GLOBAL MANAGEMENT

APOLLO PHASE III

TRAINING COURSEWARE
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Content:

1. Financial Perspective

2. Quality Stock Analysis

3. Trading System

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GLOBAL MANAGEMENT

Financial Perspective

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Focus on US
• Stock Market Dips Slightly: The stock market dipped slightly on Thursday,
reversing some of the gains made earlier in the week and retreating from
record highs. The Dow Jones Industrial Average briefly surpassed 40,000
points for the first time but failed to maintain its gains, closing lower for the
day.
• Earnings Season Nears End: As earnings season winds down and shifts
focus to retailers, Walmart reported its first-quarter results this morning,
exceeding expectations due to growth in e-commerce and same-store sales.
• Bond Yields Edge Higher: Treasury yields edged higher, with the 10-year
Treasury yield at 4.38%, down about 0.3% from its recent April peak. A
favorable inflation report yesterday boosted expectations that the Federal
Reserve will be able to cut rates later this year.
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GLOBAL MANAGEMENT

Learning is the best investment

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Focus on India
• India's trade deficit has widened to $19.1 billion, with an increase in gold imports
and a decrease in exports.

• Indian Commerce Minister Sunil Barthwal stated that in April, India's merchandise
trade deficit expanded to $19.1 billion. A Reuters survey of economists had
projected the trade deficit for April to be $17.23 billion. In March, India's trade
deficit had narrowed to an 11-month low of $15.6 billion.

• Merchandise exports saw a year-on-year increase of 1.06%, reaching $34.99 billion.

Meanwhile, government data shows that imports in April grew by 10.3% year-on-
year to $54.09 billion, compared to $57.28 billion in March. The data indicates that
the increase in import expenses was driven by higher inbound shipments of gold,
petroleum products, electronic goods, and pulses.
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Market Review
India's VIX Index Drops by 1.2% to 19.8.
On May 17th, the benchmark indices extended the gains from the previous
trading day and closed higher. The market reacted positively to the increased
voter turnout in the fourth phase of the elections.

At the close, the Sensex index rose by 253.31 points, or 0.3%, to 73,917 points.
The Nifty 50 index increased by 61 points to 22,464.80 points.

Mahindra & Mahindra led the index gains, with its stock soaring 8% following
optimistic sentiment towards the agricultural sector recovery in its Q4 FY2024
results. JSW Steel's stock climbed nearly 3% ahead of its quarterly earnings
report scheduled for later today.
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Market Outlook
Following last week's fluctuation in negative sentiment, positive global signals have
lifted the benchmark indices. On May 17th, amid favorable global conditions, the
Nifty index rose, closing at 22,488.25 points, up by 84.4 points, or 0.4%.
Several positive signals, both global and domestic, indicate a promising market
outlook. In the United States, April's inflation rate fell to 3.4% year-over-year, and
cooling retail sales suggest a soft landing for the U.S. economy, paving the way for
potential Federal Reserve rate cuts. This favorable global environment provides
resilience to the home market, offering stability to other markets as well.
Domestically, the improved voter turnout in the fourth phase of the elections is seen
as positive from a market perspective, as it alleviates some of the anxiety surrounding
the election results. This combination of encouraging global and local signals bodes
well for the market's development.

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GLOBAL MANAGEMENT

Learning is the best investment

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1000% Profit Plan

1. Plan Initiator: Apollo Group

2. Profit Target for Each Phase:

- Phase 1: Profit Target 50% - Phase 4: Profit Target 200%

- Phase 2: Profit Target 100% - Phase 5: Profit Target 200%
- Phase 3: Profit Target 150% - Phase 6: Profit Target 300%

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Difference between primary and secondary markets

From the perspective of the secondary market, the Apollo Academy 1000% Profit Plan might
indeed seem challenging to achieve. However, stock market investing isn't limited to just the
secondary market. There's also the primary market, which many might not be familiar with. Over
this period of operation, you may have sensed the inherent unfairness of the stock market for
ordinary investors. Let's consider the various investment strategies we've employed recently. UC,
Block Deals, IPO Subscriptions.
You’ve never engaged in these strategies before, or considered them as potential profit avenues.
Most of you were only aware of the "buy low, sell high" strategy. For instance, there are many
stocks in the market that hit continuous upper limits. It's evident that if you can buy into these
stocks, you can make immediate profits. However, due to trading mechanisms, it's often impossible
to purchase these stocks through the secondary market, leading to missed profit opportunities.

