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How to develop a “gut” of the market?

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He intuition in trading with a smile, many professionals talk about it quite seriously. After all, the ability to anticipate events is not mysticism at all, but an underdeveloped ability of our brain. Another thing is that it is impossible to predict everything as accurately as possible. You can only help yourself to make the right decision.

How to develop a “gut” of the market? In Forex, this means a deeper understanding of the market. Agree, if you show the charts to a beginner, he will not understand anything at all. If they are seen by a trader who knows the basics at the basic level, they will already be able to find signals to buy or sell there. When a technical analyst looks at the same charts, he will instantly get the big picture of the market. If this person is also familiar with fundamental analysis and is aware of current events, much more extensive information will be presented to him. And the graphics, by the way, will remain the same.

Digressing a little from the topic, let us recall the famous periodic table, which its author, according to him, saw in a dream. Someone attributes this to higher powers. Someone’s intuition. And someone thinks that he just pondered a lot about this topic and in the end the elements lined up in an orderly row in his mind, but he saw the final version only in a dream. This version is not without meaning, because our subconscious mind tends to “think” for what we did not have enough time. Isn’t it often called intuition?

If we analyze the stories of some famous traders, who were talked about and say they have a certain talent for the markets, it is clear that before this style appeared, they studied hard and hard. They added knowledge, gained experience. And only after that, his intuition “suddenly” opened. Can an ordinary trader, who does not feel any superpowers in himself except the desire to study the market, achieve success? How to develop a “gut” of the market?

How to learn to “anticipate” market movements
Before I start making any of the recommendations, I must say that it is based solely on research and the subjective feelings of famous traders. It may well turn out that it does not have the desired effect. But the fact that you will definitely start to trade better and understand what is happening in the market cannot be doubted. Because it can’t be any other way.

How to develop a “gut” of the market? 2The first thing you can do to improve your operations is to use the famous “10,000 hour rule”. He says that professionalism and talent (!) In any business is achieved by those who have invested 10,000 hours or more in the chosen direction.

This has been revealed through observation and research. All who consider themselves talented talented have been doing what they love since childhood, and constantly, for several hours a day. At the height of a career (success, fame), each of those people already had such, or more, a period of time devoted to training and especially to practice. And no one distinguished himself with a special talent, if he did not constantly practice.

What is offered to the merchant? Make the practice regular, spend a lot of time on it. I learned something new, I applied it. Studied – applied. Analyze the markets as often as possible, for longer open demo trades. Yes, 10,000 hours is a lot. If you came to Forex in search of urgent fast money, then this advice will definitely not work for you. But, if you want to become a pro, give it a try! Do not look for miraculous methods, they do not exist. Gain experience with what you already know and can do.

The second thing that is important for an intuitive understanding of the market is the knowledge of fundamental analysis. Many people focus on the technical and completely forget about the main price drivers. But it is precisely the understanding of what is happening in the economy that can open our eyes to the reasons for what is happening, especially in the medium and long term. By abandoning fundamental foresight, you are losing a lot. Set aside at least a few hours a week to study it.

Third, analysis of several scales at the same time in selected pairs. Make it a rule. Sometimes the reason for the problems is trivial: the trader sees very little simply because he does not switch to other time frames.

And the latter is what A. Elder advises. He argues that when plotting a chart by hand, the trader develops an intuitive understanding of where price will go. Of course, almost no one follows his advice: they are all incredibly lazy. However, if he decides to apply this in practice, he should keep in mind that he should build them into prices (they are in any MT4 terminal), and not just redraw them.

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