Dow.pdf

Dow TS4

Learn how to trade and win…

The Dow TS4 System

Contents

Chapter

Subject

Page

Background

Financial spread betting

System criteria

Stop Loss and Stop Profit

Staking

Other information

In a nutshell

Fixed-odds betting

Conclusion

10.

Warnings

Appendix

Spread betting and Fixed-odds companies

Appendix

Past results

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Background

Welcome to the Dow TS4 System!

Our Dow TS4 System was devised after research into historical daily Dow data going

back to 1930. The objective of our research was to ascertain whether daily

movements in the Dow were random or whether in fact there is any type of repetitive

pattern within each monthly period. Our analysis reviewed each day’s percentage

change in the Dow and compared this with numerous standing data such as the

respective day of the week, the date, the month, the working day of the month/year,

the number of working days left in each month/year etc.

This System Guide presents to you the findings of this research in which we identified

a unique and consistent monthly movement pattern in the price behaviour of the Dow.

The pattern that we identified does alter slightly, dependant upon the month under

review, however it does remain incredibly consistent from year to year. Of course,

the Dow is not totally predictable and not every position is a winner, but this system

does successfully identify a unique trend with uncanny accuracy, resulting in a very

high percentage of winning trades.

The underlying market

The reason for the regular pattern in Dow movements appears to be based on the

cyclical activity undertaken by the large institutional investors.

The United States investment calendar is comprised of a number of factors which

determine when institutional investors are buying and selling. This investment

calendar reflects the annual, semi-annual and quarterly operations of institutions at

the beginning of each quarter (i.e. January, April, July and October). In addition, the

fourth quarter is also affected by year-end portfolio adjustments together with

presidential and/or congressional elections in even numbered years.

Institutions tend to operate in a predictable manner, causing a massive flow of cash

into and out of stocks at certain times of each month and quarter. The enormous

growth of retirement plans, where participants salaries are paid twice monthly, does

have a significant impact in movement patterns of the Dow.

The Dow TS4 System has successfully managed to identify the main cyclical

determining factors of the big buyers and sellers from the clutter surrounding ordinary

individual Investor purchases and sales.

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The results to date do speak for themselves. This system has indicated a total win of

over 4151 points on the Dow in the last four years. (2001-2004)

One of the great advantages of this system is that the number of trades is kept low,

which reduces the negative impact of the bid/offer spread, which can have a sizable

impact on a trading strategy where a large number of trades are placed. Also the

system is very rigid by design thus eliminating the risks associated with investor

psychology, which can significantly affect profitability where trading decisions are

unclear, ambiguous or subject to personal interpretation.

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Financial spread betting

Until recently, Financial spread betting was the sport of the Professional Traders.

With the sudden surge in the number of financial bookmakers, Financial spread

betting is now taking on mass appeal, establishing itself as the fastest growing sector

in the investment field today.

What is Financial spread betting?

Financial spread betting is a high risk, high reward activity offering you access to the

world’s major financial markets. It has a wide range of applications and is suitable for

a broad spectrum of investors. It enables you to place a position based on the

information contained in this Guide, by betting on the price movement of the Dow.

When you make a financial spread bet, you never actually own the underlying asset.

Instead you are effectively placing a bet on the direction of the movement of the price

of the underlying asset. You then profit if the price quoted moves in the desired

direction and a loss if it moves against you. The profit or loss is calculated by

multiplying your stake by the price movement in the underlying asset, which is the

difference between the opening price and the closing price.

The concept

Financial spread betting is based on a simple concept. If you think that a certain

financial market or product will rise in value, then you buy the product. If you think

that a certain financial market or product will fall in value, then you sell it.

Once you have bought a financial market or product that you believe will rise in value,

then in due course, if your prediction is correct, you can sell the market or product for

a profit (if you are incorrect and the value falls, you make a loss).

Once you have sold a financial market or product that you believe will fall in value,

then in due course, if your prediction is correct, you can buy the market or product

back at a lower price, for a profit (if you are incorrect and the value rises, you make a

loss).

What is a bid/offer spread?

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