Tips for retail investors to read stocks: What to watch for retail investors

Individual investors often experience several fluctuations in stock prices within a day. What are the techniques for retail investors to read stocks? Let me introduce it to you!

Firstly, observe the rotation of sectors and hotspots. This can determine the size and strength of the market trend. For example, the number of companies that hit the limit up at the opening is an indicator of popularity; If there are many hot sectors every day and they can continue to rise for a period of time, with leading bull stocks, it may indicate that the market will not stop in the short term.

Secondly, train the intuition and sense of market opportunity. For example, a large bullish candlestick followed by a slight contraction indicates a trend of accumulating momentum; For example, if there is a sharp drop, do not easily sell stocks. You can wait for the technical rebound; The rotation rhythm and interrelationships between sectors need to be continuously trained during market observation. Of course, this type of training requires both a foundation in recognizing fundamentals and a certain accumulation of technical analysis. Novices can first lay a solid foundation and then exercise in actual combat.

Thirdly, look at the dominant leaders. One of the important tasks of market reading is to pay attention to the stocks that are at the top of the price increase chart. These stocks are the leaders that lead the market trend. Because market rules always follow the "Matthew Effect" of "the strong always remain strong, the weak always remain weak". When a major market trend arises, experts in market observation can immediately smell the scent of leading sectors and stocks, and this needs to be discovered as early as possible. Similarly, in weak markets, it is important to focus on stocks that are trending against the trend. These stocks at least indicate a high degree of market control or a strong willingness to go long. And once the market stabilizes, these counter trend stocks are likely to be unstoppable.

Fourth, look at abnormal stocks. In addition to paying attention to the leading stocks, it is also necessary to pay attention to stocks with strange trends when watching the market. For example, some obscure stocks and problematic stocks. Perhaps there are various reasons behind the abnormal behavior of these stocks that are not known to the general public, such as restructuring, performance turning points, trading suspensions, and so on. The miracle of 'black chicken turning into phoenix' often occurs in the Chinese stock market. Retail investors may not have an advantage in terms of information, but they can obtain clues through careful reading of the market.