《Distinguishing Trends, Tracks, and Hotspots, Investing No Longer Confuses》

Trends, tracks, and hotspots are essentially three kinds of 'stories' with varying time spans, all capturing people's attention through storytelling.

Trends are like grand narratives that can be told over ten or twenty years, belonging to long-term layouts; track opportunities usually have a cycle of six months to a year; hotspots, however, are fleeting, at most lasting one or two months, coming and going quickly. Therefore, blindly chasing hotspots can lead to significant losses. When you notice someone profiting from a hotspot and hastily follow suit, you often become the 'bag holder'.

However, if you are pursuing tracks, the situation is different. Witnessing early adopters reaping substantial rewards, entering afterward still offers a chance to catch the main upward wave, as the story of the track has not yet concluded.

As for trends, they are even more stable. With a development rhythm lasting ten or twenty years, while the main tracks may change during this time, as long as you remain within the big trend and do not act blindly, you are likely to achieve decent results.

It is evident that investors need to recognize the differences among these three, combining their own risk preferences and investment goals for reasonable choices. One should not only seek the immediate benefits of hotspots while neglecting the mid-term potential of tracks and the long-term dividends of trends; only in this way can one progress steadily and far on the investment journey.