Systematic Trading vs Intuition: How to Combine Both for Better Results

Why, when you feel that you should buy and you buy, the price goes down, and when you feel that you should sell, but still do not open an order, the price immediately and sharply goes down? The law of meanness? What should you do with your inner voice? Tell it to be quiet or listen to its opinion?

In various sources, you can often find completely opposite opinions about the role of intuition in trading. Some say that only a systematic approach can bring success; others, on the contrary, claim that it is impossible to achieve significant results without a "sixth sense."

Who is right? I have been interested in this question for quite a long time, and the most adequate conclusion is: "Intuition should be used, but only after you gain a year or two of more or less successful trading experience."

Just think about it: how can a person with no experience as a builder look at a house and immediately understand that something is wrong with it? No way. The person simply does not have enough experience; he is too poorly familiar with the subject to make any judgments.

There is a wonderful book by Malcolm Gladwell called "Blink." It examines in great detail the "theory of thin slices," what we call intuition. I recommend reading it.

So how should intuition be applied in trading? The answer is simple:

First, gain experience by trading a mechanical system, without using judgments like "I feel it, we are about to fall!" And only then, when you have an insight, be sure to check it with technical analysis. Having found confirmation of your intuitive guess, you can already take some action.

There is even a book on this topic called "Trading Based on Intuition". It was written by one of the "Turtles," Curtis Faith (his previous book can be downloaded in the article Literature for a Trader). There is not much information in this book specifically on using intuition, but there are a couple of worthwhile ideas.

I especially liked one idea; I even wrote it down:

The less fear, the better intuition works.

Perhaps this is the reason why it is so easy to make thousands of dollars on a demo account and so difficult on a real one. When trading on demo, we free the full potential of our brain, because nothing constrains our freedom: the money is virtual, and there is no fear of losing it.

Do you use intuition in your trading? And if yes, how?

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Kto prav? Ya dovolno davno interesuyus etim voprosom i naibolee adekvatnyy vyvod: "Intuitsiyu stoit ispolzovat, no tolko posle togo, kak vy naberete opyt bolee-menee uspeshnoy torgovli v techenii goda-dvukh."

Nu podumayte sami: kak chelovek, ne imeyushchiy opyta raboty stroitelem, mozhet vzglyanut na dom i srazu ponyat, chto s nim "chto-to ne tak" ? Da nikak. Prosto u cheloveka nedostatochno opyta, on slishkom slabo znakom s predmetom, chtoby delat kakie-to suzhdeniya.

Est zamechatelnaya kniga Malkolma Gladuella, kotoraya nazyvaetsya "Ozarenie". Tam ochen podrobno razbiraetsya "Teoriya tonkikh srezov", to chto my nazyvaem Intuitsiey. Sovetuyu pochitat.

Tak kak zhe primenyat intuitsiyu v torgovle? Otvet prost -

Vnachale naberites opyta, torguya po mekhanicheskoy sisteme, ne primenyaya nikakikh suzhdeniy po tipu "ya chuvstvuyu, shcha upadem!". I tolko potom, kogda vas poseshchaet ozarenie, obyazatelno proverte ego s pomoshchyu tekhnicheskogo analiza. Naydya podtverzhdenie svoey intuitivnoy dogadke, uzhe mozhno sovershat kakie-to deystviya.

Voobshche po etoy teme dazhe kniga napisana, ona tak i nazyvaetsya "Treyding, osnovannyy na intuitsii". Napisana ona odnim iz "Cherepakh", Kurtisom Feysom (ego predydushchuyu knigu mozhno skachat v state Literatura dlya treydera). V etoy knizhke ne tak mnogo informatsii konkretno po primeneniyu intuitsii, no para delnykh mysley est.

V osobennosti mne ponravilas odna ideya, ya dazhe vypisal ee:

Primenyaete li vy intuitsiyu v svoey torgovle? I esli da, to kak?

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