[Beginner's Journey] How to take the first solid step in Hong Kong and US stock investment

Welcome everyone to start your investment journey on Futubull.

For beginners who have just opened an account, the first step in investing in Hong Kong and US stocks is not to immediately look for a stock that will soar, but to first understand what the market is trading on this year, after all, steady progress brings long-term returns which are more important.

Simply put, the most important themes this year in Hong Kong and US stocks are:US stocks focus on AI, semiconductors, tech giants, and energy; Hong Kong stocks focus on tech revaluation, AI hardware chain, new IPOs, high dividends, and new energy.

At the same time, for beginners, buying individual stocks directly can be quite stressful. Individual stocks tend to have high volatility, and require understanding of company performance, valuation, and news developments.

So, instead of chasing popular stocks from the start,it's more suitable to first use ETFs to build an initial understanding of investing.。

ETFs can be thought of as a 'basket of stocks.' Buying one ETF equals participating in a market or an industry all at once, which not only reduces the risk of individual stock blowups but also helps beginners better understand market trends.

The main theme of the US stock market this year: AI remains at the core, but the market is starting to pick winners.

The biggest keyword for the US stock market this year remains AI.

Over the past few years, AI has driven up tech and semiconductor leaders like $NVIDIA (NVDA.US)$、 $Alphabet-C (GOOG.US)$ 、 $Broadcom (AVGO.US)$ 、 $Advanced Micro Devices (AMD.US)$ . This trend will likely continue this year, but the market will be more selective than before.

In the past, it might have been 'anything related to AI goes up,' but this year the focus is on whether companies can actually make money, whether AI investments are turning into revenue and profit, whether tech giants will continue to increase capital expenditures, and whether semiconductor demand will remain strong.

If you don't want to buy individual tech stocks right away,you can first look at broad-based US market and technology ETFs, such as S&P 500 ETF, Nasdaq-100 ETF, and Semiconductor ETF. These types of ETFs allow beginners to participate in the broader market direction., instead of directly betting on a single company.

You can start by focusing on:

$Vanguard S&P 500 ETF (VOO.US)$ : Represents the US stock market index, suitable for understanding the core US equity market.

$Invesco QQQ Trust (QQQ.US)$ : Represents Nasdaq 100, with a higher weighting in tech stocks, ideal for observing the main trend of US tech stocks.

$iShares Semiconductor ETF (SOXX.US)$ / $VanEck Semiconductor ETF (SMH.US)$ : Represents the semiconductor sector, suitable for observing AI computing power and the chip industry chain.

$The Technology Select Sector SPDR® Fund (XLK.US)$ / $Vanguard Information Technology ETF (VGT.US)$ : Represents leading US tech stocks, useful for tracking the overall performance of major tech companies.

Main theme for Hong Kong stocks this year: Technology and high dividend yields running side by side

The logic behind Hong Kong stocks this year is somewhat different from that of the US market. The US market leans more towards 'high-growth tech stocks continuing to validate earnings,' whereas Hong Kong stocks are more about 'low-valuation assets regaining market attention.'

This year, there are two key trends to watch in Hong Kong stocks:

The first is technology revaluation. This includes leading Hong Kong-listed tech companies such as Tencent, Alibaba, Meituan, and Xiaomi. If the market regains confidence in China’s tech assets, Hang Seng Tech-related assets will be the most direct focus. Additionally, stocks related to the AI hardware supply chain are likely to perform well.

The second category is high-dividend and financial stocks. There are many banks, energy, telecommunications, and utility companies in the Hong Kong stock market,which are not highly valued but have strong dividend appeal, making them suitable for more conservative beginners to understand 'income-generating investments'.。

For beginners who want to participate in the Hong Kong stock market,but don't know which individual stocks to choose, they can start by looking at Hong Kong ETFs.。

You can start by paying attention to:

$TRACKER FUND OF HONG KONG (02800.HK)$ Representing the Hong Kong stock market as a whole, it is suitable for understanding the overall performance of the Hang Seng Index.

$Global X HSCEI Covered Call Active ETF (03416.HK)$ Suitable for beginners who want to participate in the broader Hong Kong market while hoping to enhance potential returns through covered strategies. The key is to understand the 'holding H-share index components + options yield enhancement' income-focused investment approach.

$Hang Seng TECH Index ETF (03032.HK)$$CSOP Hang Seng TECH Index ETF (03033.HK)$$iShares Hang Seng TECH ETF (03067.HK)$Represents ETFs related to Hang Seng Tech, ideal for observing leading tech stocks in Hong Kong.

$Global X Hang Seng High Dividend Yield ETF (03110.HK)$ Represents the high-dividend direction in Hong Kong stocks, suitable for more conservative investors who want to understand income assets.

Commodities also present opportunities worth watching.

In addition to stocks and related ETFs, beginners can also appropriately pay attention to commodities-related assets, such asgold, silver, crude oil, etc.。

These types of assets are typically related to inflation, interest rates, the movement of the US dollar, geopolitical conflicts, and changes in global demand, making them suitable for understanding 'investment opportunities outside the stock market'.

Among them,Gold ETFs lean more towards defense and hedging, making them suitable to observe during market volatility or when expectations of interest rate cuts rise.Crude oil and energy ETFs are more influenced by oil prices, supply and demand, and geopolitical events, showing greater volatility. Industrial metal ETFs like copper are related to global manufacturing, power demand, AI data centers, and new energy infrastructure.

For beginners, it is not advisable to heavily invest in commodities from the start; instead, they are better placed in an 'opportunity watchlist' to help assess market risk appetite and macroeconomic trends.

Gold/Silver ETFs: $SPDR Gold ETF (GLD.US)$$iShares Silver Trust (SLV.US)$$SPDR Gold Trust (02840.HK)$

Crude oil-related ETFs: $United States Oil Fund LP (USO.US)$

Before getting started, do three things first.

First, create your own watchlist.

You can add US market ETFs, Nasdaq ETFs, semiconductor ETFs, Hong Kong stock market ETFs, Hang Seng Tech ETFs, and high dividend ETFs to your watchlist. Then include a few leading companies that you understand well and whose businesses are clear to you, such as NVIDIA, Microsoft, Apple, Tencent, Alibaba, Xiaomi, BYD, etc.

Second, observe first, then start with a small amount.

New investors don’t need to rush into committing a large amount of capital all at once. You can observe for 1–2 weeks first, see what’s rising or falling in the market, which ETFs are stronger, and which industries are receiving more attention from investors.

Third, ask yourself three questions before each trade.

Am I buying the entire market, a specific industry, or an individual company?

Why am I paying attention to it now? Is it due to AI, earnings reports, capital flows, policies, or changes in oil prices?

If it drops in the short term, can I accept that?

If you can’t clearly answer these three questions, don’t rush into trading. First, understand the market, then start with a small amount; build your watchlist first, then slowly place orders.

Wishing all fellow investors successful investments and abundant wealth!

$Invesco QQQ Trust (QQQ.US)$ $VanEck Semiconductor ETF (SMH.US)$ $NVIDIA (NVDA.US)$ $Tesla (TSLA.US)$ $Roundhill Memory ETF (DRAM.US)$ $TENCENT (00700.HK)$ $TRACKER FUND OF HONG KONG (02800.HK)$

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