Linda Bradford Raschke's Strategy Secrets
Continuing our series of articles about female traders, we can't help but mention Linda Raschke, who managed to amass a fortune of over $60 million in the stock market.
She began her career with a deposit of $25,000 under management and, thanks to a hedging strategy, managed to double her funds in three months.
Technical analysis is the foundation of her trading, using which Linda not only finds favorable market entry points but also closes positions promptly.
She prefers trades with a maximum duration of 10 days, as this is the time to capitalize on the existing trend without further temptation. Her
primary assets include S&P 500 and NASDAQ futures, currency pairs, gas and oil, metals, bonds, and even grain and meat contracts.
Trading rules:
• You can always predict where the price will go, but not how long it will move in that direction.
• You shouldn't plan an exit point; you should do it as soon as the market situation tells you about a change in trend. Don't plan the size of the profit; take what you can take.
• It is better to trade with a bad strategy at a good time than to use a better strategy at a bad time.
• Any person makes mistakes, the main thing is to make them infrequently and to understand their causes.
• Once you open a position, you should not control it, but control the market in which it is open, in this case it will tell you when to act.
• Setting a stop loss should become a strong habit for every trader.
The main principle that Linda Raschke follows in her trading is to sell 2-4 days after the start of an upward trend; it is at this point that the crowd begins to make massive purchases, 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 profits with due caution.
Using this pattern, you can try to make a profit, but to trade like Linda, you'll still need to study technical analysis .
This will allow you to recognize signals indicating a market reversal and decide whether to close your position.
