Linda began her professional trading career in 1981 as a market maker in options. She became a registered Commodity Trading Advisor in 1992. She worked as a principal trader for several funds. In 2002 she started her own hedge fund, which was ranked 17th out of 4500 for best 5-year performance by BarclaysHedge.
Jack Schwager recognised her great talent in his famous Market Wizards series. Since 2015 Linda continues to trade daily for her own account. In the world of professional trading and money management, Linda stands out from the crowd for three factors: performance, longevity and consistency.
Most frequently when talking about trading, we focus on its positive aspects. Linda takes a different perspective in this interview sharing with us market lessons while highlighting the tension between luck, risk, and passion.
To me, it’s an extraordinary interview with an extraordinary person summarising her great book titled “Trading Sardines“. It is indeed a 21st-century version of “Reminiscences of a Stock Operator“! Linda although being so successful as a professional trader, openly admits how repeatedly got her ass kicked by the markets.
It sounds so attractive when we can mention how you feel making one million in one single day. Linda, however, puts an accent on being on the wrong side of outliers so many times that it is well beyond the random. Rare events are happening more often than we think, especially if you are on the markets so long as Linda.
NOTE I had the honour to have Linda already on my podcast in the first episode, and I highly recommend it everyone who has not yet listened to it.
In this episode
- Linda’s latest book “Trading Sardines” as a 21st-century version of “Reminiscences of a Stock Operator“
- Why it’s never the news itself but always the market’s reaction to the news that is most telling?
- Why rare events/black swans are happening more often than we think?
- Why there’s such a difference between theory/academic world and reality?
- What is Linda’s average yearly rate of return for her career?
- Many stories from the past when Linda was going through extreme events while trading
Some useful links
- Linda’s website with lots of great free stuff
- Recommended literature
- Trading Sardines, Lessons in the Markets from a Lifelong Trader, Daughters Press, Linda Bradford Raschke, 2018
- Street Smarts: High Probability Short-Term Trading Strategies, M. Gordon Publishing Group, Linda Bradford Raschke & Larry Connors, 1996
- Charting the Stock Market: The Wyckoff Method, Technical Analysis, Jack K. Hutson, 1991
- Stock Market Technique No. 1 & No. 2, Fraser Publishing Co., Richard D. Wyckoff, 1984
- Studies in Tape Reading, Martino Fine Books, Richard D. Wyckoff (Pen Name: Rollo Tape), 2011
- Technical Analysis and Stock Market Profits, FT Press; 1st edition, Richard Schabacker, 1997
- The Taylor Trading Technique, Seven Star Publishing; Reprint edition, George Douglas Taylor, 2016
- Wall Street Ventures & Adventures Thru 40 Years2 edition, Richard D. Wyckoff, 1985
- The Secrets of Turf Handicapping, Landau Book Co., Robert Bacon, 1965
- People mentioned in this episode
How to become a successful trader? 😉
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