INTUITIVE PREDICTION MODEL (DISCRETIONARY TRADER)
Intuitive prediction is defined as making a decision without the use of any
objective or quantifiable data. For instance, in trying to predict the academic
performance of graduate students, the researches asked their advisors to do so
without seeing their grades and just by talking to them. The decision-makers had
to rely on their intuitive impressions and any other factors they thought relevant
(how the students dressed, their language skills, grooming habits, etc.).
This is the same way our discretionary trader makes trading decisions—using
intuition and gut instinct. Although he might think he does, he does not use any
objective criteria. In predicting the stock prices, it is highly likely that the
researcher engaged a discretionary trader to predict the future prices of stocks.