Before entering the stock investment market, you need to clearly identify your current financial situation as well as your risk appetite.
From there, choose the appropriate investment form for yourself.
This will also be the “core” information that helps an investor make transactions more smoothly and flexibly.
Prepare finances, determine your investment goals
To start your investment journey, you need to assess your finances, how much of your % income can be used to participate in the stock market.
From there, new investors can determine their goals in this "playground".
Remember, investing is a long-term process and requires perseverance. Therefore, depending on your personal financial investment plan, you can flexibly choose the appropriate investment method.
For exchanges, you will need to prepare capital for 100 shares/lot, ranging from several million and more.
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For odd-lot stock investment applications, you can completely take the initiative in the capital you want to invest, typically LiveTrade – Stock investment application from only 10,000 VND.
Choose the right investment form for yourself
For long-term investors, most of them will choose to invest in long-term stocks because of the huge profits.
However, that does not mean we should ignore short-term investment opportunities. Depending on the purpose and capital source, investors will choose the appropriate form for themselves.
With short term investment
The ability to rotate capital will be quite fast if you are successful. Besides, you can choose many other investment channels. However, along with profits will come risks.
Short-term investments will have many unexpected risks that you can hardly foresee.
Mainly only experienced and far-sighted investors should engage in this risky "surfing" style.
So should you choose this form of short-term investment? See the detailed article Short-term stock investment: Should or should not and what should be noted? of LiveTrade to find your own answers.
With long term investment
You will be able to outline a more sustainable investment strategy. Above all, you will feel more “comfortable” because the risk will be at a relatively low level, not as much as short-term investment.
To pursue this "long-term" process, you need a huge amount of capital before you start participating.
Short-term or long-term will depend on your needs. The important thing is which form best suits your capital and ability, that is what is worth considering when investing in stocks.
Learn more about how to invest in stocks long term through the following detailed article.
Determine risk appetite
This is considered the level of risk that investors can accept if it arises during the investment process.
Risk appetite depends entirely on you as an individual, revolving around the following factors: goals, time horizon, investment preferences and personal background, etc.
Determine where to buy stocks based on needs/purposes
Specifically, you need to choose the appropriate investment method in the following ways:
- Trading directly from companies/businesses issuing stocks, you will usually need to go there to own stocks and execute buy-sell orders.
- Trading through investment applications on the phone. All transactions will be done completely online. This is also the method chosen by many new investors because of its practicality, intuitiveness and convenience.
- Trade through a stockbroker.
