Beginner's Portfolio Strategy for Young People – Just starting in the market, faced with a pile of stocks, how should you choose? (Part 2)

Stock Picking from Zero: No need to read charts, first understand the business

Many beginners dive right into learning various technical indicators, but actually, the retail investor's strongest weapon is common-sense stock selection. Whether a stock is worth buying boils down to three questions:

👉 Is the business understandable? Avoid companies with vague operations that only talk about concepts and future plans; solid companies have simple, straightforward businesses.

👉 Is there long-term demand for the business? Steer clear of sunset industries and one-off speculative themes. Prioritize sectors with rigid demand and long-term stability.

👉 Is the company genuinely profitable? Beginners don't need to look at complex financial reports. Just check: stable recent profits, minimal losses, and a willingness to pay stable dividends. This alone can filter out most junk stocks.

Lazy Beginner's Stock Screening Method: Easy to pick up even with zero experience

A simple stock screening process designed for beginners, steady and risk-averse:

Step 1: Prioritize industry leaders

Leading stocks have smaller fluctuations, are harder for market makers to manipulate, have transparent information, and a lower chance of blowing up. Beginners should prefer steady, slow gains over risky bets for big losses.

Step 2: Don't chase highs, don't blindly bottom-fish

Only consider stocks at normal valuations without recent speculative spikes. Stay far away from hot stocks that are all over the internet and have surged in the short term. Avoid following the hype.

Step 3: Emphasize liquidity

Turnover is paramount in the Hong Kong market. Even a great stock is a dead position without trading volume. Prioritize stocks with tens of millions in daily turnover and smooth buying/selling liquidity to ensure you can enter and exit freely at any time.$MINIMAX-W(00100.HK)$TENCENT(00700.HK)$BABA-W(09988.HK)$Hang Seng Index(00HSI.HK)