The holiday season is not only a time for festivities but also a period when the stock market exhibits a unique phenomenon known as the Santa Claus Rally. In this article, we'll delve deep into the Santa Claus Rally, examining its history, significance, and strategies for investors. We'll also explore its impact on various US stock indices and major international stock indices. The Santa Claus...
Global Stock Market Update - 06 November 2023Well we could be forgiven for thinking that there was a financial miracle this week - here is what happened: Bond yields fell Every major stock market globally rallied The US Dollar lost strength against other major currencies Cryptocurrencies rallied Many major agricultural commodities fell Energy prices fell (Oil and Natural Gas) Not sure if someone...
Global Stock Market Update - 28 October 2023Welcome to my weekly market update... It is a big read this week, but I promise it is worth it. I am sharing lots of really interesting insights about what is happening with market correlations, which strategies are working, and I even want to share the realisation that I buried one of my trading strategies alive a few years ago... but I just dug it up...
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...
Introduction to Seasonal Trends in the Stock MarketThe stock market is a dynamic and constantly changing landscape, subject to a variety of influences that can quickly send waves of change through its financial waters. Amidst this complexity, a powerful yet often overlooked phenomenon emerges year after year: monthly stock market seasonality trends. Stock seasonality is the understanding that...
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...
The three things I would do differently in my trading and if I went back and started again, is that I would start with Amibroker earlier. It makes backtesting so much easier, more liable, so much less bugs and start trading more different markets. It's a game changer. If you trade Australia and the US, for your return risk profile, it makes a huge difference. Trading more markets instead of more...
I'm very reluctant to take leverage now. This index strategy in leverage of factor three was usual because you leverage up very high, you go down, leverage up very high, you go down. Now my leverage factor on the long side is max 1.3. and 1.4. It's like it's a lot of unexpected downside risk. Sometimes, especially as if you have a momentum and trend following strategy and you like to add up, for...
The advice that I have for traders that are looking to trade institutional money is… First, be aware that institutional money trades differently than we do. Most of the strategies we trade, they cannot trade because the ticket size is too big. Like our trend following system, which works very well because we can trade a lot of small cap stocks, it doesn't work for the big money. If you have 10...
Academic literature is important for trading because I studied financial economics and a Master of Science at Imperial College. It's called Risk Management and Financial Engineering. It was basically like a quantitative finance course, and I like to have very robust strategies. There are a lot of strategies in which there's so much research, trend following, momentum, seasonal strategies, even...