Here’s some food for thought regarding analytical and intuitive trading (NOTE – I didn’t say analytical OR intuitive). It quotes one of my favorite trading-related writers, Denise Shull.

Have a read, it is an intriguing idea:
  • Theory of Mind (ToM). In brief, ToM is the uniquely human ability to read intentions (or goal-directedness) from patterns observed in one’s surroundings.
  • Top traders tracking price movements (and other price-sensitive developments) intuitively recognize market patterns that dictate the timing and size of their trades. Surprisingly, the experiments show that ToM is not correlated with mathematical or logical reasoning and that superior trading intuition is consequently not attributable to excellence in abstract thinking.
  • What ToM also reveals is that the need to prevail on every trade brings out other innate patterns in the behavior of the trader that stand in the way of success.
  • According to Denise Shull, a New York City neuroeconomist who coaches traders in achieving and maintaining peak performance, trading is actually a “self-development game.”

Intuition and Impulse in a Great Trader
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