A common misconception among aspiring traders is that all great traders rely purely on logic, data, and strict rules — leaving no room for instinct. This belief assumes that instinct is irrational or reckless, and that true mastery means eliminating emotion entirely. But in reality, many of the world’s best traders use instinct — not as a replacement for discipline, but as a complement to it. This article explores how instinct fits into elite-level trading, and why ignoring it altogether may actually limit your potential.

Where the myth comes from

The idea that great traders use no instinct comes from:

• The rise of algorithmic trading and quants
• The emphasis on rule-based systems and backtesting
• The fear of emotion and bias in decision-making
• Misunderstanding the difference between instinct and impulse

These factors promote the idea that pure objectivity is the goal. But even in highly quantitative environments, seasoned traders often rely on feel, discretion, and rapid decision-making honed through years of exposure.

What instinct actually is — and what it isn’t

Instinct in trading is subconscious pattern recognition. It’s not guessing, gambling, or trading on a hunch. Rather, it’s the rapid internal processing of market information based on accumulated experience.

For example, a seasoned trader might:

• Sense when momentum is fading before an indicator confirms it
• Feel when volume doesn’t support a breakout
• Recognise a familiar trap setup forming in price action

This is not emotion-driven behaviour — it’s intuition built on repetition and internalised structure.

Examples of great traders who use instinct

1. Paul Tudor Jones:
While disciplined in risk management, Jones famously spoke about the importance of “gut feel” in trading — especially when the markets behave irrationally.

2. George Soros:
Soros is known for making instinctive calls on macro trends, often citing a “backache” as a signal that something felt wrong in his positions — prompting critical reviews of his trades.

3. Stanley Druckenmiller:
Although he respects data, Druckenmiller often attributes his edge to feel for the market. He combines macro analysis with an ability to sense shifts in sentiment and momentum before they’re obvious.

4. Linda Raschke:
A veteran trader who emphasises pattern recognition and “market feel,” Raschke highlights how screen time and experience shape the ability to act swiftly and decisively.

Why instinct matters at the highest level

1. The market isn’t always logical:
Markets are driven by emotion, crowd behaviour, liquidity, and narratives — not just numbers. Instinct helps traders spot when something doesn’t feel right, even if the data looks clean.

2. Execution requires speed:
In fast-moving environments, instinct often outpaces analysis. Traders with deep experience can make snap decisions others would miss while still adhering to their core framework.

3. Instinct fills in the gaps:
Even the best models can’t capture every variable. A trader’s instinct acts as a secondary filter, catching nuances that pure logic may overlook.

4. Data delays and limitations:
Lagging indicators, delayed news, and hidden order flow make real-time instinct valuable. Many great traders use instinct to adjust entries, exits, or avoid questionable setups — even when the rules say “go.”

How great traders manage instinct responsibly

1. They use instinct with structure:
Instinct doesn’t replace the system — it works alongside it. When instinct flags a setup, the trader still checks it against their criteria.

2. They track instinctive decisions:
Top traders journal their trades, including those made on feel. Over time, they verify whether their instincts are helping or harming.

3. They calibrate instinct through screen time:
Years of exposure sharpen intuition. It’s not innate — it’s trained. Great traders don’t use instinct because they were born with it — they’ve earned it.

4. They know when to trust and when to pause:
Seasoned professionals can differentiate between a strong intuitive signal and emotional noise. This self-awareness sets them apart from amateurs.

Conclusion

It is a myth that all great traders use no instinct. In reality, instinct is one of their greatest assets — not as a substitute for structure, but as a refined tool developed through experience, discipline, and self-awareness. The best traders combine data, strategy, and intuition into a powerful edge that adapts with the market. If you ignore instinct completely, you may be cutting yourself off from one of the most valuable dimensions of trading mastery.

To learn how to sharpen your instincts and blend them with disciplined strategy, join our Trading Courses at Traders MBA — where intuitive skill meets structured success.