The best traders are observers and anticipate their moves beforehand; this is called the “gut feeling”, every trader should rely on the gut feeling while trading as it is something that will undoubtedly establish to a higher degree as you gain your experience in the market.
Gut feeling can be understood by starters if we call it trading inspiration as well as high hopes, this is a very significant and dominant tool that you will need to develop to move up into the top 10% outstanding traders.
Gut Feeling and Price Action Trading
The various strategies that the trader uses will eventually become common facts to the experienced trader and as time goes on, the traders’ gut feel will help him determine if a trade is worth taking or not. Sometimes the trader may not even know why he is choosing the side of the market and not the other but his experienced mechanism will build up his thinking level, while he makes decisions the more experience and exposure that he has gotten with the charts and price action, the more prompt he will become.
It won’t come very quickly and will require lots of time of practice and experience but as you look at the charts and price actions, the gut feel will develop along with the development of strategic thinking.
Practice Makes Perfect
A lot of professional sports players have put in massive amounts of effort and practice and because of this; they have been able to go pro, they have played with a wide range of different players and this is what gives them the gut feeling to what their opponent’s next move will likely to be, this gives them leverage out on the field, much in the same way, in your trading strategy when you’ve put in enough screen time, you will start to develop the gut feel. There are many more situations where gut feelings takes place, whether it be sports, trade or other more practical fields in life, but in all, it surely requires experience and commitment for development.
Being Objective
There might be and most often are two views to something in a market, one trader might see a chart and think its convincing and the other might think that it’s vociferous. So, it would be best for you to view the market objectively rather than subjectively, if a chart looks very long, you may have a gut feeling that it’s wrong and although we can’t see it, our subconscious mind is being objective, it is having a view from the opponents side and guiding us to that view. Therefore, our subconscious can be objective without us even knowing because it sees the other point of view in a trade based on our previous experience on it.
Are you a trader who uses their gut feeling often while trading? Do you feel like you need to start developing your gut feeling? Be sure to let us know!
- Source from: https://goo.gl/pPHoLn
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