Picking Offshore Investments
Picking offshore investments requires a bit of forethought. There are offshore investments that are easy to make such as buying stocks in foreign companies listed on the New York Stock Exchange (NYSE) or on NASDAQ. It is also possible in picking offshore investments to choose American companies doing business overseas. Many multinational companies do business in many regions of the world and provide investor and traders with exposure to many different markets. It is certainly possible to invest in stocks listed on a foreign stock exchange. However, there may be a language barrier and, often more importantly, there may be a problem getting accurate information when picking stocks or following stocks in overseas markets. Stocks listed on the NYSE or NASDAQ are required to provide periodic financial reports. Trading of these stocks is fairly transparent allowing for accurate technical analysis assessment with Candlestick charting.
Information, accurate information, is critical to both good fundamental analysis and up to the minute technical analysis of stocks. As attractive as a foreign investment may seem to be it will only be as profitable as accuracy of information readily available about the investment. Technical analysis tools such as Candlestick analysis allow stock traders and stock investors to accurately predict changes in stock prices. Because market history repeats itself it is possible to use Candlestick patterns to see the future, so to speak, as repetition of the past. Difficulty in getting accurate data may be the most difficult problem in picking offshore investments. Inaccurate data renders both fundamental and technical analysis invalid to the extent that information is missing or simply misleading.
Many US based multinationals have a substantial part of their operations offshore and derive a substantial part of their profits from such operations. Investing in the likes of 3M or Proctor and Gamble gives the investor interested in picking offshore investments an immediate stake in operations around the world. Picking offshore investments like Toyota, Siemens, or Diageo does not require buying stock in Japan, Germany, or the UK. All of these international companies trade through American Depository Receipts. As such the companies are subject to the rules and regulations of the US Securities and Exchange Commission and must provide timely and accurate reports of their operations. These stocks also trade, as ADRfs, during trading hours in North America, which is the other issue, trading through the night if one has stocks on European or Asian stock exchanges. By picking offshore investments, stocks that trade on US stock exchanges, a trader or one interested in long term investing can safely assume reasonably accurate and timely data. Thus trading with tools such as Candlestick pattern formations and using Candlestick trading tactics and their likelihood of stock trading profits is possible. Whether one is beginning investing in the stock market or an experienced trader and investor there are certain basics. The first and foremost is not to be misled by unclear or inaccurate data and not to be reduced to guessing. A time honored tool such as Candlestick charting can lead to handsome profits so long as one stays within clearly defined stock market strategies, whether picking offshore investments or staying closer to home.
Market Direction: Understanding what the signals are revealing becomes a very powerful tool when analyzing a trend. The Dow not only failed at the top of the trend channel last week, it formed a Bearish Engulfing signal that indicated the Bulls had given up. The bottom of the trend channel was the next viable target. When the trading went through the bottom of the trend channel on Friday and continued to move lower today, the bearish candles should have made it very evident the trend channel was now broken on the downside. This could lead to a probe toward the 200 day moving average. The short positions in the portfolio should be doing well.
Commodity traders, utilize the trend channel that has developed in July corn.
2-Day Candlestick Analysis Training - (Schedueled for June 11 and 12th) This two-day training reveals the nuances that are Incorporated into candlestick signals. This allows for an investor to clearly understand why investor psychology moves prices versus fundamentals. Knowing what each signal represents helps an investor control their own emotions when investment funds are exposed to market risk. If you have been having trouble making money in the markets, in spite of which investment technique you try, this two-day training is a must. Candlestick analysis works effectively because it has built in common sense investment principles in each candlestick formation. You will gain self-control by knowing the probabilities based upon the historic results of candlestick signals and patterns. Do not miss this opportunity to expand your knowledge on how candlestick signals accumulate the total investor sentiment that is moving a price. Click here for more information.
Chat session tonight 8 PM ET
The Candlestick Forum Team