There is a phenomenon that investors tend to overlook when selecting stocks, which is the profitability of the stock, whether there are significant risks to the stock price at present, and whether the current technical position is too high. They rashly buy based solely on simple positive news. Below, we will briefly describe some junk stocks that are being avoided:

1. Stocks with extremely high debt ratios. Compared to peers in the same industry, stocks with excessively high debt ratios should be avoided.

2. Invest in stocks with high securities assets. Investors know that investing in securities products during bull markets can generate high returns and boost stock prices, while during bear markets, the opposite is true.

3. Stocks with negative assets, continuous losses, or sudden huge losses should be avoided during bear markets. A bear market accumulates contradictions, and it is generally difficult to see a market trend unless there is a backdoor situation.

4. Stocks with excessively long capital chains and multiple investment industries. It is generally difficult for a company to excel in several industries, especially during periods of poor economic conditions, which can easily lead to a funding black hole.

5. Individual stocks with significant holdings by major shareholders. It goes without saying that these types of stocks have been emptied out of listed companies, so there is nothing good to invest in.

There are also some other well concealed situations. But investors should be careful not to touch any problems with the funds of listed companies, and not to touch any doubts. Otherwise, no one knows when it will have a major outbreak, and once it occurs, it could be fatal.