A senior stock trader once said, 'Why do some people make money while others always lose money? Different market reading skills are one of the important reasons.'. So, what are some good stock viewing techniques?

When many new investors first enter the stock market, they often understand their bearish view as simply tracking the rise and fall of the index in a timely manner. This is a serious bias that inevitably restricts investors from seizing the fleeting opportunity to seek profits and avoid risks. Reading skills require careful learning and mastery. This article will explain three tips for reading stocks, teaching you not to miss investment opportunities.

Below are some key points for market observation

1、 Check the matching situation of quantity and price

By observing the changes in the trading volume bar and corresponding index changes, determine whether the volume price match is a positive match or a negative match. Specifically, if the trading volume bar gradually increases from short to long and the index also rises synchronously, it indicates that the push up function is continuously strengthening, which is a positive match and can be followed up; On the contrary, when the index rises, the trading volume bar is shrinking, which is a negative match. There is no quantitative short rise, and there will be a short-term pullback. Similarly, when the trading volume bar gradually becomes longer and the index continues to decline, it indicates that there are large investors and institutions selling, which is a dangerous signal. Usually, the market is difficult to remain strong in the short term; The trading volume bar keeps shrinking, but the index is rapidly declining, which is a panic drop caused by the collapse of buying. At this time, it is necessary to intervene decisively, and short-term profits are abundant.

2、 Check the conversion status of hotspots

By observing the first version of the daily rise and fall ranking of individual stocks, determine whether long-term funds are actively operating or short-term funds are wandering and impacting.

3、 Reasons for Index Fluctuations

The intraday intraday index chart may sometimes show a sudden surge or plunge, but without prior warning, it is called an abnormal trend. If the cause is not identified and investment decisions are made based on the trend of the time chart, it is easy to make mistakes.

In general, it is advisable to quickly search for recruitment index stocks to determine whether the sudden large buying or selling of such stocks has affected the overall market trend. Due to the significant expansion of the current market size, a sudden change in the trend of an indicator stock may affect the immediate index increase, but it is difficult to shake the overall trend of the market, so it is unnecessary to pay attention to it. After some time, the overall market index will stabilize. But if one day the sudden drop in the index is caused by a group of value oriented individual stocks, it often means that the market trend has changed or there will be negative news coming out. Similarly, if one day the index suddenly rises and is a value oriented individual stock, it may experience a period of upward momentum due to consecutive large buying orders.

Finally, we would like to remind investors that stock trading carries risks. While entering the market with caution, please also maintain a good investment mentality.