In trading, you can’t rely only on your gut. Every beginner, who has ever tried to close a trade without proper market analysis, know this all too well. However, the wild success of traders who earn tens of thousands of dollars daily begs the question, do they have some kind of psychic ability? Some spend years trading and fail to earn more than their initial investment, whilst others become millionaires over the course of several years. Is there something more to their success than simply a better understanding of trading and vast experience? In this article, we will discuss whether there is such thing as a psychic trader, or if it is just a myth spread by those who wish to justify their trading failures.

So, the majority of us have heard of the most famous figures in trading, such as George Soros, Nick Neeson, Bill Williams, and many others whose overall wealth amounts to tens of millions of dollars. How did they manage to reach such lucrative financial heights, and what is their skill lies not in market analysis, but telepathy?

From the beginning of time, humanity has accused things they don’t understand of being magic or something supernatural, which is why, during the Inquisition, not only were a large number of beautiful women burned at the stake, but also many talented minds. And although these days we live in a modern world with nanotechnology and artificial intelligence, the instinct to call anything we can’t explain mystical re-emerges every time. Such as, when we can’t explain some kind of event, or even if touches on someone’s astounding success in specific professions like trading. On the contrary though, if you take a closer, more objective look, even the financial successes of millionaire-brokers have better, more tangible explanations. So, let’s assess why it is possible to be a professional without any psychic abilities.


Telepath Trader: Reality or Myth


The Simplest Approach is a Complex Forecasting Mechanism

In the context of this approach, futures contracts, as a financial tool, are clearly the simplest. When closing a trade, you only need to set three conditions, the sum, the expiration period and the forecasted price movement, up or down. Meaning that there is no need to take leverage, limited orders spreads or swaps into account when forecasting or closing trades. They are not relevant to this type of contract, unlike others. Also, with futures contracts, there is no need to wait around for the price to reach its peak, as one point of price movement in the forecasted direction is enough to produce up to 90% returns on the initial investment. The trading terminals for this kind of trading are significantly more user-friendly than trading platforms for, let’s say, margin trading. At first glance, what could be so difficult about choosing one of the two directions of price fluctuation?

The issue is that approach itself to working with futures contracts tempts many to trade impulsively, leaving it up to fate, lunar cycles, or horoscopes for example. Here specifically is where you find the assumption that successful traders are just psychic and able to foresee the future course of the EUR/USD. However, in reality, their actual trading advantage lies in their ability to apply traditional approaches to technical and fundamental analysis, already well-known for decades, to forecast the price of this or that asset.

Supply and demand influence the value of this or that asset. The demand for an asset is the result of traders and investors aspiring to make the asset cheaper, so as to re-sell it when the price increases. Conversely, supply forms on the market as a result of traders and investors expectations of asset prices dropping, so as to buy them at a lower price. Every day there is a struggle between those who wish to sell (bears) and those who wish to buy (bulls). This struggle specifically is driving force of asset price fluctuation.

It is very hard to forecast why traders change their outlook, as many factors have an effect on their interest in buying or selling an asset. Furthermore, it isn’t possible to be 100% certain in any specific future dynamic or the direction of asset price movement. 80% is way more realistic! There are specific approaches to market analysis that absolutely every trader uses.

How can you predict the market?

There is not one trading educational course built around predicting future market movements through psychic ability. Do you know why? Due to the fact that there is not one documented case of a person, with no grasp of technical analysis whatsoever, trading intuitively and making a profit off every single trade.

What are the approaches to market analysis? Despite the unpredictability of traders’ moods, it is possible to make out a clear pattern from their behavior, meaning that the price moves naturally in a cycle on the chart, from which future growth or decline is clear. For example, after the narrow zone of rate consolidation, when traders activity drops as they await some economic or political event when there is a natural surge in market activity, where is it possible to place trades that are closed on a profit. There are many of these asset price fluctuation patterns that are identifiable on charts. Technical analysis trading strategies are built specifically using various famous patterns, allowing for the forecasting of future rate movement with 80-90% certainty. For identifying these patterns, both technical indicators and chart tools are used. To put it simply, a trading strategy is a collection of identification rules used to forecast patterns through various means of analysis. Trading with several strategies specifically gives traders the best chance to earn profits from closing trades. Successful traders know all too well that throughout the trading process there is no room for chance or gut instinct. This is an example of what a professional trading platform for futures contracts looks like. It is equipped with a wide array of chart customizations, technical indicators, and chart tools, allowing you to utilize any trading system you wish.

Admittedly, knowledge and experience alone don’t explain trading success, as the trader’s psychology plays a meaningful role as well. The point is that only highly disciplined and motivated traders can reach such financial heights. They take trading seriously and have control of their emotions such as stress, passion, greed, and hysteria. In particular, knowledge and experience combined with attitude psychologically enable them to achieve their set goals.

Therefore, in regards to successful professionals, psychic traders, who close trades based only on their gut instinct, virtually never come up. We mean the driven, disciplined people, who dedicated themselves to studying the various trading strategies and how to best control their emotions. In order to earn thousands of dollars daily, every trader must tirelessly strive to foster qualities such as discipline and drive in themselves, and slowly study, practice and perfect various approaches to market analysis.

The Telepath Trader

We have previously outlined how traders produce forecasts for such chaotic rate movements and earn impressive profits. So, do psychic traders exist nonetheless? Let’s take a minute to imagine that a person exists who forecasts the market using their gut instinct exclusively. In that case, they would be the richest person in the world, who knows the exact moment to buy and sell various assets. On the other hand, the existence of such a psychic trader would mean that all of the currency assets, raw materials, and securities with the most liquidity and potential would fall into the hands of one person as they would be able to play the entire financial market. Accordingly, that person would be able to rule the entire world and capture and control other countries. That would also mean that there would be no further point in financial trading, as the typical patterns of price movement that technical analysis is built on, would no longer apply.

However, we will also not categorically rule out this phenomenon, as the human brain and its abilities are not completely known. Although we can explicitly state that the all the staggering success traders have achieved is exclusively thanks to their serious and motivated approach to trading combined with gradual self-improvement of rate fluctuation forecasting. Furthermore, there are people that simply have more developed intuition, sensitivity, attention to detail and are more observant, who progressively study the financial market and catch on more quickly to the slightest shifts. Therefore, instead of trying to develop a psychic sense or blame your misfortunes on lacking second sight, better educate yourself! To that end, these days many companies offer users an educational course free of charge in basics of trading, including exchange terminology, interactive learning, and step-by-step instructions:

Also, the best companies offer demo accounts as well, which allow you to gain the necessary skills with virtual money on a real platform. When you begin to trade independently it is you should continue improving your knowledge, market analysis skills, and trading psychology. After that, you must rid yourself of that “telepath” part of you, as you can close the majority of trades profitably without it, increasing your capital with every trade.


“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

A Telepath Trader: Reality or Myth
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