Block deal allows investors to buy stocks below the market price, which can result in significant
profits. IPO subscriptions are another familiar concept to most of you. You all know that getting an
allocation of new shares through an IPO can be profitable, but securing these allocations through a
regular secondary market account is often difficult.
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Seize the chance for IPO

Through our tradings everyone has gained a deep understanding of the primary market.
From this perspective, the Apollo Academy 1000% Profit Plan seems much more
achievable. For instance, in the fourth stage, through just two IPO subscriptions, we
have already achieved over 600% profit. It becomes clear that significant profits can
only be realized through participating in IPO subscriptions in the primary market.
Of course, our operations in the primary market are not limited to IPO subscriptions; we
also engage in UC and block deals. These strategies, however, have not been included in
our total profits. As I mentioned before, UC and block deals merely generate some extra
pocket money for us.
For most of you, before joining the Apollo Academy 1000% Profit Plan, getting IPO
shares might have seemed like a distant dream. Therefore, it was hard to grasp the
substantial wealth increase that can follow an IPO listing. Through our recent
operations, you now have a much deeper understanding of the potential profits an IPO
can bring post-listing.
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Join the Apollo 1000% Profit Plan

If you've missed out on the earlier stages of the profit plan, it's crucial to catch up as we move
forward. Our profit targets will become increasingly ambitious, and accordingly, our expectations for
all students will also rise. It's essential to maintain strict discipline and execution. For a team to grow
stronger and more successful, everyone must come together to get larger profits in the stock market.

Remember, each stage also serves as a critical phase for Apollo Academy to select outstanding
traders. We will comprehensively evaluate each member's execution in every trade, considering
factors such as participation, position size, and execution diligence. For specific details, you can
consult with the assistant privately.

Those who meet our standards will be invited to an exclusive offline meeting at our U.S.
headquarters in July. This event will provide an opportunity to interact with and learn from Apollo
Group's top traders. All expenses for this meeting will be covered by Apollo Group. More
importantly, successful participants will gain a lifetime opportunity to collaborate with Apollo
Group, with annual returns on stock operations expected to grow by at least twentyfold.

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Quality Stock Analysis

Learning is the best investment

GLOBAL MANAGEMENT

Learning is the best investment

GLOBAL MANAGEMENT

Trading System

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1. Zero-Sum Game Theory: The Stock Market Isn't Always a Win-Win

The zero-sum game theory posits that in a fully competitive environment, the gains of one party
necessarily result in the losses of another. The total gains and losses of all parties involved add up
to zero, meaning that the collective wealth does not increase through the game.

Whether the stock market is a zero-sum game depends largely on the nature of the profits
investors are making.

If investors earn money from the growth of listed companies, by holding stocks long-term and
benefiting from the company's earnings growth through dividends or rising stock prices, then the
stock market can be a positive-sum game where everyone can profit. In this scenario, the market
supports long-term stability and growth, benefiting all investors.

Conversely, if investors are profiting from other investors, relying on frequent buying low and
selling high to earn price differences, the stock market becomes a zero-sum game. In such a
market, one's gain is another's loss, turning the stock market into a cutthroat competition.
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2. Capital Management Theory: The Primary Task is to Control Market

Risk
Capital management involves more than just effective position sizing; it begins with managing
the nature of the capital itself. The controllability of stock market investment risks largely
depends on whether the capital used for investing in the stock market is secure.

The stock market is highly volatile. Even if the long-term trend is upward, significant systemic
corrections are inevitable along the way. During such periods, no technical method can fully
protect against sudden risks, and for emergency funds or short-term leveraged funds, this can
result in irreparable losses.

For most ordinary investors, the money used to invest in the stock market should ideally be long-
term, idle funds that are not needed for immediate household expenses. Additionally, this
investment should not constitute a large proportion of the family's net assets. By ensuring this,
investors can handle market fluctuations calmly and navigate through bull and bear markets
smoothly.

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3. Portfolio Theory: An Essential Guarantee for Stable Returns

Portfolio theory states that a portfolio composed of several stocks with low
correlation will have returns that are the weighted average of the returns of
those stocks, but its risk will not be the weighted average risk of those
securities. Portfolios can reduce unsystematic risk.

In a growing economy, the long-term trend of the stock market is upward

with fluctuations. True market risk arises from the uncertainty of individual
sectors or stocks. Without a portfolio approach, having an excessively high
concentration in a single sector or overly correlated stock holdings may lead
to increased risk. While it's possible to achieve excess returns in certain
phases, the stability of profits cannot be effectively guaranteed, and the risk
becomes significantly higher.
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4. Keynes' Beauty Contest Theory: How to Identify Short-Term Stocks

Keynes likened financial investment to a beauty contest. In a beauty contest, the
ultimate winner may not be the one you personally find most beautiful but rather the
one who receives the most votes. Similarly, in the investment market, what matters is
not your own perception but the widespread consensus. This principle aligns closely
with behavioral finance explanations.

