I was just banging around in my lab, creating music and reading emails. Relaxing really. In the back of my head I had been trying to figure out the best way to begin explaining about market structure. Then an email caught my eye about music. And in particular music structure.
As you may know I am very into mathematics, science, and sacred arts. So instantly I know there must be a relationship between the two structures of music and the market. In my thinking there is no way there can not be some equality.
The email quote "Arrange is something I really struggle with" If you substitute the word consistency with arrangement it all begins to make sense. When a musician arranges a song they are basically completing the track or the piece of music. The emphasis is on the word complete. You arrange the parts of your song to complete it.
So new musicians have a hard time completing tracks while new traders have a hard time of completing trades. Just to give you a little more insight in the world of a would-be music producer. Usually they get some spark of creativity from somewhere. That's the gift they have. Then they work diligently on perfecting this one little piece, this one little ditty that just loops around in their head, and it IS beautiful.
However as a professional musician this unit of information or snippet of sound does not and can not produce a profit for itself alone. It needs corresponding parts for the most wide spread enjoyment.
All music that you like for the most part has a pretty recognizable structure. An intro,beginning,middle,outro,ending.. No matter what genre of niche each song contains these parts in some way.
The markets no matter what market, or type of market will also have this familiar structure.
The everyday person intuitively understands the ebb and flow of a song however creating a song is whole different ballgame The everyday person deals with the ebb and flow of trading and business everyday and intuitively knows to buy low sell high for profit. However having them achieve that feat in an exchanged market is really very doubtful.
But Why where does the disconnect come in.. ?
Just as in pop songs the same structure has been 5 gaz-zillion times already to make professionals 100's of za-gillions of dollars.
Structure is the basic starting point of your song and in your trading. That sweet loop that keeps playing over in your head is only a piece of information, not the whole just a piece. Just like price is only a piece of information and NOT the entirety.
When the budding producer hears his snippet of fantastic-ness playing, it is in his head playing in its entirety as a song he or she may hear on the radio. The producers mind starts filling in the parts of the structure, this begins to happen regardless if the producer has the actual chops to do so.
The un-informed trader does the same. He takes the price as seen and begins to fill in gaps that as to how the market will move based on what he generally sees happening day in and day out. Never really quite KNOWING what is happening day in and day out.
Of course there are musical geniuses and trading genius who know this in such an intimate way their talents are un-matched. However the novice attempting to pull off these genius moves, even if the genius showed you all his tricks would most likely fail miserably, or fail for long periods of time because the genius understanding of the market may not NEED all the information available to make a wise decision.
For the rest of us who have ever struggled as a trader I am suggesting learning the structure of the market and then adapting what you ABSOLUTELY know about the market to the strategies, frameworks, and systems that you personally like to use and fit your personality.
Just like the professional musician that understands structure thoroughly. She can make you yearn for more and beg from expectation she can delay energy or release it by emphasizing different notes at different times. She knows that you can NOT surprise your listeners unless you first create the expectation by doing something they already know .
Almost sounds like the market is the master musician that really knows how to play a mean fiddle.
As we go on in this series I will be exploring more into the world of structure..
If you like to journey further with me into the 5th dimension of trading follow along right here....
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