BarroMetrics Views: Intuition and the Trader
In my first Forum/Twitter post today, I wrote a short note on the strong feelings I have been experiencing since last night’s price action in the S&P and US$ Index.
Whenever such strong feelings occur, I take time away from the market: the reason for this is because I have a tendency to see only that information that supports the feeling - if I don’t first take a break. And I know that what I need to do is to take a dispassionate view of the information the charts are providing. For this reason, I adopt a process (see below) that helps me ’see’ the market information as realistically as possible.
This approach has served me well. It allows me to give full rein to the intuitive feelings while at the same time engaging the left-brain to come to a conclusion that is supported by logic and intuition.
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COPY OF FORUM POST
“I’ll post a full comment in a few hours.
In the meantime, my intuition is screaming rally in the S&P, decline in the US$. I am not saying my intuition is necessarily correct. But when I get a strong feeling like this one, I have a standard procedure:
- Take time away from the markets from 1 to 3 hrs. The stronger the feeling, the more time I take. This allows me to examine the charts dispassionately on my return.
- When I do look at the charts I start by looking for reasons to disprove the feeling. In this way, I ensure that I do not shut out information that is relevant to the context.”….
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