The comfort zone is the great enemy to creativity; moving beyond it necessitates intuition, which in turn configures new perspectives and conquers fears.
Many people who begin trading think of the markets in purely mathematical terms: If the ultimate multiple regression equation could be devised, one could simply put in the inputs and get the outputs from your computer. The working assumption seems to be that the markets can be predicted in much the same way that engineers can use equations to construct a bridge or a tall building. The markets however, are not consistent, and in some ways, they are far more complex. Many seasoned traders tend to rely on abstract feelings as much as cold hard facts. They trade intuitively.
He or she would prefer to follow a specific set of rules and may want to pin down exactly where an abstract value, such as resistance, begins and ends. An intuitive trader, however, views the "rules" to identify resistance as merely guidelines. For example, perhaps resistance is perceived to be a round number or a previous peak or trough. No one knows for sure; such guidelines are just possibilities, not hard and fast rules. Some look at market concepts literally, believing they are true-life entities, rather than just abstract concepts. An intuitive trader looks at the markets in a figurative sense. All signals and indicators are subjective in the end, may be a little inaccurate, and are a mere approximation of reality. There's a good chance they will be wrong and that's all right.
Reprint from the Prudent Trader archives