Some Crucial Preparations Before Trading According to Raghee Horner

In the trading world, we often focus on entry and exit rules. However, Raghee Horner, a successful female trader, author, and analyst, believes that there are other aspects more crucial. While for many forex traders, entry and exit strategies may be the primary focus, Horner suggests that there are three more crucial elements. "Although setting entry and exit points, as well as determining stop loss and take profit levels, are important, there are other aspects to consider before opening a position," she stated. So, what are the more important trading preparations according to her?

Before discussing these three aspects, let's get acquainted with Raghee Horner first.

Raghee Horner's Profile

Since her teenage years, Raghee Horner has delved into the world of trading in forex, stocks, and commodities. Through years of learning and practice, she has achieved success as a trader and has become a respected author, analyst, and educator. Her popular books, such as "Forex Trading for Maximum Profit" and "Three Classic Tools to a Three Step Analysis," serve as important references for many traders. Raghee is often invited as a speaker at various radio shows and seminars worldwide. Her analyses are also frequently featured in renowned financial media such as TradingMarkets, JAGNotes, Stock-Charts.com, TheMoneyBlogs.com, and FXStreet.

Unlike some fundamental analysts, Raghee Horner prefers to focus on technical analysis. In all her methods, she emphasizes the importance of understanding charts and price action. One of the tools she frequently uses is Autochartist.

Raghee Horner's 3 Trading Preparations

As a technical trader, Raghee Horner still pays attention to fundamental factors. Here are three important preparations according to her before opening a position:

1. Monitoring the Economic Calendar: Before opening a position, Raghee always keeps an eye on important news and events on the economic calendar. She doesn't just focus on current news but also on critical news that may be overlooked. Raghee understands that keeping up with economic news helps her gauge potential risks and forecast future price movements.
2. Analyzing Price Movement Bias: Raghee uses the daily time frame to understand market psychology. By understanding sentiment, momentum, and trends, she can determine whether the market is bullish, bearish, or neutral. This analysis helps her decide when to open a position.
3. Measuring Risk Per Trade: Raghee emphasizes the importance of calculating trading costs comprehensively. In addition to risks from pip value and spreads, traders should also consider rollover costs, especially for those engaged in short-term trading. Raghee suggests understanding spreads and avoiding trading during periods of high market volatility.

While entry and exit rules are important, Raghee Horner emphasizes that these three preparations should take priority before opening a position. This helps traders choose the right currency pairs, understand the direction of price movements, and measure risk more effectively. Thus, these preparations ensure that our trading aligns with current market conditions.

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