Why does a trader need intuition?

In philosophy, there is the following definition of intuition: "...the ability to penetrate to the essence of things, not by reasoning or logical thinking, but by instantaneous unconscious insight". Applied to the subject, it may be said that intuition is nothing more than a trader's ability to work and see the market with both the right hemisphere and the left hemisphere.

Let's imagine a "universal trader" whose market analysis is a synthesis of his instinct, intellect and intuition.

Instinct manifests itself on a material level. Any initial action of a trader comes from his desire to satisfy various material interests. At the same time, strong unidirectional price dynamics reinforces itself, spreading like wildfire: if the trader suffers losses, he puts a stoplossIf he wins, he continues to follow the winning strategy.

Действие инстинкта проявляется в неосознанном желании трейдера заключать сделки, избегая «плохих мест» и почаще заглядывая в «хорошие».

Intelligence is manifested in the ability to logically comprehend what is going on and make the simplest and most profitable decision on this basis. If instinct acts unconsciously (relying on previous experience, a set of learned simple rules and teachers' advice), then the intellect tries to independently conceptualize these tips and rules in accordance with its own worldview and changed external conditions. Exactly intelligence is designed to help you find a way out of a possible dead end that simply following the "rules" can lead you into. Intelligence can also give you your own image of the financial markets.

Today, there are market analysis programs that are a set of simple rules (technical analysis programs) and self-learning programs using neural network technologies. These programs are a computer model of all the experience of previous generations traders. Но любая программа является только отображением двух качеств человека — инстинкта и интеллекта. Не существует программ, прогнозирующих поведение рынка интуитивным методом. В любом человеке присутствуют начала интуиции, однако далеко не каждый ее применяет. А именно в применении она развивается, и дело тут не в опыте. Целенаправленно задействовав свои способности правополушарного восприятия действительности, трейдер может развить свою интуицию, которая будет не хуже, а может быть и лучше любых «золотых» правил и программ подсказывать верные решения.

How do you use your intuition? Make a hypothesis and test it by real actions on the market with small amounts. If the hypothesis is confirmed, you can use it as a working hypothesis. Otherwise, it is necessary to check why there was a divergence from reality. It is possible that it is only a temporary deviation. Or perhaps the hypothesis is wrong. Only after a full-scale verification can we start large-scale operations in this direction.