Hunches and instincts are often used to differentiate great trade stars from more common every day traders. This kind puts these so-called “stars” in a position hard to get since they will explain their moves and trades with irrational data. But that is not completely true, there is the other side of the story on how those hunches and instincts were formed.
Believe in your instincts
Even if you cannot properly explain your instincts and hunches, you might still be able to act – and profit! – upon them. There is no reason or rule that says that if you cannot explain why you are feeling that something will happen, that you should avoid it. Many professionals, not only in the stock market but also in all companies everywhere around the globe, made loads of really important decisions when they could not have in time enough information to guide them.
Hunches are something that science have been trying to explain for a long time and still haven’t come up with a definite answer – and I doubt they will in the near future! But it should be that hard to comprehend it even when you don’t have a clue of what is going on. Hunches usually occur inside your brain in such a way that you cannot express it with words. That happens because your brain is gathering millions and millions of data and combining them together.
You might not realize it, but maybe your brain is combining something that you have heard somewhere, maybe someone said that or maybe you have heard it on the news, with some other piece of information that you have read two years ago. Though you cannot explain or see this process, it is expressed by your body through hunches. So, if you know that you have studied a lot about that subject and you are having a hunch, chances are that it might be true and you might be able to profit from it.