Introduction: The Double-Edged Sword of Averaging Down on Stocks Averaging down is a trading strategy that involves buying more shares of a stock if its price decreases after the initial purchase, with the aim of lowering the average purchase price. The theory behind this is that if you have a lower average purchase price then when the stock rallies, it does not have to rally as far for you to...
Global Stock Market Update - 21 April 2023Welcome to this week’s Enlightened Trader Newsletter. To be honest the markets have been pretty boring this week, no major excitement, no meaningful moves, no changes in direction. About as much excitement that happened was the Hang Seng had a small burst of strength which was enough to turn my Hong Kong long side stock system on. The system has been...
Global Stock Market Update - 15 April 2023Welcome to this week’s Enlightened Trader Newsletter. Last Friday was a public holiday and I was busy with the family so didn't get to write my weekly update. It has been a mixed couple of weeks, but we are seeing some pockets of strength in the markets. Here are some highlights: US Stocks closed up strongly after consolidating all week, however this...
Introduction to Stock DividendsIn the world of trading and investing, stock dividends are generally considered to be a hallmark of stable and profitable companies. They are also a focus of retired investors hoping to generate sufficient income from their investments to support their lifestyle. Many investors look to stock dividends to give them a profitable edge, but how do dividends work and...
Stock dividend aristocrats are an elite group of companies that have increased their stock dividends for at least 25 consecutive years. These companies are held up as the best of the best dividend paying stocks because of their financial stability and strength plus their focus on paying income to their investors. It is important to note that some of these so called stock dividend aristocrats do...
Global Stock Market Update - 01 April 2023Welcome to this week’s Enlightened Trader Newsletter. Little has changed in the markets since my last update. The support levels on the major markets I follow have held so far but there was no real meaningful movement despite a few positive days this week. I would say we are still in a holding pattern waiting to see if there is another shoe to drop in...
Trading Mean Reversion is a popular strategy that has been extensively studied in several stock markets globally (especially the US stock market and the Australian Stock Exchange). However, despite its popularity, there is still a lack of research on its effectiveness when applied to a broader range of stock markets. In this article, I will be sharing with you the results of a mean reversion...
Global Stock Market Update - 03 March 2023Welcome to this week’s Enlightened Trader Newsletter. We have a bit of a bland situation in the markets right now… you can see on the chart below that the major stock markets I follow are bouncing off support but have really gone nowhere in the last few months. The markets are just range trading looking for some real direction. If this support holds we...
Hey. Adrian here, and in this Amibroker tutorial, I want to show you a really cool feature that you can use when you are developing single instrument trading systems, trading systems that trade just one ticker. Most of my systems trade a whole portfolio of stocks simultaneously, but this week, I've been working on a new mean reversion system to trade the QQQ ETF, and I developed that system. At...
Global Stock Market Update - 17 March 2023Welcome to another week of The Enlightened Trader Newsletter… Have you ever noticed how some people just do things without really thinking about the consequences down the road? Like wild teenagers who do what feels good now without thinking through the consequences. This seems to be exactly how the powers in the US financial system behave… making knee...
Global Stock Market Update - 11 March 2023Welcome to The Enlightened Trader Newsletter… Running along the edge of a cliff, threatening to jump off... that's what the markets look like at the moment. Most of the major stock markets are hovering around their 200-day EMA and as you can see in the image below they are all moving pretty much in lockstep... and it is not looking terribly healthy TBH....
Global Stock Market Update - 03 March 2023Welcome to The Enlightened Trader Newsletter… Do you ever wonder if there is something better out there in the markets that you are missing? I was thinking exactly this a couple of weeks ago when I was looking at my current mix of systems and was wondering, ‘what opportunities am I missing that I just haven’t looked at yet?’ This was when it hit me that...