Investing in Foreign Stocks
* Foreign currency volatility can erase gains from investing
in foreign stocks.
* Global investing has become easier for investors.
* China Life Insurance Company announced that it planned
to sell 1.5 billion shares in an initial public offering
(IPO) on the Shanghai exchange. Shares of China Life are
listed in Hong Kong and as American depository receipts
(ADRs) in the United States.
Investing in international stocks has become very much easier and
more popular with many investors. European, Asian, and Latin
American stock markets have provided investors with growth
opportunities not matched by the American markets in the late 1970s
through early 1990s and 2003 through 2006. This process of investing
abroad has been facilitated by technological advances. There is an
almost instantaneous flow of information about financial events,
which also has increased the correlation of the foreign markets with
the U.S. markets. In earlier years there was a low correlation between
the foreign markets and the U.S, stock markets. However, a precipitous
decline in the Hang Sen Index on the Hong Kong Stock
Exchange affects not only the other Asian stock markets but also
the European and American stock markets. Similarly, an early morning
rally on Wall Street can spur stock markets in Europe to close at
While economic and financial events around the world may
be interconnected and move stock markets in the same direction
at several points over time, over longer periods of time there is a
relatively low correlation with stock market price movements. This
correlation, however, has been increasing over the years.
* Why should you invest in foreign stocks?
* The risks of foreign stocks
* How to invest in foreign stocks
* Is international investing good for me?
Categories in Trading Mistakes
Lack of Trading Plan
Planning plays a key role in the success or failure of any endeavor
Using too much Leverage
Determining the proper capital requirements for trading is a difficult task
Failure to control Risk
Refusing to employ effective risk control measures can ensure your long-term failure
Lack of Discipline
A lack of discipline can destroy even the most talented and best prepared trader
Useful Advices to Beginning Trader
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