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Do you rely on "instincts" while trading?


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Do you rely on "instincts" while trading?

  #11 (permalink)
 centaurer 
south africa
 
Posts: 169 since Dec 2018

I listen to my "gut" for discretionary trades as an indicator that I probably want to flip the sign and short what my "gut" thinks to do.

I mostly want to play the minority game and listening to the gut is almost always going to put you in the majority.

You can see this at work in a very simplified version if you think about the original El Farol Bar problem. "Hey it Thursday night on a beautiful summer night after a long winter, lets go to the bar!". Of course the bar is incredibly over crowded because everyone has the same gut instinct at the same time.

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