Linda Raschke: A Pioneer in Trading and Investment
Linda Raschke is a prominent figure in the world of trading and investment. She is a highly respected trader, author, and speaker who has made significant contributions to the field of finance. In this article, we will explore her personal and professional life, her career, and her famous book “Street Smarts: High Probability Short-Term Trading Strategies.”
Personal Life
Linda Raschke was born on June 18, 1959, in the United States. She was raised in a family of traders, and her father was a member of the Chicago Board of Trade. Her passion for trading began at an early age when she started following her father’s footsteps. Linda Raschke graduated from the University of North Carolina at Chapel Hill with a degree in political science and economics.
Professional Life and Career
After graduation, Linda Raschke started working in the trading industry, where she quickly established herself as a successful trader. She worked for several trading firms, including Paine Webber, Inc. and Solomon Brothers, where she managed large trading accounts.
In 1981, Linda Raschke co-founded a trading firm called LBR Group, which focused on short-term trading strategies. Under her leadership, the firm grew rapidly and became a well-respected name in the industry. Linda Raschke continued to trade for LBR Group until 1995, when she decided to take a break from trading and focus on other areas of her life.
In addition to her trading career, Linda Raschke is also a renowned author and speaker. She has written several books on trading and investment, including “Street Smarts: High Probability Short-Term Trading Strategies,” which has become a must-read book for traders around the world. She has also been invited to speak at several conferences and events, where she shares her knowledge and experience with other traders.
Street Smarts: High Probability Short-Term Trading Strategies Book Summary
“Street Smarts: High Probability Short-Term Trading Strategies” is a book co-written by Linda Raschke and Laurence A. Connors. The book is a comprehensive guide to short-term trading strategies that have proven to be successful for both beginner and experienced traders. In this book summary, we will provide a detailed overview of the book’s contents and key takeaways.
Part 1: The Principles of Short-Term Trading
Chapter 1: The Importance of Trading Planning
The book emphasizes the importance of having a trading plan before entering the market. It includes defining the trader’s goals, risk tolerance, and the trading strategy that fits their personality.
Chapter 2: Markets and Market Direction
The authors provide an overview of market trends and explain how to identify market reversals. They introduce several indicators that traders can use to identify market direction.
Chapter 3: Charting
This chapter covers the basics of technical analysis, including chart patterns and indicators. The authors provide several practical examples of how to use technical analysis to make trading decisions.
Chapter 4: The Mental Game
The book explains how traders’ psychological state can affect their trading decisions. It includes several tips on how to control emotions and develop the right mindset for trading.
Part 2: Trading Strategies
Chapter 5: Opening Range Breakouts
This chapter introduces the opening range breakout (ORB) strategy, which is based on identifying the high and low of the opening range and entering a trade when the price breaks out of the range. The authors explain the entry and exit rules for this strategy.
Chapter 6: High and Tight Flags
The high and tight flag (HTF) strategy is a trend-following strategy that involves identifying a sharp price move followed by a consolidation period. The authors explain how to identify HTF patterns and how to use them for trading.
Chapter 7: The Power of Moving Averages
Moving averages are widely used in technical analysis to identify trends. This chapter provides an overview of different types of moving averages and how to use them for trading.
Chapter 8: Time Segmented Volume
Time-segmented volume (TSV) is an indicator that measures the amount of volume traded during a specific time period. This chapter explains how to use TSV for trading.
Chapter 9: Outside Days
Outside days occur when the current day’s high is higher than the previous day’s high, and the current day’s low is lower than the previous day’s low. This chapter explains how to use outside days for trading.
Chapter 10: The RSI(2) Strategy
The relative strength index (RSI) is a momentum indicator that measures the speed and change of price movements. This chapter explains the RSI(2) strategy, which is based on buying when the RSI is below 10 and selling when the RSI is above 90.
Part 3: Trading Plan
Chapter 11: The Trading Plan
This chapter provides a framework for creating a trading plan that fits the trader’s personality and trading style. The authors provide a list of questions that traders should answer when creating their trading plan.
Key Takeaways from the Book
- Have a Trading Plan: Traders should have a clear trading plan that includes their goals, risk tolerance, and trading strategy.
- Use Technical Analysis: Technical analysis is a crucial tool for short-term traders. Traders should use chart patterns, indicators, and moving averages to identify market trends and make trading decisions.
- Trade with the Trend: Traders should trade with the trend and identify market reversals.
- Manage Risk: Risk management is essential in short-term trading. Traders should use stop-loss orders and position sizing to minimize losses.
- Have an Edge: Traders should have an edge in their trading strategy that gives them a higher probability of success. This can come from using a specific indicator or strategy that has proven to be successful over time.
- Control Emotions: The mental game is crucial in trading. Traders should develop the right mindset and control their emotions to avoid making impulsive and irrational decisions.
- Use Short-Term Trading Strategies: Short-term trading strategies can provide opportunities for traders to profit from quick price movements in the market.
Overall, “Street Smarts: High Probability Short-Term Trading Strategies” provides a comprehensive guide for short-term traders. The book covers the principles of short-term trading, trading strategies, and creating a trading plan. It provides practical examples and insights that can help traders improve their skills and increase their chances of success in the market. The book is a must-read for anyone interested in short-term trading or looking to improve their trading skills.
Conclusion
Linda Raschke is a pioneer in trading and investment who has made significant contributions to the field. Her successful career as a trader, author, and speaker has inspired many traders around the world. Her book, “Street Smarts: High Probability Short-Term Trading Strategies,” is a must-read for anyone interested in short-term trading.
Through her book and her work, Linda Raschke emphasizes the importance of having a trading plan, using technical analysis, trading with the trend, managing risk, and having an edge in trading. These principles are essential for anyone looking to succeed in the world of trading.
In conclusion, Linda Raschke is a trailblazer in the field of trading and investment. Her personal and professional life, as well as her contributions to the field, have made her an inspiration to many traders around the world. Her book, “Street Smarts: High Probability Short-Term Trading Strategies,” provides practical insights and advice for traders looking to improve their skills and increase their chances of success.