The caricature of a trader is watching to matrix-like defiling numbers on large screens, master mathematics, and do geometry on impressive looking chart indicators.
Let’s call them the "methodical traders"
“You can’t predict the way one man will act. But you can statically know what one million of them is the most likely going to do” - Someone on IRC, last year
This is about past performance and risk management: What’s the overall performance of this pattern ? What’s the pullback rate ? What’s the risk / reward ratio ?
All of this have to be known and the trader’s reaction is based “solely” on those number-convertible facts.
It looks like they could simply code a program to trade for them.
But there is no such thing as an ever-winning trading bot.
All humans use intuition, consciously or not
Definition of intuition, from toucancrypto, forked from Wiktionary
- Immediate cognition from the use of subconscious rational processes.
- A perceptive insight gained by the use of this faculty.
It's based on rational facts that may not be number-convertible. The methodical trader can’t calculate them.
However, intuition can seems blurry, laced with emotions, and therefore unreliable. Let's see a few ways to improve it:
- Practice mindfulness, you will be able to visualize your sentiment in an unclouded way.
- Look each days at charts in which you are not emotionally involved. Simply look at them, let your mind be blank, no analysis here. It will learn you to get the feeling of what the composite operator is going to do.
- Read a lot of news, but only the titles: it's sufficient to get the sentiment about the market. Reading the actual article is a waste of time.
- Feel, don't think. This is what it's all about!
This is plenty enough for now, if you want to go deeper, I advise reading "the artist's way" by julia cameron. That's not a product placement, you can find it on thepiratebay.
Upvote and comment. If you have followers you can even resteem 😉
congratulations on your first publication. I liked how you mixed your business advice with psychology and philosophy.
Thanks for the encouragement! Yep its my first article and it took me some time to arrange it until I was satisfied enough.
Businesses need a good psychology to survive on the long term.
well .. I am a psychologist if you like to read philosophy I recommend this author @krnel
Feel, don't think... right that is intuition and in this market always like to feel the confortness of a stop/loss
However, your article is a great way to tell us to let it go... Traders (experienced or not) shouldn't always be stressed out.
Enjoy the way graphs form... take a look at a volatile coin and watch the 1M chart... is amazing!!!
I've never really traded on a 1m chart, but it's sure better to watch than TV 😉
I advice to use a SL and a TP. Some people put them at a certain percentage away from their entry, some pick a support/resistance level, but in both case their intuition come to play in their choice.
LOL, difficult to trade 1M... but lots of fun to watch. It is only one proposal to let go... forget the stress about trading and enjoy the candles forming, that is why I recommend a volatile coin so the candles go up and down while forming.
As a stock and coin trader I couldn't agree more. It's a combination of both intuition and math because people are emotional.
Yep, charts are made by humans 😉