Technical aspect
There will be all kinds of data in the process of market transactions. Technology-oriented investors believe that the future price trend can be predicted by studying the data of past prices and trading volume. Technical analysis focuses on icons and mathematical formulas to capture major and minor trends. By estimating the length of the market cycle and identifying buying or selling opportunities, we often use moving averages, MACD indicators and KDJ indicators to judge the market.
fundamental principle
Through the investigation of macro-economy, industry background, company's operating ability, financial situation and many other aspects, the method of judging the future trend of the market is fundamental analysis, which is based on intrinsic value and focuses on analyzing various factors affecting the price and trend of securities to judge the trading point of the market. Fundamental analysis is mainly applicable to the prediction of markets with relatively long cycle, relatively mature markets and markets with low accuracy requirements. In essence, fundamentals provide a basic direction for the market. For example, when a product reaches the peak demand season, people will expect the price of this product to rise.
News surface
News is an important factor that causes short-term fluctuation, which either contributes to the existing market trend or may end and reverse the current market trend. If the news is consistent with the original market fundamentals, the general market will continue to operate in the original direction. If the news is contrary to the original market, the impact will often be subversive.
For example, the demand for steel has reached the peak season, and the price of iron ore has risen due to the epidemic. In the future, the price of steel will continue to rise due to demand. If iron ore imports increase substantially and stocks increase significantly, then this news may not be good news for the future steel price increase.
When we analyze the market, there is no novel research and analysis method. No matter which side you focus on, you should consider other influencing factors. Changes in market conditions should not only consider the present, but also look at the past and the future. Judging the market is not an easy task, but it is precisely the most difficult part of our investment process. This is not a single forecasting method. In the actual transaction process,