Intuition is a swing trader’s best friend. When we intuit it seems as though there is no conscious reasoning. To the outsider it seems like guessing.
In reality it is a function of the mind that glimpses greater knowledge through experience and pattern recognition.
Traders often confuse intuition with guessing. Some call a guess that results in a successful trade intuition. This type of results oriented analysis is fatal.
Intuition is not a gamble. It is based on matching patterns that lead to an edge in probability.
So how do you tell if your “gut” feel is intuition or guessing? By definition, there is no objective measure to identify intuition since the process is unknown to the thinker.
I pay attention to my base emotions, which often manifest physically. If I feel my heart rate increase or my stress levels intensify I know I am guessing. I am ready to get my gamble on. I trust my intuition if I feel calm and confident, locked in the “zone”.
It comes down to knowing yourself.
Great traders know when to trust their gut.
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