As traders, we’re taught to follow the rules. There’s no room for changing it up, cowboy.

Gotta be disciplined.

Only the traders who stick to the system survive…

But is this true?

Are there times when you should, as an experienced trader, actually {gasp!} break the rules?

In other words, in this episode the topic is “Trading From Your Gut” – and whether you should do this, or steer clear.

http://media.blubrry.com/2traders/content.blubrry.com/2traders/2Traders_-_EP27_Trading_From_Your_Gut.mp3

Download (Duration: 22:02 / 25.2 MB)

In this episode:

00:46 – Gut-system

02:11 – Price Movement

02:40 – Exiting My Trade

03:00 – Darren’s Three Rules

04:57 – Removing Your Intuition

11:04 – Practice Makes Better Decision

12:25 – Who Makes better decision?

13:13 – Same Trade But Different Results

14:25 – Trader of Currencies

15:45 – Missed Entry

19:28 – Backtesting

Tweetables:

The trader who’s been trading longer is more likely to be making better decision. [Click To Tweet].

Use trial and error to learn to be a good trader. [Click To Tweet].

Backtesting the System is a brilliant Idea. [Click To Tweet].

Download The Full Episode 27 Transcript Here

Darren: With practice you can make much better decisions based on judgement in the moment then you can predetermine what you’ll going to do.

Announcer: Two traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Welcome back to the Two Traders Podcast. I’ve got Darren on the line and today Darren, we have a question that came through from a listener about your trading. Here it is, it says, “The question is for you Darren, imagine some element in your trading where you simply decide to let your trade go or close it. Is it safe to say that your system is a gut-system? Meaning that it requires you to make decisions that can’t be explain but always it’ll be profitable?”.

Darren: I need to sort of briefly explain my logical trading first, based on how I’m approaching trading now. Generally, most people when they trade they do some analysis of the market. From that analysis, they make a plan of what they think is going to happen next and what they’re going to do when that happens.

For instance, you’re a trend trader, and a trend is in place and your plan, maybe to wait for price to retrace to a moving average. Wait for a particular price action pattern, enter into the market and then give a similar thing for your exit.

That’s how essentially a lot of technical systems are based on that process. When I look at the market,