Linda Raschke 14 trading quotes to write down and remember!

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Linda Bradford Raschke was born in 1959, in USA, Pasadena. A truly inspirational lady, a professional trader who paved the way for all the female traders out there.

Started her trading career in 1981, with more than 40 years of experience, she is still an inspiration to all of us doing this job. She was featured in The New Market Wizards book by Jack Schwager which was issued in 1992. In 1995, she co-authored one of the best-selling books in trading, named “High probability Short Term trading strategies”, with Laurence Connors.

When she retired, she also wrote and published “Trading Sardines: Lessons in the market from a lifelong trader.”

Here are her best quotes, which I find truly inspirational:

  1. Perhaps my number one rule is: Don’t try to make a profit on a bad trade, just try to find the best place to get out.

One of the majority of the bad things newbies tend to do is sit and wait for a bad trade to reverse and go back in their favor. Remember guys, our job is not to be right but to make money. Once a position is not working in your favor, get out of it. New opportunities will come along.

  1. Writing down my trades is the best exercise in the world.

Journal your trades, I know lots of you might find this boring but this is one of the most important parts of becoming a successful trader. Trust me. Do it.

  1. Don’t let a small losing trade turn into a big losing trade.

The only worst thing about staying in a bad trade is adding to a losing position. As the first rule set by Linda is to get out of the bad trade, this one will need to become yours as well. Don’t add to a losing position, don’t stay in it as well. Cut your losses and move on.

  1. Let your winner run as long as it goes but exit on reversal signals.

Always closely monitor your opened positions, if you don’t like the last 4-hour candle which has formed, for example, go to a lower timeframe and check what the market is telling you.

  1. Formal education is not a requirement for trading success.

I’ve watched tons of interviews with traders with just a high school degree, even some high school dropouts to be honest which were doing extraordinary in trading. You don’t need some big college degree to succeed here.

You need to work hard and dedicate proper time to this. Eventually, you will succeed.  

  1. Experience can lead to success but not perfection.

You don’t need 15 years of trading experience to make perfect trade entries and exits, you just need to know your system in and out to be profitable. Someone needs just a couple of months, while others may take a couple of years to become profitable. It depends on you.

  1. Even a profitable system can’t be followed without emotional discipline.

Ah, this one. I always say to my students that the strategy you use in trading is maybe 5% of all it is required to become successful in this business. Emotional discipline followed by great money and risk management is the important stuff here.

  1. Do the work, focus on learning from experienced traders and the market.

Nowadays, you can go to YouTube, type in “How to become trader” and tons of materials will be shown to you. Hours and hours of videos for you to watch and learn from.

Mentors, in my opinion, are very, very important for your trading success. By paying someone to transfer his/her trading knowledge is the easiest and cheapest way to start this business.

I hear you saying- “Why should I buy someone’s course when there are tons of materials on YouTube for free?”

The simple answer is – to save time. Video watching may take you a couple of years to get to the point; the course can save you that time.

  1. Expect a swing trade to last 2-3 days but let it run 10 days or more when it is a big winner.

Never close a winning trade, instead, increase your Take Profit level and bring your Stop Loss closer.

  1. Price action creates patterns. Your job is to trade them correctly.

You have strict rules on how to trade Double Bottom, or Head and Shoulders. Don’t make your rules on this, it will hurt you. Bad.

  1. Losing small is a skill, so your profits need to be bigger than your losses.

How do you expect to win in this game if you are willing to lose $100 to make $50? That’s a no, no.

  1. You must have the right attitude to deal with losses and setbacks.

Losing is a part of this game. Accept it and move on. Don’t cry over a losing trade or streak. We all have it and experience it.

  1. If you ever find yourself tempted to seek out someone else’s opinion on a trade, that’s usually a sure sign that you should get out of your position.

I can’t explain how much I hate people asking on random forums or Facebook groups asking about if this and this trade is a good idea. These kinds of people are just ready to fail. Don’t be like them! Please!

  1. I try to wait until things are set up just right before I take a trade. Then, when I’m ready to take the trade, I slowly count to ten before I pick up the phone. It’s better to have the wrong idea and good timing than the right idea and bad timing.

FOMO will eventually kill your trading account balance. Don’t rush into trades, but don’t wait too long to enter them as well. Have faith in yourself and your system and go get it.

 

I really hope you can benefit from these quotes from a legend on the trading pits and in the trading world. I know I can. If you find them useful, share them with your friends, discuss them together. Put them on a sticky note and learn them in and out.

Enjoy your trading journey guys!

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