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049: Linda Raschke on trading edges, modelling the markets, identifying market behavior, trade management and day trading techniques.

Better System Trader

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The Importance of Having a Game Plan for Trading

You need to have a game plan for starters. If you're looking for an upward bias and you can evaluate it off of the 7 a.m. reading, you'll know very quickly whether you've got the right game plan or not. Most of the day trading models in the S&P's will either use a breakout function to enter or if you're doing mean reversion,. It usually waits till it comes back a little bit in the other direction. So that gives you your green light go that potentially there's a higher timeframe player or stronger money flows at work.

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