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Your strategy will depend on your risk profile

Time is key when investing in stocks


In order to be successful in investing in the stock markets, one of the main important things to do is to have defined a well-designed strategy and being able to stick to it even if it means that you may lose money from time to time.

There are a multitude of different strategies that you can implement.

Your strategy will depend on your risk profile for a good part. Why? Because depending on your risk profile you cannot attain the same returns and you cannot look for the same shares. So once you clearly know your risk profile you are set to go to put in place a strategy.

Two of the main strategies are the following: the long-term investing strategy and the trading strategy.

We, at Anh Thomas Investment, will always recommend you to opt for the first one and that is why we strongly recommend to buy Vietnamese stocks since we believe Vietnam is the perfect country to invest when you have a long-term horizon. With this strategy your goal is clearly you go the long way with the stocks you buy. So you will be looking for stocks of companies that have a strong competitive advantage that allow it to make profits year after year. In this strategy, you need to look for solid and possibly undervalued companies. In the second strategy, that is the trading one, you will certainly care far less about finding undervalued stocks. Instead your interest might be to look for speculative stocks. In short, you will be trying to buy rising stocks and selling falling stocks. It sounds simple but it involved a lot of risks, and because of the transaction costs you will certainly end up losing a lot of money over the long-term.

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