Gut vs analytical
There are basically two types of thinking that we do:
- The automatic
- The analytical
The automatic is your gut feel. The longer you have traded the more you should trust your gut feel. The analytical part of your mind is that part of you that slows down to think. The part of you that needs to sit down and work out what 174 x 69 / 2 is.
The best trading comes when your analytical mind and your gut feel are in synchronisation. One of the best ways of describing this phenomena of the mind has been penned by Daniel Kahneman and his book titled ' Thinking: Fast and Slow'. If you want to improve your mental framework for trading then this should help. In particular I found the scientific evidence for a rule based decision making process compelling. It is a must read.
