As a newbie who has just entered the stock market, I have accumulated quite a bit of experience over the past year. Today, I would like to share some insights on the basics of the stock market, especially regarding the interpretation of Candlestick Charts.

The Candlestick Chart originated in Japan and was initially used by rice merchants to record price fluctuations of commodities, later being introduced into stock market analysis. The Candlestick is the foundation of stock market analysis, containing four key data points: opening price, highest price, lowest price, and closing price. These data points together form the basic graphical representation of daily market movements, reflecting market trends and price information.

Candlesticks can be drawn according to different time periods, such as daily Candlesticks, weekly Candlesticks, and monthly Candlesticks. These Candlestick Charts of different periods can help investors analyze market trends from different time scales.

In the Candlestick Chart, we often see two main types of Candlesticks: bullish and bearish.

A bullish candle is usually represented in red, indicating that the stock price has risen. Its characteristics include a closing price that is higher than the opening price. A bullish candle consists of three parts: the upper shadow, the body, and the lower shadow. The upper shadow reflects the gap between the highest price and the closing price, the body shows the price movement between the opening price and the closing price, while the lower shadow indicates the difference between the opening price and the lowest price.

In contrast, a bearish candlestick is generally represented in green (sometimes blue), indicating a decline in stock prices. The closing price of a bearish candlestick is lower than the opening price and is similarly composed of an upper shadow, body, and lower shadow.

Understanding these basic concepts is crucial for newbie investors. They not only help us better interpret market information but also provide important references for investment decisions. However, relying solely on the Candlestick Chart is not enough to make accurate investment judgments; it is also necessary to combine it with other technical indicators and fundamental analysis.

As a newbie in the stock market, I believe that continuous learning and maintaining a cautious attitude are very important. There are risks in stock market investment, and we should prepare and research thoroughly before entering the market. At the same time, we should also remember not to put all our eggs in one basket; appropriate diversification of investments can reduce risk.

I hope this basic knowledge can help other stock market newbies. Let's learn and grow together in this market full of opportunities and challenges.