Trading from Your Gut: How to Use Right Brain Instinct & Left Brain Smarts to Become a Master Trader
This chapter is from the book
This chapter is from the book
This chapter is from the book
Mastering the Art of the Trade
To become a master trader, to be able to intuitively make good decisions, you must first gain enough of the right kinds of experience. This is why doctors and nurses go through extensive training and supervision when they are new to the profession. It is why firefighters train in fire simulations, and why airline pilots train in flight simulators. Through this constant exposure and consistent practice, experts build up a library of experiences that they can draw upon when making decisions.
The same holds true for the trader—the most effective training is trading itself. In this way, the experiences you encounter while trading train your intuition so that, in time, you can become an expert. Learning as a trader can be difficult, however, because of the price of mistakes. In trading, mistakes cost money. Fortunately, traders can develop their intuition to a high level of expertise without having to put their money at risk. I discuss several strategies for doing this in upcoming chapters.
Before I lay out these strategies, it is important to understand the pitfalls and dangers of relying on gut feeling and intuition if you have not yet received proper training. In the hands of a novice, gut instinct can be dangerous to your account balance. In the next chapter, "The Purpose of Gut Intuition," I cover this important topic.