We often can see many traders using the same trading system? Surprisingly some of them are making profit while others are losing money? What is the secret? It is the intuition of successful traders helps them to make right decisions.Therefore the subject of this article is intuition in tradign currencies.
Success in any area of human life has a lot to do with intuition. Let’s define the intuition for Forex trader. Intuition in trading is the decision making ability that goes beyond the rational thinking. Each trader trades with his own risk level. That can be attributed to intuition. Another question is, can you learn Forex trading and develop your intuition?
Risk levels differ from one trader to another. There is no exact answer to what should be the risk taken in each trade. As long as a trader makes consistent profit he has found his own risk level. Trader founds it through trial and error developing his intuition at the same time.
This is just an example. The role of intuition does not end on choosing a risk level. Trader uses his intuition quite often. It’s impossible to estimate with mathematical accuracy all the parameters in the Forex market. You can not take into consideration every internal and external parameter that is involved in the process of making decision.
Therefore trader must make a subjective decision. It is in that subjectivity intuition is contained. Therefore we can give another definition for intuition - it is the way of perceiving and processing the information from environment which is invisible for our conscious mind..
However it is not true that the right decision comes entirely from intuition. It is also based on right analysis, market knowledge and trader’s experience. It does not mean you need to acquire all the information available about market and trading. All what you need is persistent focus of attention on the right components of your trading
It is the intuition that has that power to direct your focus towards the more important information. It is almost like an instinct of perceiving the right information. However it develops with the experience.
For example a profitable trader feels he momentum of the price movement. If he notices a change of momentum and some shift on the price charts, he will react according to his knowledge and experience. That is basically intuitive decision.
The losing of such “feel” of market can mean loss of the capital. Therefore for most successful traders that intuitive feel serves continuously. It goes almost subconsciously like breathing. He keeps analyzing the information but conscious mind does not notice it.
We all have situations in our life when we can rely only on our intuition or inner voice. Everyone have the intuitive potential but not very many people use it. When its not possible to make a calculated decision or there is too little or too much information we can only rely on our intuitive decision making process. It is impossible to make a decision always based on only logical thinking.
Another definition of trader’s intuition is his ability to see the market environment as one interrelated organism. Can one develop such ability or is it something one should be born with. In my opinion we are all born with such ability but trial and error and applying consistent effort will develop that ability.
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