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A while back, I had a very enjoyable time speaking to Scott Foster from Dominion Capital Management, who is not your typical Trader. He draws from a wide range of influences such as Aristotle, Magic, and Austrian Economics. I am delighted to share some of these deep insights with you in this short blog post, and I hope you enjoy these unique views and observations from Scott.  If you would like to listen to the full conversation just go to Top Traders Unplugged Episode 27 and Episode 28. A Blend of Philosophy & Psychology in the Markets Scott:  I approach the whole trading situation from a real blend of philosophy and psychology. We've talked a little bit about the psychology stuff, not a lot, but the philosophy really to me was a bigger element, a bigger issue in terms of pushing me in a certain direction in how my trading is going to look and what I needed to do to support a particular style of trading. That goes back to it's a gradual process that's happening in those earlier years that I was talking about trading for myself and trading for this small trading group that I put together and then my experiences - my three years as a Senior Trader at A.L. Management. You go through this whole process and as the whole time I'm looking at what is my strategy? How do I want to approach the markets? What is my strength? What do I want to do? I kept having a problem reconciling all the different strategies that I was reading about. There was a certain philosophical hiccup in my brain that I could not get my arms around. What it was, was the fact that my background in philosophy is more geared toward ancient philosophy. My father got me turned on the Aristotle and Plato and the Socratics at an early age and he was my professor for a lot of my classes in college. I was either well educated or brainwashed; I'm not sure which perspective I want to take, but I had a real passion for the classics and Aristotelian logic in particular. So the markets that I'm looking at I'm thinking OK, how do I want to trade? I'm thinking do I want to be...it seemed to me it didn't matter what I picked. If I was going to trade the markets on a fundamental basis, I am basically saying that I am looking back in the past and I'm looking at certain fundamentals that would make something cheap or expensive or that's what everybody says, that this stocks to use ratio the price ought to be X, or when this happens, or whatever, if you are in the stock market, the PE ratio. "For my field of study, which is Epistemology - the theory of knowledge - how do you know you know? How can you validate or verify anything that you know, and what gives you any confidence in what you believe is true?" You are looking at all these different events in the past and you are saying this will tell me in the future what value is and what it ought to be. If I am a technical trader I am going to look at the past and say here's a head and shoulders pattern and most of the time if that happens in the past... I've counted 75 times that it's happened out of X it seems to point in the future that this is going to happen. Pick a strategy, any strategy, at the end of the day I ran into a real difficulty with trying to understand just because it's happened in the past why does that mean it's going to happen in the future? For my field of study, which is epistemology, which is the theory of knowledge - how do you know you know? How can you validate or verify anything that you know and what give you any confidence in what you believe is true? Niels:  So universal truth I guess. Scott:  Exactly and that's what Aristotle basically said. He basically invented logic as what everybody accepted for 2,000 years. Everybody has been debating over the last 100 years or so whether it was right or not. He said in classical logic and syllogistic logic that when we put these propositions together: all men are mortal, Socrates is a man therefore Socrates is mortal,