Money Brain

Why You Should Trust Your Trade Instinct

Gut instincts, we all have them. Whether it’s about a situation, a person or an idea. Trading is 90% emotional and 10% technical - therefore a lot of the outcome is dependant on how you react to each interaction within the markets. That’s why in this article we will be covering the importance of your trusting your trade instincts, and how you can follow them better.

Missing Trades

Have you ever looked at a trade, and second-guessed yourself, and to make it worse your gut told you to enter? Don’t worry, even the best of us still have trades like this. It is a skill in itself to become sensitive to your gut, something that takes practice. 

To prevent yourself from missing trades you need to trust yourself and own the outcome. Trading is essentially probability-based, and therefore Risk to Reward (RR) compensates for that. At RJ Trading our RR is typically high, sometimes 20:1. So if you were to lose 70% of your trades while risking 1%, you would still be profitable. For example:

£1000 account and 1% risk per trade (losses) = roughly £70 

New balance: £930

Winning trade of 20:1 = £186

New balance: £1,116

£116 Profitable

Developing the Essential Skill

Studies conducted by Cambridge on Interoceptive Abilities which is “the sensing of physiological signals originating inside the body, such as hunger, pain and heart rate”, have implied that those who are more in tune with their ‘gut’ typically are more profitable and survive longer within the high-stress environment of the financial markets.

Some people will have higher interoceptive abilities than others naturally, but it is overall something that can be developed - the same as any other skill. You will develop through experiences, and asking yourself questions such as “how do I feel right now?” before entering a trade or “should I enter this trade?”. Asking these questions gives you insight into your intuition, and consequently begins to build trust. Another way to develop this skill is by sticking to your strict trading plan. If you don’t have one, we have one in our member's area you can follow, alongside some of our other educational content. We also recommend that you keep a trading plan, reflect on it and grow. We all have something to learn from past actions, amplify the good outcomes and change the negative. 

Understanding Fear

Unlike any other profession, you are constantly risking capital, in order to gain capital. When coming from a scarcity mindset with your capital, no matter the size, it can induce fear into your actions. This fundamentally opposes your instinct of what you know, and can then often lead to ‘analysis paralysis’, where you don’t do anything at all. This makes it all the more important to stick to a system and trust your gut. 

Fear is a natural instinct of defense to a perceived threat to avoid pain. It’s essential for a trader to rationalise this fear by breaking it down. If you are constantly aiming for high risk to reward setups, then you must but trust in the numbers of probability - we know this is way easier said than done, but over time you will trust your technicals, and also your mind. 

Mind vs Instinct

The biggest battle you will often face within the markets is your own mind. Your instinct will tell you to enter, and your mind will tell you not to due to past experiences. That’s why it’s important to control everything you can, such as your trading plan, your personal mindset, and whether you enter or not. After you have done the analysis and entered the market, the only thing you can control is how you exit. Stick to your plan as deviating from it will often bring pain. It’s not worth getting greedy, the markets will always humble you.


It’s no secret that a mentor can cut your learning curve significantly. They can show you the ropes and what NOT to do, and also save you capital. Ask any successful trader who learnt alone and how many accounts they blew in the process, but they will say it was always worth it now they are in their current position. At RJ Trading we have different plans, whether it be just signals or actual education, as well as mentorship from both Rhys and Jordan who are FTMO certified traders. Contact us to learn more.


It’s no doubt that trading is a difficult skill set to master, but in turn, it will give rewards that not many other skills will return. Trusting your instincts is essential to your success, as not just proven by studies but other successful traders. Your instinct is an unmatched competitive asset, so start developing yours as soon as possible but just recognise it and build a relationship with yourself.

It's a journey.

Join 100's of traders in our
community on theirs