Keynes' beauty contest theory primarily applies to short-term trend trading. In other
words, speculative behavior is based on speculation and understanding of public
sentiment, particularly that of institutional investors. Even if we are aware that certain
psychological and investment logics are absurd, until the market corrects itself, we
must invest according to this approach, following the trend rather than going against
it.

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5. Valuation Theory: No Valuation, No Investment

Valuation theory involves objectively assessing the ups and downs of stocks through
financial indicators and valuation models, combined with historical trends and
company growth prospects. It provides a basis and reference for value investing. The
two most popular valuation theories are the Price-to-Earnings (P/E) ratio (the ratio of
market capitalization to earnings) and the Price-to-Book (P/B) ratio (the ratio of
market capitalization to net assets), along with the Price/Earnings to Growth (PEG)
ratio, which measures the reasonableness of valuation relative to earnings growth.

When applying valuation theory, it's essential to think dynamically and with foresight,
especially for cyclical industries with significant performance fluctuations. One
should pay close attention to the pitfalls and opportunities within valuation,
particularly in industries with large performance variations.

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6. Sunk Cost Theory: A Key Barrier Preventing Investors from Cutting Losses
Sunk cost refers to costs that have already been incurred due to past decisions and
cannot be changed by present or future decisions. When deciding whether to do
something, people not only consider the potential benefits but also take into account
the investments they have already made in the past. These irreversible expenditures,
such as time, money, and effort, are referred to as "sunk costs."

Investors often have a deeply ingrained habit of holding onto losing stocks, unwilling
to cut their losses. This behavior is largely driven by the immense psychological
pressure caused by the concept of sunk costs.

From an investment perspective, it's crucial to abandon the notion of sunk costs and
instead make decisions based on judgments about the future price trend of stocks and
from the perspective of opportunity cost.
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7. Fuzzy Logic Theory: Investing as a Blend of Science and Art

Fuzzy logic theory posits that investing is a risky endeavor. In the investment process,
there are no absolutely risk-free opportunities. What matters is the probability of success
and the risk-return ratio. Relying on scientific predictions and evaluations to find
completely accurate entry and exit points is undoubtedly unrealistic.

Many people are accustomed to predicting the bottom or top of the stock market and
refuse to enter the market until those points are reached. However, this behavior is often
not rational.

As Warren Buffett famously said, "I'd rather be approximately right than precisely
wrong." Since the market itself is subject to significant irrational factors, it's impossible to
arrive at completely accurate judgments. Therefore, embracing fuzzy logic accuracy is the
only correct choice.
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8. Efficient and Inefficient Market Theory:

Markets Ultimately Return to Rationality
The Efficient Market Hypothesis (EMH) suggests that investors are rational and information is fully
disseminated, resulting in market prices always being rational. According to this theory, investors
cannot beat the market to achieve excess returns.

On the other hand, the Inefficient Market Theory (IMT) argues that investors are not entirely
rational, and information is not fully disseminated, leading to frequent mispricing in the market.
This provides excellent decision-making opportunities for value investors.

In reality, the stock market is a combination of both efficient and inefficient markets. In the short
term, the stock market is inefficient, driven mainly by funds, emotions, and various news, with little
correlation to fundamentals, exhibiting strong randomness and uncertainty. However, in the long
term, the stock market is efficient, ultimately determined by fundamentals. Only blue-chip stocks
with excellent performance can withstand bull and bear cycles, providing investors with substantial
returns.
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9. Winner-Loser Theory: Consistent Victories in the Market Are Rare

The winner-loser effect refers to investors being overly pessimistic about past
loser portfolios and overly optimistic about past winner portfolios, leading to
stock prices deviating from their intrinsic value. After a period of time, the
market automatically corrects itself, with previous losers gaining positive excess
returns and previous winners experiencing negative excess returns.

This principle partly explains the unreliability and difficulty of sustaining short-
term trend-following strategies, as well as the absurdity of short-term
performance rankings. Mature investors must be able to overcome human
weaknesses, resist the temptation of short-term gains, and navigate towards
long-term success.

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10. Merrill Lynch Investment Clock Theory:

Seizing Investment Opportunities is the Key to Profits
The Merrill Lynch "Investment Clock" theory is a method that links "assets,"
"sector rotation," "bond yield curves," and the "four stages of the economic
cycle." It's a highly practical tool for guiding investment cycles and asset
allocation.

The saying "timing is everything" holds true in investing. By following the

indications of the Merrill Lynch Investment Clock, we can adjust the allocation
and structure of our stock investments promptly, seize better entry points, and
thus minimize risks while maximizing profits.

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THANK YOU
Learning is the best investment

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