Investment efficiency

Performance is the ability to complete a task to the maximum extent using available resources. Investment efficiency can also be understood as the ability to obtain maximum profits based on the available resources of the business.

The way to improve investment performance is to regularly monitor and evaluate the market. From there, investors can adjust investment activities in accordance with market changes. Besides, absorbing investment lessons from those around you or the investor yourself is also a way to help investors achieve success in the marketplace.

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Break-even point in business

Break-even point is the point used to indicate the level of production or sales at which total revenue equals the total costs the business spends.

There are two types of break-even points:

  • Economic break-even point (also known as break-even point before interest)
  • Financial break-even point (also known as break-even point after interest)

Recipe: BEP = FC/(S-VC)

The break-even point allows businesses to know at what level of sales volume or revenue the business will break even. Therefore, businesses need to consume an output level that exceeds the break-even output to be profitable; Otherwise, the business will suffer losses.

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Bollinger Bands are a technical analysis tool defined by a simple moving average (SMA) in the middle, upper and lower bands. Bollinger bands will automatically adjust to widen during volatile market periods and narrow during less volatile market periods.

Bollinger Bands are a popular indicator. The more the price moves to the upper band of the Bollinger bands, the more overbought the stock market is, and the more the price moves to the lower band, the more oversold the market is.

Bollinger Bands (BB) is not a standalone trading system. They are simply an indicator designed to provide traders with information regarding price movements.

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Margin ratio is the deposit ratio, an index that measures the ratio of net assets and total value of securities investment.

Margin = Investor’s net assets/ Total value of securities

What is Call Margin?
Call margin is a margin call. This is a notification order from the securities company, asking investors to add more money, sell less or increase the amount of mortgaged securities to continue buying shares.

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RTT index in stocks

Real margin ratio (Rtt) is the ratio between collateral value and actual outstanding balance

Calculation formula: Rtt = [Value of collateral/ (Total value of actual debt – Cash – Proceeds from sale pending return)] *100%

Actual margin ratio milestones to note:

Account safety ratio: Rtt ≥ 100% Is the account safety ratio.

Account maintenance rate – Rdt: 100% > Rtt > 87% Is the rate that the Customer must ensure to maintain during the loan period. At this Rtt level, the purchasing power on QK’s account will be < 0.

Warning ratio (Call margin): 87% ≥ Rtt ≥ 80%: When the ratio reaches this level, customers need to add money or assets or sell a part of securities to bring the Rtt to a level greater than or equal to the Call margin. maintenance (Rdt).

Processing rate – Rxl (Force Sell): Rtt < 80% When the margin rate reaches this level, the securities company will automatically sell securities in the Customer’s account at the floor price to bring it to the prescribed rate. .

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GDP stands for Gross Domestic Product or Gross Domestic Product.

GDP is considered from different angles:

  • From the perspective of use (spending): GDP is the total demand of the economy including final consumption of households, final consumption of the State, asset accumulation and the difference between import and export of goods. and service.
  • From the perspective of income: GDP includes workers’ income from production, production taxes, depreciation of fixed assets used for production and the value of production surplus during the period.
  • From a production perspective: GDP is equal to production value minus intermediate costs.
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Gross profit is the profit after deducting costs related to the production and sale of products/services from the business’s revenue source. Gross profit (or gross profit) is calculated by subtracting the cost of goods sold (COGS) from net revenue.

Variable costs that affect gross profit include: Cost of human resources – Costs for production materials and transportation costs – Cost of loss during production – Warehouse import and export costs – Credit card fees when customers purchase products/services with the card – Depreciate equipment over its useful life – Commission fees for sales staff.

The formula for calculating gross profit is as follows: Gross profit = Net revenue – Cost of goods sold

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Force Sell is a situation in which an investor loses control when his assets are reduced too much, at which point the securities company will intervene to limit the risk rate.

Force Sell occurs depending on 3 main quantities: margin rate, warning margin rate and release margin rate (or minimum margin rate).

Before being Forced Sell, the investor’s account will receive a notification that the margin ratio is about to reach the processing threshold, encouraging investors to add more capital or sell off shares to increase the margin ratio. prescribed level.

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EPS – PE Index in Stock

EPS is earnings per share or the after-tax profit per bonus share of shareholders after deducting preferential dividends. EPS is used by analysts as an indicator of a business’s profitability.

Recipe: EPS = (Profit after tax – preferred dividends)/Average number of outstanding shares

P/E: Represents the price that investors are willing to pay for a profit earned from a stock. This is an important index for stock valuation.

Recipe: P/E = Market price of stock / Earnings per share

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Net Profit

Net profit is an important indicator, it shows: – Financial health of the business – Determine shareholder value – Attract investors – Make decision.

Calculation: Method 1: Net profit = Total revenue – Total cost Method 2: Net profit = Gross profit – Related costs

Factors affecting net profit: – Operating expenses – Revenue- Corporate income tax – Cost of goods sold – Management costs

Methods to increase net profit for businesses: -Review pricing strategy – Discontinue products/services that are no longer profitable – Inventory control – Improve product/service value – Price increase

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