6 Effective Ways to Learn Online Stock Trading in Vietnam

Stocks are considered one of the top investment options; however, many new investors still do not fully understand what stocks are or master the methods to start learning online stock trading effectively. The following article will help you understand basic concepts, different types of stocks, and unique investment forms, so you can choose the most suitable method.

What Are Stocks? Basic Understanding

(Stocks )Shares( are financial products with value that can be bought and sold on the stock market. Stocks exist in many forms: physical documents, electronic, or book-entry )book-entry###, confirming the legal rights of the owner regarding the issuing company.

The stock market is where these transactions take place. Additionally, stocks serve as the foundation for derivative financial products such as indices, futures contracts, and exchange-traded funds.

Since stock prices constantly fluctuate according to the market, they become an important investment channel with higher profit potential compared to traditional investment channels.

6 Online Stock Investment Methods You Should Know

( 1. Public Offering Shares )Stock IPO(

An IPO )Initial Public Offering( is a type of stock that a company first issues to the public to raise capital. These are common shares, usually issued in certificate form. Owners will enjoy standard rights of the company.

If the company issues more shares later, that type is called a Follow-on Offering )Stock SPO###.

Advantages of IPO:

• Significant growth potential in the long term
• Buying at low prices with high profit opportunities
• Stable stock prices, easy to monitor

Disadvantages of IPO:

• Limited opportunities to buy stocks at IPO time
• Large price fluctuations, higher risks than regular stocks

2. Single Stocks - Traditional Stock Trading Method

Single stocks allow shareholders to confirm ownership of a part of the company. There are two main types: common shares and preferred shares.

Common shareholders have the right to participate in shareholder meetings, vote, and run for board positions. However, they cannot withdraw capital but only transfer their shares.

Preferred shareholders receive lower face value and are paid first, but do not have voting rights or the right to run for office.

Advantages:

• Cost-effective management—pay only when buying or selling
• Higher long-term profits than gold or silver
• Full control over stock selection and trading timing
• High liquidity, easy to trade on exchanges

Limitations:

• Difficult to diversify a portfolio with small capital
• Lack of resources to buy various types of stocks
• Time-consuming research and management
• Easily influenced by personal emotions

( 3. Stock Index )Index( - A Step Forward in Learning Online Stock Trading

A stock index is a collection of stocks representing a specific market segment. For example, VN30 in Vietnam includes the 30 strongest stocks, accounting for up to 80% of market capitalization.

Globally, the S&P 500 includes the top 500 stocks in the US, accounting for 75-80% of the US market capitalization. The DJIA )Dow Jones Industrial Average### includes 30 of the strongest stocks, calculated as a weighted average.

Advantages:

• Diversify investments in a single purchase
• Save costs by reducing the number of transactions
• Save time—no need to select individual stocks
• Reduce long-term market volatility risks

Disadvantages:

• Cannot generate super high profits
• Weak companies in the basket can drag the index down

( 4. Exchange-Traded Funds )ETF(

Exchange-Traded Fund )ETF( is an investment fund that holds many underlying assets. You can buy and sell ETF shares similar to company stocks. On the trading platform, ETFs are often marked with a green check symbol.

Some indices are also ETFs, such as the S&P 500 and DJIA. In Vietnam, FTSE Vietnam ETF was the first fund established in 2008. Currently, there are 7 active ETFs, with the three main funds being VNM ETF )VANECK###, FTSE, and VFMVN30 ETF, accounting for over 90% of the total fund size.

Advantages:

• Diversify investments across many assets
• Easy to trade, low costs, and dividend payouts
• Some ETFs can be traded with options or Long/Short orders

Disadvantages:

• High commissions depending on the platform
• Small trading volume leading to large bid-ask spreads
• Some funds are heavily taxed

( 5. Stock Index Futures )Stock Futures(

Stock index futures are derivative financial contracts where the buyer and seller agree on the price of a stock index at a future date. At maturity, the seller must sell at the predetermined price, regardless of the market price at that time.

In Vietnam, futures contracts based on the VN30 index have various maturities: 01 month )VN30F1M(, 02 months )VN30F2M###, and others.

Advantages:

• Can short sell without owning the stocks beforehand
• Use leverage to increase profits
• Apply various investment strategies

Disadvantages:

• Large lot sizes, difficult for small capital
• Continuous monitoring of the portfolio required
• Complex trading methods for beginners

( 6. Stock CFD )Stock CFD(

Stock CFD is a type of trading where you do not buy the underlying asset but instead buy a contract with the provider. Unlike actual stock trading, you can use high leverage to earn higher profits.

With margin, you can place Long-Short orders similar to Forex trading. Stock CFD is an excellent choice for professional traders due to its flexibility.

Advantages:

• High leverage—access the market with less capital
• 24-hour trading, global tools
• Continuous intra-day trading
• Low margin requirements

Disadvantages:

• Potentially greater losses than initial investment if leverage is misused
• Fewer rights compared to common stocks

Leading Stock Trading Platforms in Vietnam

According to HOSE, the largest domestic brokerage firms include:

• SSI Securities Corporation )SSI(
• Ho Chi Minh City Securities Corporation )HSC(
• Bản Việt Securities Corporation )VCSC(
• VNDirect Securities Corporation )VNDS(
• Mirae Asset Securities )MAS(
• VPS Securities )VPS(
• MB Securities )MBS(
• FPT Securities )FPTS(
• Maybank KimEng Securities Limited )MBKE(
• Bank for Investment and Development of Vietnam Securities )BSC

These companies provide stocks, fund certificates, warrants, bonds, and VN30 indices, operating on both HOSE and HNX exchanges.

Basic Terms When Investing in Stocks Online

Bonus Shares - A method of capital raising by splitting stocks. For example, 1 stock worth 100,000 VND is split into 2 stocks worth 50,000 VND each.

Treasury Shares - The company repurchases its own shares from the market to reduce circulating shares and dividend distribution.

ESOP Shares - Preferred shares issued and sold to employees at a lower price to retain talent.

OTC Shares - Shares issued but not yet listed; their value may be inflated compared to reality.

Bluechip Stocks - Shares of leading, stable companies. Examples: VN30, HNX30.

Penny Stocks - Very low-priced stocks with high volatility from small companies. Potentially high profits but also high risks.

Defensive Stocks - Stable stocks with low risk from essential sectors like electricity, water, pharmaceuticals.

How to Start Learning Effective Online Stock Trading

To make money from stock investing, you need to dedicate time to learning, master technical analysis, stay updated on market trends, and accumulate real trading experience.

Start with a demo account to practice skills without risking real money. Learn from trading platforms, refer to professional analysis tools, follow market events, and develop your own trading strategy.

A steel rod polished enough will eventually become a needle—With perseverance and continuous learning, you will master online stock trading and build a successful investment portfolio.