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...
Every trading calculator we have built is listed below. Pick the one that matches the question you are trying to answer, enter your numbers, and it will do the arithmetic for you. We are building more all the time, so if there is a calculator that would help your trading and you cannot see it here, leave us a comment below and we will take a look.Use Our Trading Calculators to Improve Your...
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...
Introduction To The Stock Average Calculator Our stock average calculator is an invaluable tool for traders wanting to calculate the average stock price paid for shares across multiple acquisitions. Recognized by many as an efficient stock average cost basis calculator, it equips you to make well-informed decisions, factoring in the average price paid for your stocks. Apart from offering this...