Comprehensive Guide to International Stock Investment: From Basics to Advanced Strategies

With the development of financial technology, accessing the global stock market has become easier than ever. Just a few clicks, Vietnamese investors can trade top stocks worldwide, monitor major indices from international exchanges. However, to play international stocks effectively and safely, you need to understand the potential dangers and choose the right brokerage.

Common scams in international stock trading

Before starting your investment journey, the most important thing is to recognize the risks and scams of illegal platforms.

Confusing product types: Many unlicensed brokers intentionally obscure the concept between underlying stocks and derivatives, making investors unaware of what product they are trading. As a result, they cannot effectively manage risks, leading to heavy losses, and all incidents are blamed on “scams.”

Unlicensed operations: The lucrative market attracts many illicit actors. They set up fake platforms without licenses, lure investors to open accounts and deposit money, then simply disappear with all your assets.

Trading signals with high-profit promises: Fraudulent advisory groups constantly share “huge” profits to stimulate greed. When investors incur losses, they still advise you to deposit more money to “fight bigger battles.” This is a typical cycle of financial scams.

Understanding how to play international stocks via CFD contracts

To avoid being scammed, you need to understand: how to play international stocks usually involves investing in CFD contracts, not directly owning stocks. This way, you profit from the price differences of stocks and indices from markets like the US, UK, France, Germany, Japan without holding the actual assets.

The basic criteria for selection are: Safety and Profitability. If you choose a licensed broker authorized by reputable regulatory agencies (ASIC, CySEC, FCA, etc.), safety is assured. The remaining concern is profitability.

Positive signals from the global stock market

Data for 2024 shows volatility across different markets:

International stock indices - Performance 2024:

According to the data, the US and Japan markets show significantly better growth.

Top US stocks by market capitalization:

Names like Microsoft (453.93), Apple (253.21), Amazon (230.87), Google (196.88), and Tesla (478.82) continue to lead the market with strong growth prospects.

International stock trading hours according to Vietnam time

Each market has its own trading hours due to time zone differences:

Main markets:

A major advantage of derivatives trading is the very long trading hours, allowing flexible scheduling between work and investment.

Note: Some countries change their time zones seasonally (summer/winter), so trading hours may shift by an hour.

What can you invest in on the international market?

Through international trading platforms, investors can participate in:

US stocks: Tickers like Tesla, Apple, Microsoft, Amazon, Facebook, Google — companies in the S&P 500 with annual performance often exceeding 50%, possessing strong international brands and significant growth potential.

Major indices: S&P 500, DAX 40, FTSE 100, Nikkei 225 — all showing impressive and stable growth. As the market attracts more new investors, these indices have opportunities for sustainable growth.

ETFs: Some platforms offer leveraged ratios (around 1:5).

The advantage of CFD trading is that you can profit in both directions (both when prices go up and when prices go down), and T+0 trading, suitable for investors seeking quick profits.

Factors affecting the international stock market

Political developments: Elections, diplomatic relations, protests — for example, the US presidential election success sent bullish signals to the US stock market. Conversely, the Russia-Ukraine war in 2022 shook the entire global financial market.

Legal regulations: Vietnamese investors should note that Vietnamese law does not permit direct buying and selling of international underlying stocks, but CFDs are an exception. Therefore, choose a licensed broker.

Economic and monetary conditions: Interest rate policies, inflation, monetary easing — these factors strongly influence corporate growth and stock prices.

Natural disasters and pandemics: COVID-19 caused consecutive sharp declines, while the healthcare sector grew and tourism declined.

Industry and company factors: Growth prospects, leadership, capital sources — these determine the performance of individual stocks.

Investor psychology: Perhaps the most important factor. Stock prices follow the law of supply and demand — when investors are optimistic, they buy more, prices rise; when anxious, they sell off, prices fall.

Effective strategies and tips for international stock trading

Choose reputable brokers: Find platforms licensed by reputable regulatory agencies (ASIC, CySEC, FCA). Compare transaction costs: deposit/withdrawal fees, commissions, overnight fees, spreads. Lower costs protect your profits.

Continuously update market news: Follow political, economic, and market sentiment events to better predict price trends.

Combine technical and fundamental analysis: Use both chart analysis and evaluation of economic, political, and corporate structure factors to make informed decisions.

Focus on sectors you understand well: Instead of over-diversifying, spend time focusing on a few familiar stocks. You will have better insights and more accurate judgments.

Build your own strategy and stick to it: Create a specific investment plan, set risk management rules (for example: risking no more than 2% per trade), and maintain discipline in execution.

Gradually accumulate experience: The market always offers lessons. Be persistent in learning, analyze your mistakes, and improve your skills over time.

Conclusion

The international stock market is a vast playground with great profit opportunities for investors willing to learn and be patient. Playing international stocks is not difficult if you:

1. Understand the dangers and scams
2. Choose a clearly licensed broker
3. Master knowledge of trading products
4. Apply effective risk management strategies
5. Persistently accumulate experience

Start your journey cautiously, step by step, and success will come over time.