Raghee Horner is the Managing Director of Simpler Trading. She is a conservative trader who is not interested in putting on as many trades as possible, but rather only putting on high probability trades. Her strategies, together with her indicators, allow any trader to learn how to approach the market more objectively, removing unsupported bias and emotions that can cloud judgment. Raghee utilizes fundamentals, technicals, and price action to deploy an objective, systematized strategy. Trading futures, options, and equities across any time frame is her area of expertise. In this episode of How To Trade It, Raghee shares the unique way in which she got her start, her philosophy on keeping things simple, buying the dip, and so much more. You don’t want to miss it!@RagheeHorner utilizes fundamentals, technicals, and price action to deploy an objective, systematized strategy. Join us for this episode of How To Trade It to hear more. #Futures #Forex #Options #SectorSecrets #SimplerTrading Click To Tweet
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You’ll want to hear this episode if you are interested in…
- [01:47] Learning more about high-concentration weighting
- [07:24] Where to find information regarding “weightings”
- [08:33] Correlation
- [12:25] The downside to ETFs
- [14:00] Raghee’s criteria for entering a trade
- [16:05] Tools to help determine entry
- [18:10] Structure and environment
- [24:00] How Raghee got started
- [29:20] Life’s great motivator
- [33:05] Where to go to learn more
Raghee has been pretty obsessed with ETFs for the last decade or so. An exchange traded fund (ETF) is a collection of securities that trades on an exchange just like a stock does. ETFs can contain all types of investments, including stocks, commodities, or bonds. Within that “collection”, there are always a small number of stocks that disproportionately influence the overall ETF. Purchasing ETFs, especially as Options, is less expensive than buying individually, it can allow new or short-funded traders to trade things that may otherwise be out of reach, and it allows you to scale into numerous calls all at once. Raghee has discovered that high-concentration weighting has allowed for better stock selection, and enables her to look at any sector to find success.
Entering a Trade
Raghee gave the most simplistic answer when asked what her criteria was for entering a trade. She simply looks for an uptrend and then buys the dips. She can talk about volatility, market structure, moving averages, and volume, but at the end of the day…she’s a dip buyer. Raghee likes to look at Fibonacci numbers-based exponential moving averages to determine a specific entry point, but not until the structure and environment have been determined to be ideal. She generally follows the path of least resistance. Keeping things simple allows Raghee to easily follow her trades and maximize her ROI.
Raghee’s Introduction to the Markets
Growing up, Raghee was repeatedly told that her “job” was to get good grades in school. And, she needed to participate in extracurricular activities, such as music (violin) and sports (martial arts), so that she would grow up to be a well-balanced human. As a know-it-all, jerk teenager, Raghee wanted to get a job, like so many of her friends. Her mom was not in favor of it, but finally agreed with the understanding that Raghee would invest 25% of her earnings in the stock market. At the age of about 15, Raghee was hand-plotting stock prices on a daily basis, in an attempt to prove her mother wrong, so she could quit this ridiculous investing thing. She soon discovered that her money was growing, and not being lost after all.
The Great Motivator
Raghee’s mom was widowed by the age of 40. With two teenage daughters to care for, she needed to find a way to grow her limited resources (insurance money) without having to work multiple jobs which would take her away from her children. Raghee’s mom knew just a little about investing, but it was enough. Desperation was her great motivator because there really was no opportunity for Plan B. She needed to make things work, and she did, by empowering herself with the markets. Raghee began paying more attention, and when she discovered that you could actually make money while you were sleeping, she was hooked.
Resources & People Mentioned
- FREE ETF webinar (replay available): https://www.simplertrading.com/trend/
- A must-read: What I Learned Losing A Million Dollars by Jim Paul & Brendan Moynihan
- Market Wizards by Jack D. Schwager
- Yahoo Finance
- ETF Database
Connect with Raghee Horner
- Website: http://simplertrading.com/sector
- Twitter: https://twitter.com/RagheeHorner
- YouTube: Charts & Coffee with Raghee
Connect With Casey Stubbs
- Website: https://caseystubbs.com
- YouTube: https://www.youtube.com/TradingStrategyGuides
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- Twitter: https://www.twitter.com/caseystubbs
- Facebook: https://www.facebook.com/TradingStrategyGuides
- LinkedIn: https://linkedin.com/in/caseystubbs
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Disclaimer: Trading carries a high level of risk, and may not be suitable for all investors. Before deciding to invest you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment. Therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Thanks for a wonderful and enlightening conversation.