In 2021, when the Covid pandemic broke out. The stock market at this time has doubled the number of participants. Because this is a potential market and earn income when the whole society is closed. Investing in finance is not something everyone can start with if they don't have a good understanding of it. The following article will give you useful information about How to invest in stocks? for beginners.
Essential knowledge when starting to invest
What are stocks?
- Shares are certificates issued by the company to show the amount of money that investors contribute capital to the company.
- A certificate or journal entry confirming ownership of one or more shares of that company.
- Investors who own shares will become shareholders and at the same time the owners of the company issuing the shares.
Types of stocks
There are two common types of stocks on the stock market today:
Common shares (also known as common shares):
- Holders of this stock are entitled to dividends according to its business results and value.
- Stock owners are allowed to participate in shareholder meetings.
- Especially have the right to freely transfer shares.
Preferred shares : Shareholders holding this stock receive the first dividend. Besides, in case the company goes bankrupt, the company will pay for this type first. Then there are common stocks. And this stock is divided into 3 subclasses:
- Dividend preference shares
- Refundable preferred shares
- Voting preference shares
See more: Investing in short-term stocks and the fundamentals you need to know
What is stock investment?
- Investing in stocks is a form of indirect profit. This is a form of participants using their capital to buy/sell shares.
- However, to bring a lot of profit, it requires investors to be equipped with the necessary knowledge.
- Especially capable of high market analysis.
Answer questions about how to invest in stocks effectively
How much capital is required to invest in stocks?
On the current stock market, companies do not require participants to invest a minimum amount of capital. Participants who can spend a few hundred thousand or a few hundred million can also easily buy shares. However, not everyone has a lot of money or invests their own money without knowing how to invest in stocks.
How many securities accounts can an investor own?
According to the provisions of Circular 203/2015/TT-BTC of the State Securities Commission, an investor can only open one securities account.
Why invest in stocks?
Stock investments bring high returns in the long run. If you choose a company with potential and fast growing. Then the stock will increase, you will profit from the difference of the buying and selling price of the stock. Or if the business is profitable, the company will pay dividends to investors.
Besides, stock investment is not restricted but very flexible. Investors do not need to accumulate money to buy stocks like real estate. But just a few hundred thousand or a few hundred million can buy shares. Unlike saving money in a bank, it takes time for the money to be profitable, but with stocks it is different. You only need to hold shares for 2 days, when the stock price increases you can sell at any time.
How to know stock price down or increase, trading time?
See more: Long-term stock investment and experience "invest is win"
Currently, on the stock exchanges, the trading time is from 9:00 to 15:00 and lunch break from 11:30 to 13:00.
There are 3 cases to recognize stock price:
- The green price represents an increase in the stock relative to the reference price.
- The red price is the stock that is decreasing compared to the reference price.
- The price of gold ie the stock does not change
Some books to supplement knowledge of learning to invest in stocks
- Big deal _ Peter Pham
- Smart Investor _ Benjamin Graham
- How to make money in stocks _ William J. O'Neil
- The Art of Investing Dhandho _ Mohnish Pabrai
- Died in Stocks - Richard Smith
A beginner's guide to investing in stocks
Above is the basic knowledge as well as answers to some questions. Make it more convenient for you to learn how to invest in stocks. Here are simple, easy-to-understand instructions for beginners.
Open an account :
Regardless of investors who want to participate in investing in the stock market, they must have their own account. An account is like a house, a place to store your shares, money and also a place to buy/sell shares. Currently on the stock market there are 2 ways to open an account:
- Open directly at the exchange. Currently, in provinces such as Hanoi, Ho Chi Minh, Da Nang, Can Tho, etc., there are transaction offices of a number of companies. You can easily find an office wherever you are.
- If you want to invest in stocks but are far away or are too busy to come in person, you can easily open an online account.
Maybe you are interested: Which stocks should I invest in? Top potential stocks to invest in
Deposit money into your account:
Wondering how much to deposit to be able to make transactions? Currently, depending on the exchange and the type of stock you want to invest, there will be a minimum deposit limit you have to deposit.
Place an order to “buy/sell” shares:
After you have an account and have deposited money into your account, you can log in to the respective trading software and buy/sell shares in the following 2 ways:
- Place a buy order: Select “trading shares”. Click “pending order” or enter “buy order” directly on default trade, continue to choose “buy”. Then enter the stock code, quantity and select the final order to determine the purchase.
- Place a sell order: Select “share trading” and enter the quantity and price of the stock you want to sell. Click sell and select “confirm” to sell.
Share your experience when starting to invest
The above useful information will help you understand investment, here are the shares. To help you have a smart and effective way to invest in stocks and get a return on investment.
Learn more about the investment field
When starting out in a stock market, you must understand the growth of the company you want to invest in. About financial ability, opportunities and potential in the business field. Then decide to buy shares/bonds of that company.
Mental stability
Investors need to keep a cool head, so as not to be affected. Because short-term fluctuations can affect investment strategies.
Invest with a goal
Set profit targets, hold periods and most importantly manage risk. Determine whether stock investments are for long-term or short-term play.
Buy low - sell high
Investors know and want to profit from the fundamentals of the stock. These principles are not easy to achieve. Sometimes investors have to accept losses, because many factors affect the market.
Another direction for investors – Support capital for businesses to develop projects
Investment holding company Truong Gia Construction was formed during the period when the country was on the way of renovation, the construction of infrastructure was the foundation for socio-economic development. So profitable cooperation with Truong Gia on the project Phoenix VillaWhat do we get?
Investment capital up to 1600 billion VND and the total investment capital called for in phase 1 is 160 billion VND. The Phoenix Villa resort project is one of the largest projects in the Central Highlands region. The total area is more than 35ha and far from the city center. Pleiku 17km. The peace that comes from the scenery of the mountains and the lake will help remove the sorrows deep in the soul with the typical cultural values of the mountain town. Phoenix Villa project promises to bring new and attractive experiences. Future Phoenix Villa property owners will fully enjoy the benefits of this ecosystem.
What investors get when cooperating with Truong Gia Construction:
- Paying interest on time
- High liquidity, quick capital withdrawal
- Transparent, clear contract
- Get preferential treatment 20 - 30% when using the services at the company doing business
- Guaranteed by shares
- Investment opportunity to experience from 5 million
Epilogue
The field of financial investment is an area that not everyone can invest. This is a field that will be very difficult for newcomers if they are not equipped with enough knowledge about it. But when you equip yourself with knowledge and understanding of the market, you will certainly bring in profits when you invest.
Above are the knowledge on how to invest in stocks for beginners. Take a good look at your knowledge and invest wisely! Clbnhadautu40.com Wish you success!
Sign up for a free financial consultation!
Post a Comment
Post a Comment