Trading: Price to Earnings Ratio

Price to Earnings Ratio

Measures how much you are paying for the company’s earning.

The higher the price-to-earnings ratio the more expensive is the stock price.

Higher price-to-earnings ratio indicates that the company is very popular and it attracts more buyers in the market.

Average P/E Ratio = 17

High P/E Ration > 25

High P/E companies are very optimistic about future and stock price are overvalued and when bubble happens investors are more likely to lose quite a lot.

Low P/E

  • Company is undervalued, trading at low price
  • Company most likely have high earnings

It is best to find the correlation between low P/E ratio and above average returns.

Trading: Dollar Cost Averaging

Dollar Cost Averaging

DCA (Dollar Cost Averaging) vs LSI (Lump Sump Investing)

In stock market past performance cannot guarantee the future performance because every bear market decline, crash and panic.

DCA is simply where you invest same amount of money at regular intervals: every month, year or week regardless of market trend.

It will force the invester to buy more when the price is low and less vise versa.

Benefits related to DCA is that the invester will not be devasted by the losses that come along.

DCA encourages you to be patient and stick to the market for a long term during ups and down.

Example:
Month 1 : Stock Price $10 Bought 50 shares 
Month 2 : Stock Price $5 Bought 100 shares 
Month 3 : Stock Price $5 Bought 100 shares
Month 4 : Stock Price $15 Total 250 shares

ASP.NET MVC – Project Items

ASP.NET MVC – Project Items

/App_Data

This folder contains private data such as XML Files or databases if you are using SQL Server Express, SQLite, or other file based repositories.

IIS web server will not server any other the contains from this folder.

/App_Start

This folder has core configuration settings about the project, including route definitions, filters and content bundles.

/Areas

Areas is a way to partition large application into smaller pieces.

/bin

Bin consists of the compiled assembly of MVC application along with any referenced assemblies that are not in the GAC.

/Content

This folder holds the content for CSS files and images.

/Controllers

This folder contains all the controllers.

/Models

This folder has all the view model and domain model classes.

/Scripts

This directory holds the JavaScript libraries.

/Views

This directory holds the views and partial views, grouped by the controller name. The web.config file prevents the views to be served by IIS. It must be rendered by action methods in controller class.

/View/Shared

This directory holds layouts and views which are not specific to a single controller.

/Views/Web.config

It contains the configuration required to make views work with ASP.NET and prevents views from being served by IIS and the namespaces imported into views by default.

/Global.asax

This is the global ASP.NET application class. Its code-behind class (Global.asax.cs) is the place to register routing configuration, as well as set up any code to run on application initialization or shutdown, or when unhandled exceptions occur.

/Web.config

This is the configuration file for the application.

Happy Days!!

Live as if you were to die tomorrow. Learn as if you were to live forever.. -Mahatma Gandhi

Trading: Stock Beginners Guide

Stock Beginners Guide

What is Stock?

Ownership share in a company.

What is investment?

An asset or item purchased that will appreciate in the future, generate income or sold at a higher price.

With money you can buy shares, bonds, mutual funds or do fixed deposit.

Inflation

When cost of living increases (prices of goods and services increases).

Dividend – share of profits paid out to shareholders

Market Capitalization Analysis

Price * No of shares outstanding = total value of all of the stock outstanding.

RangeStock ValueAnalysis
Nano Cap< $50mHighly Risky
Micro Cap< $250mHighly Risky
Small Cap$250m – $1bPotential growth
Mid Cap$1b – $10b Safety investing and potential growth
Large Cap$10b – $50b Conservative stock investors
Greater safety
Ultra Cap> $50bBiggest of the big eg. Apple, Google

Read More:

Dollar Cost Averaging

Price to Earning Ratio

Getting Started With Windows Server 2016

Getting Started With Windows Server 2016

Recently I got the opportunity to build one Windows Server at my workplace so I am going to share my experience.
Please note that I am not an expert into building server, this is my first step towards building one.

Basic Configuration Steps

1. Open server rack to verify that all the cables are properly connected, there are hard drives as per the requirement. If you ordered with RAID card make sure that it has one.

What is a RAID Controller?
RAID is a virtual data storage which consolidates all the disk drives so that it functions together to boost performance.

2. It is very important to test RAM. One of the server which I ordered had defective RAM and have to ship it back to the vendor for replacement. Once server goes into production then it will cost you more to fix the problem. The sooner you find out the better it is, in terms to time and resource.

One of the method to test RAM it to use the Memtest86 software. Download it to USB stick and run it for approx 24 hours.

Once the RAM test is successful then you are ready to install the operating system.

3. Change the BIOS setting for the boot order
Legacy BIOS Access: DEL, F2, F8, F12 or ESC
In my case I was using USB stick for booting so I changed my setting to USB Hard Disk

Windows Server Installation Steps

1.Check that your hardware meets the minimum requirements.
Minimum requirement Guide

Windows Server 2016 has Standard and Data Center editions and also with Core and Desktop experience but I will go for Windows Server 2016 Core installation.

Step 1: Select the operating system you want to install: Windows Server 2016 Standard

Step 2: Where do you want to install Windows: Minimum requirement to install Windows Server 2016 Core is 32 GB therefore select the disk partition which is greater than 32 GB.

Note:
If you have configured to install your operating system using GPT partition scheme then you have to change disk partion from MBR to GPT.

More Information on Converting MBR to GPT

Windows Setup: Installing using the MBR or GPT partition style

Step 3: Installation will resume and then it will reboot asking you to setup Admin credentials.

Setup your Administrator password.

That’s it, the basic installation for the server core.