Every month, investors put money into the fund to reduce the risk of “buying at the top and selling at the bottom”.
According to Ms. Nguyen Xuan Quynh, managing director of SSIBF bond investment fund under SSIAM fund management company, the decline in the domestic market over the past time has internal reasons such as fears of rising inflation. the stock gained hotly at the high price range, so it was easy to correct. Some investors are afraid of withdrawing money when the market drops rapidly, but the cash flow will return when the market receives good news about corporate profits at the end of the year.
How to forge a cool head?
According to Quynh, investment legend Warren Buffett has a famous saying:Be fearful when the market is greedy and greedy when the market is fearful.” An expert in the market often jokes that, when the market is down, he will change the buy and sell buttons together to control himself, when investors want to sell stocks, they will place buy orders and when to look at them. Hot bull market wants to buy stocks, they will place sell orders.
“Sometimes it’s necessary to keep a cool head, principle is rule. If you watch the stock price fall below expectations, investors can buy at that price.”Mrs. Quynh gave advice.
Despite more than a decade of investment in the market, Ms. Nguyen Xuan Quynh also had to pay a lot of tuition fees in the early days of entering the market.
“One way for people to limit their risk is to draw a chart of the index’s movements, so make a note of when you decide to buy and sell stocks. People can make statistics in the next few days. my investment decision how much % is correct and how much % is wrong, why is it right and why is it wrong and I should look back at where I went wrong, is the approach correct and then correct the method For example, investors often look at stocks with cheap market price, under 10,000 VND/share and think that the stock is cheap, but in reality, these stocks are not necessarily cheaper than their real value. Instead, choose the top stocks, although the price is 80,000 – 100,000 VND, which is much higher, but is a long-term growth business.”Ms. Quynh commented.
“The strong bear market is a great investment opportunity. The overall market valuation is attractive but there are risks that have not been assessed, so investors must consider the weight of their portfolio depending on the size of the market. What is the level of risk tolerance?“, Mrs. Quynh gave advice.
Risk appetite and investment strategy
According to Mr. To Xuan Nam, young people who are new to investing can experiment with many different short-, medium- and long-term investment strategies. “Everyone will experience many failures. School fees and these lessons as early as possible, because lessons at a young age will be cheaper, instead of 40-50 years old making mistakes, then mistakes are much more expensive.”
Mr. Nam advises that most investment assets (core portfolio) must have a long-term vision, because “the ultimate goal is not tomorrow to be able to buy a house and buy a car, but the ultimate goal is that you can take care of your family at 40-50 years old, you take care of yourself in retirement and there is no way to get rich Investors should have a longer-term strategy, you can spend 5-10% of your assets to speculate and make quick profits, but you also have to be prepared to lose all that money, the analysis weighting of the portfolio to control risk, if there is a loss, it will also lose a little”.
So should we pursue a long-term strategy by believing in a business, buying and letting it go? According to Mr. To Xuan Nam, actually investing in a business that he believes in is not the best choice, instead, when making long-term investments, investors should have a highly diversified portfolio, invest in the whole market instead of a single enterprise.
“We don’t know if a business will grow forever or not. With the 8x generation often communicating by Yahoo, but now Yahoo has been bought, who can predict that risk. Now is the time. Facebook’s giants are Tik Tok, Google, but no one can say where these companies will go in 10-20 years.Maybe they will still be the leaders in the industry but should limit that risk by allocating resources. I don’t know if Facebook, Google exist or not but I do know that the advancement of technology will always make life better and the price of tech stocks will go up in the long run. Our country is on the way of growth, so it is possible to invest in Vietnam’s stock market, leading companies, instead of just investing in one company.”Mr. Nam gives advice.
Periodic investment method
According to Ms. Nguyen Xuan Quynh, many investors at SSIAM open a SIP account, which means that they invest periodically once a month or once every two weeks, which means they spread the risk, not having to invest 1 billion at the time of the market. If the market is very high, but if they invest 5-10 million VND/month regularly, they will be able to buy the price spread evenly. The way of trading will help investors get a very early start and buy fund certificates at low prices. Buying fund certificates, ie investors send money to experts to invest on their behalf, is very easy to buy and sell, instead of buying bonds for a larger amount of money, you must spend 500 million or 1 billion to buy bonds. Stocks can be bought easily by investors.
This account is an account opened at a fund management company and investors will regularly transfer money into it every month.
“Investors look back in history or think at what price they bought stocks at that time, or at what price they sold stocks early on. But when it comes to making a decision, investors don’t know what the market will be after. Choosing the right time to invest is extremely difficult, financial experts are not sure, maybe 60% is right and 40% can still be wrong. investment does not have to buy the top and sell the bottom, but will diversify the risk in terms of investment time to be able to buy the best average price in the long-term instead of accidentally swinging the peak and turning into a long-term shareholder.Mr. To Xuan Nam concluded.
At the management company SSIAM, open-ended funds not listed on the stock market have a plan for investors to easily put in a certain amount of money each month depending on their income and the level they want to invest to average the cost of capital and reduce the cost of capital. minimize the risk of timing.
“With listed funds such as SSIAM VN30 ETF, SSIAMVNVNX ETF, SSAM Finlead ETF, I see that you actually do it yourself on your securities account without opening other accounts because these fund certificates are registered trading on the stock exchange and investors can place buy and sell orders like a normal stock.For example, every month when young people come home from work, they have extra money, before buying milk tea, young people can put an extra amount on a long-term investment.
Fund certificate products on the market are good tools for investors who do not have time, do not specialize, do not have to open the board every day, can also achieve success, very positive profits in the long term. Not everyone can become a financial expert, but with discipline, monthly investing in a portfolio as diverse as the top 30 companies in the stock market, I’m sure at 60 you will retire very soon. healthy because the potential of the Vietnamese market is very positive in the long term”Mr. To Xuan Nam gave advice.
We can get rich at any age, but ideally, the most perfect is the young years. Already have the “danger” inside, the ability to learn quickly and the willingness to stand up even if you fall, so what are you waiting for without getting rich at the age of 20.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
