Intuition is a sublime virtue that a lot of traders have false beliefs about. All beginning traders confuse intuition with “into wishing.” It is extremely easy for the novice trader to listen to the thoughts and desires of the unconscious mind, and enter or exit a trade because of “gut feel.” However, every outstanding trader possesses intuition and uses it on a daily basis. Even the great system traders who are totally mechanical use intuition in developing their computer-based trading methodologies.
However, many traders confuse an impulsive or irrational thought that originates in their unconscious mind with a valid intuitive thought– after all, intuition is a spontaneous thought originating in the unconscious. The ability to differentiate between the two is often sublime and illusive.
– John Hayden, The 21 Irrefutable Truths of Trading
