The Importance of Keeping a Trading JournalTrading in the financial markets can be a rollercoaster ride. Whether you're a novice or an experienced trader, the key to consistent success lies in systematic and disciplined trading. And one tool that can significantly enhance your trading game is a trading journal. Effective trading starts with a journal - an absolute must for traders, even as a...
Global Stock Market Update - 16 October 2023Over the past week, several events and trends have significantly impacted the stock market. A couple of things have caught my eye... 1. Market Performance and Predicted Downtrends The S&P 500 seems to be displaying multiple warning signs of a possible selloff, with significant indicators pointing towards a negative market trend including what looks...
Global Stock Market Update - 09 October 2023I got a lot of great feedback on the format of my weekly update last week; thank you to everyone who replied! It is very clear my Real Money demonstration is going to be a hit, so I am busy putting this together for you... It will take me a little while as I have to do a few things: Open some new accounts Move money around Decide on the overall...
Global Stock Market Update - 29 September 2023I haven't given you a detailed market update for a while, so I figured it was time... plus I have a new tool that I am pretty excited to share with you. I have long been keen to develop a dashboard to show what is happening in all of the global markets. This week I produced version 1... I will refine it with your feedback - so please comment on this...
If you have wondered what reverse stock splits are or how to profit from them, you are in the right place! In the dynamic world of stock trading, staying ahead and generating consistent returns requires not only positive expectancy trading systems and good position sizing, but also an understanding of various corporate actions and their implications. One such corporate action that has the power...
What Is Window Dressing in Finance?Window dressing is a concept in finance that involves manipulating financial statements or investment portfolios to make them appear more attractive to investors during reporting periods. While we have no direct evidence that window dressing in finance is common practice, it is well documented, and there are plenty of corporate accountants tasked with creating...
The financial markets can feel pretty chaotic and random at times, but within all of the chaos, there is order, and there are anomalies in price action that can be traded profitably - Turnaround Tuesday is one such market anomaly. This article explains the 'Turnaround Tuesday' trading strategy, quantifies the edge with backtested potential trading strategies and demonstrates the results from my...
Introduction to BacktestingWhat is Backtesting in TradingBacktesting is an essential technique in the trading world and is useful no matter which financial markets you trade. It involves applying your trading rules, or your trading strategy, to past data using backtesting software. This is essentially a historical simulation to show you how well your trading strategy has performed in the past....
Global Stock Market Update - 25 June 2023Just in case you were starting to get excited about the positive moves in the S&P, the markets had a bit of a pullback last week which was felt across US, Canada, Australia and Hong Kong. Just in case you needed another reminder that PATIENCE is the number one emotional characteristic required to be a successful trader. Just to show you how sideways...
Global Stock Market Update - 06 June 2023Welcome to this week's Enlightened Trader Newsletter. I didn't write an update last week because I was away for the long weekend with two other awesome families (we had a great time thanks for asking 😉) But I am back this week, and at face value, it looks like the US market has finally chosen a direction (green circle on the image below); the S&P500...
Global Stock Market Update - 02 June 2023Welcome to this week's The Enlightened Trader newsletter. The markets have been following the same pattern as we discussed last week - weakness across the board other than the big end of the Nasdaq exchange. One interesting thing to note that I have not mentioned for a while is that the Hong Kong market decline has been accelerating. Finally, at least one...
Global Stock Market Update - 26 May 2023Welcome to The Enlightened Trader newsletter. I missed last week as I was travelling, but to be brutally honest there was nothing much going on of interest in the markets anyway! Of the markets I monitor in this newsletter (US, ASX, TSX, HK), only the US market held strong this week. The last few days have seen reasonable declines in all the others.The US...