The question is coming out when I am trying to diversify my capital in different investments.

Why people invest their money?

Simply stated, people invest to make more money. So why people want to make more money? Here are some investment ideas in common:

• For keeping their purchase power over inflation year by year.
• For their life goals: wedding, buying house, paying their children education, retire goal etc…
• For growing their assets and get higher social status
• For stop working and live freedom.
• For innovating technology and better life etc… 

Those ideas sound all right for everyone. But we are all different in personal situation.

to be continued…

My favorite stock these days is VJC – Vietjet Aviation JSC. The stock is qualified for both trading and investing purpose.

As I’ve shared in my previous post, I pick VJC because it qualifies my strategy:

• VJC is weighted for VN-30 index. Check out the list.
• Its average volume is around 600,000 per day.
• VJCs trend has been going up during last 6 months.
• Cash dividend history: 40% in fiscal year 2017 and 30% in fiscal year 2018.

And personally I love aviation business. Comparing other industries, the aviation industry of Vietnam is still young and things just start to boom.

About ten years ago in Vietnam, taking a flight to somewhere is considered as an expensive way for high end class only. Until 2009, Vietjet airline has appeared as the first low-cost airlines enter the market and completely change the way of people travel. From now on, everybody can take Vietjet easily like grab a taxi on the sky.  

Following my strategy, the information above is just enough to buy VJC at the right time. However I am actually in love with Vietjet, so I have done financial analysis myself base on its annual financial report for getting know Vietjet’s business well. I would like to share my analysis points in next post.

Now, the time to show off my trading performance with VJC 🙂

Date Buy	VN-index	Buy price	Date Sell	VN-index	Sell price	PL in $ equivalent
24 May	970.03	119.0	29 May	971.54	122.90	160$
30 May	969.34	123.00	15 July	972.53	130.00	491$
6 Aug	964.61	130.10	22 Aug	997.26	Current price:132.2	Not sell yet

Proof document

Just a very short sharing about how I pick stocks to trade and when?

THE RIGHT TIME

1. I watch out stock index and its market cap till it drop under one year average to decide the right time to buy.

THE RIGHT STOCK

1. Do research with those stocks which weighted for VN-30 index – The Index tracks the total performance of the top 30 large-cap, similar to  S&P500 index of US.
2. Choose those stocks have high volume transaction, around 300,000 per day.
3. Check for stocks have trend up during 6 months and eliminate those have trend down or neutral.
4. Choose those have cash dividend is at least 15%, so if I stuck in loss I still can get 15% cash back for each financial year.
5. Finally, check out my intuition if I love the business, the corporate or not.

It’s all my current strategy in trading (not investing) stock and it works for me.

My favorite site and its tools to do research:

1. VN30 list: https://www.investing.com/indices/vn-30-components
2. For checking market cap and index: https://www.hsx.vn/
3. All data for trend, volume, price, dividend etc. http://s.cafef.vn/du-lieu.chn

A rainy and lazy lazy Sunday in Vientiane, Laos

To put all good eggs in one basket, and then watch the basket – Andrew Carnegie

Well, which advice you choose to follow? Sounds confusing right? 🙂 In my opinion, these quotes are about strategies in business, and a strategy must suitable with a size of capital.

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Continue reading “Eggs and baskets” →

An investment in KNOWLEDGE always pay the best INTEREST.

Benjamin Franklin

Benjamin Franklin has taught us the most important lesson in investing. Without knowledge, we all are gamblers not investors.

Continue reading “Deep in red – get lessons” →