Have you ever ever been in a situation where you had a powerful hunch that a currency pair would behave a certain way but you didn’t feel gutsy enough to play that forex trade?
And when price did move the way in which you predicted, did you’re feeling upset that you simply didn’t trust your instincts?
Every experienced trader has probably found himself on this pickle sooner or later in his trading profession and has wondered whether trading based on these sorts of hunches would work out or not.
In spite of everything, much has been said against relying purely on one’s emotions or taking trades based on guesswork.
Well, let me exit on a limb here and say that it is best to trust your trading gut.
In fact, this doesn’t mean that it is best to throw all fundamental and technical evaluation out the window and easily depend on where you’re feeling the markets will go. You might as well grab a Magic 8 ball and shake it for answers when coming up with a trade idea!
To not be confused with taking impulsive trades based purely on gut feel, trading demands a special sort of intuition that many consult with as “feeling the market” or “being within the zone.”
This refers to that specific point in your trading profession wherein you’ve gained enough experience to be in sync with market moves and quickly pinpoint which sort of trading setup can tilt the chances barely in your favor.
On this case, your foreign currency trading intuition is something that has been developed over time and thru the course of your trading experience.
In the event you’ve spent enough screen time and conducted proper deliberate practice, you’re capable of get a feel of how markets behave at certain times, enabling you to get a greater idea of how price will move afterward.
As a rule though, forex traders would feel just a little uncomfortable about entering a trade primarily based on gut feel.
If so for you, then you may start by keeping track of your trading hunches and whether or not your gut was spot on.
This will allow you to develop trust in your trading intuition, allowing you to have enough confidence to truly make profits off it afterward.
You might also consider taking a small position based on where you’re feeling price will go.
Just all the time remember to practice proper risk management and have an exit plan in case it doesn’t head within the direction you predicted.
Having a tricky time recording your thoughts & trading statistics? Try TRADEZELLA! It’s an easy-to-use analytics & journaling tool that may result in worthwhile performance & strategy insights! You possibly can easily add your thoughts & track your psychology with every trade. Click here to see if it’s best for you!
Disclaimer: Babypips.com earns a commission from any signups through our affiliate link. While you subscribe to a service using our affiliate links, this helps us to take care of and improve our content, plenty of which is free and accessible to everyone–including the School of Pipsology! We appreciate your support and hope that you simply find our content and services helpful. Thanks!