Linda Raschke has been a professional trader for over 20 years and can definitely tell us a thing or two about how to get out of a trading slump. Her primary claim to fame was being featured in Jack Schwager’s book The New Market Wizards. In 1995, she co-authored the best selling book “Street Smarts – High Probability Short Term Trading Strategies.”
In Slump Busting Techniques, Linda presents this material for the first time to a live audience. Here is the full description of the audio recording from INO:
There are two types of traders – those who have had a slump and those who will! The majority of successful traders have gone through long, flat periods at some point in their careers. Linda Raschke presents some tools and techniques to not only pull you out of slumps, but also break through overhead ceilings. Trading is a performance-oriented discipline. The psychological aspects to trading can be 90% of the game. Linda shows you the three important weapons a trader can use to fight against the majority of trading hang-ups. These weapons will also improve your execution skills, your concentration and your consistency. Lastly, she shows three of the most powerful technical patterns to trade off. These setups will dominate any other technical pattern out there! Get psyched up to go for new account highs.
Recently, I have been much more interested in the psychological aspects of trading and how to improve my mental toughness and increase my profitability.
What does Linda think is important in becoming successful in trading?
- Perseverance
- A sense of challenge
- Resiliency
- Semi-automatic execution
- Relaxation
These are the elements that she feels not only keeps us in the game, but also helps us keep a balance in life. I would have to agree. My recent experiences with a stressful trading system has given me new appreciation for the beauty of a trading system where you just set your orders and let the market do its thing.
So how do you break a slump? Linda believes that you first need to:
- Rule out a lack of knowledge
- Rule out a flaw in your system
- Rule out any major life issues
- Rule out the burn factor
If you are currently going through any of these things in your life or in your trading, you need to stop trading and take care of those issues first because it is almost impossible to trade if you are up against these problems.
Once you can rule out these factors, then you need to do the following to get back on track:
- Take full responsibility for your success in trading
- Be in the present and take the process one step at a time
- Exercise and take care of yourself
- Do your homework and set up a trading routine
Another thing that Linda mentions is that the best stock trader she knows went back and forth in his account for the first 3 years. He would lose some, make it back, lose some, make it back.
She believes that this is just part of the process and losing makes us reflect on how we can do it better. I can really relate to this because I am currently in a reflection phase in my own trading.
Linda also gives a few great suggestions on good trading books to read. A couple of them were not trading related at all, but had correlations to trading psychology. I bought the books and I will give a book review after I have finished them.
In conclusion, there was too much information in the recording to write about it all here. There are some excellent insights about keeping your head in the game and I would highly suggest it.
Although most of the audio and video recordings on INO Premium are older, the good ones are timeless. Some of them are bad, but the majority are good and I usually find myself learning something.
I think it is a great deal at $99.95 for the year. There are hours of trading recordings from some of the country’s best traders. It gives you a whole library at your disposal, which is much cheaper than going out and buying all these recordings. Click here for more information.
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