Linda Raschke's Trading Advice
1) A few trading skills and a little common sense will get you more mileage than all the books and technical analysis combined.
2) All you need is one pattern to make a living.
3) Placing initial stops should be a habit that is never broken.
4) The main goal of each trade is to minimize risk rather than to maximize profit.
5) Positions are managed according to the market's behavior after the trade is made. The outcome cannot be predicted.
6) Focus on risk instead of the outcome.
7) Strongest Pattern in swing trading is trading on tests of previous highs or lows.
8) Previous Highs or Lows form a double stop point.
9) Support can only be established after a TEST.
10) Retracements are a second favorable pattern of swing trading.
Retracement Patterns allow you to buy a higher low and enter in direction of trend.
11) Retracement Patterns require no testing of the low since it is in direction of trend.
12) Stay in one time frame - When in Doubt, Get Out - Don't Trade Dull Markets - Take Windfall Profits. Windfall Profits means much bigger than anticipated.
13) Take profits on half or all.
14) Trail stops tightly.
15) Most monthly profits come from one or two trades.
16) Keep losses small.
17) Initial Stops are NOT subjective.
18) Every Trading Strategy is absolutely 100% useless without proper money management.
19) Win or lose is not because of entry methods, but because of money management skills.