Did you observe that sometimes when you think that you have to buy and you buy – the price goes down, and when you feel that you need to sell – the price immediately goes down? Why so? How to deal with that sixth sense of yours: to ignore it or to follow it?
The intuition is a disputed subject for trading, ‘cause there a people who say that it is useless and you have to ignore it, while others say that without that “sixth sense” you will never get good trading results.
Who is right then? The successful traders’ think that “You have to use your intuition only after two years of trading”. How to use it? The answer is simple:
Just get some experience by trading on mechanic systems without thinking like “I feel that the price will fall now.” Every time try to check your senses by using the technical analysis. If the tech analysis will confirm your thoughts, then you can follow your intuition further.
There is an interesting book about this subject: “Trading is based on intuition” by Curtis Feis. Here is a very nice idiom on topic:
“The less you trust fear, the more you will trust your intuition.”
Perhaps this is the reason that makes you easily earn thousands of dollars on demo account, and so difficult to earn them on a real account. Trading on demo, you relsease all your brain potential: there is no fear of losing money because they are virtual money.
By the end, our advice is to practice more and to trust your intuition, because you will feel much more effortless and you will make good choices in your life and your career.