According to experts, each person needs to determine risk appetite, find investment methods and learn about market overview, industry, business analysis.
I would like to be consulted by an expert on the reference route from learning about securities to the practice phase and officially participating in the market. At each stage, what do I need to focus on or pay attention to?
Securities in general and stocks in particular are very attractive investment channels, attracting many investors of all ages. This is an investment channel with many benefits, the most prominent of which is liquidity, which can start from a small and medium capital.
Here, I will temporarily understand your need to invest in stocks and want to know more about the route and how to learn to invest in stocks. To enter the market successfully and effectively, you have made the right decision to invest in the knowledge to help you make the right and appropriate decisions. So where should learning begin?
In my opinion, if learning does not go with onions, it will easily create a feeling of depression and difficulty concentrating. Therefore, my first advice is that you should have a stock account and familiarize yourself with the basic functions of the market because “your best teacher is the market”. Don’t wait until you’ve finished school to join because it may be too late and learning is a lifelong thing.
But before you start putting money down, what you need to do is to clearly define your risk appetite. Risk appetite is the opinion and level of acceptance of each person about risk. Risk appetite is often determined through factors such as age, financial ability, and family. The level of risk appetite will determine the safety of your capital and the expected return. For example, if you invest 100 million dong, how much will you accept to lose when the investment is at a loss? With a given level of risk, what percentage of return do you expect to get to compensate for possible risks?
Once you have determined your risk appetite, time to invest, financial capacity and financial backup plan, the next step should start to choose for yourself some effective methods and ways of learning. Some of the prominent methods are value investing, technical analysis investing, growth investing.
Finding the right investment methods for yourself will be quite easy if you have determined your risk appetite. Many methods can be applied to investing, but the most important thing is to find the method that suits your personality and how to apply it to the market for the highest return. At this point, you can practice buying and selling stocks on the floor and learn the basics of order matching prices, indices , stock price lists , and trading volumes.
For learning, in addition to the “teacher” who is the market, individual investors often tinker with themselves through books, online documents, foreign textbooks, and real-life experiences. However, this way of learning often brings a lot of knowledge in an unsystematic “gathering” fashion. In the long run, it will lead to knowledge that has many gaps and is not deep enough, most importantly, you will lack systematic knowledge, which can lead to making wrong investment decisions.
Therefore, I often encourage investors who are new to the market to follow the market-wide, unified roadmaps to fully understand all aspects of investment as well as the operating economies, thereby making the most informed investment decisions.
There are two main factors that determine investment: choosing the right stocks and the right time to buy and sell stocks. These factors will be drawn through learning skills in investment selection and analysis in accordance with the macro context of the economy.
Here is the route you can refer to. First, learn an overview of Vietnam’s stock market, understand the roles and components in the market, and investment schools. A thorough understanding of the smallest issues such as how profitable the market is, and how buy and sell orders are set up will be very important at the beginning of your entry.
Understanding the macro and the economic cycle is the next step that you need to supplement. Determining the macro, the current economic cycle and the interaction between the macro and the sectors in the market will give you the best view on when to disburse investment, which industry, and expectations. how.
Industry is an important part to focus on understanding. Cash flow in the financial market will have a very flexible rotation among industry groups. Understanding the industry, value chain, competitive advantage will give you a huge advantage in catching the cycle sooner or later through specific signs.
One of the final steps is to learn about the business, where understanding corporate finance will be the final filter in investment decision making. Reading and analyzing financial statements is learning about the health and advantages of businesses in the industry, determining the rate of return, the level of risk to choose and make investment decisions.
Finally, it is equipped with understanding about other activities such as buying and selling treasury shares , preferred shares, issuing ESOPs, splitting shares of enterprises, valuation methods, investment schools… to complete knowledge better.
Stocks are a highly profitable investment channel, but the risks are also great. Therefore, invest seriously, strategically and constantly learn to achieve worthy results.