“Secrets and techniques” of inventory choice for particular person traders on the inventory change

Investing in shares is a troublesome job. The problem will not be essentially within the every day have to comply with the information, plan, script and behave appropriately. However along with these jobs, probably the most tough factor is to find out the goal and the value zone to “down”.

On this article, I wish to share my very own technique, drawn from a few years of expertise within the inventory market. There are lots of successes in it, however painful failures are additionally many. The failures I at all times remember, engraved in my coronary heart, are useful classes to have the ability to share with you. Since this text is solely private, there isn’t a proper or incorrect. Particularly the dimensions of funding capital could be very completely different, so it’s not advisable to use it to all.

In a way, securities are a commodity. The benefit of this commodity is that it’s not rancid and might be saved for a very long time. However its draw back is the fixed worth fluctuations, even when you select the incorrect merchandise, can result in chapter. Thus, product choice is paramount. The inventory market is sort of a miniature society, the place there are fraudsters, there are opportunists who reap the benefits of them, there are additionally clever individuals, together with those that are silly and deceived.

Regardless of the case, let’s attempt to be sincere with ourselves, attempt to appropriate errors in the event that they occur. And do not comply with the crooks, do not comply with the individuals who have the chance to revenue, as a result of that cash will not be sustainable.

Securities professional Nguyen Hong Diep

Three qualitative elements when investing

1. Confidence: If you do not have religion within the inventory funding channel, undoubtedly do not take part. Don’t suppose that merely “leaping” in a bit, making a revenue and working out, is the tip. Many individuals lack religion, however as a result of they like the chance to revenue, they bounce in and might’t cease. As soon as investing in securities, one should place confidence in the brilliant way forward for Vietnam’s inventory market within the medium time period 6 months, long run 2-Three years.

2. Selecting items (codes) with future benefits: No matter whether or not the aim is short-term Three months, or long-term Three years, when selecting items, precedence have to be given to those who usually are not adversely affected by the scenario. place and get a bonus. At the moment, the Covid scenario is sort of sophisticated, however luckily, the largest unfavourable influence is on small and medium enterprises, not listed on the change. Many listed corporations nonetheless profit and have a superb future once they can purchase and take market share of weak companies.

3. Down is a chance in Huge development: In any massive wave (often lasting at the least Three years), corrections at all times occur. However when you can steadiness your psychology, steadiness your belongings, then these are one of the best alternatives.

5 quantitative elements to decide on shares

1. Index: Funding should at all times take the index as a foundation. Let’s do away with the concept that we’re geniuses, to search out codes that go towards the waves. If we decide that the Index on the finish of 2021 is 1,400-1,450, and on the finish of 2022, it could possibly attain 1,500-1,600, then confidently select items when the Index drops under 1,300. Often probably the most best purchase zone in a giant development is when the general market drops about 15%-20%.

2. EPS: All the time periodically evaluate the enterprise scenario of the goal codes. P/E ratios are crucial, particularly for particular person shares and sectors. It’s nonetheless tough to foretell far, however there are a lot of codes that may predict the following quarter’s enterprise outcomes. The bearish zone is when that ticker’s P/E makes a historic backside (bear in mind, it is P/E, not worth). There are lots of codes, though the value has elevated 5 instances earlier than, however now’s the most cost effective in historical past.

3. Important items: As soon as the core enterprise of the goal enterprise is particularly recognized and has development by detailed, measurable numbers, then that code must be thought-about. For instance, a inventory code on the ground has a well-known identify, however when it reviews the numbers on development, market share protection, it’s clear that it’s happening, then this code ought to undoubtedly not be invested. Alternatively, like some codes of the main securities corporations, which have superb buyer development, are in a position to proceed to extend capital, and herald secure % development in income and revenue, it’s which codes ought to take priority.

4. Seize the chance: The chance doesn’t happen in a day, a session, however typically takes place in a course of, a sure time. If we take into account the 10% correction degree of the Index to be a superb degree, it implies that ranging from the zone when the Index fell 7% is taken into account potential. The cheaper the acquisition, the higher. That’s, if the enterprise doesn’t have sudden fluctuations in enterprise actions, the value reacts based on provide and demand. Then reap the benefits of the instances of panic, probably the most rumors, the “pig birds” flying within the sky, everybody says promote, then boldly put down massive cash.

5. Unfold shopping for: In case you plan to spend cash to purchase a sure goal code, then after figuring out based on level 2 (P/E of historic backside), level 3 (secure development in income), level 4 (index fell 7%), then began shopping for. It’s endorsed to make a primary buy of 30% of the quantity reserved for that code. Wait till Tuesday-Thursday, if the value vary doesn’t fluctuate greater than 3-5%, then you should purchase one other 30%. If the drop is deeper than that, you should purchase extra and enhance it to 80%. If already above that degree, cease shopping for.

These are the issues I’ve concluded for myself, making use of on this present actuality. It isn’t for steady buying and selling, pure browsing or for many who have ambitions to “eat directly” after Three days. However after greater than 1 yr, when wanting again, there are comparatively efficient outcomes. Hopefully this technique may help those that are totally prepared, particularly in fairly appropriate circumstances like at this time.

Hong Diep

Enterprise and Advertising and marketing