What to Read About the Tape

Before starting to read the tape market, we must make the following preparations:

Determine your own investment goals and risk tolerance. Different investors have different investment styles and expected returns, so they should choose appropriate stocks and strategies based on their own circumstances.

Be familiar with the fundamentals and technical aspects of the stocks you own or follow. Fundamentals refer to the operating conditions, performance, development prospects, etc. of the company represented by the stock, while technical aspects refer to the information reflected in the stock's price, trading volume, trend and other data. This information can help us determine the value and trend of a stock, as well as the factors that may be affected.

Pay attention to the overall market trend and sector differentiation. The overall trend of the market refers to the changes in market indexes such as the Shanghai Composite Index, Shenzhen Component Index, etc., which reflects the market atmosphere and confidence. Sector differentiation refers to the difference in performance between stocks in different industries or themes, which reflects market preferences and hot spots. Usually, we want to select stocks that are in sync with or leading the market, and focus on sectors with good news or potential.

What to pay attention to when reading the tape

When starting to read the market, we should pay attention to the following aspects:

Watch the opening. The opening is one of the most important moments in a day's trading, and it often determines the trend and atmosphere of the day. We need to observe data such as the opening price, opening volume, and the rise and fall within five minutes after the opening to judge the strength and direction of the market.

Analyze Candlestick chart charts. The Candlestick chart chart is one of the most commonly used market-viewing tools. It can clearly display the opening, low, closing prices and trading volume of the stock in each time period, as well as the various forms and signals formed. We must learn to identify concepts such as support levels, pressure levels, trend lines, moving averages, breakthroughs, reversals, and consolidation in Candlestick chart charts, and combine them with other technical indicators such as MACD, RSI, KDJ, etc. to analyze the strength and changes of stocks.

Pay attention to trading volume and capital flow. Trading volume refers to the number of transactions in a stock within a certain period of time, which reflects the activity and participation of the market. Fund flow refers to the difference between the buying and selling amounts of stocks within a certain period of time, which reflects the market's supply and demand relationship and willingness to buy and sell. Generally, we want to choose stocks with increased trading volume and capital inflows, and avoid stocks with reduced trading volume and capital outflows.

Compare relative strengths and weaknesses. Relative strength refers to the comparison of a stock's performance with that of the broader market or the same industry, which reflects the competitiveness and attractiveness of the stock. Usually, we want to choose relatively strong stocks and avoid relatively weak stocks.

Make a summary after reading the market

After finishing reading the market, we should make a summary of the following aspects:

Review your positions and profits and losses. We must promptly adjust our position ratio and allocation, and decide whether to increase, reduce or change positions based on market changes and our own goals. At the same time, we need to record our own profits and losses and analyze our investment return rate and risk-reward ratio.

Summarize your own operations and mentality. We need to reflect on whether our operations are reasonable and effective, whether we follow our own strategies and rules, and whether we stop profits or losses in a timely manner. At the same time, we must adjust our mentality. Don't be proud because you win, and don't be discouraged because you lose.

Predict tomorrow's trends and plans. We need to predict possible trends and changes tomorrow based on the market conditions of the day and our own analysis, and formulate corresponding plans and strategies. At the same time, we must pay attention to important news or events that may affect the market or stocks and take countermeasures.

Conclusion

Reading the market is a science and an art. It requires us to continue learning and practicing in order to improve our level and ability. I hope the market reading skills introduced in this article can inspire and help you, giving you more direction and confidence in the stock market.