
Being able to read another’s mind whether it is about figuring out if that girl likes you or whether it is to able to act correctly when it comes to taking trading decisions, to many intuition seems like a feat beyond one’s capacity. But what if I told you, that you already could? If you are an observant trader, You as who you are, can already read the stock market. As humans we are actually built to intuitively feel what another person is feeling. Having said that, why don’t we realise we have this capacity?
The reason is because we as cerebral beings overcomplicate it. In the times that we live in, there is a worldwide consensus to second guess ourselves, then second guess the second guess and then second guess even that while the opportunity slowly fades away which leaves us with regret of not having acted soon enough. We are pumped with the subtle standards that say, our feelings aren’t true because you need X for it to be true and you need Y and without it you cannot have Z etc. Overtime, due to a string of these thoughts, we end up distorting the truth. But the truth is simple, it is not as complicated we make it out to be. The truth is that human emotion is universal and we as societal creatures are built to feel and understand them.
Meditation helps intuition as it pulls your mind out of itself and pushes it into the present moment. When you stop judging, making assumptions and overthinking, your intuitive sense starts to pick up the environment through “feeling”. Since feelings are encoded into you by experience, reading emotions is not a difficult task if you can silence your mind from pulling you out of the presence.
But this is about reading the stock markets. How to do that? By applying the same logic to a crowd. Although it is difficult to encapsulate the exact mind-set of a crowd, you can get a pulse of it by observing certain crowd behaviour patterns. If you know your own emotions and the emotion of others, in-congruencies and congruencies can give you a rough understanding of what they are thinking. For example, you felt a stock was bearish on a particular day but the price had gone up and based on your observation of price action. You base a judgement that the stock is going to continue to be and the stock price will fall in the future. However, such conclusions need to have a larger context because fixating on a single day’s price action may not be the clear indication of the underlying situation. Reading into the character of the stock market is something that needs to be done overtime and not through assumption based on only one experience. This is difficult for many because they trade with a fixed mind-set to make money rather than to experience intuition through the flow of the stock market. The moment you stop trying to push what you have inside and actively choose to understand the emotional disposition of the stock market participants, you will be able to understand what they’re thinking. There are a wide variety of technical tools and indicators to predict the market manually without intuition but that method has inherent limitations. However, these tools can be used to sharpen your intuitive ability by constant observation and practice. You are built to pick up on it so long as you are immersed in the environment and not in yourself.
For example, when the market is clearly bullish and if you don’t overthink it and instead feel it in the present moment, you can feel spikes of emotion which will cause a surge in the stock market.
The mind is more complicated than the truth. The first step to getting things right is to “un-complicate.”
Tejas Khoday
Tejas is the Co-Founder & CEO at FYERS, the youngest team to get NSE’s broker license. He has a specialization in finance and has over 10 years of work experience spanning across proprietary trading, risk management, and broking. Tejas & his team started FYERS, a technology-focused brokerage as a mission to transform the trading/investment landscape in India.
Not Sure whether the Truth is more complicated or our mind, or both. Nevertheless, great article, very few people have the ability and the willingness
to delve into psychology of finance.
Meanwhile, can you elaborate more on the first statement of your article.How do you figure out if a girl likes you when she is silent? 😀
Psychology of finance is fun. In fact, it’s the most fascinating aspect of finance to me. Haha! No, I can’t elaborate.
Best, you didnt elaborate, amazing article, I was literally writing points from it, tried opening an account but in uoloading docs in address part website have an issue. Rest I am into options and would like to learn & earn a lot. Regards
Hey Ujjwal, Glad you found the blog useful :-). Even if you haven’t been able to open an account by yourself but your details are registered with us in the portal, you will receive a callback by the end of the day to help assist you & complete the process. If it doesn’t happen, let me know and we’ll get it done.
We’ve published 2 Modules (18 Chapters) on options so far. More is coming soon. You can learn all about options here and ask us questions too – https://fyers.in/school-of-stocks/module/options.html
Intuition is a crucial component of professional competence.
Yes.
i am appreciated to your blog articles very good news
Thx.
Thank you for posting the great content Really so informative blog and it was very good for newbies.
Thanks Vanni.
Good one..
Thanks Abdul.. Haven’t written posts on this aspect of trading. I’ll try to write more on psychology and stuff.
Thank you for posting the great content Really so informative blog and this types of post or article very useful for investors.
Stock Advisory company
Hi @Tejas,
Can NRIs invest through Fyers? If so how?
Thanks.
Hi Radkan, Yes of-course NRIs can invest in Fyers. I have written a post about this as well: https://fyers.in/how-nri-can-trade-in-the-indian-stock-market/. Please write to us here and our team will get in touch with you: Open an account with us.
On the point… although all types of trading strategies are available only gut instinct counts whethere or not it is algos.
Well written but not everyone has intuition. Using technical signals is much better according to me.
Technical Analysis involves a certain element of intuition too.
Very refreshing to read about intuition. Everywhere I read about stock markets they are only telling about probability and mathematics. I believe it is the most overused skill but the must underrated one because most intellectuals and tips providers never talk about it because others will not trust them. Keep spreading true knowledge like this.
Very impressed to see Fyers reduced brokerage charges to 20/- only. Good to see a young company taking right steps for the sake of customers.
Well, it was a natural thing to do. Competition & user feedback!
To develop intuition, we should trade and develop skills. Atleast brokers should provide some way so that we can train ourselves. They are giving trading terminals which are made before Y2K.
Hey, which is why we’re changing that. Fyers Web will have a lot of historical data which you can play with. The charting is super easy for analysis.
Nice
Hi Tejas, I was your college mate but you didn’t know me but I had heard that you are a big trader. Today I came across your website while browsing for ways to make money in stock market. Very happy for you and your success. Didn’t know that you would be so much into it. Kudos to you bro! I pinged you on facebook….
Hey Saurabh,
I just saw your comment. Well, I don’t know exactly what you heard but thanks! I am a broker now who rarely has anytime to trade anymore.
Encouraging words…… I am a trainer. am learning from your writing skills.
Glad you found it useful karthik.
Very true and very well written. Lot of depth in your posts.
🙂
I really enjoyed reading it. Very good article 🙂
Thanks Satya!
@Tejas Have you really written this all by yours ? 🙂 . If so you have done awesome job. Even otherwise its good read. Thanks for posting..
Hey Pankaj, of course! I enjoy writing a lot. Been doing it for a while now. Thanks, glad you like it 🙂
Very useful article. Good!
Thanks.
Philosophy of stock markets 🙂
Hope you enjoyed reading it. 🙂
I think this article is just a Placebo to lure newbies into trading. There is no place for intuition in any kind of market IMHO.
Everyone is entitled to their own opinions :-).