How to invest in short-term stocks or surfing trading is interested by a lot of investors. Because this is an attractive and profitable investment channel with a short time frame. But that’s when you know how and have short-term stock investment experience. Otherwise, the possibility of being “seasick” in the market will be very high.
Stock investment is a 10-player game with only 2-3 winners. Especially the probability to make money on short-term investment will be much lower. However, because of the ability to make high profits in a short time, surfing is still very popular with investors.
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So what is short-term stock investment?
To know the best way to invest in short-term stocks, you need to understand the concept of short-term stock investment. This is a form of buying and selling shares on exchanges in a short period of time.
With this form, customers can buy and sell stocks in a few days or weeks. In general, short-term investment is still the choice of many investors. You can understand this as a form of capital investment in securities. Such as stocks, bonds, bills or certificates of deposit, ..
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Should I invest in stocks for long term or short term at this time?
There will not be a general formula for all investors, to answer the question “Should I invest in stocks for long or short term” will depend on the characteristics and characteristics of each different investor.
If you belong to the group of risky investors, love and accept risks, want to hold securities for a short time to earn quick profits, you should choose short-term securities investment. As such, you should make trades in accordance with the cycle, volatility and new trends of the market.
In case 2, you belong to the risk-averse investment group, you can only accept investment when you can predict the level of risk within your limit. Then, holding the securities for the long term will almost certainly guarantee you a profit in the future. However, the profit level, payback period and receiving this income will be quite long.
>>> See more: 10 Notes to surf the stock market effectively
Short-term stock investment methods you should know
To invest in short-term securities, how and experience to invest in short-term securities. When you are more stable, you should start with a larger investment amount. So what are the short-term stock investments?
First, identify trends and market trends
In general, stocks will move according to the market. Therefore, the first thing you need to do when making short-term investments is to analyze the general market trend. The market is rising or falling, is the force of ups and downs strong, is it enough to create “waves”. When following the market, the probability of correctly identifying the stock trend will also be much higher.
Next, investors need to analyze the prevailing “trends” at the moment. Which groups of industries have been and are being interested in or benefiting from macroeconomic policies? Which industry will have growth potential in the near future?
Choose the right industry leader
Once you’ve identified the industry wave, the next thing to do is research, analyze and choose the right stocks that stand out in that industry. In addition, investors should also listen to information related to businesses such as acquisitions, mergers, sales to partners, .. Because often these stocks will have the ability to create strong waves. From there, it will help you earn more profits as well as reduce risks.
Next is to calculate the time to join
In the short term, price movements are determined by supply and demand factors. Therefore, investors can apply technical analysis, based on indicators, charts such as moving average MA, MACD Histogram, Bollinger Bands, .. to find buying points. In order to increase the accuracy of analysis, investors can use the cash flow analysis system for Finashark exclusively developed. To help identify phases in a stock’s price cycle and thereby determine the best time to enter.
Finally ready to cut losses
Stop-loss is a way to invest in short-term securities to help you preserve your capital and find new opportunities. Hesitating to cut losses and then hoping for a falling stock to increase in price can “blow” all your previous achievements. So, if you have entered the “game” of surfing, you must be ready to cut your losses if the direction of movement goes against your prediction. Accepting small losses, being prudent in analysis and controlling greed and fear will help you not to get caught up in the market and make more accurate decisions.
>>> See more: The most effective way to invest in stocks for newbies
Above are short-term stock investment methods that you can refer to. Once again,Market hot news I want to remind you that short-term securities are not for inexperienced investors. So you should draw for yourself a lot of real combat experience, more market knowledge!