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...
Global Stock Market Update - 12 May 2023Welcome to this week’s Enlightened Trader Newsletter. We are still in a tightly ranging market this week - very little going on at the index level. The S&P500, ASX 200, TSX Composite, Hang Seng and Bitcoin are all still hugging their 200-day moving averages closely with no clear direction... It is not even exciting enough to post a picture of the...
Master Trading Probabilities with the Expected Return Stock Calculator The expected return stock calculator helps you make trading decisions in the face of uncertainty. Traders face immense uncertainty because we just never know exactly what will happen to the stock price next. But what we can often do is come up with a range of scenarios and put a likely probability on each of them. Coming up...
Welcome to The Ultimate Trading Calculator Suite. This calculator has all of the trading calculators you will ever need, just select the one you need from the dropdown menu and enter the details to perform your calculation. If you prefer to use individual calculators please use the links below the calculator suite to navigate to individual calculator pages. We are building more all the time, so...
Navigate Reverse Stock Splits like a Pro with our Reverse Stock Split Calculator Reverse stock splits can be perplexing, which is why we have created our reverse stock split calculator. But before we dive into that, let's discuss what a reverse stock split is and why they occur. A reverse stock split is a corporate action in which a company reduces the number of its outstanding shares by...
Introduction To The Position Size Calculator Our position size calculator is an useful tool for traders seeking to manage their risk and calculate their position size so they don't suffer too much drawdown or risk blowing up their account. Position sizing is one of the most important skills for traders to master early, because without correct position sizing and risk management, traders don't...
Global Stock Market Update - 06 May 2023Welcome to this week’s Enlightened Trader Newsletter. The sideways action has continued this week in most of the major markets. S&P500, ASX 200, TSX Composite, Hang Seng and Bitcoin are all hugging their 200-day moving averages closely with no clear direction. As you can see in the chart below, Gold is starting to pull away from its 200-day moving...