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Trading Strategy - Dogs of the Dow

Dogs of the Dow Strategy How this works is very simple. All you need to do is to rank the FTSE Bursa Malaysia top 30 largest companies according to (1) PE ratio from lowest to highest; and (2) Dividend yield from the highest to lowest. The aim is to select those companies with the highest dividend yield and lowest PE ratio. Here's the top 5 stocks for the lowest PE and the highest DY as at 28th August 2009. Top 5 PE Stocks Hong Leong Bank 9.60 RHB Capital 9.65 Berjaya Sports Toto 13.00 YTL Corp 13.14 AMMB Holdings 13.26 Top 5 Dividend Yield Stocks Digi.com 8.51 Telekom Malaysia 8.33 Malayan Banking 7.99 Berjaya Sports Toto 6.76 UMW Holdings 6.00 Hence the best stock from this strategy is BToto as it appears twice on the lists. (For more info on BToto please visit this website: http://www.pg8.net/viewtopic.php?f=4&t=119&start=10 ) Different people will need to establish their own trading strategy according to their lifestyles, investment knowledge, debt obligation, and risk...

Bookfest 2009 @ KLCC

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Despite the H1N1, the event yesterday was a successful one. The audience was very responsive and we had a great time. Here are some pictures to share!

Bestsellers List

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Dear readers, Thank you for your support. I Love Stocks and Fear & Greed are both on the bestsellers lists of the MPH and POPULAR respectively for the month of August. I hope these two books enhance your investment profits greatly. Always remember this: Knowledge is power! Invest in your knowledge now and profits will come naturally to you. Happy investing, Pauline Yong

Are you a rational investor?

Do investors always behave rationally? To answer the question, let's ask ourselves the following questions: 1. Do you have an investment plan? Before we trade we all know that we should keep an investment plan to guide us through the process of trading. We are suppose to write down our investment objectives, investment horizon, and the entry and exit criteria for stocks. But most of us skip this important step and plunge ourselves into the trading world. 2. Do you do your own research? Again, we read plenty of investment books that tell us we should always do the necessary number crunching to judge whether a particular stock is worth buying. But in reality, when we are in the midst of trading, somehow we became inertia and acted boldly, thinking that we know more than others. Or sometimes we acted impatiently, thinking that if we spend the time to do the research, the price could have shot up and we would have missed the boat! Hence, we ended up not doing the necessary research sim...

Bookfest @ Malaysia 2009

Dear readers, I'm pleased to announced that there'll be a golden opportunity for us to meet and exchange investment ideas in Kuala Lumpur (KL) on the 29th August (Saturday) 6pm - 7pm at KLCC Convention Centre Hall 5, The Reading Room. I remember during last year's Bookfest @ Malaysia 2008 I shared with the audience some investment knowledge. Not only did they learn how to analyse shares with financial ratios, they also learn how to read stock charts. Some ideas was shared during the "Question and Answer" session at the end of the event. For this year's Bookfest, I would like to introduce my new book: "Fear and Greed" to my readers. I believe this book is especially helpful to investors as very often investors are swayed by emotion by buying greedily during the euphoria market and sell panicly when everyone was selling. Sometimes we trade without realising that we actually put in too much of our emotion into trading which may ended wiping out our inve...

Are we out of the woods yet?

Many economists have started to criticise the trillion dollar fiscal stimulus programs by the Obama administration. Hasn’t the American learned from the Subprime crisis when it all started during the 2001-2002 recession, the Americans cut rates and boosted public spending. This brought a bubble in the housing sector which causes serious consequences to the rest of the world. Now, with the current recession, the Americans is going to pump in trillion of dollars to boost its GDP. And the consequences? More debt and bigger bubble! The Americans are not alone. Most of the governments around the world are increasing on their fiscal budgets and bailing out troubled banks to help steer their economies out of the wood so as to gain popular votes from the people. “China is back in bubble land,” warned the Financial Times. According to Bill Bonner, in the first six months of this year, Chinese banks lent more than $1 trillion, or about four times the rate of 2007. This loosening of monetary ...

Event Announcement

There will be an investment talk by PAULINE YONG followed by an autograph session at Bookfest Malaysia 2009 @ KLCC Convention Centre in August 2009. The details will be announced later.