Bridge-the-Gap-Trading-in-the-Stock-Market.pdf

Handout of Lecture BRIDGE THE GAP 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? 1. Pools (Insiders of corporations, Very Rich, Powerful and influential people in the market/political position, Institution funds.) - Question: Who are their Supporters? 2. Professional Traders (Floor Traders, Lone-Rangers, Families Business, etc..) – Question: How do they get Train? – How long is the training? 3. Public. (“Uneducated”, and “not proper educated” individuals thinking in terms of investment.) – Question: How Much Training do they receive? What is the time Frame of their Business? 1. Pools – (A) Long Pull, and (B) short-term profit operation. 2. Professional Traders – (A) Swing Trades, (B) Day-Trade. 3. Public – (A) Buy and Hold, (B) Take Small Profit, hold or Sell at Big Lost. (Dow Theory)…The 3 waves. Dow Theory…The 3 waves. Question: Can someone decompose the composite waves?