Chief economist of SSI securities company called “wrong”!
Regarding the proprietary trading activities of securities companies, many individual investors believe that they are creating fairness in the market. They believe that securities companies both make recommendations, buy and sell on their own, and charge lower fees than individual investors. “Does self-employment really have as many advantages as individual investors think?the question was posed to the two new guests of the talkshow Money Secrets number 19 with theme Bye/Buy in May?
Mr. Nguyen Tuan Anh – founder of FinPeace said that self-employment activities do not have many advantages as individual investors think. This expert used to be a self-trading director of Thien Viet securities company. Mr. Tuan Anh manages a portfolio with a trading value equal to one day’s market liquidity. This position said in theory that if I accidentally press the wrong order, the whole floor may drop to the floor.
“People think it’s convenient, but it’s actually not favorable in that when the proprietary trading portfolio is large compared to the market, the liquidity of the market when it is not suitable, the self-trading cannot “sell out”. People think the self-employed side benefits, but it’s actually much more difficult. On the contrary, people can see that individual investors with smaller, more flexible portfolios are much better at moving in the market with sufficient liquidity.
The second is that no company carries its own proprietary goods to recommend to investors, especially large securities companies never do so. Doing so first affects the reputation, surely self-employment is right. Secondly, it is illegal to use that information to consult customers because those are two completely separate departments. The third point is that behind the self-trading order is also an ordinary person, with holding an amount of 100-1000 times more than a normal individual, the tremor will be higher, so it is not certain that self-trading is more profitable.“, Mr. Tuan Anh shared.
After sharing the founder of FinPeace, host Ngoc Trinh frankly cited the audience’s question for Mr. Pham Luu Hung, chief economist of SSI Securities: “Playing cards and seeing other people’s cards still have to ask if there is any advantage. The audience thinks that securities companies give sell recommendations before making recommendations… What is your opinion X30 answers these questions?”
“In SSI in particular, the rate of pure proprietary trading, trading like an ordinary investor is very low. The majority of proprietary trading comes from customer service related to the products SSI carries. As for the sentence “playing cards to see other people’s cards”, I think it is a bit unfair because the first is that the market share ratio of companies like SSI is large, but it is not large compared to the market.
The second is to show other people’s posts, you probably haven’t tried it, but most self-employed transactions must be published to the Department every day and many people can see the transactions. Even if I let myself look at daily trades and then make profitable trades, it’s very difficult because I don’t understand why people trade like that. Now that I have a trading price list of the whole market and know that every day, behind a buy order is a sell order, then you cannot understand the market trend who will decide that trend.
If I tell SSI to see all of SSI’s transactions based on which I trade according to that trend, there is no possibility of success because I don’t understand what trend those small orders are following.“, Mr. Pham Luu Hung shared.
Complementing Mr. Hung’s answer, Mr. Tuan Anh shared that in the past, he was given information and did not read to know what people did. “If you tell you to watch someone else’s work, first it’s 1 beat slower. When people place an order and then we can see it, it’s better than going behind the other person’s back. For example, this morning, he bought it by himself, I read it in the afternoon, I bought it the next morning, I went later. I don’t believe the latter can succeed. Going behind is not simply by day but in terms of thinking. I don’t know why I bought it, if I bought it, I bought it for the other guy to buy it. I have to know for what reason to be the success of a self-employed person.
Another point people need to pay attention to is that no securities company will hand over money to a guy named Hung or Tuan Anh who can do it himself, buy whatever he likes, no problem. It must come from an internal process, which must be submitted to the company every month for portfolio approval. Buying and selling must also have rules, not if you like to buy something, buy it, you have to explain or you will die. Not as simple as individual investors”, the expert added.
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at Blogtuan.info – Source: cafebiz.vn – Read the original article here
