I know that fundamentals are important when choosing stocks to invest in but I also value my gut instinct. After all, our intestinal tract, stretching from our mouth to our anus has as many neurons as a cat has in it’s brain and our gut is full of so much life that it can react, via the rest of our neurology, to external factors, offering us a message that we are in danger… or in love! If a cat can catch a mouse, goes my reasoning, then my gut can catch a bargain!
It’s not just me that thinks gut instinct is important when trading shares. Billionaire Warren Buffet operates on Gut Instinct and George Sorros is guided by ‘Animal instincts’ and will sometimes change market positions when his back hurts.
Bearing in mind the fundamentals, what do you think about trading on gut instinct and what stories do you have about trading wins and losses based on ‘a feeling’ or a ‘something told me’? Do you have any suggested reading or ways to attune your skills?
Do you think it’s all rubbish and that any perceived skill is just chance, like flipping a coin?
Article: Is gut feeling really the secret key to trading success?
Goodreads: Trading from Your Gut: How to Use Right Brain Instinct & Left Brain Smarts to Become a Master Trader by Curtis Faith
Goodreads: The clever guts diet by Michael Mosley