"Ideas pull the trigger but instinct loads the gun."
author -Don Marquis
"When Mr. Soros [the billionaire hedge fund Soros] was actively managing his fund, he would suffer from backaches, and said that he “used the onset of acute pain as a signal that there was something wrong in my portfolio.”
author - John M. Coates
I think all of us have "gut" instincts. That moment when 1+1=16 but we don't know how we got there. When we know what we should do but simply can't explain why (much to the dismay and agitation of an angry spouse).
All of us rely on instinct to one level or another but is it a good idea? Well, according to the journal, Scientific Reports, it is. They have published a study, "Interoceptive Ability Predicts Survival on a London Trading Floor", that states: "Our results suggest that signals from the body - the gut feelings of financial lore - contribute to success in the markets."
Let me state clearly that prior to reading the above title, I had never heard of the term: interoception. Neither has this blog platform as it challenges me as to whether there is such a word. There is indeed and it means a sensitivity to your body's messages. In the case of this study, what happens when individuals are aware of their own heart rate.
Here is how New York Times author, David Gelles, puts it in his article on the findings, "‘Trust Your Gut’ Might Actually Be Profitable Advice on Wall Street, Study Says": "In a study published on Monday in the journal Scientific Reports, a group of researchers suggest that high-frequency traders who were more sensitive to their own bodies routinely made more profitable trades, and had longer careers in a notoriously unforgiving profession."