Hi Threei,
I would like to give you all my definition of intuition as it relates to trading. I think it has much to do with the incredible capability that all humans have to learn (if they apply themselves), and just plain experience in watching the market. Of course, you do need to be psychologically stable to trade intuitively. You cannot be in a war of the egos, which has been so well explained and defined in the previous posts. So assuming you are in a positive-forward-looking state of mind, how does intuition come into play? I would simply say that intuition is the subconscious recognition and interpretation of events that have happened before. Part of the learning process is that your mind subconsciously stores patterns in the market (when you are paying attention) and patterns in yourself simultaneously. Your subconscious recognizes these same patterns when they happen again, and also recognizes the positive or negative effect of these patterns. Eventually the subconscious will develop an expectation that certain patterns are followed by other patterns. After the recurrence of patterns again and again the subconscious expectation may become a "feeling". If it is strong enough this subconscious expectation may even become conscious. We may feel that a particular pattern or event may occur, because subconsciously we recognize this event has happened before. Depending on the strength of this feeling we might even buy or sell the stock before we can think about it.
I think because these feelings originate in the subconscious may be why intuition is difficult to explain. It may be difficult to explain while you felt that you should buy or sell at a certain time, and it may not be apparent when even looking at a chart. Let me say that I think that these "patterns" that the subconscious recognizes are incredibly complex, these aren't the same type of patterns you could ever recognize consciously. I think these patterns take into account everything that is on your screen, your mood, the time of day, how much sleep you had last night, etc., literally every sensory input there is.
The subconscious functions differently than the conscious mind, and obeys a different set of laws. It is the same with the unconscious. For example, dreams cannot be explained completely in the conscious world, but in the unconscious world (sleep) they make perfect sense.
I hope my point is clear. It is late now...I would welcome any thoughts on this.
Regards,
Alex |
