Risk management is the key factor determining investment success or failure. Here are important risk management strategies for Vietnam investors in 2025.
Portfolio diversification: Do not concentrate more than 20% of capital in a single sector. Allocate capital reasonably among sectors: banking, real estate, technology, consumer goods.
Stop-loss: Always place stop-loss orders at 7-10% below purchase price. This is the golden rule to protect capital when the market is volatile.
Capital management: Use maximum 70% of capital for trading, keep 30% as reserve. Do not use margin exceeding 50% of account value.