Most of us strive to use the analytical, left side of our brains when making investment decisions. We’ve been told not to use emotion or intuition when it comes to money. We’re told to “stick to the facts.” But doesn’t it make sense to use your entire brain when making a decision?
It takes practice to learn how to use your intuition effectively, but it’s well worth the time and effort. Even Warren Buffett has stated that he simply knows a good investment when he sees it. Can you do the same?
Use your intuition and increase your profits with these strategies:
1. Put yourself into an effective mental state. The more quiet and serene the surroundings, the easier it is to access your intuition. Signals from the subconscious are subtle and quiet.
- You might find that certain activities provide a productive mental state for getting in touch with your intuition. Think about the times you feel relaxed, yet energized. It might be while taking a walk in the woods or drinking coffee on your porch. Situations that foster daydreaming are also effective.
- List the times that you’ve successfully relied on intuition for other aspects of your life. Is there a commonality to them? Maybe you’re most intuitive in the early morning hours or while alone.
2. Avoid relying solely on intuition. Intuition seems to be most effective when choosing between two or more concrete options. Use your analytical skills to narrow investment options down to a few possible choices. Then it’s time to use your intuition to help with the final decision.
- Find the right balance between intuition and number crunching. The balance point varies from investor to investor. To rely on intuition alone is a mistake. Get all the information you can before tapping your intuition.
3. Be able to recognize the difference between emotion and intuition. Emotions are mental reactions to a thought. They bring about a physical sensation in the body. Intuition is a neutral sense of knowingness. Intuition doesn’t require a lot of thought. You just know.
4. Practice using your intuition throughout the day. If you’re torn between wearing brown or black shoes, ask yourself, “Which shoes should I wear?” Take the answer you immediately receive and follow it. Use your intuition as often as possible in a variety of situations. Ever stuck between two menu items in a restaurant? Problem solved.
5. Apply your intuition to your investing activities. After you’ve gathered all the available information regarding an investment decision, use your intuition. Ask yourself the appropriate question:
- “Is this a good investment?”
- “Do I have a better option?”
- “Is now the best time to sell xyz?”
- “Should I wait?”
- Realize that intuition often provides simple answers. Ask simple questions. If the question can’t be answered with a single word, rephrase your question.
6. Understand that intuition isn’t perfect. Intuition is an opinion based on the facts and your past experiences. It’s the voice of your wisdom. That doesn’t mean that everything provided by your intuition is perfect. However, you can be confident that it’s the best decision you can make without relying on luck.
Failing to utilize your intuition when making decisions is failing to utilize all of your gifts and resources. You have learned far more from the past than your realize. It’s emotion that causes us to repeat mistakes, so take emotion out of the equation. Gather the facts and then rely on your intuition to provide guidance.
Use intuition to guide your investment activities and watch your profits soar.