Quite often you can see the situation when one trader using a trading system makes profit, while other trader using exactly the same system loses money. The main reason for that is intuition.
Success in any area of human life has a lot to do with intuition. Let's define the intuition for Forex trader. Intuition in trading is the decision making ability that goes beyond the rational thinking. Each trader trades with his own risk level. That can be attributed to intuition.
Risk levels differ from one trader to another. There is no exact answer to what should be the risk taken in each trade. As long as a trader makes consistent profit he has found his own risk level. Trader founds it through trial and error developing his intuition at the same time.
This is just one tiny example of utilizing the intuition. It doesn't end on choosing the risk level for your trades. Market very often gives out contradictory information, which not always possible to process rationally. It's very hard to keep in mind every parameter of changing currency market.
Therefore trader must make a subjective decision. It is in that subjectivity intuition is contained. Therefore we can give another definition for intuition - it is the way of perceiving and processing the information from environment which is invisible for our conscious mind.
Such decision however is based not only on irrational intuition but also on traders knowledge and experience. That does not mean however that a trader needs large amount of knowledge about the market. All that is required is to focus attention on the most important aspects of the market.
How you know what deserves you attention and what doesn't. It's the job of intuition to tell you which information you need to pay more attention and which is useless information.
With the experience trader develops so called feel of market. He feels the momentum of the price movement. If he senses any kind of change in momentum, he will take action to protect his capital and make profit. That can be considered as an intuitive decision.
The losing of such "feel" of market can mean loss of the capital. Therefore for most successful traders that intuitive feel serves continuously. It goes almost subconsciously like breathing. He keeps analyzing the information but conscious mind does not notice it.
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