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?
If there was one thing that I learned from playing sports, it was that pregame routines are important. I used to wonder why we did the same thing over and over. Can’t we mix it up a little? Keep things interesting?
Well there was a reason for doing the same thing before every game. It got our minds focused on the game and was something familiar and calming. Upon doing a little research, I found some pretty funny pregame rituals. Click here to see some of the best ones.
The thing is that as traders, we need to have a pregame routine too. I was listening to a couple of legendary traders talk about the importance of a trading ritual, so I figured it must be important. Click here to see a recent post from fellow forex trader Ryan O’Keefe about his trading routine.
So I decided to adopt my own routine. First I put in my earphones and crank up my iPod. Then I do something similar to this:
I actually do play Low Rider by War before I start trading. It has a good beat to which I can visualize myself making good trades and my account balance going up. I always stop listening at the first break.
Let’s do a quick exercise. I promise it will only take a minute but it will have a pretty important message.
First take a look at your charts. Open them like you would any other trading day even if the markets are closed. Now look closely at the chart in front of you.
Do you see it? No, look carefully. If you don’t see it, then switch to another chart. And another, and another. Keep looking until you find it.
I’ll give you another minute…seriously, look CAREFULLY.
I just got through reading, err, listening to Dr. Wayne Dyer’s book Excuses Begone!
Even though this isn’t a trading book per se, I believe that it is important to explore different points of view when it comes to examining my own psychology.
I usually get the audio version of a book whenever possible because that allows me to do two things at once. For example, I listened to this entire audio book over the course of several sessions at the gym. I have finished other audio books while cleaning my car or sitting on the toilet. Audiobooks have to be one of the best inventions ever! But I digress.
If you have never read or listened to any of Dr. Dyer’s books before,
A delicious looking pizza pie just calling my name. I picked up a slice and I could see the heat waves radiating. Mushrooms, olives, pepperoni, garlic…it will go so well with my beer. Then I took my first bite.
Blah, what is this crap?
I put the slice down and I sat back for a minute. My first reaction was that of irritation. How could they sell something so bad?
This feeling then turned to fascination. How hard is it to make a decent pizza? Not that hard, I have made better pizza myself and I am no chef by any stretch of anyone’s imagination.
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