Secrets of Linda Bradford Raschke's strategy
Continuing the series of articles about female traders, one cannot fail to mention Linda Raschke, who managed to earn a fortune of more than $60 million on the stock exchange.
She started her career with a deposit of 25,000 received under management and, thanks to a hedging strategy, was able to double the funds received in three months.
The basis of her trading was technical analysis, using it Linda not only finds successful entry points into the market, but also closes positions on time.
The trader prefers transactions with a maximum duration of no more than 10 days, since it is during this time that you can get everything from the existing trend and there is no need to tempt fate further.
And the main assets that are used are S&P 500 and NASDAQ futures, currency pairs, gas and oil, metals, bonds and even contracts for grain and meat.
Trading Rules:
• You can always predict where the price will go, but not how long it will take to move in this direction.
• You should not plan an exit point; you should do this as soon as the market situation informs you of a change in trend. Don't plan on profit margins, take what you can take.
• It is better to trade with a bad strategy at a good time than to trade with a better strategy at a bad time.
• Any person makes mistakes, the main thing is not to make them often and to understand their reasons.
• Once you open a position, you should not control it, control the market in which it is opened, in this case it will tell you when you need to act.
• Setting a stop loss should become a habit for every trader.
The main pattern that Linda Raschke follows in her trading is the direction to sell 2-4 days after the start of an uptrend, it is at this moment that the crowd begins to massively make purchase transactions, and a correction occurs in the market.
This is, so to speak, trading against the trend, it is quite risky, but at the same time it allows you to guarantee money with due caution.
Using a similar pattern, you can already try to make a profit, but still, in order to trade like Linda, you will need to study technical analysis .
Which will allow you to see signals in time indicating a market reversal and make a decision to close the position.