2.0 Setting judgment criteria

There are a lot of concepts in the field of financial investment, such as: stocks, bonds, commodities, technical analysis, fundamental analysis, MACD, KDJ, trading volume, moving averages. After the trader understands a large number of concepts, they need to establish these concepts with each other, which requires setting the criteria.

E.g:

• Stocks with rising averages are good stocks.
• Stocks with a P/E ratio of 20 are good stocks.
• The central bank's reduction in the deposit reserve ratio is good news for the stock market.
• The stocks that hit a record high in history have to be avoided.

And so on the judgment of the above statement, behind it is to associate one concept with the judgment. In order to form an understandable statement, provide traders with guidance on future actions.

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