: Prioritizing capital preservation through tight, non-negotiable stop-losses. Core Trading Strategies in "Street Smarts"
Memorize the three primary setups: Holy Grail, Opening Range Breakout, and MKT Reversal. Understand the exact stop loss placement for each. Raschke’s stops are notoriously tight—usually just beyond the pattern’s high or low. street smarts linda raschke pdf
Why Street Smarts matters
: Linda Raschke famously notes that a strategy is only as good as its execution. Hesitation kills profitability. : Give momentum trades roughly two bars (on
: Give momentum trades roughly two bars (on your chosen time frame) to develop before tightening stops to break-even. 📑 Legacy of the Book driving a sharp
Traders fade the breakout, betting that trapped breakout buyers (or short-sellers) will be forced to liquidate, driving a sharp, rapid reversal in the opposite direction. 3. The 80-20 Rule
The is perhaps Raschke’s most famous setup. It is a pullback strategy designed to enter strongly trending markets with minimal risk.