Intuition in trading


I’ve always had in the head thoughts to close in certain, brightly described frames – that what I trade. So that the signal of strategies played by me would appear and announced where I’m supposed to enter, and where to leave the position.

This would allow me to automate my strategy, and thanks to that I could spend less time in front of the platform, because in some extent a machine would replace me. Today I will tell you something more about intuition in trading.

Intuition in trading – Wouldn’t it be simple?

However, I don’t have a strategy which I could close in such frames. Too much from opening the position depends on the sense of market, from intuition. And this takes years. I believe that in trading not only development of own strategy and understanding a way of thinking other traders are important. In my opinion this group learns and it is too much focused on indicators or formations of the technical analysis.

I remember a few years ago when some of my friends, insistently tried to convince me that trading intuitively has tiny legs and I will quickly lose. Nonsense, in my opinion! All this applies to you management of positions, even when you register intuitively.

To this day from time to time I receive an email from seeking the Saints of trading, who think that what I describe on the site or YouTube channel cannot work, because these are not complicated things 🙂 As if an effective strategy was to be magical and damn complicated! It is not HFT or algos. There certainly such a person will find more calculations, relations, and expenses on the infrastructure in order to overtake other in a mile or even microseconds.

Getting to know the market

For a few years I played on many markets trying to perfectly transfer the technical analysis on graphs; in principle, all formations. I’m only doing mess on the graph, from which after drawing the formation up at different intervals – nothing was clear.

When on trading I focused in 100%, I got to know others, who for years lived from it, I understood two things:

  1. Learn to take profits, even when you don’t achieve dreamt take profit.

  2. That what you play not has to be closed into any frames. The most important is to carry out repeatable plays in a longer term.

And from that I started to search on graphs of repetitiveness. And suddenly I was dawned. I need only basic lines.

I’ve added my observations which I constantly noted down in relation to analysis of the quoting window (that is tape reading constituting the base for trading) and suddenly everything started to stick.

As I already mentioned several times on the site – trading I have usually a feeling of Deja Vu. Why? I simply play what on the market is repeated, the same I played 7 years ago and the same tape readings I played this month.

How it is possible? Let us remember about one thing, on the market we trade with people (largely with the ones who pay extra to deposits or new ones – so they make many mistakes) and with their weaknesses.

It is exactly an Intuition

…it allows me to sense when the rate is tarnished only by emotions, as e.g. on the following recording:

and when the change is triggered by a real volume, important information, signal resulting from the technical analysis, etc. That has a real impact on the rate:

Effective intuitive trading

What in my opinion has an impact on effective trading which supports intuition? Above all, it is an experience. Unfortunately, it won’t be possible to jump it over. That what you didn’t experience repeatedly on the market you won’t be able to read out in the appropriate moment (of course, please remember that it isn’t 100 % – it is possible to be wrong).

Don’t confuse an intuitive trading with guessing

It is possible to say I will flip a coin – eagle I will take long, tails – short. And for some time it may even have an effect 🙂 but not in a longer-term. Therefore, I don’t want you to perceive trading intuitive as a simple guessing game, “I think that since today is raining, most probably declines will be”.

Behind the decision a specific argument stands. In case of my intuitive trading this is experience and effect of observation, as well as trading on the same patterns for years.

Emotional swings?

I encounter with the statement that trading up to intuition is synonymous to emotional swings. Nonsense! It can be, but only when your trading it is a guessing game – because then you pray for change, profit, smaller loss. The intuition is a support trading. You must remember it.

Intuitive Trading and Tape Reading

Strategy, which I use in trading, is Tape Reading. It’s reading the quoting window and transaction window, based on that I make decisions about opening and closing the position. But it isn’t an automatic decision, in which seeing the specific behavior at once I open/close the position. It is carried out only in combination with what my intuition tells me. The way I asses the rate of company and what is happening on the market.

The sum of all this information determines the final decision.

Actually, it is possible to state that every manual strategy based on e.g. technical or fundamental analysis to a certain extent is a strategy containing the influence of intuition on taking the final decision.

On what basis you make decisions? Do you support your decisions with intuition? Or maybe you make decisions based on automatic signals, etc.? Share it below.


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