Trader's Instinct! Pros and Cons | Forex Factory

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Trader's Instinct! Pros and Cons

  • #1
  • First Post: Oct 24, 2011 6:25am Oct 24, 2011 6:25am
Have you ever taken the position against all your indicators, strategy and logic, just because you felt that it should work? And eventually it worked. And eventually your trade was closed with nice profit. Does it sound familiar to you?

It can work in another direction. Perfect position was closed just you did feel good about it. And you avoided a huge loss!

Does Trader's instinct something that only Pro can master and follow or average trader also should listen to his heart?

Regards,

Josef
  • #2
  • Oct 26, 2011 8:17am Oct 26, 2011 8:17am
hi there,
Im new here but I can totally relate to what you are trying to say, what I can share is that, most of the time pro traders or veteran traders rely on instinct based on the knowledge they have, they reach a level of understanding where they can make sudden decisions based on the knowledge and experience they have accumulated during the years. That’s what make their percentage of success bigger.
On the other hand let’s say a newbie trader had this gutsy feeling and he/she got away with a successful profitable trade, in this situation we can safely say it was more about being lucky and I don’t recommend it.
I guess I could say the bottom line is, let’s try avoiding decisions based on instincts if we don’t have the right amount of knowledge to back it up, and another way is keeping a positive strong mind set, a little profit is still a profit and that’s good.
I hope this helped and thanks for sharing joseph
  • #3
  • Oct 26, 2011 8:49am Oct 26, 2011 8:49am
Quoting jiggz
hi there,
Im new here but I can totally relate to what you are trying to say, what I can share is that, most of the time pro traders or veteran traders rely on instinct based on the knowledge they have, they reach a level of understanding where they can make sudden decisions based on the knowledge and experience they have accumulated during the years. That’s what make their percentage of success bigger.
On the other hand let’s say a newbie trader had this gutsy feeling and he/she got away with a successful profitable trade, in this situation...
Thank you for your comment!

Josef
  • #4
  • Oct 26, 2011 9:46am Oct 26, 2011 9:46am
Quoting josef
Have you ever taken the position against all your indicators, strategy and logic, just because you felt that it should work? And eventually it worked. And eventually your trade was closed with nice profit. Does it sound familiar to you?

It can work in another direction. Perfect position was closed just you did feel good about it. And you avoided a huge loss!

Does Trader's instinct something that only Pro can master and follow or average trader also should listen to his heart?

Regards,

Josef
Traders instinct is something that has to be developed though thousands of hours of watching PA. Watching indicators or listening to your heart will never achieve consistent results. Gut feeling based on your personal analysis of price, will at times, provide positive results.
Ask yourself how many hours you have studied price action without the help of indicators...if you are up to around 10, 000, then start testing out your gut feeling or "your heart" as you say. ..on demo.
Dont go boasting your trades on an interactive thread. There are always people on those threads who genuinely want to learn how to trade without indicators. Do you want to mislead them?
All systems of divination, like music itself,work through patterns.
  • #5
  • Nov 2, 2011 10:21am Nov 2, 2011 10:21am
you are welcome Joseph

and thanks again for sharing
  • #6
  • Nov 2, 2011 5:53pm Nov 2, 2011 5:53pm
Gut/instinct is something that is developed into your subconsciousness after years of experience. Its a voice in your head that tells you to go against all odds, conventional wisdom and rules. It works great if you can listen to it for the first time. After that that voice will become louder and and louder as you keep on making more profits.

But the problem starts when you fail to differentiate between those instincts and common emotionally driven decisions based on GREED and FEAR. These decisions are taken when you think "Hmmmm if i could catch that top the RR would be amazing on this trade", this is not a case of an instinct telling you that price is about to fall but your greed luring you into a irrational decision.

So even if you do have an instinct, But you cant differentiate it from the emotional decisions, it's pretty much useless and dangerous cause mostly you are gonna give back all you've made + interest.
.
  • #7
  • Last Post: Edited 7:26pm Nov 2, 2011 6:30pm | Edited 7:26pm
Quoting nasir.khan
Gut/instinct is something that is developed into your subconsciousness after years of experience. Its a voice in your head that tells you to go against all odds, conventional wisdom and rules. It works great if you can listen to it for the first time. After that that voice will become louder and and louder as you keep on making more profits.

But the problem starts when you fail to differentiate between those instincts and common emotionally driven decisions based on GREED and FEAR. These decisions are taken when you think "Hmmmm if i could catch...
What drives those emotions is often not so much the regular emotions themselves, but higher social emotions such as guilt, jealousy, contempt, or ridicule that are already grounded in a valued nontrading or old, habitual trading scenario. The mental activities during a recent occurrence of such a more powerful nontrading scenario may transfer over to trading, so that one reasons, makes errors or gets too greedy as a reflection of the chart and in or from the scenario's pattern. Trading seems more susceptible to this than other tasks, due to its hair-trigger needs and ease to 'get into' the trade.

Not sure what to do about this... Stopping is one, given distraction. Emphasis on correcting said regular emotions and their affect on trading interactions, as noted, is another. Perhaps it's just focusing on one's trading edge that one has right now and making do with it.
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