Every investment school has its inherent characteristics. As the first stock market theory, Dow Theory possesses the following features:

1. Dow Theory is the pioneer of all stock investment schools. After its creation, various other stock investment or market theories emerged. Therefore, Dow Theory is the most primitive and the most important stock market investment theory.

2. Since Dow Theory is the originator of stock market theories, some of the specialized terms it introduced have become consensus among all stock investors. For example, the terms "bull market" and "bear market" originated from Dow Theory and have been used for over a century up to this day. Each market condition is further divided into three phases: Bull Market Phase 1, 2, and 3; Bear Market Phase 1, 2, and 3. These are not just stock market jargon—investors must understand these concepts and apply Dow Theory's principles of bull/bear markets and their phases to align their trading strategies with the current market trend. Only then can they profit and reduce risks.

3. Dow Theory was also the first to propose that stock market trends could be analyzed through "charting," which is the graphical trend analysis used by investors today. The idea of using chart trends to capture the movements of the overall market and individual stocks was first introduced by Dow Theory. All subsequent developments in chart trend analysis are rooted in the concepts of Dow Theory.

4. Any investor entering the stock market must understand Dow Theory. Those who enter the market without grasping the essence of Dow Theory and its core principles will never become successful stock investors.