Free W.D.Gann Book on Amazon Kindle

Just found this book today on the Amazon Kindle store that it is $0.00

The Trading Methodologies of W.D. Gann: A Guide to Building Your Technical Analysis Toolbox 
by Hima Reddy

Publication Date: September 21, 2012
Book Description
"W.D. Gann’s works helped to pioneer the discipline of technical analysis, and they still offer immense potential value to investors and traders. However, Gann’s original publications are esoteric and can be challenging to read and use. In this book, long-time trader and expert technical analyst Hima Reddy brings these works to life for modern traders and investors. She distills Gann’s tenets into crystal-clear, bite-size explanations, and illuminates them with exceptionally intuitive charts and illustrations. Drawing on extensive personal experience, Reddy explains how Gann’s insights into price, pattern and time can be applied in all types of markets and market conditions. Using this book, any experienced trader can discover the value of Gann’s approach, and start utilizing it in his or her own trades. Then, with Reddy’s discussion as a foundation, traders and investors can delve even more deeply into all of Gann’s works, identifying even greater opportunities for profit."

The link is:
http://www.amazon.com/exec/obidos/ASIN/B009EC01KO/ozba0e-20

Alternatively just go to Amazon and search the title.

Notes on Vector Vest Strategies

***Disclaimer: These notes are for personal use only

Combination for buying stocks in a bear market
RT Kicker Combo / SP500 Ascending
Bear Market Beaters  / Marathon
Gain Loss of 50/10
The key is the Marathon search which is used during a bear market, by people who still want to buy stocks in bear market period.

High VST newcomers
This search aims to catch stocks which have recently reached significant levels in their VST ratings. The original search looks for trends with the last two periods having VST <1.40 and VST > 1.40 respectively. This indicates the VST value has increased the 1.40 levels.

Note - list of Telcos

Amcom 
bigair 
iinet 
m2tel 
singtel 
telecomCorp NZ
Telstra 
tpg 


The above is a list of telco companies in Australia. The telcos enjoy steady revenue, cash flow, profit locked in.
The management can focus on other business aspects. Can prepare more accurate business goals, forecast, budgets.

The two standout ones with good future growtth, good dividend and still be intrinsic value are:
BigAir, M2 tel, IInet

Notes - Masonson's ETF Buy - Don't Hold

These are some summarised notes on the fantastic book on how to trade ETFs by Masonson "Buy - Don't Hold"
It presents a technical strategy based on momentum using relative strength.

Chap 2
- investment questionnarire may determine the risk profile but then most managers use it to allocate asset based on conservative, balanced, aggresive, into asset classes with fixed percentage. It does not account for which asset classes may perform better or worse at
that time.
- better questionnaire at www.finametrica.com  and www.riskprofiling.com 
- risk management in stocks include knowing when to sellout. Some like to hold on whle the stock keeps crashing. The question when you want to keep holding is would you buy that same stock today?
- types of risks - market risk, individual stock risk, diversification risk, inflation risk.
-  Mechanical non emotiona trading has the highest probabilty of making money
- Buy and hold investing is very risky and can lead to huge losses
P52 use average true range ATR, when go above 0.75, then major bear
may be coming, so exit all holdings, there shoule still be some time.

Chap 3 - Personal Investment Plan - 6 steps Road to Success
- SIX step investment plan
i determine your risk level
Ii review existing investment portfolio, use sites from Web
WallStreet Journal, Barron's
Iii assess the stock market condition - use Stock Market Dashboard in
CHap 5 to determine market condition, buy when above +3 and sell when
below -3
Iv Invest in ETFs instead of stocks - 5 classes of ETFs are;
Morningstar style box, S&P Indices, Individual countries, Fixed
Income, Commodities.
V find top ETFs of specific class using Relative Strength Analysis.
Web: ETF FamilyWeb sites, morningstar.com
vi Protect using stop loss
- a section on retirement investing with details for US residents, but
the principles can be applied elsewhere.

