Hexun Investment Advisor Yang Yujie: Learn to Invest and Avoid Pitfalls

After investing for a long time, you’ll gradually realize that blindly chasing hot trends and gambling on price swings are never sustainable strategies. Especially for ordinary investors, what we need is not overnight wealth, but steady peace of mind and avoiding pitfalls.

Recently, the most talked-about sectors in the market mainly include: AI and semiconductors within the tech mainline, supported by long-term industry logic; power equipment, coal, and other stable sectors that align with current supply and demand patterns and cycle points; also, consumer staples with strong essential demand, and high-dividend stocks that more and more people are paying attention to. Each category has its own logical layout, not just following the crowd blindly.

However, I’ve seen too many friends who, despite being optimistic about a sector, still end up losing money. The core issue isn’t the sector itself, but rather not knowing how to select or control investments, falling into undervaluation traps. Many people blindly enter high-dividend stocks without understanding that high dividends shouldn’t be judged solely by numbers; they need to be evaluated in conjunction with the company’s fundamentals, sustainable dividend-paying ability, and cash flow. Not all high-dividend stocks are safe havens; some appear attractive but hide significant risks. Others obsess over low valuation stocks, thinking that a low price means a bargain, but fake low valuations are the biggest trap for retail investors. Without performance support, undervalued stocks only deepen your losses. That’s why I always emphasize the importance of discerning whether a valuation is reasonable.

I never talk about empty theories; I only share practical strategies. No matter which sector you focus on, position management is always the first line of defense. Don’t go all-in on a single sector; stagger your investments and maintain a balanced portfolio to withstand market fluctuations. For stable sectors like bank stocks, the focus is on long-term stability rather than short-term gains. They are suitable for investors seeking steady growth and patience.

Investing is never about speculation. Keeping a calm mindset, finding the right approach, and avoiding traps are far more important than chasing hot trends for a moment. Don’t be greedy for quick gains or reckless; understanding your professional tasks clearly will help you stay steady and go further in this market.

(Edited by: Zhang Yan)

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