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Linda Raschke's Trading Insights and Strategies
Apr 6, 2025
Words of Wisdom Podcast: Linda Raschke on Trading
Introduction
Linda Raschke, a 40-year trading veteran, joins the podcast.
Known as one of the best female traders globally and author of "Trading Sardines."
Emphasizes that trading success is not gender-specific, it's bottom-line business.
Key Traits for Trading Success
Single-minded Focus
: Emphasizes the importance of concentration and eliminating distractions.
Overcoming Adversity
: Early life challenges can build character and stress resilience.
Self-confidence
: Essential for trusting one's own trading decisions.
Importance of Process in Trading
Develop consistent routines and rituals for trading.
Essential to focus on the process rather than the monetary outcomes.
Process includes game planning, trade logging, and setting up personal support systems.
Trading Strategies and Concepts
Linda coined the term "Turtle Soup" in response to the Turtle Strategy's trend following.
Emphasizes the power of technical analysis over relying on news or order flow.
Encourages traders to study patterns and examples to increase understanding.
Adapting to Market Changes
Successful traders need to adapt to changing market conditions.
Human traders have an edge over AI in processing relationships and making intuitive decisions based on experience.
Pattern recognition and adaptability are key for long-term success.
Trading Psychology and Intuition
Intuition is built from compounding experience over time.
Important to act with confidence when recognizing patterns observed repeatedly.
Developing intuition involves observing market behavior and learning from past trades.
Managing Size and Risk
Raschke initially traded more aggressively in her younger years.
Implements an even bet size approach for managing funds.
Importance of risk management: time in the market, use of capital, and mental capital.
Learning and Education in Trading
Experience and doing your own work are crucial for learning.
Walk-forward learning is more effective than solely relying on educational content.
Simplify and focus on a few trading concepts rather than overloading with information.
Final Thoughts
Trading is about loving the game and staying dedicated to continuous improvement.
Successful trading requires focus, adaptability, and a strong understanding of the process and risk management.
Links
Check out Linda Raschke's book "Trading Sardines" for more insights into her trading philosophy.
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Full transcript