Stock investment and market reading are fundamental skills, but many people are not proficient in this very basic skill. Today, I will take some time to popularize and popularize it to everyone, hoping to help consolidate your foundation.

1 

Look at the index

The Shanghai Composite Index, Shenzhen Component Index, Shanghai and Shenzhen 300 Index, SME Board Index, ChiNext Board Index, and Shanghai Stock Exchange 50 Index are the most basic. It should be noted that you must know which is the composite index, which is the component index, what the composite index and component index mean, and what the differences are.

Next are the less commonly used but important indices, such as the average stock price index in Tongdaxin software, the full A index in Wande stock, and the CSI series indices such as CSI 500 and CSI 1000 that are commonly found in major software. In addition, the indices of stock index futures and options also need to be closely monitored.

The market rules discovered from the performance of these indices, such as the 80/20 split, 80/20 rotation, seesaw effect, light index heavy individual stocks, premium discount, volatility, etc., are all based on the analysis of the market. Therefore, these foundations must be firmly established in order to analyze the market like professional analysts.

2

Look at industry sectors

There are many classifications for industry sectors, such as Shenwan's classification, the China Securities Regulatory Commission's classification, and major software companies' own classifications. For example, the stock software that I am most familiar with, Tongda Xin, is divided into 56 industry sectors. Every day, we look at the market to see which industry sectors are leading the way up, which ones are leading the way down, which ones are lukewarm, which ones were leading yesterday's gains and today's losses, and so on.

Next is to look at the hot topics of the theme. The classification of hot topics varies greatly on different software, ranging from one or two hundred to two or three hundred. The classification of this hot topic is usually different from the industry sector classification and will constantly change. Sometimes you may find that the hot topics are very active, indicating that the market sentiment is high and the risk appetite is high. In this situation, chasing the rise is also easy to make money, otherwise it is easy to lose money.

The hot topics mentioned by analysts have strong (weak) sustainability, the subject matter sector rotates quickly, and a certain is a mainstream hot topic or leading sector, all based on such observations of the market. A more serious investor should frequently flip through the trend charts of each sector or hotspot, which is also a fundamental skill for market observation.

3

Look at a stock

The daily limit up and daily limit down are important factors to consider, as well as the rise fall ratio of individual stocks and the number of companies that have risen by more than 3% or 5%, or fallen by more than 3% or 5%. This is a macro view of the market, understanding the overall market situation. Maybe you will see a familiar stock on the limit up and limit down.

The most important thing is to look at the stocks that you are familiar with, or in other words, the individual stocks in the stock pool. Including their hourly charts, weekly charts, monthly charts, and even quarterly and annual charts. Some information is hidden in the minute chart, and some are even hidden in the call auction, especially for short-term game players. If you don't look at the call auction and the minute chart carefully, you won't understand why it looks like this.