By observing the trend, one can closely monitor the changes in the overall market trend. According to the channel theory, stock indexes generally follow a certain trend until significant changes occur in policy and macroeconomic aspects, at which point this trend will gradually change. It should be pointed out that the change in trend cannot be completed overnight, which is the so-called "inertia" effect. Second, look at the trading volume. The stock proverbs "quantity comes first" and "sky high quantity and sky high price, land quantity and land price" mean that "trading volume is more important than trading price", because trading volume can determine the trading price and the subsequent stock price trend. Generally speaking, during the process of stock index rise, trading volume should be increased to maintain its original trend. If we consider the rise of the stock index as the speed of the train, then trading volume is the driving force of the train, and the rise of the stock index is like the train going uphill. Without driving force, it is impossible. And falling is like a train going downhill, without much or no power at all, because inertia plays a huge role at this time. In June 2001, after the Shanghai stock market peaked at 2245 points, trading volume no longer increased, incremental funds no longer entered the market, and trading volume began to shrink. This indicates that funds are gradually fleeing, and there is no reason for the stock index not to fall? But this drop continued until 1349 points, almost exhausting the gains of years of bull market. And it was precisely around 1350 points that the trading volume of the two markets began to significantly increase, indicating that incremental funds outside the market began to intervene, and the stock index was able to turn around and rise. Pay close attention to the trend of the moving average by examining it three times. Generally speaking, if a stock index rises for a long time and crosses the 10 day moving average below the 5-day moving average, it should be a warning. If the 10 day moving average crosses the 30 day moving average, you should consider selling the stock. When the 30 day moving average turns downward, you should decisively leave, regardless of whether you are currently losing or making a profit. Here is a reminder to investors that if you fail to escape during the first moving average dead cross, the stock price is likely to have another chance to reverse. At this point, the K-line pattern of the market will form a double or double top, which is the last opportunity for investors. On the contrary, if the stock index falls for a long time and the 5-day moving average crosses the 10 day moving average, it should be considered a better short-term buying point, while if the 10 day moving average crosses the 30 day moving average, it can be considered a medium to long term buying point. The "three checks" mentioned above are complementary. Both the "second check" and the "first check" are absolutely not acceptable. More importantly, in addition to the "three checks" on the market, we should pay special attention to changes in the macroeconomic and policy aspects. We must never go against the policy side and use an egg to hit a stone. When opening, it depends on whether it is a high opening or a low opening, which indicates the market's willingness and is a manifestation of whether the stock price is rising or falling on the day. Secondly, within half an hour of market opening, the direction of stock price changes can be observed. Generally speaking, if the stock price opens too high, it may fall back within half an hour, and if it opens too low, it may rebound within half an hour. The third factor to consider is the size of the trading volume. If the opening is high without falling back, and the trading volume has increased, the stock is likely to rise. Fourthly, when looking at the stock price, it is not only necessary to look at the current price, but also at yesterday's closing price and today's opening price, today's highest and lowest prices, the magnitude of the rise and fall, etc. Only in this way can we see where the current stock price is, whether it is rising or falling, and whether there is buying value. Generally speaking, don't rush to buy stocks that are falling, wait until they stop falling before buying. Stocks on the rise can be bought, but be careful not to be trapped by them. By comparing the number of buying and selling lots, it can generally be seen whether the buyer's power is greater or the seller's power is greater. If the seller's power is greater than the buyer's, it is best not to buy. When looking at the market, you also need to consider the number of current hands and the cumulative number of current hands. The current hand count indicates the size of the trading volume that was automatically executed just now. If there are consecutive large transactions, it means that many people are buying and selling the stock, which is worth noting. If no one buys for half a day, it is unlikely to become a good stock. The cumulative number of current lots is the total number of lots, also known as trading volume. Sometimes, it is a more important indicator than the stock price. The ratio of total lots to circulating shares is called turnover rate, which indicates how many shareholders bought the stock on the same day. A high turnover rate indicates that there are many people buying and selling the stock, and the stock price is likely to rise. If it is not a newly listed stock but experiences a significant turnover rate (over 50%), its stock price often drops the next day, so it is best not to buy it. Selling stocks after a high individual stock price increase is a strategy used in stock market operations, because before the official announcement of positive news, people often know in advance that the main force will raise the stock price. When the positive news is announced, they will take advantage of the opportunity for small and medium-sized retail investors to enter and absorb, and sell for profits. The stock price loses the support of the main capital, so it weakens. Generally speaking, short-term investors take profits by capitalizing on favorable conditions to avoid the risk of stock price decline, or withdraw funds to invest in other stocks during stock price adjustments to gain time advantage. From a medium-term perspective, if the positive news belongs to a "one-time transaction", such as selling assets, the stock price will mainly peak, and it is better to exit at this time. If the positive news continues to be effective, such as asset restructuring, project investment, etc., the stock price often adjusts first and then rises, so it is advisable to continue holding.