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

Linda Raschke, a trader with over 35 years of experience, shares her insights on adapting to market changes, modeling techniques, and trading strategies. She emphasizes the importance of asking questions of the market and understanding relationships between different financial instruments. Raschke discusses her approach to day trading the S&P 500, capturing daily trends, and identifying less frequent chart formation setups. She also highlights the need to recognize changes in market behavior, such as increased noise and volatility, and adjust trading models accordingly. The conversation covers the role of volume in confirming trading biases and the challenges of mechanical systems versus discretionary trading. Raschke stresses the significance of trade management and the ability to increase leverage when conditions are favorable.