Professional Documents
Culture Documents
Jan 2006
By
KH Tang
Topics for Discussion:
Who are the participants in the Market?
What is the Time Frame of their Business?
What are their Edges in this Business?
Phases of Manipulation Cycle.
Sector Rotation. (How to detect Them)
Methods to operate in the Market by the pools. (A detail Example..)
What is the Significant of Understanding the Volume.
Methods to operate in the Market by the Professionals. (Approach…)
Objective:
1. To bridge the most fundamental gap that do not cover in any modern
investment books/courses that I have come across.
2. After gone through this basic introduction, it would facilitate the readers,
in a much faster and easy way, to do their own study/learning with much
better understanding in both classic and modern Technical Analysis
Application rather than just trying hard to memorize patterns.
Who are the participants in the Market?
3. Public – (A) Buy and Hold, (B) Take Small Profit, hold or Sell at
Big Lost.
Professional Edge
Mainly on Technical Analysis,
from minutes-to-days-to-
months. Key foundation build
upon Classic Tape Reading
Computer(s) with Multiple Monitors,
Techniques.
keyboard(s) and Mouse(s).
Understanding of Fundamental High Speed Internet Connection. Superior Money Management and
Analysis. Risk Control Scheme!
Public Edge
But, PUBLIC HAVE All
Strategies and Tactics that
can be applied in Las Vegas!!!
Phone (calling broker*). Continuously, month after month,
Gambling Attitude.
bringing more money from their other
No or not fully understand Basic Computer. professions to the Stock market.
Technical Analysis.
No or not fully understand of Any Speed Internet Connection. No Money Management
Fundamental Analysis. or Risk Control Plan.
*broker – By Wall Street old definition, A broker is a man who assists the Investor in going broke gracefully.
Phases of Manipulation Cycle.
Continue in Start to
What the Public Investor Need to Know?
Telling Tell
In the view of the Institution and Insiders.
Positive negative
Start to Tell Story, Public Stories,
Positive Turn buy from Public
Continue in Around will get
Telling Bad manipulators
Stories, because of fear
News. Public will greed. again.
Public will be help to push
feared and let up the Price.
go their
holding to
manipulators.
The Composite will be the market index: Such as S&P500, Dow Jones Industrial Average(30), Nasdaq, etc…
Sector Rotation (How to Detect Them?)
Sector Rotation (How to Detect Them?)
Methods to operate in the Market by the pools. (A detail Example..)
Key Points:
Price
Volume
Pool
Pro
Public
Note: This does not refer to the typical Daily Charts, as Volume has become a decoy used by the
manipulators. For example, the manipulators can sell heavily on the stock all day long from the
beginning of the and buy back a little portion only at the end of the day to ensure a higher closing
price. Using the End Of Day data for analysis will lead to completely WRONG decision!!!
See the Charts on next Page that, illustrate by a back test, EOD volume is USELESS in today Trading
Decision.
Lost of Value in EOD Volume Information
Lost of Value in Typical Public Favorite Indicator(s)
Methods to operate in the Market by the Professionals. (Approach…)
Bless You
KH Tang