How to make money from stocks? Top 5 investment tips

How to make money from stocks? how? Over the years, making money from the stock market has opened up many new opportunities for investors to receive expected profits. This is considered an extremely potential market to help idle coins easily grow and expand. So in today's article, let's find out how to make money from stock investment?

What is the definition of stock investment?

To know how to make money from stocks, we need to have a clear understanding of what stock investing is. Securities investment is defined in Clause 15, Article 4 of the Securities Law 2019: This is the purchase, sale or holding of securities by an investor on the securities exchange market. In it, stock investors can learn many types of investments on the stock market, including: Bonds, stocks, warrants, derivatives, etc. When we make transactions of various forms. buying, selling, owning the above-mentioned assets, it is called securities investment.

In Vietnam, in recent years, securities investment has flourished, with many development opportunities; considered as a potential market. In which, it has attracted a large number of F0 investors to invest in securities.

Benefits from making money from stock investment

The potential for ideal returns for investors is much higher than other investment channels.
Helps investors create passive income and growth trends over time if investors know how to make money from stocks effectively.
The liquidity of securities investment is high, investors can easily trade and resell.
The ability to help investors diversify their investment portfolio with a multitude of industries and sectors.
Investors can easily start participating with a very small amount of capital.
The ability to own the products or services of the business shares that the investor is holding.
The ability to cut losses easily and the investor not suffer the consequences behind it too much.
Benefits of making money from the stock market

How to make money from stocks - 5 effective ways

How to make money from stocks, from stocks? When investing in stocks, there are many ways that investors can make money from them. Below, we will analyze the advantages and disadvantages of 5 ways to make money from stock investment; so that investors can find their own suitable investment path.

Make money from US stock market with CFD

How to make money from stock to make good profit? Trading US stocks with CFDs is a way to help investors easily access foreign (US) stock markets. CFDs are based on the price of assets, without necessarily the investor needing to own them. Besides, this method allows investors to easily use financial leverage, so this form is increasingly popular in Vietnam. In general, this form stands out with advantages such as low capital, easy investment, diversified products and high profits, etc.

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Below we will help you better understand this form of investment through the advantages and disadvantages of this form of investment:

Advantages

The initial investment is extremely low.
Financial leverage at a ratio of 1:10 to 1:200 can be used.
This form does not require investors too much experience.
Make it easy for investors to diversify their investment portfolio.
Easy access to US and International stock markets.
Bringing investors high profits.

Defect:

Requires investors to equip themselves with some knowledge of the ability to read, understand and analyze charts.
Investors need to find a reputable broker.

How to make money from stocks – Make money from stocks

How to make money from stocks and shares? Making money in the stock market from making money from stocks is the most common form. This is a type of security known as a certificate of money that an investor has contributed to a certain business.

Make money from US stock market with CFD — How to make money from the US stock market with CFDs?

In today's stock market, we have two main types of shares: preferred shares and common shares.

Advantages:

Investors are allowed to own shares of the enterprise
Attractive profits, if investors know how to select potential stocks and make money from stocks effectively.
Receive attractive dividends.
The liquidity of the form is also very high, investors can easily buy and sell their shares.

Defect:

This form wants high profits, requires investors to have large capital.
You need to equip yourself with a lot of knowledge as well as a solid source of experience.
Investors will lose a transaction fee when trading on the stock exchange.

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How to make money from the stock market – Investing in bonds

Advantages

When investing in bonds, investors will receive a fixed interest rate, which means we have determined how much profit we will receive.
The amount is paid according to the agreed commitment period.
The form of investment is quite safe, the level of return is suitable for the level of risk.

Defect:

Need large capital when investing in bonds.
It is easy to depreciate the currency when high inflation occurs.
Risk of business bankruptcy/insolvency.
Simply put, this is a form of debt stock. That means when an investor owns this stock, the company owes the investor. And the company will be responsible for paying both principal and interest upon maturity.

How to make money from stock investment – Buy ETF certificates

How to make money from stocks to make a safe profit? Buying fund certificates is quite similar to making money from stocks. This is known as a type of security that confirms ownership of an investor's capital contribution. However, buying fund certificates is different from investing in making money from stocks, that is, fund certificates will be listed and traded between investors.

Advantages

Form is considered a good risk barrier.
Easily protect investors' assets/capital against the waves of inflation.
Investors are allowed to own shares of the business.

Defect

Formal investment requires a large amount of capital.
Investors need to find a reputable fund company.
Hidden risks if you do not know how to choose and encounter less reputable fund companies.

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How to make money from stocks – Buy VN30 index futures contract

How to make money from stocks to make good profits? It is known that VN30 index futures contracts and 5-year government bonds are the only two derivative products on the stock market in Vietnam.

VN30 index is an index representing 30 companies with shares listed on Vietnam's stock exchange - HOSE; has the best capitalization and liquidity as assessed on many different factors.

Advantages

Investors can easily use financial leverage to support the investment.
Bringing about the ideal source of profit.
The form of buying VN30 index futures contracts has good liquidity.
Easily help investors to hedge risks from fluctuations in market prices.

Defect

Investors need a large amount of capital.
Investors need experience and solid market knowledge before starting to participate with this form of investment.
It is not easy for investors to diversify their portfolios

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Epilogue

Above are 5 ways to help investors answer the question "how to make money from stocks?". Hopefully our article can help investors have the most overview of 5 ways to make money from stock market investment. We investors soon find the right portfolio, put their capital easily, have good growth opportunities for the future!