Chứng khoán - Học đầu tư khôn

Books that teach you to invest in securities cannot fail to read if you want to be successful

8 reasons to invest in the stock market

1-Profit always tends to increase and is higher than savings.

Savings in Vietnam have interest rates ranging from 5 to 6.7%/year, a very modest number if you know that in one day (session), a stock can increase up to 15%, meaning is that after 3 days, assets can increase up to 52.08%. In the derivatives market, the amount of money earned on a contract is even larger, due to its large value and can be bought and sold during the session instead of having to wait until T3 like the base market.

2. Allocate risk effectively.

Never put your eggs in one basket is considered one of the classic verses that need to be remembered. This sentence can be understood that you should allocate your resources into more than one sector, securities are not only stocks, as mentioned above, it also includes Bonds, fund certificates….and information Usually when the stock market falls, the bond will tend to increase because the interest rate is fixed when it is offered for sale. A little more advanced, when you enter the derivatives market, whether the market goes up or down, you still make money using the right Buy (Long) or Sell (Short) orders.

More broadly, when securities are only one of your investment channels, the level of risk is also greatly reduced.

3-Capital does not need much but get more.

Unlike real estate, you need an initial capital of up to hundreds of millions, in big cities like Hanoi and Ho Chi Minh City, this number will be billions, not a small amount. But with stocks, you only need to start with a few million for categories including stocks, bonds and fund certificates.

4-Time spent on securities is not much.

If you are not determined to live in stocks but only define it as a side business or a passive income generator, then stocks are for you (as mentioned above).

5-High liquidity.

For professional investors who need to move money back and forth between sectors (Gold, trading, debt, forex, CFD…), liquidity will be the “first consideration” factor.

Liquidity is a concept that refers to the extent to which an asset can be bought/sold in the market without much impact on the asset's market price. High liquidity means that assets can be sold/exchanged quickly without a significant drop in price, often characterized by high trading volume.

6-The associated costs are low.

When you buy/sell a house, there may be a total of 3 types of taxes and fees, including: personal income tax, registration fee (name transfer fee / buyer borne), appraisal fee for certification application receive land use rights (in each case) and brokerage fees, which can add up to 5% of the total transaction value.

But for securities, according to the Tax Law 2014 and Circular 92/2015/TT-BTC, the seller is only subject to Personal Income Tax of 0.1% of the total selling value. Buyers do not pay tax.

7-Supported flexible and fast financial leverage.

Unlike savings, if you have 1 million, you can only deposit no more than that amount, but with securities it is different, the securities company can give you a limit of up to 50% of the total value of your account. property, which means with 1 million, you can invest up to 1.5 million.

8-Own the company you like and be a creditor to the state.

Does this surprise you? Perhaps, but this is a fact, according to the Law on Enterprises, when you own shares of a company, you are owning a part of that company and have all the rights clearly stated in the law.

When you own a bond issued by a company, you are a creditor of that company, and if you own a government bond, you are a creditor of the government.

With all the above reasons, I hope you have found another effective channel to diversify your investment portfolio as well as manage risk more effectively.