The Key to Exploring Foreign Markets
To those who ask why I am so obsessed with stock trading from such crazy places when I’m travelling, well:
1. Thanks to online platforms like StockstoTrade, I’m able to work from anywhere and I’m proud to help more people understand that it’s possible…
2. I love doing charity all over the world…
3. I go all over the world to find places with amazing views that will inspire you to study and work hard. Too few teachers realize how important daily motivation is.
Performance theory and goal setting theories show that daily performance is improved by 15-25% when you dream big as opposed to having small goals…
So, are you going to heed my advice and study this weekend? The stock market is closed so you have no distractions or excuses…
Without further ado let’s finish up my 6 steps to trading in the Asian market today. I’ve also got some risk factors you should contemplate before diving in…
5. Create an Asian Stock Watchlist
One of the first things I teach all of my students is to create a watchlist. Update it daily. Start learning patterns and price action by watching.
If you haven’t signed up for my weekly watchlist, do it now. It’s a great way to start. (It’s U.S. based, however. You’re on your own for creating an Asian stock watchlist.)
The same applies to the Asian stock market — if you’re going to trade, you need a watchlist. It’s one of the most basic parts of your research. If you’re serious about trading the Asian markets, start your Asian stock watchlist today.
6. Pay Attention to Asian Stock Patterns
I think you’ll find many of the same stock market patterns in the U.S. and Asian markets. Most patterns we trade were first identified and characterized by Japanese rice traders.
There’s a great book about it called “Japanese Candlestick Charting Techniques” by Steve Nisen. It’s a great book for in-depth study of candlestick charts regardless of whether you decide to trade the Asian markets or not.
How Can You Explore Asian Market Opportunities?
In many ways, a decision to invest in the Asian stock market is a decision to get back to basics. That’s because there are enough differences that you’ll need to spend some serious time studying.
As always, you can’t cheat success. If you’re going to invest in or trade the Asian markets, do it right.
Seek Out Other Resources
There are plenty of books about the Asian markets available. Also, almost every financial website has an entire section devoted to the Asian stock market. It’s an ever-shifting landscape.
You need to stay on top of what’s going on in the economies and markets where you plan to trade.
Seek Out a Money Manager
Sometimes I’m hard on money managers because they tend to give boring advice about money. It’s different from what I want to teach you, which is trading (it’s a lot more rewarding, in my opinion).
The thing is, when you’re talking about foreign markets you need to understand all the moving parts.
You have to deal with currency exchange, sourcing an appropriate broker, different regulations — the list goes on. A good money manager can advise you in these areas. I suggest contacting a money manager with expertise in the Asian stock market. Consider it part of your investment.
If you’re considering investing in an Asian company because you believe in the company, then it might be a good idea to …
American Depository Receipts (ADRs) are a way for foreign companies to list shares on U.S. exchanges. Imagine trading shares on an Asian exchange without understanding all the regulations. Add currency exchange, and it gets even more complicated.
When you trade ADRs, orders are executed on U.S. exchanges in U.S. dollars. How? U.S. banking institutions buy large blocks of shares in foreign stocks, then offer them as ADRs. This is why you can invest in a company such as Chinese e-commerce giant Alibaba (BABA) on the New York Stock Exchange.
I find ADRs interesting because they come in different flavors — and some flavors are traded over the counter (OTC) instead of one of the big exchanges. For a penny stock trader, this hits a little closer to home.
What Are the Risks of Investing in the Asian Stock Market?
Like any type of trading or investing, the Asian stock market has its risks. The economies of Asian countries are mostly considered ‘emerging’ economies. This is one of the reasons they’re growing so rapidly.
But that can also mean a lot of volatility in the Asian markets. While I embrace volatility, it can be a little unnerving. Be prepared.
Other risks include political uncertainty (in some Asian countries), changing regulations, and fluctuations in currency exchange.
There are similar risks in our own domestic markets … It’s just that we’re more familiar with what’s going on. We hear about it in the news.
Which brings me to this: Pay attention to Asian stock market news if you’re going to trade in those markets.
The Bottom Line
The Asian stock market presents another opportunity for you as a trader.
Whether it’s right for you depends on a lot of factors. Whatever you choose, don’t overextend yourself by trying to trade several different markets at different times.
Pick a market to trade and master it.
— Tim Sykes
Editor, Penny Stock Millionaires