[Trading Wisdom] From 'Riding the Trend to Short Selling' to 'Defensive Stock Picking,' Multiple Experts Teach You How to Protect Profits Amid Volatility

The thirteenth anniversary of the global simulated trading competition has successfully concluded! Futu believes that for many fellow investors, the simulation competition is just the beginning, while live trading represents the "ultimate battleground." We look forward to continuing our journey together on the path of investment, achieving great success 🥰🥰

In live trading,Not only do you need a deep understanding of the trading instruments, but you must also stay constantly attuned to the broader market environment. Timing your entry, managing position sizes, and decisively implementing profit-taking and stop-loss strategies are absolutely critical.

Whether honing skills through simulated competitions or demonstrating real ability in live trading,Having mentors and like-minded peers along the way will ensure you are not alone and help you avoid many pitfalls.

📢 This topic also highlights some interesting comments from fellow investors:

Some fellow investors,used the simulation competition as an opportunity to test their skills, refine their mindset, and techniques, yielding significant gains.

Hereby, Niuniu has also gatheredpractical articles from 'three investment experts', and everyone is welcome to come and explore the discussions ~

[Big Sharing of Fellow Investor's Trading Insights]

@年頭旺到年尾 —— Review of October 14

In the October 14th essay, this fellow investor shared some analysis on the current market trends as well as their practical operations.

It is crucial for trading to follow the trend, possess one’s own trading strategy, judgment skills, and the patience to wait during unfavorable market conditions.

①The overall market trend is weak; patiently wait for buying opportunities:The Hang Seng Index’s daily chart pattern has been disrupted, and the short-term trend appears weak. Unless there is unexpected positive news, the likelihood of further declines in the future is high. Conservative operations are recommended, with long-term investments only considered near lower levels through gradual accumulation.

②Make use of leverage tools to profit from downward trends:This fellow investor successfully capitalized on the downward movement by trading bearish warrants on the Hang Seng Index and SMIC (00981), generating substantial profits.

③Diversified deployment and observation indicators:In addition to Hong Kong stocks, this fellow investor has also started using inverse ETFs to short Tesla. Meanwhile, fellow investors are reminded that when forecasting the Hang Seng Index, they should refer to the movements of heavyweight constituent stocks such as Tencent and Alibaba as supplementary indicators.Click here for more details>>

@中戶變大戶小牛變大牛 —— Market Close Recap‼️ Latest Insights Update ㊙️ Importance of Risk Management‼️ Thank You for Your Support

The fellow investor emphasized the importance of understanding one's self-positioning, risk management, and position sizing in the long journey of investing.

① Recognize your positioning and improve success rate by reducing frequent trading:It was emphasized that fellow investors need to determine whether they are suited for short-term or long-term investment styles. The investor shared their experience that after reducing frequent trading and shifting to medium- to long-term investments, their success rate actually improved. It was suggested that if one does not have time to closely monitor the market, leveraged short-term trading should be avoided.

② Positive on Hong Kong stocks' long-term performance, waiting for opportunities to increase positions:Although the Hang Seng Index has retreated about 2,000 points from its peak and has yet to reach the level predicted at the beginning of the year, this fellow investor remains confident in both the Hong Kong and mainland China markets. They view the pullback as an opportunity and plan to gradually increase their positions when appropriate.

③ Stay alert to external fluctuations and strengthen risk management:Special mention was made that Trump’s rhetoric is expected to continue causing volatility in the stock market. Therefore, while remaining optimistic, fellow investors must strictly enforce risk management measures to address potential turbulence driven by news events.For more sharing details, click >>

@莊主_Logic投資山莊 —— Steering clear of bubbles? Choose pragmatism in defense and blue-sky opportunities in offense.

This fellow investor shared insights on tariff and rare earth issues, focusing on the analysis of several popular related stocks, allowing fellow investors to understand that 'logical stock selection' is one of the essential conditions for achieving real-market profitability.

① Geopolitical tensions rise, spotlighting strategic resource sectors:Tariff and rare earth topics have drawn market attention. Against the backdrop of U.S.-China technology rivalry, strategic resources such as rare earths and nuclear materials have become focal points for speculation. The U.S. government is actively supporting relevant industrial chains (such as MP Materials, Energy Fuels) through funding and legislation (e.g., IRA, Defense Production Act) to achieve supply autonomy.

② Defensive market stock selection logic: 'Focus on solid industries, avoid speculative concepts':In response to market adjustments, this fellow investor advocates a 'situation-based' stock selection approach: during bullish markets, one may opt for companies with grand prospects but unrealized profits ('big-picture bets'); however, in the current defensive market environment, priority should be given to 'solid industry' companies with mature technologies, established customer bases, and stable profitability.

③ Case comparison: distinguishing between 'coffee grounds' and 'foam':Using rare earths and nuclear energy as examples, this fellow investor favors MP Materials (MP) and Centrus Energy (LEU), as they are in the commercialization phase, generate cash flow, and have government orders (metaphorically described as strong 'coffee grounds'). In contrast, companies like USA Rare Earth or Oklo, which remain in the R&D validation phase and rely on speculative concepts and financing, are likened to 'foam.' Fellow investors should clarify their stock selection logic and avoid purely speculative concept stocks in volatile markets.For more details, click >>