Candlestick Trading Blog
Using the stock market for foreign investment can be profitable these days but how does one go about analyzing foreign stocks? If you want to invest in stocks in or trade stocks on the kabushiki shijyou, Japanese for stock market, do you need to speak Japanese? How do you go about dealing with a stock broker whose has business hours when you would like to be asleep? Do you need to speak Portuguese to invest in Brazilian oil stocks? How about bank stock investing in China? How fluent is your Cantonese? Analyzing foreign stocks can be difficult if there is no useful information available in your own language. Another issue is the reliability of information even if it is printed in English. Analyzing foreign stocks can be easy, on the other hand, if investors and traders follow stocks listed as American Depository Receipts on US stock markets. If you choose to trade Japanese stocks offered as ADR’s you may not speak Japanese but you can certainly use Japanese Candlestick analysis to help gain profits.
Analyzing foreign stocks listed on US markets commonly provides those involved in both day trading and long term investing with sufficient information for accurate fundamental analysis. Technical analysis with tools like Candlestick stock charts is as effective in analyzing foreign stocks as with home grown stocks if they both trade on either the NASDAQ or NYSE. Those interested in trading ADR’s of foreign stocks or interested in long term investing in foreign companies will be able to trade level II and III ADR’s and have access to information of similar accuracy and depth about the stock as they would have with stock of an American company. Analyzing foreign stocks for short term investment or for buy and hold investing is similar to analyzing domestic stocks. However, a foreign stock will usually represent a company that operates in different markets than US stocks. Chinese banks listed on the New York Stock exchange are in a much more rapidly growing economy than domestic bank stocks. Employment figures, economic growth, monetary policy can be important in analyzing foreign stocks. However, the numbers will commonly refer to China, India, Brazil, Russia, Japan, or whatever other nation the company is located in. On the other hand company specific financials will be the same and should have investors and traders a clear idea of the company’s intrinsic stock value and margin of safety. As with US stocks a high price to earnings ratio may indicate that a good stock has already been bid up in price and that the market is anticipating exceptional growth. With Asia leading the way out of the recession foreign investment may be a good way to earn profits in both stock investing and stock trading. As with all trading and investing, both fundamental and technical analysis are necessary for profits. With the use of Candlestick patterns it is possible to anticipate market trends, both domestic and foreign, and to profit from market advances as well as market reversal. Online Stock Market Reviews presented live via the internet by Stephen Bigalow |
|
 |
|
 |
|
 |
|
 |
---------------------------------------------------------------------
<< Blog Home