Gut feeling leads to success in financial markets, according to research by Cambridge university. In addition, traders perform much better at heart beat detection tasks than university students. Such researches are based on statistical analysis. However, there is another research showing that the computing algorithms have better performances of trading in financial markets than humans on average. Therefore, it's worth talking about what we can do in order to increase our competitiveness compared with machines.
Let's talk about the advantages of our human beings. Firstly, people are the ones who design the computing algorithms in financial markets; therefore, the importance of the role of our human beings is undeniable. Secondly, computer hardware and software need to be upgraded frequently in order to compete with other participants with the latest technologies. This requires a repeated investment of computer technologies. Thirdly, although the performance of machines could be considered to be stable, during a period of fast technology innovations, the old technologies may be bullied by the latest technologies and suffer a significant loss in a very short period. Fourthly, computers make decisions on what has happened, but humans can make decisions based on gut feelings. Gut feelings may not always be right, but when they are right, they could bring very high profits.
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