You may not understand what it means to look at the market. First, let me ask you what problems you need to solve when looking at the market?
The first thing to do is to solve the problem of the trend of the index. When most people see this, it is over. To look at the market is to see whether the index is rising or falling! I guess what that thing is for, I don’t buy indices or stock index futures.
Let me ask you the second thing. Another issue that needs to be studied when looking at the market is called the nature of the market. I don’t know if you have considered this. What is the reason for the index rising and what types of institutions push it up? This is called the nature of the market. It can be simply classified into two groups: those promoted by mainstream institutions and those promoted by hot money.
The third is the hot issue, who is the vanguard? Is it the theme of the story, a leader, a second-tier blue field, a certain industry, or some junk stocks that have rebounded and fallen too hard and need to save themselves, etc. wait. The reasons for these increases need to be clarified.
The next thing we need to do is to formulate a strategy. After looking at the first few things, we should be able to solve another problem. This is probably a counterattack, a rebound, or a rise that lasts for several months. The intermediate market is still a big bull market for several consecutive years. After understanding this, you will form a strategy. If it is really a big bull market, hold on to some cheap stocks and refuse to let go, you will win. The plan is to hold it for five months and not look at it at all, and then just look at the index every day. Instead, you will make more money.
Most decisions need to be made based on the judgment of the market. If we understand that the market is a subject of hot money speculation, then what value investment would you buy? Just watch the Xinwen Network to see what news comes out of the State Council and what good news comes out of which industry. Just watch the news.
It is not appropriate to invest in individual stocks regardless of the broader market. Even if you talk about this matter, the premise is that there is no systemic risk to the broader market. You have some idea in your mind that it may be an oscillation, and even if it falls, it will be very mild. Only if you don't hurt your muscles and bones can you dare to buy stocks. If there is a huge risk that the building will collapse like a cliff and the whole building will collapse, do you still dare to buy stocks? If you ignore the broader market and make individual stocks, people like you will die.
Relatively speaking, studying the market has more information, more data, and more methods. And compared with individual stocks, it is easier to grasp the market. Individual stocks have different types of institutions, different styles, different personalities of the main traders, different origins of historical trends, and too many variables such as themes, stories, emergencies, etc. On the contrary, the market is easier to control.
The other is the interaction between individual stocks and the broader market, which is the comparison between them. In fact, this is a very, very good tool for studying individual stocks. When do they follow the trend of the broader market, and when do they follow the trend of the broader market? It works the other way around. Whenever the market rises, it does not rise, etc. Studying through these things is a very good way to solve the problem of individual stocks. I have once figured out that if there are other stocks besides the K-line, If you give me an indicator to use, you can choose whatever you want. I won't choose the moving average, MACD, or KDJ. I will choose the Shanghai Composite Index and just put it at the bottom. Because, this is where the popularity of the entire market lies. The corresponding relationship between popularity and individual stocks can make the reasoning about stocks almost the same, so when investing in stocks, you have to look at the broader market.