A checklist to pick winning stocks.

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  1. Use stock screening tools to find stocks that may have market beating potential.
  2. Calculate Key Performance Indicators for each stock to determine whether the company’s financial performance is likely to be appreciated by the market.
  3. Examine a stock chart to determine whether the stock is worth buying from a technical analysis perspective.
  4. We need to understand the business if we are going to buy it. The father of security analysis – Benjamin Graham said that when we buy a stock we should act as if we are buying the whole business.
  5. Profitability analysis. Does this company have a history of making money? How consistent are the profits? How easily can we predict profits?
  6. Financial health. Financially strong companies produce the best returns. We want to see manageable debt and strong cash flows. A substantial amount of cash in the bank would also be comforting.
  7. Management assessment. Owning a great business isn’t going to be very rewarding if management aren’t doing a good job. We put the company’s management under the microscope and ascertain their effectiveness (or lack of).
  8. Industry analysis. The company you are considering buying operates in one, or possibly more industry sectors. It is useful to know what is currently happening in the sector. And what the prospects for the sector might be going forward.
  9. Company valuation. The worth of the company determines how much we should pay for the stock. Once we’ve valued the stock we determine how much money we’re prepared to pay for it. We want to pay significantly less than what it’s worth. That way we get both value and a margin of safety.
  10. The investment decision. This our final check. We’ve analyzed the stock thoroughly by this stage. Now we ensure that we’ve completed all of our due diligence. The stock looks good. It’s the right time to buy.
  11. Portfolio management. This is all about maintaining a portfolio that is diversified to minimize risk. And optimized to provide superior returns.

How to pick winning stocks

How to setup wsgi and Django on Ubuntu server.

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It actually very easy to setup wsgi and Django.

And wsgi.py will look like this:


How to setup name-based virtual host on Ubuntu server.

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I’m moving my site from fatcow.com to linode.com because I setup VPS on linode so I’ll have more control of it. The first step is to setup name-based virtual host so that I can link my sub-domains to my “www” sub-directories.

  1. Create DNS records for domains and sub-domains. The IP address of sub-domains can be the same as your main domain.
  2. Now the world know how to resolve your domain name to an IP address, next step is to create name-based virtual host on Ubuntu server so that we can host different sites on different sub-domains. I want to create 2 sites. One is my main domain which host my blog www.ycshao.com, another one is for testing purpose image.ycshao.com.
  3. Enable name-based virtual host on Ubuntu:

    and add following line to the end if it’s not there
  4. There are two folders in /etc/apache2, which are sites-available and sites-enabled. Usually sites-enabled folder will have soft link to files in sites-available folder. The folder names are pretty obvious, “available” means available sites and “enabled” means  sites which can be accessed. Let’s start from scratch.

    and modify first few lines to

    The most important things are your “ServerName” corresponding to url you want to set and “DocumentRoot” corresponding to which directory this url points to. Then make a soft link to enable this site:
  5. Now you should be able to access www.ycshao.com and it should go to my wordpress blog sitting in /var/www/wordpress.
  6. Now repeat step 4 for image.ycshao.com and other sites you want to configure.

How to make phpMyAdmin work in Ubuntu server.

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  1. Install phpMyAdmin:
  2. Add phpMyAdmin configuration file(following line) to apache configuration file /etc/apache2/apache2.conf:
  3. Done! Now go to http://localhost/phpmyadmin to use it.