After spending six years in the trading room (first on the Pacific stock exchange and then the Philadelphia stock exchange , Linda Bradford Raschke decided to make a sharp turn and in 1987 moved to the OTC trade. A few years SanomaWSOY trading for their own account and it in early 1993 took over the management of funds. Now Raschke together with his partner, Rick manages assets totaling $ 25 million.
Raschke considers himself a purely technical trader. She's not even a news channel. At the same time, she believes that "the duties of the trader is to know relevant information. This can be a basic situation like shortages or seasonal tendencies or anything else like that. But what makes me pull the trigger and position, is a purely technical consideration".
Although Raschke is trading for almost 15 years, she is still at the conclusion of transactions focused on the same technical patterns. "I believe that the markets remain the same as they were last hundred years. They are the same in the sense that in the direction of the trend is impulsive oscillation, and then observed waste... there will Always be patterns of UPS and consolidation
she says. My method of decision making and the patterns haven't changed." Raschke is studying about 20 different markets, but limits your trading with five or six at one time: "If you have five or six possibilities, often seen negligence. Raschke looking for opportunities in trending markets, and in those, where prices move horizontally (sideways). "In trending markets searched terms when uptrendbar transaction moves from low to high. The best time to purchase occurs if not at the opening, during the first hour,"
Compromise that has to go to achieve the highest profitability in a situation of market trend, is that "the risk points will move on, but the momentum works in your favor, and more chances for success. In markets with horizontal movement have to be more careful to look out for false breakouts (fake-outs) and the probability of a double loss in the sale and purchase (whipsaws)". Raschke adds that in markets with horizontal movement you can use tighter stops.
Nonetheless, Raschke believes "you can always make deals in any market
- you only need to have a clear approach". She conducts trading in several different vremena framework and in determining the duration of the transaction focuses on a specific timetable. "If the pattern is visible on daily charts, it can last anywhere from two to six days,
- she leads by example. - But with longer time frames, such as weekly or monthly charts, there is greater risk and greater reward." Though some traders focus on the specific correlation between risk and reward before committing a transaction (usually the ratio is one to three), Raschke doesn't like to limit yourself to just triple the figure for remuneration: "I don't believe the ratio of risk to reward of one to three, because you never know what you will present to the market. I'm starting a deal, and suddenly the market starts to gain momentum. Then I'll be on the market until recently. I'm not going to get out of the deal just because has reached its threshold. At the exit of unprofitable trades Raschke says: "the trader responsible for the transaction. If I'm wrong, I know it. The market itself will tell you about it".
Recommendation for beginners Raschke observes: "If someone starts to engage in trading, it is best to do in a short vremeni the framework to better control your risk." Even on your trading Raschke says: "If I pass this period unfavourable to them, then draw your time frame and build up capital. As an OTC trader, "don't worry about the place of transaction. Still for entrance and exit positions have to pay." Now that she manages a large capital and leads a large volume of transactions, it is the problem of discrepancy between expected and actual operating costs (slippage). "Liquidity can be a problem. Exit bad trades
this is where you can pojaleete," she says. For short-term deals from "coffee I will not put a full position, because if I make a mistake, cost me four points to get out of it".
Question about how she evaluates their professional development, Raschke says: "If to highlight the point, now I'm less inclined to take risks than before, and that's because my trading has become larger in volume. When you're young, you're not yet thirty, your account will be much more volatility. Now I carefully take care of myself. In the process of formation as a trader learn more care of himself. Many of the mistakes made in the markets, caused by reactions and emotions. When you lose in this game, you have to punish yourself."
"Difficult moment for many is the fact that there are so many choices - time frames, different markets, to deal with the trend or contratrend,
it is impossible to reach. You need to sit down and say to yourself: I will only deal with one type of trading. Too many people initially try to cover everything."
According to Raschke, success in trading requires a lot of focus: "You may be overwhelmed by the amount of information. My office is not even a news channel. In the outside world so much noise, you have to learn to filter the noise. One of the main components of success in trading, Raschke believes commitment: "You have to spend time on the necessary homework or preparation. Do not let you are forced out of the game".
In the end, she said, "you must be a very distant prospect. In the trading room many months spent on a boring hard work, and then you will have a few good months. You just have to have patience and trust that all your seeds will sprout".
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