Intuition and gut feelings comes under discretion. Sometimes you just "know".
To what extent does gut feeling/instincts/intuition serve in your trading?
- Thread starter Golden Retriever Trading
- Start date
From what I have read there was a little more effort involved.
Or just pure common sense. When I accumulated some RE assets between 2010-2012, it was obvious people were paying $1600 to rent a house that I could carry for half that cost.
LOL yea, I would agrew that'd qualify as common sense and data analysis
Indeed. Backaches were secondary, if not tertiary
If you know what is emotion and what is intuition it may help. But the risk is mistaking gut for fear or greed or other biases we have. If you have ability to use intuition effectively in and out of trading I would say use it but don't expect to have it with every trade you make. Sometimes it is not there which is why a methodology is needed.
I am just a little curious : how do YOU, yourself, do it?
I have the opinion that it is a very rare ability.
Someone that's successfully using intuition in their trading is probably using experience and partially components of a trading plan.
Emotional trading is different...not controllable and it just happens.
Regardless, emotional or intuition...its all discretionary trading. In fact, I will go as far to say that any trading that's NOT automated...it too is discretionary trading.
Emotional trading is different...not controllable and it just happens.
Regardless, emotional or intuition...its all discretionary trading. In fact, I will go as far to say that any trading that's NOT automated...it too is discretionary trading.
the only substitute for experience is math. math is far more expedient.
There is no substitute for experience in trading, no books, academia, professional career such as a doctor or architect will suffice as experience. Since the markets existed brilliant mathematicians of their era have always tried to make money in the market, their track record is piss poor although they invented indicators we all use today.
Can mathematical models beat markets?
They haven't yet. Science is about empirical fact. There is no question that optimistic people think they can beat the market, but they don't do it consistently with mathematical models. No model can consistently predict the future. It can't possibly be. (Scientific American)
There is no substitute for experience in trading, no books, academia, professional career such as a doctor or architect will suffice as experience. Since the markets existed brilliant mathematicians of their era have always tried to make money in the market, their track record is piss poor although they invented indicators we all use today.
Can mathematical models beat markets?
They haven't yet. Science is about empirical fact. There is no question that optimistic people think they can beat the market, but they don't do it consistently with mathematical models. No model can consistently predict the future. It can't possibly be. (Scientific American)
I am still working on it. It is hard to describe I try to recall intuitive "hits" and determine if what I feel resembles those experiences.