Street Smarts

“ Every trading strategy in this manual is absolutely 100 percent useless without proper money management. ” e.style.display='none');if(typeof getContentsSections==='function')setTimeout(getContentsSections,50)" /> A study of 925 CTAs proved it. Finance professor Fernando Diz analyzed commodity trading advisor programs from 1974 – 1995. Of 925 programs, 435 went out of business. The single best predictor of failure? How long a program spent recovering from its worst drawdown. Two money management variables alone explained 88% of the predictive power of a model using every edge and money manage

Lesson 1: Poor money management, not bad strategy, kills most traders

This principle from Street Smarts is backed by Linda Bradford Raschke's extensive research and real-world examples. Understanding it deeply can shift how you approach decisions, relationships, and long-term planning in meaningful ways.

Lesson 2: Place your stop-loss before you even think about profit

One of the most counterintuitive ideas in Street Smarts: knowing when to stop is as important as knowing when to push. Linda Bradford Raschke argues that the clearest path to failure is an inability to define what 'enough' looks like for you personally.

Lesson 3: Kill your directional bias — trade the pattern, not your opinion

This principle from Street Smarts is backed by Linda Bradford Raschke's extensive research and real-world examples. Understanding it deeply can shift how you approach decisions, relationships, and long-term planning in meaningful ways.

How to Apply Street Smarts's Lessons

The real value of Street Smarts lies in its applicability. After reading, the most important step is identifying which of Linda Bradford Raschke's principles speak most directly to your current situation.

Consider keeping a journal while reading — noting where the ideas challenge your current approach and where they confirm what you already suspected. The friction of your own resistance often points to the most important insights.

Key Quote

"Poor money management, not bad strategy, kills most traders" — Linda Bradford Raschke, Street Smarts

About the Author

Linda Bradford Raschke is the author of Street Smarts. The book reflects years of research, observation, and synthesis of evidence from multiple disciplines.