Street Smarts: High Probability Short-Term Trading Strategies (Hardcover)

~ Linda Bradford Raschke (Author), Laurence A. Connors (Author) "In a day when global money managers am given increasing attention and funds seem to dominate the market arena, it might be difficult to imagine..." (more)
Key Phrases: day historical volatility reading, four trading sessions, stop one tick, Turtle Soup, Three Little Indians, Market Musings (more...)

Editorial Reviews

Review

* * * * (out of 4 stars) ... excellent!, Commodity Traders Consumer Report, March 1996 -- Commodity Traders Consumer Report, March 1996

Product Description

Published in 1996 and written by Larry Connors and "New Market Wizard" Linda Raschke. This 245 page manual is considered by many to be one of the best books written on trading futures. Twenty-five years of combined trading experience is divulged as you will learn 20 of their best strategies.

Among the methods you will be taught are:

* Swing Trading - The backbone of Linda's success. Not only will you learn exactly how to swing trade, you will also learn specific advanced techniques never before made public!
* News - Among the strategies revealed is an intra-day news strategy they use to exploit the herd when the 8:30am economic reports are released. This strategy will be especially appreciated by bond traders and currency traders.
* Pattern Recognition - You will learn some of the best short-term set-up patterns available. Larry and Linda will also teach you how they combine these patterns with other strategies to identify explosive moves.
* ADX - In our opinion, ADX is one of the most powerful and misunderstood indicators available to traders. Now, for the first time, they reveal a handful of short-term trading strategies they use in conjunction with this terrific indicator.
* Volatility - You will learn how to identify markets that are about to explode and how to trade these exciting situations.
* Also, included are chapters on trading volatility, trading Crabel, trading the smart money index, trading gap reversals, a special chapter on professional money management, and many other trading strategies!

Product Details

• Hardcover: 238 pages
• Publisher: M. Gordon Publishing Group; 1 edition (January 1, 1996)
• Language: English
• ISBN-10: 0965046109
• ISBN-13: 978-0965046107
• Product Dimensions: 11.3 x 8.6 x 0.8 inches
• Shipping Weight: 1.8 pounds (View shipping rates and policies)
• Average Customer Review: 3.3 out of 5 stars  See all reviews (46 customer reviews)
• Amazon.com Sales Rank: #144,970 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

65 of 67 people found the following review helpful:

3.0 out of 5 stars A good source of ideas that need filtering, August 8, 1999

By A Customer

Street Smarts is one of the better trading books out there. However, as another reviewer rightly bemoans, the explanations are too short. The main problem with a lot of these patterns is that most require a heavy amount of filtering. The Turtle Soup strategy will kill you in a trending market, it needs filtering even in non-trending markets. It seems to have some promise in a high ADX environment only when used as a continuation signal and not a reversal. I tried it on the 5 minute S&P's. Trust me, I had to do a lot to make this pattern work. So much that I discarded the idea of using it. Also beware, some time frames are very bad for the anti technique. I know this is not how it is supposed to work, but from what I have seen there are certain intraday timeframes in the S&P which are just horrible for technical indicators. Play around, you'll see. The range contraction patterns have promise, however the authors neglect to tell you that most should be traded in the direction of the trend. I like the statistical studies in the back of the book. LBR is not a mechanical trader, she has mechanical patterns but she decides when to implement them. Do not trade these patterns mechanically unless you want to get ripped to shreds. Hence I refer back to what I have said from the start, the patterns in this book need much filtering!

97 of 103 people found the following review helpful:

5.0 out of 5 stars Loved the book. Recommend it for serious traders, February 25, 2000

By	T. Villarubia (California USA) - See all my reviews (REAL NAME)

First of all let me state that you must already have a certain concept of trading and trading terminology to benefit from this book. You must also understand and believe the importance of chart reading as a trader to fully understand what the authors are saying. I believe some of the negativity written about this books is because the readers didnt understand trading concepts as applied to chart reading or disregard chart reading altogether as a valid tool to trading.

With this said, I have to say that the book was beneficial for me as a short term trader. It helped me find patterns that I would've otherwise overlooked before reading this book. Let me also add that the turtle soup and turtle soup plus one does not really apply 100%, per say, to the fast momentum stocks I screen for. However, reading those strategies helped fine tune my entry and exit strategies when I enter a trade. It did so by helping me look for intraday swings and the probabilities of possible price action for next day trading based on what happened to the price at the close. If anything, the book helped me alot because it opened my mind to other trading possibilities and thus form ideas for myself.

Like another reader said, the authors are not mechanical traders. Thus these patterns and strategies should not be taken mechanically. Instead one should trade cautiously using discretionary stops. The book will only teach you about patterns in the market that have a high probable outcome. It's up to the individual to trade the patterns and use protective stops in the case the anticipated move goes wrong.

70 of 74 people found the following review helpful:

5.0 out of 5 stars Excellent book on swing trading, July 19, 2002

By	Beau F. Penaranda (Las Vegas, NV USA) - See all my reviews (REAL NAME)

I read the book and basically confirmed some of the patterns that I've been trading for years. Everyone has it's own name for the setups, but regardless of the name, the patterns describe in the book, do work!

Everyone has their own twist to these patterns. I notice one reviewer had mentioned that he profited on the exact opposite strategy that the book had described. Selling new lows and buying new highs. Personally I think this is more dangerous than the strategy in the book(Buying new lows and Selling new highs). That is what swing trading is about. I do the same exact strategy as they mention in the book, and make money from it frequently. But I am also aware of the fact, that new lows/highs are set for strong fundamental reasons, so instead of using regular stops, I use Stop and Reversal(SAR)type orders. These order give me the best of both worlds. If my estimate is correct, I get an early fill as the market decelerates in one direction and accelerates in the opposite. If the trend continues, my SAR order gets me out, and fills me in the direction of the momentum. Price, Momentum, Time and Volatiliy and how you react to them, is the key to swing trading.

It's not set in stone that these patterns work everytime, but as the title mentions, it's the probabilities of the markets reaction when these patterns form. Like any other method in trading, nothing works everytime, but as years go by, you find out what works best for your trading style and what doesn't. This book didn't teach me anything that I already have found out through experience, but for traders interested in swing trading, it's a fantastic starter book and worth the investment if purchased. It excerises the mind's of traders on how to anticipate the market, thereby always thinking one step ahead of it. And when your anticipation is wrong, get out!

One other important factor. Rashke was a former successful floor trader and Connors was a hedge fund manager. These people know how to trade professionally. They know how other floor traders trade on the floor, and how institutional giants such as ADM,Refco and Rosenthal Collins play their cards and make money. In other words, their livelyhood depended on their attention to detail in the area of trading. They aren't like most us that trade, that have a job to fall back on. This is their job and main source of income! My point is, don't just learn their techniques,setups and strategies, but more importantly, learn their mindset, and what they do when the market moves in favor or against them. Determine how they react to such conditions and take notes! Through time and experience, you'll soon notice that you will be able to react with percision and timing as these professionals do, without doubt but with full confidence!