing in securities and commodities
7. Never average losses
8. The human side of every person is the greatest enemy of the average investor or speculator. Wishful thinking must be banished

Read more: Jesse Livermore Method and Rules