Pay attention to the company's profitability, such as net profit, gross profit margin and other indicators. Net profit reflects the company's final profit, while gross profit margin reflects the company's core competitiveness and cost control capabilities. For example, for a manufacturing company, a higher gross profit margin means it has advantages in product pricing and cost management.

Analyze the company's solvency, including current ratio, quick ratio, asset-liability ratio, etc. Current ratio and quick ratio measure a company's short-term solvency. Generally speaking, a current ratio of around 2 and a quick ratio of around 1 are healthy. The asset-liability ratio reflects the company's long-term solvency. The reasonable asset-liability ratio varies in different industries. For example, the asset-liability ratio in the real estate industry is relatively high, but it also needs to be within a reasonable range.

We also need to examine the company's operating capabilities, such as accounts receivable turnover rate, inventory turnover rate, etc. A high accounts receivable turnover rate indicates that the company collects accounts quickly and has high capital turnover efficiency; a high inventory turnover rate indicates that the company has good inventory management and smooth product sales.

Understand the competitive landscape of the industry, whether it is oligopoly, monopolistic competition or perfect competition. In oligopolistic industries, such as the telecommunications industry, a few companies occupy most of the market share, and these companies often have strong pricing power.

Analyze industry entry barriers, including technical barriers, financial barriers, etc. For example, in the pharmaceutical industry, the research and development of new drugs requires a large amount of capital investment and advanced technology research and development capabilities, which creates high barriers to entry and helps existing companies in the industry maintain their competitive advantage.

Pay attention to the development trends of the industry. For example, as environmental awareness increases, the traditional fuel vehicle industry is facing pressure to transform into new energy vehicles, while new energy vehicle-related industries are in a rapid development trend.

Trend lines are drawn by connecting the highs or lows of a stock price. The rising trend line supports the stock price. When the stock price pulls back near the rising trend line, if the trend line is not effectively broken, it may be a buying opportunity. For example, on the daily chart of a stock, if you can draw a clear upward trend line, you can consider buying every time the stock price falls back near the trend line and shows signs of stabilization.

The downward trend line has a suppressive effect on the stock price. When the stock price rebounds to near the downward trend line, if it fails to effectively break through, it may be an opportunity to sell.

Moving averages are commonly used technical indicators. For example, short-term moving averages such as 5-day, 10-day, and 20-day can reflect the short-term trend of stock prices. When the short-term moving average crosses the long-term moving average upward (such as the 5-day moving average crossing the 20-day moving average upward), it is usually regarded as a short-term buying signal; conversely, when the short-term moving average crosses the long-term moving average downward, , it may be a sell signal.

The Relative Strength Index (RSI) measures whether a stock is overbought or oversold. When the RSI value exceeds 70, the stock may be overbought and the price is at risk of a correction; when the RSI value is below 30, the stock may be oversold and there may be an opportunity for a rebound.

Don't invest all your money in one stock or industry. Diversification can be carried out across different industries, different sizes (large-cap stocks, small-cap stocks), and different regions (domestic stocks, foreign stocks). For example, invest part of the funds in stable consumer stocks, part in high-growth technology stocks, and part in resource stocks.

You can also consider investing in funds to achieve diversification. For example, stock funds invest in multiple stocks, which can diversify individual stock risks to a certain extent.

Stop loss is to control losses. When the stock price drops to a certain extent and reaches the preset stop loss price, you should sell decisively. For example, when buying a stock, you can set the stop loss level below 10% of the purchase price. Once the stock price falls by more than this range, sell to avoid greater losses.

Take profit is to lock in profits. When the stock price rises to the expected profit target, sell in time. For example, set a 30% take-profit target and consider selling part or all of the stock when the stock rises by 30% to prevent profit-taking due to a subsequent drop in stock price.

Don't get overly excited or panic because of short-term market fluctuations. For example, when the stock market falls in the short term, do not blindly follow the trend and sell stocks. You should calmly analyze whether the cause of the decline is a short-term adjustment of the market or a fundamental change in the company's fundamentals.

In a bull market, don't be carried away by greed and buy stocks excessively. You should operate according to your own investment plan and risk tolerance.

Recognize that short-term fluctuations in the stock market are inevitable, but in the long term, the economy continues to develop and the value of high-quality companies will increase over time. For example, if you hold some blue chip stocks with stable performance growth for a long time, you may get relatively considerable returns. Buffett has gained huge wealth appreciation through long-term investment in high-quality companies such as Coca-Cola.