Choosing Stocks With PRINCE D Criteria

In my book "I Love Stocks" I used a set of financial ratios as stock selection criteria, they are:

PE ratio, Return on equity, Institutional (big players) support, Net tangible asset, Current environment scan, Earnings per share growth and Dividend yield. Taking the first alphabet from each we can get: PRINCE D or we call it the Prince D, like Princess Diana.

In January, I have come up with a list of stocks to share with my students who attended my stock analysis workshop (see the tables below). Many people have been telling me they are waiting for the big crash after election then they will enter the market. Then I asked them, what if there is no crash, and the price shot up after election, would you still buy then?

If everyone thinks there is a crash on certain dates, most likely you wont see one because a stock market crash happen unexpectedly, not on anticipation.

Then when can I buy (into the stocks)?

One good strategy is to buy on stages. Buying on stages will eliminate the negative emotion that is affecting your judgment in stock selection. For example, you may invest 1/3 before election, another 1/3 of your available funds in May, and the final 1/3 in November and hold the stocks until 2014 - 2015. The reason why invest in May and November is because if you look back at the historical prices for our KLCI, there are certain months always experience cycle low, they are: February, May, August and November. If you are a long term investor who has decided to invest regularly in the stock market these months are good entry points for you.

Below are 3 categories of stocks for selection. The first is the dividend stocks, good for FD alternative. 2nd group is small cap stocks as I think small cap stocks offer better capital appreciation than the larger caps now. The 3rd group is the political linked stocks which I believed if BN wins, these stocks will soar.

Everyone has their own investment style, personally I do not like to speculate, I prefer to buy and hold, or I hold until there is fundamental change in the investing environment such as inflation is too high, interest rates are rising or theres a war.

This article is not for stocks recommendation, its for educational purpose.

Happy investing,

Pauline Yong

Pointbreak Week 1 I like what I see !

This is the first review I will be writing for the Pointbreak expert advisor built for the metatrader 4 platform. As you know, I started to test this expert advisor a week ago as a personal request from the maker.

I am always skeptical with new expert advisors (anyone who has been into them for a while would!) but Pointbreak has been like a glimpse of light at the end of the tunnel.

Many expert advisor makers are always talking a lot about their experts amazing profits, low draw downs, etc. They in fact talk the talk, but 99% of them do not walk the walk. As I have told you many times, they are based on unreal assumptions.

Pointbreak has surprised me, challenging some of my core beliefs. Pointbreak does not use a fixed stoploss, it is thus subject to massive drawdown. This, unlike other experts, is hedged with the fact that this expert uses amazing money management, being very conservative while it trades. This also shines against the fact that it is one of the most aggressive experts I have ever seen, it stays on the market all the time.

I have watched its trading method along this week and I have found it to be rather splendid. It does a pyramid like scheme where it opens positions in several directions, following the trend. This does not mean that Pointbreak would "die" in a ranging market. Pointbreak will then use an alternative method to reduce draw down. Since the EUR/USD trends most of the time, balance is greatly shifted towards the trader.

Pointbreak could, in fact, turn into my personal favourite, definitely a keeper. We will see how it does next month. The statement can be seen here. Here is screen shot of the expert in action. You can always find the ea here.
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vpsland com A vps Review for Mt4 Expert Advisors

When we all get serious about using expert advisors for trading, one of our first absolute needs becomes finding a reliable vps. A vps or virtual private server is a computer server in which you load your metatrader program and your expert advisors, the server stays on almost all the time , having a 99,99% uptime is required for trading.

I searched a lot for a decent, cheap, reliable vps service. Finally, I found exactly what I was looking for. At vpsland.com, for the small price of 25 USD a month, you get a fully configurable and installed virtual private server. You can use enough RAM to load about 7 instances of metatrader while your expert advisors and your resources are limited to about 25% of the actual servers (which are quad core, dual processor, Xeons). This setup is so good, it was good enough for performing quantum chemical calculations which are very computationally demanding.

I have been with them for about 4 months and they have not disappointed me once. Their support is super quick and I have never had any downtime with my expert advisors (I use resources a lot with about 5 instances running all the time). I login using remote desktop which makes the vps just like your home computer.I also upload files using the ftp client and server filezilla (which I installed by myself).

I also never reboot my vps owing to the fact that this affects the performance of experts which rely on factors that are reset when metatrader is restarted. Overall I think this vps service is top notch, also a plus is that you do not need to purchase a domain name to open up your account and start your server. I would highly recommend vpsland to anyone out there who seriously considers trading using a virtual private server.

If you want to learn more about expert advisors you can run in your vps you can look at my expert advisor reviews which can be accessed from the drop down menu on the left sidebar. If you want to learn about expert advisor evaluation, why most commercial expert advisors fail and how you can start to profit using long term stable strategies please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !