VectorVest Canada

Stan Heller has been a VectorVest subscriber for over 10 years. He has taught VectorVest at workshops across Canada the past three years. He lives in Lethbridge, AB and enjoys helping fellow investors succeed with VectorVest.

Tips and Ideas for Making Money with VectorVest

UPCOMING EVENTS—click on the links below to sign up today!Two-Day Investment Seminar Vancouver, B.C. Jan 25-26, 2014

This workshop will show you step-by step how to use VectorVest to find the right Canadian stocks and how to buy and sell at the right time.

u Important dates to know for the dividend investor...................................4

Bulletin JANUARY 2014 HAPPY NEW YEAR!

Dear Fellow Subscribers,

I hope you will enjoy this latest collection of tips and ideas for using VectorVest.

The year ended on a high note with the VectorVest Composite (VVC/CA) and TSX Composite (PTSE) rallying to finish the year up more than 8.2% and 9.5% respectively. The Canadian Venture (CDNX) with its abundance of mining and low-priced stocks has gained ground since its 5-year low on 6/27/13, but still finished 2013 lower by more than 23%.

January ushers in many exciting new developments for VectorVest subscribers. A new two-day course for Canada will be kicking off in Vancouver Jan 25-26.

New features include, Options Pro—an all-new, elite, options platform, as well as an enhanced, better-than-ever Watchdog and a brilliant ‘Portfolio Genius’ that will make you wonder how you ever managed your portfolio without it.

The new year also brings improvements to the Retirees Income Model Portfolio and Sure-Fire Success strategies (in Canada, as well as the U.S.). As part of these changes, VectorVest invites Canadian subscribers to create their own SFS Strategy for the chance to win $1,000. If you would like to submit an entry, please see the Dec. 20 Strategy of the Week for details.

Yours for good investing,

Stan Heller VectorVest Canada Consultant

u Identify the day’s largest price gainers using the unisearch tool......................3

u Improve your trading with better records....... ..........................................5

Executive Premiere Workshop Cornelius, N.C. Jan 16-17, 2014

Our ‘EPW’ features expert instructors that will ensure you gain practical knowledge of every tool in the VectorVest program. It’s like gaining 10 years of experience in just two-days of training!

The BesT Time To invesT

Avoid a Destructive Memory Cycle

Watch the video all the way through the first time, it’s only about 3 minutes long. Then watch it again, pausing each time a new magazine cover appears. Notice the growth of the starting $1 before moving on. I think you’ll find it both fascinating and instructive. There’s also an important and uplifting message from Warren Buffett at the end of the video that needs to be heard. We are so fortunate to be living in our time. (Special thanks to Harold Nicholson, Lethbridge VectorVest User Group Leader, for sharing the link.)

As the video shows, news events may impact the market short-term but they have little long-term effect on the market’s continuing growth. Stocks historically deliver significantly higher returns over time than safer investments such as bonds. Watch as the video shows the market rising and falling with an unmistakable

“long-term” uptrend.

Unfortunately, many investors have a short-term “memory bias” that causes them to do the exact opposite of what they should do. They plow money into stocks at market tops because their short-term memory tells them things are bullish, then they ride the market down, finally becoming bearish after the majority of the damage has been done. At this point they’re too afraid to get back in because they remember how “bad” things were. And the destructive memory cycle continues.

Fortunately for us, VectorVest subscribers don’t have to rely on memory. We have a service that accurately lets us know when the market is nearing a top and when it’s nearing a bottom. It has a 26-year track record in the U.S. and 12 years in Canada using a smart

indicator called the Market Timing Indicator (MTI). It’s built right into our program. It gives subscribers a decided advantage over investors who rely on their memories of market conditions. We just keep our eye on the MTI. We know the best time to buy is when the MTI starts to rise off a .60 bottom. And we know not to add significant new money (and to start protecting profits) when the MTI reaches about 1.2 to 1.3 in Canada and 1.5 to 1.6 in the U.S. It’s our MTI advantage.

Click the image above to play or visit: http://www.youtube.com/watch?v=YVpnx8BbohY

UPCOMING WEBCASTSWebcasts are completely free and a great opportunity for you to interact and have your questions answered directly by Stan. Can’t make it to the live webcast? Simply register and you will be e-mailed a link to watch the recorded presentation at your convenience! Check www.vectorvest.com/events for dates and times.

• Every Monday — “Canadian Strategy of the Week Q+A” — 11:00 A.M. ET Stan will review the current market condition and answer questions from the most recent SOTW

DISCLAIMERThe information contained herein is not to be considered in any way as financial advice. There is financial risk in investing. Every investor must do your own stock analysis and make buy and sell decisions based on your personal financial goals, risk tolerance, time horizon, investment style, time available for invest-ing and learning about investing, as well as other factors. Past performance does not guarantee similar future performance.

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How much impact does the news have on the stock market’s long-term growth? Find out. This video will take you on a journey through Time Magazine’s headlines as it shows you the growth of a single $1.00 invested in the U.S. market from 1927-2012.

FINDING THE NEXT BIG WINNER Identifying the Day’s Largest Price Gainers

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THE UNISEARCH TOOL IS EXTREMELY POWERFUL AND COMPLETELY CUSTOMIZABLE. LET’S USE IT TO HELP US FIND THE LARGEST DAILY PRICE GAINERS.

After a strong down day, a subscriber asked the question, “Were any of the leading stocks up today? If so, how can I find them?” The answer is to create a custom search in VectorVest. I would set it up this way:

Stock Price - (Actual) > Stock OpenStock Price - (Actual) > 1 day ago Stock Price - (Actual)Stock Price - (Actual) > 2Stock AvgVol - (50 day MA) > 5,000

I would leave the default sort as VST DESC. If you have any trouble setting up the search, be sure to call support at 1-888-658-7638 for assistance.

DESCRIPTION: The search will return stocks that closed the day higher than the open price and higher than yesterday’s close. The results will be ranked so that the stocks with the best combinations of value, safety and timing (VST) are at the top. Intraday and Realtime subscribers can run the search during trading hours to see which stocks are making gains after the open.

ANALYZING RESULTS: The top 10 stocks from 12/03/13 had an average gain of 1.17%. The top gainer was HNU with a gain of 4.83%. Two days earlier, HNU showed a bullish, double-bottom pattern. Other leaders were SUM, FSZ, ATD.B, WFT and ZCL. As a bonus, this search can also provide clues to which sectors and industry groups may be making a move. Click on the column heading to re-sort first by sector, then industry. Sectors with more than one winning stock on 12/03/13 included: Transportation, Building, Financial, Food and Investment. Industry groups with more than one winning stock in the top 25 included: Transportation (Airlines), Building (Wood Products) and Financial (Management).

USE THIS SEARCH TO GET READY FOR THE NEXT UPTREND: Which stocks are holding up best during a downtrend? Which Sectors and Industry Groups are continuing to perform well? Running QuickTests on search results from Oct 1 and Nov 1 showed the daily leaders continued to perform well, far outperforming the TSX average over the next few weeks.

Figure A: Custom Search

Above you’ll see the search parameters as they would appear in UniSearch, as well as the stocks found by this search at the market close on 12/11/13.

5 Monthly Dividend

Payers to watch in

2014 1) CHW

Chesswood Group

2) CEU Canadian Energy

3) BDI Black Diamond

4) CIX CI Financial

5) MTL Mullen Group

Be Aware of Ex-Dividend Date When Buying and Selling Dividend Payers Clarifcation on the key dates that income investors and every VectorVest user needs to know.

There are more than 400 monthly dividend payers in

Canada. ”“

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Type “VectorVest CDN” in the search bar and click “Follow” to receive regular “tweets” about market news, stock analysis and more.

The most important date when you’re buying or selling a dividend stock is the EX-DIVIDEND DATE. That’s the day the stock trades without its dividend. As long as you own the stock at least one day before the ex-dividend date, you will qualify for the next dividend payment.

When you are a BUYER, be aware that price often moves higher as the ex-dividend date approaches. Then, price will often fall the day after the ex-dividend date as an adjustment is made for the dividend about to be paid. This is more true of quarterly and semi-annual payers than the monthly dividend payers whose dividend payments are more frequent, but smaller. If you are a SELLER of a quarterly payer, you may not want to sell a day or two before ex-dividend day, as you would miss out on the next dividend payment.

Where do you find the ex-dividend date? Check the DIVIDEND VIEWER under the Viewers tab. You

can also add the dates to your graphs using the ‘marker toolbar’ found at the bottom of the graph window (see chart example).

There are more than 400 monthly dividend payers in Canada. That means if you own the equity at the close prior to the ex-dividend date, you will get paid the very next month. Typically, but not in every case, the ex-dividend date for monthly payers is around the 27th to 30th of the month. The payday is generally around the 15th of the next month, with a few exceptions, for example, Cineplex (CGX) doesn’t pay until the end of the next month. The great part here is that VectorVest provides you with a WatchList of all the Monthly Dividend Payers. You’ll find it in the ‘Special WatchList’ folder. Using this WatchList will give you the power of VectorVest to analyze every dividend payer and find the best ones for your portfolio.

Try sorting the WatchList by VST+YSG to bring the best combination of growth and income potential to the top of the list.

Remember, it’s important to always do your own homework before you buy any

stock. Don’t just take the top one or two from the list. Dr. DiLiddo provides an extremely valuable 14-point checklist in the last chapter of his little green book, Stocks, Strategies and Common Sense (received in your trial package).

The above graph uses the marker toolbar to display each ex-dividend date for Alaris Royalty.

Post-Trade Analysis

A few questions to guide you:

1. MARKET CONDITION. Which market timing signal did you use to time your buy and sell?

2. FUNDAMENTALS. Did your stock have high ratings for value and safety? Was EPS rising?

3. TIMING. Was RT above 1.0 and rising? Did it have a recent NEW BUY? Was Price above the 40-MA and was the MA in an uptrend?

4. INDUSTRY GROUP. Was your stock a leader in a strong industry?

5. SELL RULES. Why did you sell when you did? Did you sell too soon or too late? Did you follow your SELL rules?

Improve Your Trading with Better Records

“The only way you get a real education in the market is to invest cash...track your trade...and study your mistakes.”

—Legendary Trader Jesse Livermore

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Trading is like anything else you do, the more you practice and study, the better you get. You can learn valuable insights by conducting an annual review of your past trades to see what worked….and what didn’t work. In order to do that, you have to have good records that show what was going on that influenced your decision to buy or sell the stock. Fortunately, VectorVest gives us tools and a historical record that makes our task easier. Here are four quick steps for record-keeping and review that will prove invaluable to your long term trading success:

• Use portfolio manager to keep a record for every buy and sell transaction. From there you can print out the following reports: 1. Transaction Log showing your trade dates and transaction amounts. 2. Trade History showing the open and close dates, number of shares, initial cost and final cost, and the net gain/loss in dollars and as a percent.

• Open both the daily and weekly charts for every stock you bought and sold. Use the ‘Note’ tool to record both the buy date, sell date and number of shares bought or sold. Add a note to describe the reasons why you bought or sold the stock. The note will stay on the graph until you delete it. Place the market timing signal you follow on the graph, as well as standard indicators you like to use; otherwise, use the VectorVest Simple layout which includes a 40-day Moving Average on Price, EPS, Relative Timing and Volume. *Note: Once you’re into this routine, it’s best to place your notes

on the graph at the time of purchase and time of sale rather than having to go back and do it later.

• If you wish, you can print out the graph for a permanent record, or just use the ‘Snipping Tool’ to create a digital copy in Word or PDF. I prefer this method because I find it’s easier to organize and store my records on my computer. (The Snipping Tool is a separate feature available for Windows.)

• Study and/or print out the FULL STOCK ANALYSIS REPORT of each stock on the date of purchase and date of sale. Notice the ratings your stock had at the time. This report also shows the stock’s industry group graph and ranking by RT. If

you’re printing this out, write down any other ideas about the company and the market conditions at the time. The more detail the better. I like to print out a copy and then scan it for my Word/PDF files.

By keeping detailed, accurate records of all your trades, you’ll have all the information you need for a complete post-analysis at least once a year. As a bonus, once you get in the habit of keeping good records on every trade, you’ll be surprised how it will help you avoid making those impulsive decisions on trades that can damage your portfolio. Just knowing that you have to write down why you bought or sold the stock will help you think through the trade before you pull the trigger.

Chart notations for entry and exit of CFN

ODDS and Ends

USER GROUPS

Meeting Info: All the information on Seminars and User Groups meetings in your area can be found on the VIEWS tab every Friday.

Our Special Thanks to all the volunteer User Group Leaders and their helpers for their time and dedication.

STRATEGY OF THE WEEKTo learn about some great strategies and trading plans, be sure to watch the Friday Strategy of the Week (SOTW) video.

Then join me every Monday at 11:00 a.m. Eastern Time for a free webcast titled, “Strategy of the Week Q&A.” We’ll do a current market recap with the benefit of RealTime and then answer your questions about the SOTW. To register for the webcast, just go to the FRIDAY views tab and click on the link.

REFERRAL PROGRAM Invite a Friend to join VectorVest today!

For $9.95 USD they can try the complete program for 5 weeks, and you receive one month free added to your subscription. The more friends we have investing with VectorVest, the more fellowship and the more we learn together.

Not A Subscriber Yet?

A 5-week trial is just $9.95 USD. Call today at 1-888-658-7638.

CONTACT STAN Questions? Tips? Information you’d like highlighted in the next newsletter?

Contact Stan at stan.heller@vectorvest.ca. I try to respond within one week depending on the volume of e-mails I receive.

Thank you for reading. I hope you found this material interesting and beneficial to your investing with VectorVest!

Participating and being a part of the VectorVest User Group community offers fellowship and makes us all better and more knowledgeable investors.

Newsletter Design by Jamin Heller