To help the trader

Intuition in trading

Why, when you think that you have to buy and you buy, the price goes down, and when you feel that you need to sell, but still not open warrant, the price immediately and strongly goes down?Sod's Law?How to deal with the inner voice?Tell him to shut up and listen to his opinion?

In various sources, you can often find completely opposing views about the role of intuition in trading .Someone says that only a systematic approach can bring success, someone on the contrary, claims that it is impossible to achieve significant results without a "sixth sense."

Who is right?I have long been interested in this issue and the most appropriate conclusion: « Intuition should be used, but only after you gain experience is more or less successful trading for a year or two. »

Well, just think how a person with no experience of the builder, can look at the house and immediately understand what happened to him" what's wrong? "Yes way.Just a person enough experience, it is too little acquainted with the subject, t

o make some judgments.

There is a wonderful book by Malcolm Gladwell called "Illumination."There's a detailed understands "Theory of thin sections," what we call intuition.I advise you to read.

So how to use intuition in trading?The answer is simple -

, dial the experience by trading a mechanical system, without the use of any judgment of the type "I feel schA will fall!".And only then, when you visit insight, be sure to check it out with the help of technical analysis.Finding proof of their intuitions, it is already possible to make some action.

general on this subject, even the book is written, it is called "Trading is based on intuition."She wrote one of the "Turtle" by Curtis Faith (his previous book, you can download the article Literature trader).In this book, not a lot of information specific to the use of intuition, but the pair have individual thoughts.

I especially liked an idea, I even wrote it:

The less fear - the intuition works better.

Perhaps this is the reason why so easy to earn thousands of dollars on a demo account and so difficult to live.Trading on a demo, we release the full potential of your brain, becausenothing constrains our freedom, for virtual money and they are not afraid to lose.

Do you use intuition in your trading?And if so, how?

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