I am a new trader and I would like some input or techniques in how to distinguish impulse from intuition. I feel that my impulsive nature is completely holding me back from making consistent profit. I find that I am most impulsive when the market opens and as the day progresses forwards the impulsiveness dies down and reasoning takes over. I also know that I am most impulsive at that time because I'm both nervous and over anxious as its the beginning of the day. What can I do to subdue the impulsive tenancies? What distinguishes impulse from intuition?
What is Intuition:
After years of practice your subconscious is trained to understand what needs to be done. This knowledge is not available to the conscious mind.
What is impulse:
Your frontal lobes (again not conscious mind) instructs you to act in a manner that relies more on animal instincts inherited from our anscestors.
Have a set of rules. Define them. Practice the rules and tweek it. In the process the subconscious gets trained and also in the process there will be more confidence in what is conveyed by the subconscious. It is like driving the car. We do not put conscious effort ( or rarely do). Ideal trading is like that. But need lot of screen time to get there.
Hope this helps.
You can practise your skills all day long, but it's comparatively easy to get better at playing. The hard thing is to get better at winning--anonymous
"OK, maybe you don't smile in trouble and don't realize the strength from distress till long after the event has passed. But bravery is definitely something to be recognized after you have time to reflect. Instincts give certain traders an advantage, but trading can be learned if you are brave enough to reflect honestly and objectively about your actions. If you don't know who you are, the market is an expensive place to learn"
Rejoice in the Thunderstorms of Life . . .
Knowing it's not about Clouds or Wind. . .
But Learning to Dance in the Rain ! ! !
Maybe i will not answer your specific question but one thing i can tell you, one of the things i do to help me stay focus and avoid impulse trading is to have a jump rope next to me or do some push ups while trading.
Why? There are some times when i feel a rush after a losing trade or after a winning trade. When is a losing trade i start to think, what if i make a mistake again and lose more money? When is a winning i think, what if i do something wrong and i lose what i already have? This not always happens but when it does i know all i need is 5-10 minutes doing rope jump or a series of push ups.
At the beginning is hard because you may thing that you are going to lose precious trading time but after a while you will start to see consistency in your trading and after all, if you trade with that feeling inside generally you are going to lose money.
Maybe it has a scientific explanation if it does i don't know it. By common sense i could tell you that you burn that feeling of anxiety by doing some fast work out.
Impulse just means you will lose money faster than intuition without impulse. But trying to use intution eventually will lose. Save yourself some money and develop a system that can be statistically measured over and over again.
"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."
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My take on this would be that, Impulse is what you feel from external pressures , e.g you lost some money and you want to end the day flat, or you won some money and suddenly gained too much confidence
While intuition is something you believe is right but could not explain it with logic