Ep 571: The Trading Hunch: Intuition That Comes From Experience

by Natalie Pyles on November 9, 2017

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Welcome! In Episode 571 of The Traders Podcast, your hosts Rob Booker and the producer Jason Pyles talk about the benefits that come from experience.

Have you ever noticed how you can tell in the first few minutes if a movie will be good or bad? You just know! You’ve probably had a lot of experience with movies and you know what to look for to identify a good movie. Applying the same concept to trading, let’s talk about intuition.

How can you tell in just a few minutes if a trade is going to be good or bad?

There are 3 phases that every trader goes through. First, the trader is excited about all of their trades. Second, the trader experiences boredom. And third, the trader starts to break out of the box. But here’s the key: in order to break out of the box a trader must have the experience under their belt to help them have that all-important intuition.

Thanks for listening to The Traders Podcast. We release new episodes every Tuesday and Thursday. Subscribe free in iTunes and join us!

Links for this episode:

Subscribe to Rob’s YouTube channel here: https://youtube.com/robbooker

Rob on Twitter: @RobBooker

The Traders Podcast on Twitter: @TradersPodcast

TFL365.com

Trader Interviews.com

Jason’s movie podcasts:
Movie Podcast Network A group of eight movie-related podcasts covering new movie releases and many genres: sci-fi, horror, western, etc.

Movie Podcast Network Twitter: @MovieCastNetwrk

{ 2 comments… read them below or add one }

Tyler Davis November 10, 2017 at 9:58 am

Hey Guys,

This is Tyler with the discipline problem from a few episodes ago. My discipline problems are about entering trades early and because I’m bored, I think. I also think this intuition discussion is an interesting one for new traders, like myself. The 7 out of my first 10 trades were winners. This translated to me as “this is easy, I’m good at this”. I got cocky and thought I “knew” the market, or had some sort of intuition about the trades I was going to make. Much like the example about kids thinking any movie with an explosion is great, I had a false sense of confidence or assumed intuition. My performance in the market since has been pretty dismal, though I’ve now taken a step back to assess what I’m doing wrong. Long story short, as a new trader, there is a real danger of early luck being confused with understanding and intuition.

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Caroline November 16, 2017 at 3:18 am

Hi Rob, Hi Jason,
I’ve been watching the EU for 17 years now and I can confirm that YES, intuition comes with experience. Good intuition is fine, that’s easy, but there is also intuition on bad trades. The most difficult part is to say NO to bad trades. It still happens to me (rarely but still) that I would take a trade even though my intuition would say NO. Why? Just because I’m a human being with emotions. What sort of emotions would make me take a bad trade against my intuition? 3 main ones: Impatience, greed for extra gain, pride thinking I’m going to be right against the market.
Love your podcasts. Currently going all the way from the most recent ones to the first ones. I’m now at number 130. So still 129 of them and I would have listened to the whole 571…

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