Frequently Asked Questions (FAQ)

Fundamental Analysis (FA) is an analysis method that helps investors evaluate important internal factors that affect the company’s performance and stock value, and identify good companies to invest in. To effectively analyze fundamentals, investors need to have the skills to read a company’s financial statements, analyze macro such as analyzing the industry in which the company operates, analyze the state of the economy or analyze micro such as the company’s operating model and management efficiency to make investment decisions.

Technical Analysis (TA) is an analysis method that helps investors predict future market behavior based on price movements and volume of past transactions. Technical analysis is an important supplementary skill for investors to decide when to enter and exit stocks.

New investors who do not have much experience in the market should not invest all their money in one stock or ‘put all their eggs in one basket’. Stocks fluctuate erratically, especially penny stocks (small-cap stocks), investing all in one stock often causes investors to suffer heavy losses. Diversifying the investment portfolio will reduce the risk of erratic fluctuations in stock prices, investors will not have to ‘stop the game early’.

Portfolio diversification can be understood as a strategy of allocating investment capital to many different types of securities, with different levels of risk. In case one of your investment portfolios has an incident or fluctuates, there is still a possibility that other investment areas will still grow to compensate, helping to minimize the risk to the initial capital.

(1) Plan to buy/sell and set up trading rules. 

(2) Choose the time to buy/sell stocks. 

(3) Diversify your investment portfolio. 

(4) Have a professional advisor. 

(5) Disciplined psychology, control emotions. 

(6) Regularly update market news. 

(7) Invest in knowledge and experience for yourself.

(1) Assess personal financial situation. 

(2) Invest capital in appropriate assets. 

(3) Be able to analyze and evaluate the allocation in investment areas. 

(4) Ensure strategic balance.

It is the market value of a company’s outstanding shares. It is calculated by multiplying the number of shares of the company outstanding by the market price of one share.

It is a type of security that confirms the investor’s ownership of a portion of the capital contribution of a securities investment fund. It includes: closed-end  fund certificate, open-end fund certificate, ETF fund certificate, exchange-traded  fund certificate, etc.

(1) Diversify investments across many industry groups or index baskets. 

(2) Diversify investments across many stocks within one industry group or index basket. 

(3) Diversify investments across many types of securities such as: stocks, bonds, warrants, fund certificates, cash, etc.

It is a public fund certificate that has been offered to the public and repurchased at the request of investors.

It is a fund certificate of a public fund that has been offered to the public but not bought back at the request of investors.