Successful Trading
Successful Trading Using Your Own Intuition.
I’ve always been fascinated in how the human mind works. Why we do things, what makes us “tick”, etc.
That fascination has spilled over into successful stock trading. I think you can analyze charts until you’re blue in the face, read all the trading books available in the library and bookstores, and have all the information about successful trading strategies in the world, but all that won’t do you a bit of good until you “get your mind into the game.”
What has become especially fascinating to me lately is in the area of human intuition. You see, recently I’ve found myself able to view a stock chart, and just “know” that the trade setup will work. Or the opposite, that the setup itself looks great, but I have an uneasy feeling about it. Where does that come from?
On the one hand, I think it must come from simply having viewed thousands and thousands of charts, and reviewing the stock action after hundreds of trade setups. That’s my “brute force” idea. On the other hand, I feel just the trading experience itself is involved, and the development of the extreme confidence I now have in how to handle a trade, both successful ones and ones that don’t work out.
But there may be that third “gray” area, and that’s where intuition comes in. I’ve found that highly successful traders for the most part have conditioned and finely-tuned their intuition for successful trading.
So I’ve recently started studying books and material in that area – the area of developing a successful trading system that includes the use of human intuition. I’ve found a good book I want to recommend as a resource for you. Please see today’s Product Recommendation for more details.
In the meantime, here’s an interesting article I found about intuition in general…
My Weapon – My Intuition!
You heard about it everywhere: the prince in the fairy tales mentions it, the characters in your favorite book, the Greek legends bring it up, etc. All these situations make you wonder whether intuition is something writers have invented. Could it exist beyond the borders of human imagination? Or, in other words, does intuition exist in real life?
Strangely or not, intuition is a characteristic associated mainly with women. That happens probably because women are considered to be more sensitive and open-minded. Modern studies regarding the typology of the personalities reveal that about a quarter of all women know how and frequently use this mental capacity called intuition.
If you still have doubts whether intuition truly exists in real life, think about your own experience. Remember how, all of a sudden a great idea occurred to you in the most unexpected moment, or you discovered, spontaneously, the answer to a question that had been bothering you for quite a while. It also happened to you to run into somebody you know and to guess exactly what the person was about to say; or, also remember that sometimes you think about someone and after a few minutes, that person rings you up. All these examples, which do not seem to follow any logical path, can be explained by using the term intuition.
However, we cannot always follow what our visions or intuitions tell us, because we can’t always afford to be spontaneous and take the risk. Who hasn’t been wrong when following his or her intuition? Sometimes, it turns out exactly the opposite from what we expected to happen and we discover that in fact our intuition was nothing but a fear, a thought that turned out not to be real. We feel very embarrassed at the moment and we don’t dare to trust our instincts anymore, which is precisely something that we should not do. Despite the occasions when you were wrong, you should never totally ignore your intuition, especially if you have a strong feeling about something or somebody.
But, what is intuition more exactly? How would specialists describe it? By using our intuition we can say that we let, in a way or another, our mind or soul transmit to the eye those things that cannot be correctly distinguished. Instinct or intuition requires in the first place an open mind - capable to receive and transform information. It is also true that intuition helps us perceive meanings beyond logic, read between the lines, etc.
However, is it important to determine whether intuition has any effects on our everyday lives? Persons who use intuition frequently tend to analyze the possibilities and the effects certain actions might have, and they end up with a multitude of options, out of which they chose the most favorable one.
There are two types of intuition: the one based on reason, typical for the persons who try to dominate the capacity of understanding, controlling and predicting the reality; and the intuition based on affection, representative for the persons recognized by the others as energy sources, as they influence in a positive manner all the people around them.
Let’s not forget that intuition is, indeed, a real and positive characteristic, but nevertheless it must be combined with judgment and reason.
And now, on to business…
The markets are in a bullish rampage today, with the Dow up triple digits and all other indexes up a good percentage.
According to MarketWatch:
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And here’s a stock rampaging to the upside today…
Stock For Review
Our Stock For Review today is RATE – Bankrate Inc.
RATE is blasting out of a high basing area today on volume 1,134% above normal.
I think RATE rates a solid position in your portfolio!
Most Recent Double-Digit Percentage Gainers In One Day…
Here are a few of the DDPG’s since our last update:
IIG – Up 26.84% in the Amazing Amex Mover area.
CMRG – Up 12.71% in the Einstein Scans area.
PAE – Up 11.21% in the Volume Plays area.
Product Of The Day
Successful trading using your intuition: “The Intuitive Trader: Developing Your Inner Trading Wisdom” by Robert Koppel.
Click on the following link to get more information and to order the book from Amazon.com:
Successful trading strategies using your own intuition!
posted by J. Daryl Thompson EMAIL TO A FRIEND
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