STAY CALM IN THE MARKET’S VOLATILITY
Monday’s opening session (April 15th) drop of 60 points (4.7%) left a deep shock in the market. Not only is this the biggest fall in over a year in Vietnam’s stock market, but it is also the biggest drop in Asia on the same day. Many investors became anxious, continuously sold cheaply, hastily closed profits, and chased buys. Tension and red were present in the market.
To protect investment results, avoid panic, stay calm to focus on the long-term investment plan and your financial goals. At the same time, investors should not be passive; they need to act to adapt to new situations.
5 THINGS TO DO NOW TO PROTECT ASSETS
“Staying calm and following the long-term investment plan are important. If investors let themselves be swept away by a wave of anxiety, they will be more likely to make wrong decisions, causing a loss of assets,” emphasized Mirae Asset Securities representative, and made 5 recommendations that investors can implement immediately.
First, when the market is down, it is an ideal time to review your investment portfolio and make sure it reflects your risk appetite and financial goals. Pay attention to diversification and even allocation, keeping the principle of “not putting all your eggs in one basket.”
Besides, investors should also consider eliminating high-risk stocks and adding stocks with growth potential. At the same time, adjust the portfolio to suit the financial situation, future needs, risk tolerance, and market factors at this time.
Second, increasing the cash ratio is also an issue that should be considered. Increasing the cash ratio in the account during most market volatility periods is always recommended because it reduces risk for investors. In addition to increasing the ratio, investors should also be more cautious, actively reduce their portfolio instead of disbursing to catch the bottom early.
The third important thing that investors need to keep in mind is to keep a reasonable stock ratio. Avoid over-leveraging below the allowed ratio and facing force sell pressure. A reasonable and suitable stock ratio and strictly adhering to your investment strategy should be ensured in any situation.
Investors can also reduce margin borrowing costs to manage their portfolio effectively. If you still want to use margin, choose a reputable brokerage firm with the best interest rates to ensure profit optimization.
The program “Margin interest rate is really small, limit is really large” with an interest rate of 7.99% and a balance of up to 10 billion VND of Mirae Asset Securities is currently one of the attractive incentive programs in the market, worth considering. investors.
Also, don’t forget to use risk management tools and seek professional advice. With the continuous fluctuations of the market and the economy, tools that help predict trends and risks from a multidimensional, objective perspective become essential.
If you still feel unsure about your investment portfolio, investors can seek advice from financial experts with the ability to assess the situation accurately and make appropriate recommendations. Investors can also follow the market analysis and evaluation programs that are continuously updated on the information channels (Fanpage and Youtube) of Mirae Asset Securities.
The representative of Mirae Asset Securities also affirmed the importance of making decisions at this time: “Protecting assets when the market is down is a complex process that requires patience and consideration. Don’t rush or make decisions with the crowd. We hope investors will build a clear plan and stick to it. In the face of unexpected market situations, Mirae Asset is always ready to accompany and support investors as much as possible.”
