If you are transitioning from the crypto world to the US stock market, my advice is:
1️⃣ First learn about index structures
Don't start by researching individual stocks. First understand what the S&P 500, NASDAQ 100, Dow Jones, and Russell 2000 each represent. Pay special attention to their weights; often in the US stock market, the market isn't driven by the entire market rising, but by a few giants pulling the index.
2️⃣ Learn how interest rates affect stocks
Valuations in the US stock market are most sensitive to interest rates. Focus on the Federal Reserve, 10-year US Treasury, 2-year US Treasury, CPI, PCE, and employment data. Simply put: the higher the interest rate, the easier it is for growth stock valuations to be pressured.
3️⃣ Study financial reports, don't just read news
Four things are enough: revenue growth rate, profit margins, free cash flow, and next quarter guidance. For AI companies, especially watch capital expenditures and cash flow; don't rely solely on earnings calls.
4️⃣ Break down the AI industry chain
Learn based on who receives the money: NVIDIA/chips, HBM memory, optical modules/networking, power equipment, data centers, cloud providers, AI applications. The closer to actual orders, the stronger the logic.
5️⃣ Learn valuation and expectation gaps
Good companies don't always mean good prices. Focus on PE, PS, free cash flow yield, and PEG. Whether a stock rises or not often depends not just on the company's quality, but on whether it exceeds market expectations.
In a nutshell: first learn about indices and interest rates, then study financial reports and industry chains, and finally learn stock selection. This way, you'll view the US stock market more clearly and won't be led astray by daily hot topics.
1️⃣ First learn about index structures
Don't start by researching individual stocks. First understand what the S&P 500, NASDAQ 100, Dow Jones, and Russell 2000 each represent. Pay special attention to their weights; often in the US stock market, the market isn't driven by the entire market rising, but by a few giants pulling the index.
2️⃣ Learn how interest rates affect stocks
Valuations in the US stock market are most sensitive to interest rates. Focus on the Federal Reserve, 10-year US Treasury, 2-year US Treasury, CPI, PCE, and employment data. Simply put: the higher the interest rate, the easier it is for growth stock valuations to be pressured.
3️⃣ Study financial reports, don't just read news
Four things are enough: revenue growth rate, profit margins, free cash flow, and next quarter guidance. For AI companies, especially watch capital expenditures and cash flow; don't rely solely on earnings calls.
4️⃣ Break down the AI industry chain
Learn based on who receives the money: NVIDIA/chips, HBM memory, optical modules/networking, power equipment, data centers, cloud providers, AI applications. The closer to actual orders, the stronger the logic.
5️⃣ Learn valuation and expectation gaps
Good companies don't always mean good prices. Focus on PE, PS, free cash flow yield, and PEG. Whether a stock rises or not often depends not just on the company's quality, but on whether it exceeds market expectations.
In a nutshell: first learn about indices and interest rates, then study financial reports and industry chains, and finally learn stock selection. This way, you'll view the US stock market more clearly and won't be led astray by daily hot topics.
NVDA+2.80%
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