1. How to see the direction of the K-line chart

The K-line chart has two colors. When the closing price of the day is higher than the opening price, it indicates that the stock price is rising. Therefore, The K-line chart will be shown in red; if the closing price on the day of investment is lower than the opening price, it indicates that the price is in a downward trend. The K-line chart is mostly shown in black or green.

In the K-line chart, it is divided into Yang line and Yin line. The positive line indicates that the stock is showing a continuous upward trend, and the negative line indicates that the stock is continuing a downward trend.

In the K-line chart, the size of the entity represents the internal motivation. The larger the entity, the more obvious the upward or downward trend. If the entity is smaller, the less obvious the upward or downward trend. We can take the Yang line as an example. If the closing price is higher than the opening price, the larger the body of the Yang line is, the stronger the upward momentum will be and the more obvious the upward trend will be.

In the K-line chart, the shadow line is a signal of turning point. The longer the shadow line in one direction, the less conducive it is to the stock's movement in that direction; simply put, the longer the shadow line, the less conducive it is to the stock price. If the price rises, the shorter the shadow line, the better the stock price will rise.

2. Stock trading requires value investment

In stock trading, in addition to being able to look at the trend of the basic K-line chart, what is ultimately needed is value investment. If a new investor doesn't know how to read K-line charts, he or she needs to put more thought into stock selection. We need to choose some high-quality stocks for investment.

When choosing to invest in a stock, you need to analyze the company's book value. You can see whether a company has value through its financial statements.

Several indicators need to be used to judge whether the invested company has value: return on net assets, non-recurring gains and losses, net operating cash flow, compound growth rate in the past five years, and most importantly, the company’s hidden value value.

The so-called hidden value of the company refers to: the excellent subsidiaries controlled by the company, the core technology owned by the company, the potential customers and potential resources owned by the company.

If a company's financial bills are all in actual profit and there are no major losses, then this company is worth investing in. These investment judgments are also factors that investors should consider when investing.

To sum up, when investing in stocks, you must first learn to read the K-line chart. This is the entry-level trick for stock trading. If you don’t look at the K-line chart, then it is not called stock investment, but called “betting on luck.” . Secondly, before investing, you need to evaluate the company you are investing in, and use the company's financial statements to evaluate whether the company has investment value, so as to determine whether you should invest in the company and how much money to invest.

If you are ready to get started with the above two things, you will be more comfortable investing in stocks and can make more profits in the stock market