Chap4 - Using ETFs
- contrary to their own thinking, investors are not more intelligent
than their peers.
-  most investors lose money, including managed funds
- over 75% of active managers do not beat their benchmarks over a 10
year period. So not point paying over 1% in management fees.
- index funds (ETF is a type of this) has a beta of 1.0 (a measure of
volatility)
- ETFs are usually a basket of stocks that mirror the index. So most
reflect the indices and they do not beat the indices. Hence the
majority are passively managed and so has lower fees. It lets
investors follow the indices since most actively managed fund perform
poorer than the indices over the long term.
- list of low cost brokers:
www.digeratilife.com/blog/index.php/2009/05/22/onlinediscount-brokers-smart-money-broker-survey 
- A table 4.1 has a list of the main ETF families (providers?) and
they types of ETFs they offer.
- there are many types of ETFs such as those that mirror the main
indices like S&P500, commodities, various sector ETFs, currencies,
bonds and also inverse ETFs that make money when the market falls
(ProShares, Direxion, Rydex).
- benefits of ETFs are: transparency, liquidity, low fees, better
performance, simpler tax implications, allow shorting by buying
inverse ETFs without actual margin based shorting, can implement
trading/investment strategies, earn dividends/income.
- risks: different price in ETFs to their underlying (eg when market
is suspended), general market risk, spread in buy/sell, inverse ETFs
may be suspended in extreme market conditions.
- leveraged ETFs can magnify gains and losses. The author warns
against leveraged ETFs because of higher risks and suggest their use
as hedging or intraday trading.
- leveraged ETFs are rated using beta. If beta =1.25, then the ETF
move 25% more than its underlying in the same direction.
- 4 types of asset allocation is given according to the profiles:
conservative, moderate, aggressive, very aggressive. Morningstar and
SPDR ETFs are recommended for all profiles. Fixed income range from
half to zero from conservative to very aggressive classes. IShares
countries ETFs range from low to high percentage from conservative to
very aggressive.
- a long list of various  ETFs and their ticker symbols are presented in Chap 4

Chap5 - the Stockmarket Dashboard - key market indicators to Gauge
Market Directions
- websites : www.stockcharts.com
- Dashboard consist of 8 indicators. Since each indicator is not
always reliable, investment decisions are based on an aggregate of the
8 indicators.
- When the indicator is +3, start buying stocks up to indicator of +7.
When an indicator is - 3, sell ALL stocks.
- Returns on Stock is determind by 70% market trend, 20% industry
trend and 10% individual stock fundamentals.
- 8 components of the StockMarket Dashboard
i) Percentge of NYSE stock above their 50d MA. If above 75% then move
downwards then market top has been reached. Similarly for the 25% to
indicate market  bottom.
ii) NASDAQ crosses 100 DMA. Crossing upward from below means trend has
changed upwards and vice versa. The NASDAQ is chosen because it
usually leads the other indices.
iii) New daily highs minus New daily lows on NYSE. When this  is -750
and the next day the number reverse to more than + 750 then a market
bottom is reached. For market top, find number of new weekly highs
divided by number shares traded. If this is 25% and goes lower in the
next week, then it is time to sell.
iv) Percentage of NYSE stocks whose Point and Figure Charts has a buy
signal. When this number is 70% and turns down it may be a market top.
 If the number is 25% and turns up, it may be a market bottom.
v) American Association of Individual Investors (AAII)  survey of
weekly bullish sentiment. When 50% is bullish and turn lower next
week, then market top. If 25% and turn up, then market bottom.
vi) MACD on NASDAQ where the difference 26dayExpMA-12dayExpMA line
crosses the 9dayExpMA, then market has changed direction.
vii) Invest 6months - be in the market from 1 Nov to 30April and out
of the market for the other 6 months. Use MACD of S&P500 to fine-tune
when to enter and exit markets.
viii) NASDAQ Summation Index (NASI) - When this crosses the 5day EMA
from below, it is a buy signal and vice versa. This is used together
with MACD for confirmation.

Chap 6 RELATIVE STRENGTH ANALYSIS (RSA)
- RSA is based on picking the selected stocks which are outperforming
their peers in terms of their stock price.
- calculate the % change in stock price over a given period then rank
them with other stocks.
- The suggested time frame is 6 months
- Sell the stock if it falls below a certain ranking. And replace with
other stocks that increased in ranking.
- RSA have been shown to outperform buy and hold strategies.
- perform analysis every week, based on 6 month price performance.
- sell off those that drop out of top ten and buy those that get into top 10.
- can be used with stocks, also ETFs if there are hundreds of them.
- before buying, check the ETF 2 year chart 50dma and MACD are in an uptrend.
- Strategy #1 - after ranking the ETFs according to their categories,
the choose the top  few from each category.  The number of stocks from
each category depends on the risk profile. For aggressive investors,
choose more stocks from risky category, such as International ETFs.
- Strategy #2, rank all ETFs together ignoring their categories. Pick
the top 10 ranking ETFs in this universal ranking.
- when coming out of market bottom, avoid top ranking ETFs which are
bonds or inverse ETFs.
- www.robertwcolby.com  - list the top 10 rank ETFs
- www.etfscreen.com - provides relative strength analysis  on ETFs.
 - www.morningstar.com - has ETFs info
- www.marketwatch.com - has more details on ETFs
- www.etftable.com  - ETFs stats and ranking
- www.etftrends.com - performance data but no RSA
- www.etfinvestmentoutlook.com  - also performance data but no RSA

CHAP 7 Subscription Software
High Growth Stock Investor software
- screening tools, filter, indicators, charts, groupings, Relative
Strength based on price performance or other criteria.
VectorVest software
- powerful back testing, portfolio management, filters, searches.

