Why is it important to be able to See the Music of the Market?

Short term trading is all about finding an oscillation in price that might provide a profitable trading opportunity.

If a trader learns to See the Music of the Market they are more likely to be able to spot potentially profitable price oscillations.

It is really very simple – a matter of numbers – we have gone over it often, but it is important enough to say it again – and say it often: A trade must offer a reward to risk of at least two to one in order to make it a viable trade – taking trades worth less potential profit or more risk simply turns the math of trading against the trader.

Even with the ability to See the Music of the Market, a trader will make trades that are not profitable – and yes, they will encounter trades that produce losses.

Successful trading is about probabilities and numbers. The trader that produces a winning percentage of trades that is at least 50% – or more – and maintains a reward to risk ratio of two to one will make a profit. As winning percentage goes up, so does profit. The same goes for reward to risk ratio – the higher it goes above two to one the greater the profit.

In many years of trading, I have never found a better way to increase winning percentage and/or reward to risk ratio than learning to See the Music of the Market.

Selecting the time frame to use for constructing trades is also made easier when you can See the Music of the Market. I simply select the time frames in which the music can be seen the most clearly. It is really easy when you learn to think of price oscillations as music – having a rhythm that repeats from time to time.

All markets are not tradable at all times – learn to See the Music of the Market, and it will help you to know when to trade – and equally important it will help you to know when not to trade.

I think it is so important that I wrote a whole book about it.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments Protected by WP-SpamShield Spam Blocker

See the Music of the Market

The unique trading method that is Trading Between the Lines