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Does intuition and gut feeling play a role in trading?


Does intuition and gut feeling really exist in trading?

Whenever you hear traders talk, they use the words intuition or gut feeling to express their thoughts and to justify their decisions which are often not based on sound trading principles or trading rules, but on something different, something they ‘felt’ about what is going to happen next; or so they claim. However, it is very important to distinguish between real intuition and what traders mistake as intuition.

Trading Intuition

Intuition and impatience

The most commonly made mistake is that traders use intuition to justify trades where they prematurely entered the market and broke their trading rules. They will then say that they had a feeling that price was about to take off and that they didn’t want to miss the trade. Be honest to yourself, how

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Should you reenter after your stop loss got hit?


Probably every futures trader is guilty of entering a trade right after being stopped out and often traders even do it several times in one single trade, throwing good money after bad money. In this article, we explain what causes futures traders to reenter trades that have been lost and provide tips how to manage trade exits and reentries better.

(Disclaimer: The placement of contingent orders by you or broker, or trading advisor, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders)

Why traders revenge-trade and commit to over trading

Before changing any behavior, you have to be aware of the triggers that cause your negative actions. When it comes to re-entering trades after a stop loss got it, the motives are very clear: The most common reason is that traders fear

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Why Do Drawdowns Exist And How To Deal With Them Efficiently






Drawdowns and losing streaks happen even to the best traders and they often result in an avoidable downward spiral causing traders to lose not only their self-awareness, but also much more capital than necessary. Understanding why there are drawdowns and knowing how to deal with such challenging situations, helps traders to survive and even progress in the face of losing streaks.


Short-term vs. long-term concepts of trading performance

The misconception about the concept ‘winrate’ and how it influences your performance often causes confusion and wrong beliefs. A trader with a 60% winrate has a chance of realizing four consecutive losing trades of 2.5%. Although this sounds like a low probability, if you only take one trade per day, you will encounter such a losing streak multiple times per year.

Tip 1: Don’t underestimate

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