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Strategies & Market Trends : Trade What You See, Not What You Think

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To: Threei who started this subject10/21/2000 3:10:23 PM
From: Threei  Read Replies (3) of 867
 
INTUITIVE SIDE OF TRADING

I would like to give short review on this topic which is a subject of my great interest during last year.
First of all, I want to warn: intuition is not something that comes out of nowhere and gives you brilliant trading idea. Here is the path to intuitive trading as I see it.

As trader learns, his right side of the brain establishes links between creating situations and outcomes, certain types of action and outcomes. He works this in a logical way collecting more and more of "in situation A you have to take action B which leads to outcome C with high percentage". This process leads to establishing of a structure in what initially seemed to be a chaos.
As trader's experience grows he becomes more confident. The process of recognition of familiar situation becomes faster, and in a while it becomes instant. This is the moment of first intuition appearance. This recognition happens instantly because it doesn't take right brain logic anymore. Some critical mass gathered and moved entire process into left side. From now on trader experiences wonderful feeling of "getting there without knowing how to get there". It takes not only that critical mass of experience reached but also correct state of mind: egoless, thoughtless if you will.

Next stage is, taking an action based on that intuitive impulse. This is where most run into problem because it takes guts to put your money on the line on some instant hunch. To overcome this barrier one has to recognize the role of intuition, to appreciate it. It's also very important to not push it, to not try to "listen to your intuitive impulse". Otherwise it's too easy to confuse it for wishful thinking. It takes very special "selfless" state of mind to hear true intuition and to react on it without thinking, in a blink of eye.

Intuitive trading is something that should be reached naturally, without attempts to jump in it on early stages. It helps however to read books about it and to recognize its role. Then it will be easier to appreciate and to use when it comes along.

Vadym
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