Raghee Horner is a private trader and the author of the bestselling “Forex Trading for Maximum Profit”.  Based in Coral Springs, Florida, Raghee is an experienced trader with more than 15 years in the markets. She has taught her brand of technical analysis and charting strategies to students all over the world.  As an international author, Raghee has taught currencies, futures, and equities trading for more than a decade. Emphasizing charting and price action, Raghee continues to teach the tools and strategies that encourage self-directed traders to pursue the study of technical analysis and market psychology. She has been interviewed by radio commentators and has offered education and analysis on her own radio program. Raghee is a sought-after speaker who has conducted seminars throughout the U.S., Canada, the Caribbean and Asia. She is also frequently invited to teach and offer analysis about the Forex market.

Raghee first began trading commodity futures in the early 90’s and it was then she discovered technical analysis. Futures trading led to an interest in currency trading and when forex trading became regulated in the U.S. in 1999; Raghee quickly found herself applying her charting tools on that market.  Comfortable trading any market with good liquidity, Raghee’s favorite tool is what she calls the “Wave”.  “The Wave is by far my most important trading tool.  It allows me to identify the strength of the trend by which I can decide to either momentum trade or swing trade.” 

On her trading set ups:  “My set ups start with the Wave which is a trio of moving averages I use to determine the direction and strength of the current trend.  It also lets me know when there is no trend.  This is an important distinction since swing trade set ups require an established trend while momentum set ups are best set up when there is no prevailing trend.” 

On trading from home:  Raghee’s trading room is based from her home office.  “With the accessibility of affordable, high-speed internet, like DSL, a trader has the flexibility to trade from anywhere. It’s one of the best aspects of being a trader, the freedom to work from almost anywhere.”

On her computer set up:  “I really keep it simple.  There was a time I used to work from a four PC, eight monitor set up, but over the years I have pared it down to what I need and now trade from my laptop most days. I watch the forex market intraday and track my futures and stock charts end-of-day.  I also have a back-up PC and internet connection on a single PC with dual flat screens.” 

On her choice of charts:  Raghee has used eSignal charts and data for almost a decade.  “When I first began trading, I used bar charts.  After some prodding from a friend who used candlesticks, I began studying candlestick charts and patterns. It took about three or four weeks to make the transition.  That was over seven years ago.  Now I use them exclusively.  eSignal has been my trading partner for many years.  I found that as I grew as a trader, eSignal was able to grow right along with me.  In recent years they have added “Advanced Charts” to the platform and also integrated trading.  With the Advanced Charts I have to capability to program in formula studies by which I can automate many of the charting tools I use.  I also feel that the eSignal platform has allowed me to use my screen space very efficiently which allows me to trade from my laptop.” 

On using news and fundamentals:  “I am a chartist and that means that I believe that the news and other fundamentals have already been factored into the price I see on the charts.  I do read the news because knowing when economic reports will be released let’s me know when the market is most likely to be volatile.  Many times an economic release will trigger the entry or exit price of my set up, but in my opinion news alone does not set up a trade.  Trade set ups are based upon price:  What price to enter, what price to place a stop-loss, what price to place a profit target.” 

On her trading methodology:  “When I first began trading I did what most new traders do…I read everything I could get my hands on.  Frankly, there wasn’t much.  Trading books were not as abundant as they are now.  So I read the “classics”.  I read and re-read anything from Schabacker and Wyckoff….I studied Dow Theory which introduced me to the concept of retracements and that in turn whet my appetite for Fibonacci Levels.  The internet was not available back then, so I had charts mailed to my home weekly.  When I was able to get real-time charts, it was through a service that came and installed a satellite and I got an intraday feed from that.  It’s amazing looking back at the growth and evolution of charting feeds and access!  My methodology starts with differentiating a trending market from a sideways market.  I use the Wave and “clock angles” for this.  The Wave is a trio of 34 exponential moving averages on the high, low, and close.  I rely on the classic tools of my education like trendlines, support, resistance, chart patterns, market cycles, and Fibonacci Levels.  They all are very interrelated.  My entry and exit levels are based upon price.  I do not use fixed percentages or points for stops or for profit targets, rather I let the support and resistance of the market dictate these decisions.  If I am swing trading, I rely on the charts to tell me where to enter an uptrend on a pullback and a downtrend on a bounce.  If I am momentum trading, my most common entry is a breakout or breakdown from triangle or rectangle chart pattern.  When trading forex, I track five timeframes:  the 30, 60, 180, and 240 minute charts as well as the daily.  My focus is on the “majors” which are the EUR/USD, GBP/USD, AUD/USD, USD/CHF, USD/JPY, and USD/CAD.  I trade futures and stocks based upon the daily chart.” 

On being a “forex expert”:  Even though 80% of my trading is in the foreign exchange, I really feel that if I am an expert in anything, it is in reading charts.  I firmly believe that if a person can read charts, they can trade any market: forex, stocks, or commodities.  Since I have dedicated myself to becoming proficient in reading price action and charting, I feel that I am especially well-prepared for the forex market since it follows classic charting and technical analysis better than any market I have ever traded.  I do not rely on many indicators, as I learned from reading the classics, price action tells the true story.” 

On trading superstitions:  “I can’t say I have any.  I am not a superstitious person.  I think if a trader is prepared, well capitalized, and treats trading like any other skill that takes time to develop and time to master, they need not be.  Superstitions bring out emotion, fear, and greed…and that’s the worst thing that can happen to a trader.” 

On trading advice for a new trader:  “Act like you’ve been there before.  Obviously, study, practice, and follow your trading plan but in the end, I think it is emotions that will ruin a trader.  When I see traders celebrate a winning trade like they just won the Super Bowl, I know that they will beat themselves up equally as much when they have a losing trade.  So I say, “act like you’ve been there before”…keep an even keel.  Winning and losing are part of the game.  Another piece of advice would be to “follow your trading plan”.  And while that might seem like pedestrian advice, let me add this distinction:  Even when you have a losing trade, if you followed your plan and you got stopped out according to your plan, then that is a successful trade.  The worst trade you could ever have is the one where you break your rules and still profit.  That will create a mindset that says it’s ok to break your rules…and that mindset is the surest way to failure.”