Life as a consultant ...

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楊慶: 追求“解”

Life as a scientist ...

楊慶: 追求“解”

A scientist is a person that engages in a systematic activity to acquire knowledge ...







The key to the development of modern portfolio theory (MPT) is the placing of severely simplifying assumptions on risks. The behavioral content is ignored and only price volatility characterized by standard deviation or beta is considered. The MPT failed to interpret and prevent the global financial crisis and capital market panic in 2008.


Dr. Charlie Qing Yang discovered a family of non-normal distributions and dual-mode market statistics in 1996. His research was later extended to become a new theory called the Capital Market Behavior Theory (CMBT). For the first time in history, the statistical assumptions of MPT are completely removed and so do the limitations. His work can enable government regulators and financial institutions to control market risks with a clear understanding of capital pricing statistics as derived by investors’ behavior. The findings have been extensively validated by real time market data since 2000 and evolved to systematic implementation of Human Emotion Index as a new leading indicator of primary market cycles.


In summary, CMBT is based on the behavioral interpretation of capital market pricing as follows:


- Capital market pricing is determined by collective effect of all bullish and bearish investors’ perception on the price;


- Capital market pricing is not decided by those investors with interest but taking no actions to support market prices;


- Fundamental value and technical charting do not directly affect capital market pricing. In other words, capital market pricing is driven only by the behavior of those investors who take trading actions.



Dr. Charlie Qing Yang also contributed to the invention of Mobile Payment System (Patent Publication Number: US20020073027, issued on June 13, 2002). The patent covers a mobile payment method designed to facilitate payment and transaction in addition to credit card and debit card, which includes the steps of


(a) receiving a payment request in an operation center from a registered merchant through a communication network;

(b) requesting the registered merchant, through the communication network, to inform a customer ID of a customer, who is a registered member of the operation center, and a transaction amount to be paid by the customer to the registered merchant;

(c) verifying a merchant ID of the registered merchant by the operation center;

(d) confirming the payment request by the operation center by notifying the customer and requesting for verification;

(e) requesting the customer to verify the payment transaction by confirming the transaction amount and inputting a security password of the customer registered in the operation center; and

(f) confirming with the registered merchant whether the payment request is issued.



Contact:           Charlie Q. Yang           

                        P.O. Box 3822, Palos Verdes, CA 90274

Telephone:        (310) 528-5511