08.10.2010 Post in Trading

Intelligence, intuition and instinct are the base for trader’s perception of the currency market activity.

Intuition allows one to gain an insight of things not by reasoning or logical thinking, but by means of immediate, unconscious inspiration. As a result, the trader can understand the market, but with his heart, not his mind. Nevertheless, even the most insightful trader has to understand that he/she should not entirely rely on the intuition while trading.

Intelligence provides the ability to logically analyze the activity around trader and make the simplest and the most correct decision. Intelligence enables the trader to break any deadlock.

Instinct is only revealed materially. Any action performed by the trader is originated from his/her desire to satisfy his/her material needs. If the trader fails to accomplish any deal this can be compared to procuring food while which the trader faced an unforeseen obstacle and lost one of his/her body parts. A normal person would retreat and never come back.

In case the trader finds a way to earn without spending much physical and mental effort this can be compared to finding abundant lands with lots of untamed game. Therefore the trader will come back to obtain as much benefit as possible. This is how market’s tendencies can be identified when strong one-directional rate dynamics supports itself.

Added by Ekaterina Pobedisnkaya,
InstaForex International clients´ Chief Manager