Does Success in Forex Depend on Intuition?

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.

So what is trader’s intuition which he needs to be successful? It is the ability to make a decision that is not based on ration reasons. The choice of the risk level is one example.

One trader can take higher risk than another one. There is no right or wrong answer to a question about the risk involved in each trading. If a trader makes profit consistently then he found his balance. Usually that balance is found through trial and error plus intuition.

This is just one tiny example of utilizing the intuition. It doesn’t end on choosing the risk level for your trades. Market very often gives out contradictory information, which not always possible to process rationally. It’s very hard to keep in mind every parameter of changing currency market.

It is that subjectivity that plays major role in decision-making can be called an intuitive component in trader’s job. So what is intuition? Intuition is a way of receiving information from the environment. It’s a process of collecting the information that is invisible for our senses and 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.

Experienced traders have a “feel” of market. They feel the price movement and momentum of that movement. Therefore any small shift in the momentum will lead such trader to take action based on his experience and knowledge. That “feel” of market can be called intuitive.

If that trader loses that signal he can lose his investment. An intuitive ability of a successful trader serves him continuously. It happens on subconscious level, its like breathing for him. Even if he doesn’t realize it consciously the information is being processed intuitively on subconscious level.

All people are familiar with the life situation when action must be based not on rational decision making process. Sometimes it is not possible because of information overload or lack of it. Therefore we take actions based on our “inner voice”. Very often those actions are the most successful ones.

Psychology defines the trader’s intuition as an ability to see the market situation in it’s wholeness. But do we need to have such intuition from the beginning or is it something we can develop? This is an interesting question. In my opinion everyone has it but focused effort will help to develop it.