Introduction to stock knowledge: What are the rules of the stock market?

1. Stock type

Those starting with 6 represent stocks listed on the main board, those starting with 0 represent stocks listed on the Shenzhen Stock Exchange, and those starting with 3 represent stocks listed on the Shenzhen Stock Exchange. Stocks listed on GEM. There are three major indexes corresponding to them, the Shanghai Composite Index (000001), the Shenzhen Composite Component Index (399001), and the GEM Index (399006). The stocks on the main board are regulated by the Shanghai Stock Exchange, and the stocks on the Shenzhen Stock Exchange and the GEM are all regulated by Shenzhen Securities. Exchange regulation.

2. Index constituent stocks

The function of the index is to provide investors with a weather vane reference. The index is calculated based on the stock price trend of the index constituent stocks, and the stocks that can be selected into the index are generally screened and generally not too bad. Therefore, when selecting stocks, give priority to the index constituent stocks, and then It is a good method to filter with other conditions. Another advantage of index stocks is that sometimes when the market drops sharply, in order to ensure that the index does not fall too much, the index stocks will be pulled up to preserve the index. Many of the stocks that doubled in value in 2017 came from Shenzhen Stock Exchange 100 constituent stocks, such as Hikvision, Midea Group, and Han’s Laser.

3. How to understand the index time-sharing chart

In the index time-sharing chart, there will be two lines, one white line and one yellow line. The white line represents stocks with large circulation and heavy weight, while the yellow line represents stocks with small circulation and theme.

Four. How to use the moving average

The moving average actually refers to the average value of the stock price within a certain period of time, mainly to track the trend. Commonly used moving averages include 5 lines, 10 lines, 20 lines, 30 lines, 60 lines, 120 lines, and 250 lines. These moving averages can be used at the daily K-line level, weekly K-line level, and annual K-line level.

Fifth, bear markets and bull markets must adopt different trading models

In bear markets, adopt the left-hand trading model, buy stocks in batches during a plunge, and start buying stocks in batches after the trend improves Sell.

In a bull market, use the right-side trading mode. Hold stocks that have not increased much, wait for them to rise, and hold shares based on the trend line.