Firstly, one must learn to maintain a wait-and-see attitude. When the stock price is in a stable stage of rising (falling) and there is no obvious signal of breaking or reversing (rebounding) at the moment, it is important to remain cautious. Keep holding when it rises, and remain short when it falls. When the stock price breaks through an important reversal point or consolidation pattern, and the magnitude of the rise or fall has not yet reached the minimum required for a pattern, it is important to remain cautious. In addition, when the stock price enters a consolidation phase and there is no decisive breakthrough yet, it is important to remain cautious.

Secondly, it is important to seize the opportunity to buy stocks. When the stock price has dropped significantly or has continuously dropped several limit down levels, especially when stocks with investment value have also hit the limit down level, it is advisable to consider buying.

When the stock price has been declining for a long time and, based on the P/E ratio calculation, has fallen to the low price circle, and there are consecutive bearish or bearish candlestick combinations on the stock price trend chart, buying can be considered.

It is expected that listed companies will launch ideal distribution plans in the next two to three months. From the trend chart, the decline in stock prices has slowed down and there are signs of capital intervention and operation. At this time, buying should be considered.

When the stock price shows a mid-term decline in the original long-term upward trend, which has dropped by about half of the original increase, and the trading volume has relatively decreased significantly, or when the stock price encounters strong support in the downward trend and fails to break through immediately with a significant decrease in trading volume, buying can be considered.

At the same time, it is important to recognize the timing of buying stocks immediately. After a long-term decline in stock prices, when the price to earnings ratio has fallen to the low price circle and the stock price trend chart has formed a reversal pattern and broken through the neck line upwards, or when the stock price has broken through the consolidation pattern upwards and accelerated away from the consolidation pattern during a long-term upward mid-term decline (retracement) trend, it is time to consider buying immediately.

When the stock price breaks through the downward trend line and the closing price exceeds the previous day's closing price by more than 3%, or when the stock price reverses in the downward trend, or when there is a significant reversal after several consecutive bearish lines, immediate buying can be considered.

The timing of selling stocks. When investors are optimistic about the future market and the stock price rises sharply and continuously, with several limit up boards appearing, even the usually unpopular stocks have reached the limit up board, or when the stock price has been rising for a long time and the price to earnings ratio has reached the high price circle, the stock price trend chart shows a high continuous bullish line, a rising short circuit pattern, or a circular trend of easing the upward trend, and the trading volume decreases, it is necessary to consider selling.

When the stock price has risen by about half of the decline in the mid-term rebound generated by a long-term downward trend, and several large bullish lines appear continuously, the market trading is prosperous, the trading volume gradually increases, or the stock price shows a continuous bullish line or a short upward trend in the mid-term upward trend, it is necessary to consider selling.

For retail investors, the timing of selling stocks is very important. After a long-term rise in stock prices, the price to earnings ratio has reached the high price circle, and a clear reversal pattern has formed on the stock price trend chart, breaking through the neck line and starting to move away from this reversal pattern, or rebounding in the long-term decline of stock prices, forming a consolidation pattern, and continuing to break through this consolidation pattern and accelerate the departure, is the time to consider selling immediately.

When the stock price breaks through the upward trend line and the closing price drops by more than 3% of the previous trading closing price, or when the stock price reverses in the upward trend, or when it reverses after pulling out several consecutive bullish lines, it is time to consider selling immediately.