STREET DOGS

Linda Bradford-Raschke is a world renowned trader. Her trading rules are: The key to success is in knowing yourself. Have a plan, follow the plan. Keep records. Don’t be afraid to buy high and sell low. Buy into bad news, sell into good news. Isolate yourself from the opinions of others. Use stops! Never cancel a stop. Avoid getting in and out too often. The difference between winners and losers isn’t so much native ability as discipline exercised in avoiding mistakes. The hardest thing is not prediction, but self-control. Expect and accept losses gracefully.

Losses teach more than profits do. Don’t allow a winning trade to turn into a loser. Forget losses quickly and profits even quicker! Split your profits down the middle and never risk more than half again in the market. Don’t talk about your successes. Never volunteer advice. Dream big dreams (few people set goals too high).

People become what they think about all day long. Don’t let ego get in the way of hard work. Trading is frustrating; don’t get in just because you’re tired of waiting. It’s easier to put on a trade than to take it off. Standing aside is a position. Never add to a losing position. Beware of large positions that take over your emotions. Beware of trying to pick tops or bottoms. It is better to react than trying to anticipate.

Lose your opinion — not your money. Nobody knows what will happen next. Nobody! There is no greater mistake than selling what shows a profit and keeping what shows a loss. If the market doesn’t do what you think it should, get out. The market’s reaction to news is more important than the news itself. Remember that a bear market will give back in one month what a bull market has taken three months to build. When the ship starts to sink, don’t pray, jump! Don’t take the market home.