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Strategies & Market Trends : Analysis Class for Beginners

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To: Arthur Tang who wrote (1133)3/12/2000 2:32:00 PM
From: Arthur Tang  Read Replies (1) of 1471
 
The story about big fish in a small pond; and the rubber barons on Wall street?

In investment, many new investors try to learn about the technique of investing methodology. Studies were done on fundamental analysis and technical analysis. And now, we are learning market making and the investment results.

What has not been studied was the effect of big fish in a small pond. By splashing all the water out of a small pond, the big fish kills all the small fish. In return, lack of water in the small pond killed the big fish too.

Big fish is big investor, any one with billions of dollars to go into the market and overbought the available number of shares. Greedy market makers will sell short and pull back. In the end every investor losses time and money.

Every time stock suddenly moves 10% up on single large trade. The big fish in the small pond made a move. All astute investors should sell out and wait for first 30% pull back, and then 70-90% pull back two years later. Of course if every one sells, it may cover the shorts, and the oversold might save the stock.

That famous story is the prince and the Apple. Apple is now recovered to new high. Then recently, the DELL and the AOL have not endured the two year ordeal, anytime soon yet.
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