Investors have herd mentality

Hanoi (VNA) - Vietnamese investors should define their own bottom of market indices when taking part in day-trading, said Singapore-based Kim Eng Securities' analyst Ken Tai at a conference on Oct. 2.

He made the suggestion to Vietnamese investors at a conference on the risks
and opportunities of day-trading or short-term investment, held by Kim Eng
Vietnam Securities.

According to Ken Tai, most Vietnamese investors were short-term, taking part
in securities trading to make quick profits.
"Local traders tend to invest in a herd mentality, reflected by the
harsh rises or falls of market indices," said Kim Eng Vietnam Securities'
director Le Minh Tam.

"This makes it necessary to introduce them to investment measures which are
scientific and prosperous with the market's common trends," noted Tam. A
bottom of market index is the point, defined by the investor, when they need
to sell to make a profit.

Investors should be defining their own bottom of market indices, making
sales at this point rather than following others. This would be more
profitable for the investor than others that follow, Ken Tai said.

Ken Tai concluded that investors should act independently in their decisions
after defining the right moment to make a sale.

During the conference, Ken Tai also confirmed that foreign investors, which
were rumoured to be withdrawing, were continuing to pump money into the
local stock exchange. However, their pipelined capital would be less than it
was before, due to the bad situation of the global market.

Kim Eng Vietnam Securities has recently opened a representative office in
Hanoi , providing the same services as their HCM City
headquarters.-Enditem