CHAP 8 Putting it all together
1. Determine your investor profile: conservative, moderate, aggresive,
very aggresive. www.kiplinger.com/reports/investor-psychology
2. Review current asset allocation, against your risk tolerance and
investor profile determined from previous step. Rebalance portfolio if
necessary, ie sell some stocks and replace with ETFs where possible.
3. Use the Stockmarket Dashboard to decide when to buy (+3 or above)
and sell (-3 or below) shares. The Dashboard provides general market
timing, it does not select which shares to buy or sell.
When buying from+3, some strategies include buy everything at once or
buy some, then buy a bit more when it increases to +4, +5, +6, +7.
When selling, once the market falls down to -3, then sell the complete
portfolio.
4. Stock selection and therefore fundamental analysis of individual
companies are not necessary, because this approach is to buy ETFs. The
ETFs can also be categorised according to riskiness. Based on the
investor risk profile, each profile can have a certain ETF allocation
strategy. For example the Conservative allocation can consist of 53%
Fixed Income ETFs (safe), 13% iShares Countries ETFs (risky), etc
while the Very Aggressive allocation may have no Fixed Income ETFs,
40% iShares Countries ETFs and so on.
5. Selection of which ETFs to buy is based on the Relative Strength
Method, using websites which rank them (see Chap6 for web links).
Review your portfolio of ETFs at least weekly and if they ranking fall
below 50%-tile within their group, then replace that ETF.
6. Always continue to use stop loss for protection. Do not change the
plan once started or stray away from it.
www.buydonthold.com  - more details on the book.

The Stockmarket Dashboard was used for backtesting with  two examples
related to the GFC. The first case was for the market at Mar 2009, the
recovery after the GFC, with a score of +7 - a strong buy signal. The
second case looks back to Oct 2007, just before the GFC, with a score
of -6 - a strong sell all signal.

Listed Investment Companies

What’s a Diversified Investment, but not an ETF or Managed Fund? – Listed Investment Companies.

Some which are listed on the ASX are:
Australian Foundation Investment Corporation,
Argo Investments,
Milton Corporation,
Djerriwarrh,
Australian United Investments
Carlton.

Wilson Asset Management,
Contango
Clime.

A few points about LIC are:
they perform better than managed funds and certainly better than ETFs.
They have experts there hunting out bargains and looking for growth opportunities.
They are generally run on a cheaper cost base.
Invest by buying shares in the company.
They are not forced to buy high and sell low, since they don’t have to hand back investments to customers like Managed Funds do.

Buy Sell Notes to Self 2013

This post will be updated with tips as I read them from various sources and when I want to record it down to look back on later. It is not any kind of advice or suggestion to any other people. 

2 May 2013A-REITS have been doing quite well over the recent years, shooting up from its lows in the GFC. A few REITs with their dividend yield are given

Symbol	CompanyName		DY	Price
APA.AX MGR.AX	APA Group Mirvac Grp		5.40 4.56	6.48 Yes 1.755
ABP.AX	Abacus Prpty Grp		7.26	2.34	Yes
CQR.AX	Charter Hall Retail REIT		6.12	4.25	Yes
BWP.AX	BWP Trust		6.2	2.42
WRT.AX	Westfield Retail Trust		5.74	3.31
SGP.AX	Stockland Trust Grp		6.25	3.84
LEP.AX	ALE Ppty Grp		6.13	2.61

15 Apr 2013

Market is on the verge of rebounding. Here are a few stock to consider

mfg
ccp
cwp
LLC  1
jhx  2
iag
ske
brg
pmv  
iof
trs
wrt
gem
vrl 3
mtu  



2 Apr 2013

bsl - Bluescope Steel
gem - G8 Education
ccv y   - cash converters
pmv y  - Premier Investments
alu  good - Altium
aiz good  - Air New Zealand
ctd        - Corporate Travel Management

1 Jan 2013

A new list of stocks for the new year. 

This list is based on having a Buy recommendation, high dividend yield and high dividend growth.

DLX - Dulux Group - Materials

MRM - Mermaid Marine Aus - Industrial Transportation

CAM - Clime Capital Limited - Financials Diversified

ARI - Arium Limited - Materials

GPT - GPT Group - Financial Real Estate

News - Israel Gas and Woodside Petroleum

Gas found in Israel and Australia's own Woodside Petroleum WPL is in on it.

http://www.morningstar.com.au/funds.mvc/article/israel-gas-bonanza/5556/1

Quote:
"Still, the Tamar field was just the harbinger of what has turned out to be nothing short of an energy revolution in Israel. If Tamar had reserves of 10 trillion cubic feet of natural gas, the Leviathan field, which was discovered in December 2010, enjoyed the unique distinction of being the world’s largest deep water gas reserves found in the past decade. "