1. Trading Sardines Linda Raschke Pdf
2. Linda Bradford Raschke Trading Sardines Pdf
3. Trading Sardines Linda Raschke Pdf
4. Trading Sardines Linda Raschke Pdf Download

Amzimpact.com - Linda Bradford Raschke - Trading Sardines, Linda Raschke shares a lifetime of market lessons while highlighting the tension between luck, risk, and passion. Along the way, she shows that perseverance can overcome the most inconceivable challenges. Sep 20, 2013 Linda Bradford Raschke – 50 Time Tested Classic Stock Trading Rules. Plan your trades. Trade your plan. Keep records of your trading results. Keep a positive attitude, no matter how much you lose. Don’t take the market home. Continually set higher trading goals. Successful traders buy into bad news and sell into good news. Linda Bradford Raschke - Swing Trading: Rules and Philosophy. Swing Trading: Rules and Philosophy Linda Bradford Raschke. My style is based on the 'Taylor Trading Technique', a short-term method for trading daily price movements that relies entirely on odds and percentages. It is a method as opposed to a system.

Market Wizard Linda Raschke’s 12 Technical Trading Rules

1. Buy the first pullback after a new high. Sell the first rally after a new low.
2. Afternoon strength or weakness should have follow through the next day.
3. The best trading reversals occur in the morning, not the afternoon.
4. The larger the market gaps, the greater the odds of continuation and a trend.
5. The way the market trades around the previous day’s high or low is a good indicator of the market’s technical strength or weakness.
6. The previous day’s high and low are two very important “pivot” points, for this was the definitive point where buyers or sellers came in the day before. Look for the market to either test and reverse off these points, or push through and show signs of continuation.
7. The last hour often tells the truth about how strong a trend truly is. “Smart” money shows their hand in the last hour, continuing to mark positions in their favor. As long as a market is having consecutive strong closes, look for up-trend to continue. The up trend is most likely to end when there is a morning rally first, followed by a weak close.
8. High volume on the close implies continuity the next morning in the direction of the last half-hour. In a strongly trending market, look for resumption of the trend in the last hour.
9. The first hour’s range establishes the framework for the rest of the trading day.
10. A greater percentage of the day’s range occurs in the first hour then was the case in the past, and thus it has become increasingly important to trade aggressively if there are early signs of a strong trend for the day.
11. There are four basic principles of price behavior which have held up over time. Confidence that a type of price action is a true principle is what allows a trader to develop a systematic approach. The following four principles can be modeled and quantified and hold true for all time frames, all markets. The majority of patterns or systems that have a demonstrable edge are based on one of these four enduring principles of price behavior. Charles Dow was one of the first to touch on them in his writings.

Principle One:A Trend Has a Higher Probability of Continuation than Reversal

Principle Two: Momentum Precedes Price

Principle Three: Trends End in a Climax

Principle Four: The Market Alternates between Range Expansion and Range Contraction!

Trading Sardines Linda Raschke Pdf

12. In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of what will happen in the future. Mark that word – Nobody! Thus the successful trader does not base moves on what supposedly will happen but reacts instead to what does happen.

One of the big lessons Ben Graham taught in The Intelligent Investor was the difference between investing and speculating. He knew how easily the market distracts investors from their original purpose.

Most investors start off with the idea of compounding their money over a long period of time. But some of them are bound to get sidetracked.

Before they know it, some investors start feeding their impulses triggered by Mr. Market’s manic moods. Their emotions take over. Stocks become pieces of paper, rather than portions of a business, to trade in and out of. Price moves become the only factor behind their decisions.

Seth Klarman used a funny analogy in his book Margin of Safety to describe this mistake. He tells the story of special sardines.

There is an old story about the market craze in sardine trading when the sardines disappeared from their traditional waters in Monterey, California. The commodity traders bid them up and the price of a can of sardines soared. One day a buyer decided to treat himself to an expensive meal and actually opened a can and started eating. He immediately became ill and told the seller the sardines were no good. The seller said, “You don’t understand. These are not eating sardines, they are trading sardines.”

Like sardine traders, many financial market participants are attracted to speculation, never bothering to taste the sardines they are trading. Speculation offers the prospect of instant gratification; why get rich slowly if you can get rich quickly? Moreover, speculation involves going along with the crowd, not against it. There is comfort in consensus; those in the majority gain confidence from their very number.

Today many financial-market participants, knowingly or unknowingly, have become speculators. They may not even realize that they are playing a “greater-fool game,” buying overvalued securities and expecting — hoping — to find someone, a greater fool, to buy from them at a still higher price.

Linda Bradford Raschke Trading Sardines Pdf

There is great allure to treating stocks as pieces of paper that you trade. Viewing stocks this way requires neither rigorous analysis nor knowledge of the underlying businesses. Moreover, trading in and of itself can be exciting and, as long as the market is rising, lucrative. But essentially it is speculating, not investing. You may find a buyer at a higher price — a greater fool — or you may not, in which case you yourself are the greater fool.

Trading Sardines Linda Raschke Pdf

It’s a fitting reminder of the risk that comes with ignoring value, succumbing to instant gratification, and attempting to pull off decades of compounding in a matter of months. Trying to get rich quickly in the stock market is more likely to leave you poorer…and with a horrible taste in your mouth.

Source:
Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor

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Trading Sardines Linda Raschke Pdf Download

• The Price of Risk! – Musings on Markets
• Investing in a Bubble – Verdad
• Why Bubbles Are Good For Innovation – A Wealth of Common Sense
• Pitfalls of the Inflation Narrative – Klement on Investing
• How to Be Lucky – Psyche
• Why You Should Practice Failure – Farnam Street
• “Hard Times Tokens” Were Not One Cent – Daily JSTOR
• The Secret Letters of History’s First-Known Businesswomen – BBC