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Speaking of Linda Rashke, Ron Augustine observed:
>If she still has the transcript from Feb 1, 1999 posted on her WebSite, you
>will see her enter a Short S&P trade and get stopped out right at the top
of
>the Market. This pivot was the beginning of a significant intermediate
down
>move. She completely blew the trade and missed the move. By the end of
the
>day, the trade would have been worth several points and quite a few more
>points over the next few days.
>
>She appeared to be completely oblivious to the fact that she never saw it
>coming, missed the entire move, and never even got back on board.
I watched her trading sessions quite a bit when she had just begun them --
when
the price was clearly no more than they were worth, free -- and I had pretty
much the
same reaction. In her end-of-day summary, she'd often comment that there
hadn't
been much to do, no clear trading opportunities. Then I'd look at the
intraday chart
and find that the S&P had opened at one extreme of its range and closed at
the
other, without hesitating all day. I suppose that in a sense she was right;
if your
trading style requires some sort of correction for you to get in, those
one-way days
probably aren't going to please you. On the other hand, they are exactly
the kind
of day that you can't, IMHO, afford to miss.
To her credit, when she did manage to make a trade, she did seem to win more
often than she lost, and she had no trouble at all closing out a losing
trade. Her
philosophy seems to be, if it doesn't give you a profit almost immediately,
BAIL OUT!
Which makes sense to me.
In short, it's probably worth checking in with her once or twice on the
first trading
day of the month, just to see what's going on. But I learned more from
"Street Smarts,"
even if none of the set-ups is the Holy Grail (not even the one called the
Holy Grail),
than from looking over her shoulder.
Owen Davies
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