Blue chip is an important term in the financial field, especially for stock investors. Blue chip stocks are always their top choice in this market. So what are blue chip stocks? What are the outstanding advantages of blue chip stocks that are always in the portfolio of most stock traders? And how to invest in blue chip stocks on the financial markets? Then in this article, we will answer all those questions together.
Viewing: What is Bluechip
How to invest in blue chip stocks
?Today, blue chip stocks are considered a favorite financial instrument of many investors and more and more people are interested in them. with the stock market. However, there are still a lot of people who don’t know how to invest in blue chip stocks in particular and all types of stocks in general, where to buy and sell.
For Vietnamese blue chip stocks
Vietnamese and foreign investors who want to invest in blue chip stocks of Vietnam’s stock market will adopt two main forms as follows:
Participating in direct trading on the Vietnamese stock market: you can choose to open a trading account at any Vietnamese securities company. The securities company will provide investors with a platform to help you participate in buying and selling blue chip stocks directly on the market. This is a form of direct stock investment. This form has the advantage that you can analyze and give trading results yourself without depending on anyone. Moreover, the profit from the investment will be fully enjoyed without having to share it with anyone. However, this personal investment in blue chip stocks is only suitable for investors with large capital and knowledge of the market and analysis.
Stock is a risky financial market, not everyone can participate.
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Investing in blue chip stocks through investment funds in Vietnam: an investment fund is a financial institution that participates in the market as an institutional investor and also as a liquidity provider for the market sales. You just need to invest money in the fund, the analysis and decision making will be done by the fund’s experts and professional traders. Investors will enjoy profit/loss depending on the business results of the fund. This form of investment is suitable for those who do not have time, do not have much knowledge and experience in trading in the market. However, the profit from the investment results will be reduced for you to pay the commission fee for the fund and this fee is usually quite high.
For US and international blue chip stocks
Vietnamese investors can invest in US stocks through two forms:
Investing in blue chip stocks with CFDs: this is the main form of investment in the foreign exchange market. To invest in stocks in this form, you need to open an account at a reputable forex broker, this forex broker will provide you with a platform to trade US blue chip stocks with other investors around the world. bridge. With this form, you will have the opportunity to make high profits on a small amount of capital thanks to leverage and make money even when the market goes down thanks to the nature of derivative products CFDs.
Invest in blue chip stocks through the form of “buying on behalf” or custody: some forex brokers allow traders to invest in stocks directly on world stock exchanges by acting as their representative. In order to be in the name of ownership, the purchase, sale and transaction belongs to the investor. Although the owner of the shares is the exchange, not the investor, you will enjoy all the benefits on these shares, including dividends, like a traditional form of investment.
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Blue chip stocks are an indispensable financial instrument in any investment portfolio of both individual investors and large institutions. Safety and stability are probably the brightest criteria that make blue chip stocks more attractive and popular. However, to be successful when investing in blue chip stocks, you need to thoroughly research the company, industry group and other economic factors. And no matter which investment form you choose, you still need to be fully equipped with analytical knowledge and general knowledge of the market to be more proactive in all situations.