Trade Foreign Stocks

By
www.ProfitableTradingTips.com
Trade Foreign Stocks
Trade Foreign Stocks via ADRs

http://profitabletradingtips.com/trading-
investing/trade-foreign-stocks
There are many times when foreign
stock markets offer more opportunity
for profits than markets in the USA.

But how do you trade foreign stocks?

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If you are fluent in Portuguese you
could convert dollars to Brazilian reals
and trade on the Ibovespa.

Or you could learn Spanish and convert
dollars to pesos and trade on the
Mexbol in Mexico.

Or you could trade foreign stocks by
just staying home and trading
American Depository Receipts of
foreign stocks.

What Is and American Depository
Receipt?

A negotiable certificate issued by a
U.S. bank representing a specified
number of shares (or one share) in a
foreign stock that is traded on a U.S.
exchange.

ADRs are denominated in U.S. dollars,
with the underlying security held by a
U.S. financial institution overseas.
ADRs help to reduce administration
and duty costs that would otherwise
be levied on each transaction.

When you trade foreign stocks via an
ADR you can buy and sell
denominated in US dollars.

American depository receipts are
available on the NYSE, NASDAQ and
AMEX as well as over the counter.

Where Are the Profits Most Likely?

Third world markets took a hit after the
2008 market crash and subsequent
recession.

And they are likely to rebound in fits
and starts as the world economy
heals itself.

There are good opportunities for long
term investment in the ruins of the
worst recession in three quarters of a
century and there will be stocks that
show promise but fail to meet
expectations.

The beauty of trading stocks is that the
trader can profit if the stock goes up
and if it goes down.

The BRICS nations seemed ready to
rise to the first rank economically until
the recession hit.

Now Brazil, Russia, India, China and
South Africa are all having problems,
which mean opportunity for anyone
who wishes to trade foreign stocks.

If you are going to trade foreign stocks
you will need to study them.

As an example, if you want to trade
stocks from India you may want to
read moneycontrol.com, which
include Indian stock market
recommendations.

For example, Sanjay Dutt of Quantum
Securities is quoted as saying that

The rally in midcaps is not over yet,
despite the sharp correction. Dutt
says he is incrementally positive on
the market and sees the major
benchmarks retesting their recent
highs.

Picking Markets and Picking Stocks
to Trade

Volatile markets tend to be profitable
markets if traded properly.

However, if you trade foreign stocks
you need to trade stocks and not
markets.

And the stocks should be level I or II
ADRS. These American depository
receipts are subject to the same
disclosure requirements as American
stocks listed on the American stock
exchanges.

An all too familiar problem when you
trade foreign stocks is that many
foreign markets are far from
transparent. Thus you can get
blindsided all too easily.

This is less likely to happen with the
highest level ADRs as these
companies are subject to the same
SEC rules of disclosure as other
stocks on the NYSE, NASDAQ or
AMEX.

If you want forego learning Portuguese
and still trade Brazilian stocks take a
look at TopForeignStocks.com for a
full list of Brazilian ADRs.

The Full List of Brazilian ADRs: The
Brazilian ADRs trading on the US
Exchanges as of Jan, 2014 are listed
below:

The list includes 90 Brazilian stocks
trading as ADRs.

Trade Foreign Stocks

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Trade Foreign Stocks