Wednesday, October 20, 2010

Trading on gut feeling?

There are two types of guts or intuition

One, Intuition and Gut based on experience and training.

Two, Intuition and Gut based on rush of blood.

The first one is an angel

the second one is a devil.

In the words of Curtis Faith

in his masterpiece work

'Trading from Your Gut'

"Relatively recent advances in psychology and neuroscience show that human intuition can indeed serve as the basis for powerful rapid decision making.

Our brains can make decisions using thousands of individual inputs almost instantaneously. This type of rapid parallel processing occurs in our right-brain hemisphere.

Because of the speed of the right brain, it can be a powerful tool in
the hands of an experienced trader."

Same idea is echoed by Malcom Gladwell in his brilliant

'Blink: The Power of Thinking Without Thinking'

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