Buying hot stocks can burn your hands

Fragile hot stocks

Hot stocks, prices rising and falling according to the pine tree pattern, even those with continuous wave-making hands of the drivers behind the risky capital will become more fragile since his incident. Trinh Van Quyet, Chairman of the Board of Directors of FLC was arrested and detained to investigate the behavior of manipulating the stock market.

According to a source of Securities Investment, a securities company immediately had a policy of limiting loans to large customers according to “deal”.

Usually, this is a mortgage loan for shares, which can be supplemented with the mortgage of the assets of the owners and major shareholders for the purpose of trading shares on the stock market and in many cases for trading. buy and sell shares of their own company.

With the advantage of having information, controlling ownership ratio, list of shareholders, and business information, these loan deals help owners have financial resources to buy and sell stocks at different accounts. Many securities companies like such deals, because the loan value and interest rate are higher than the lending interest rate for margin trading (margin) for ordinary individual customers.

The Government’s latest directive has sent a message to ensure the publicity, transparency, safety and smoothness of the stock market. At this point, business activities that are “deviant” will be tightened. The above securities company limited the loan according to the deal to check the level of “standard deviation” of each deal, thereby making adjustments to ensure legal safety.

Recently, BSC Securities Company also announced to remove the stock codes APC, SKG, APG, HQC, VKC from the margin list from April 1, 2022, of which APG, HQC, VKC all have a time. set price chart according to the pine tree model.

Such moves as the above-mentioned securities companies are expected to affect the price movements of many “hot” stocks. On the other hand, when there are warnings, the crews stop to listen and if the situation becomes serious, the price of hot stocks that are anchored high will likely be released according to the law of market supply – demand.

An investor who owns a chat group with nearly 1,000 members said that in the stocks his group invests in, there is a phenomenon of spreading orders from big players. Every day, there are buy or sell orders at the last 3 prices displayed on the electronic board with the same large volume. Previously, it was often jokingly called “3 incense sticks”, but in recent days, rarely appear. .

“When the driver team has made waves, they must be the ones who benefit the most, and when they make a profit, there must be many losers,” the investor said.

Experts all believe that the strong action by the authorities against violations in the stock market will help gambling psychology in the market and activities to lower prices, and cash flow will be more concentrated on fundamental stocks. copy.

A few months ago, the press warned about “pine” stocks, which increased and decreased in an almost vertical direction such as SJF, LIC, TNI, SDA and FLC stocks such as FLC, ROS, KLF, AMD. . After Mr. Quyet sold FLC shares without registration, the group of stocks in this ecosystem experienced a sharp decline, before rebounding to 50 – 100% from the bottom, even though there was no new information to support it. aid.

In anticipation of more strong measures, the wave of stocks generated by the crew decreased much. If investors are not alert, it is very easy to get stuck when the “tide recedes”. Looking at the transactions of the pine stocks themselves, they all have a similar feature: forgotten many years ago with meager prices and liquidity, but suddenly they were actively traded and strongly increased again, especially especially since the wave of new investors joining the market (F0) spiked.

Many old class investors who have had a bitter lesson with hot stocks clearly understand the nature of this type of stock. But the F0 wave has a mentality of making money fast, hot money flow has created a new environment for hot stocks to re-enact the old scenario.

Brokerage officer Nguyen Thanh Nhan of SSI Securities Company recommends that investors should sell hot stocks without relying on fundamental factors, because it is not clear which “boss” will be “touched”. nape”. Similar recommendations are made by many other consultants.

Choice

There are many schools of investment in the market, but for a portfolio to grow sustainably, investors need to choose the right stocks, the right businesses, and the leaders of the businesses with the heart and the vision. If you hold such stocks, even then, the decrease will only be in a narrow range, not too strong, especially when the margin ratio is not high, so you won’t be under great selling pressure. Investors who have experienced similar incidents in the past are well aware of this.

With stocks with good growth cycle, when the negative reactions are absorbed by the market, the prices of these stocks are always expected to quickly recover according to the growth momentum of the economy. The bullish session last week showed this expectation.

Mr. Andy Ho, General Director of VinaCapital shared, when the market is hot and investors are profitable, it is difficult to talk about risk management and sustainable investment. The recent event will be an opportunity for investors to think about how to invest in the market.

“The market is developing into a new phase, there are many opportunities, but investors must understand it well, or else they will be ‘burned hands’. One method that many individual investors in developed markets choose is to invest in an open-ended fund managed by a reputable, experienced company and enjoy compound interest in line with the growth cycle of the market. This investment method is quite effective,” said Andy Ho.

The authorities are more aggressive with violations in the stock market will help gambling psychology in the market and activities to reduce prices, the cash flow will be more focused on the underlying stocks.

When choosing hot stocks, investors often expect high returns in a short time. But with the group of basic stocks, growth stocks, if you choose the right trading time, the profit rate is also very high.

For example, in the portfolio that Ho Chi Minh City Securities Company (HSC) recommends to investors in February 2022, currently DXG is up 40%, VHC is up 43.5%, GMD is up 34.8%. Looking back 1 year ago, holding shares of DGC, DGW, HPG, IDC… brought the profit rate in times.

Mr. Nguyen Duy Hung, Chairman of the Board of Directors of SSI has just reiterated a share: “Our industry has many temptations and many opportunities to profit, so that’s why there are many risks. Disguised financial products, crew members, violations of regulations on transactions, credit, mortgages, etc., everything just needs a click of the tongue to bring a profit.”

In the context that the legal environment related to the stock market is still being completed, individual investors and small shareholders must first think about using other rights to protect their interests when they are infringed. , when being “spoiled, upside down”, should first make good use of the most basic right, which is autonomy in choosing a portfolio, buying hot stocks or growth stocks, choosing fragile opportunities or lasting.

According to the Pope