Trading Offshore Stocks
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14-Sep-2014 -
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Transcript of Trading Offshore Stocks
There can be a lot more to stock trading than trading homegrown stocks. One
useful approach is to find companies that work
offshore. Another viable option is directly trading
offshore stocks. The easiest way to do this is with American Depository
Receipts, ADR’s.By: www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
You can profit from trading offshore stocks that are listed
on the New York Stock Exchange as ADR’s. An ADR is a negotiable security of a
non-US based company which trades in United States
markets.
By: www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
Such stocks are denominated in US dollars and, when they
pay dividends, pay in US dollars. When trading
offshore stocks via the ADR route an investor avoids the risk of dealing with a foreign
stock exchange and dealing in a foreign currency.
By: www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
An ADR is issued by a US bank after shares of the
original stock are deposited in a custodial bank in the nation of origin. This is
typically done by a broker in the home country of the
stock.
By: www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
The price of an ADR follows the value of the stock in the nation of origin as translated
into US dollars.
By: www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
American Depository Receipts are an excellent vehicle for
trading foreign stocks and not needing to speak the language
of the country in which the original stock is issued. Because
these stocks trade live on US exchanges they are amenable to
sound technical analysis.
By: www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
Picking a Foreign Stock to Trade
By: www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
There are two general routes when trading offshore stocks.
One is to look for a market that is likely to grow. If you believe that you can make money trading the growth
and volatility in Latin America you may look for stocks
issued in Brazil or Mexico.By:
www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
A viable choice might be oil stocks, especially in Brazil as
recent oil finds bring its reserves to the level of Saudi Arabia. Alternatively, look for individual companies that are
powerhouses in their homeland and exporter goods
and services to the world.By:
www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
In this case, issues such as a fall in currency value in a nation may be helpful both in making a stock cheaper to buy and in making the
underlying company more competitive in world markets. To the extent that the local currency is volatile trading offshore stocks
can substitute for trading currencies.
By: www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
Technical Analysis of Foreign Stocks
By: www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
A level 3 ADR is the most secure for investors and the
best for trading offshore stocks. These companies
must adhere to the strictest set of rules when offering
stock in the USA.
By: www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
They are issuing stock to raise capital in the USA and must adhere to SEC rules consistent when what US
based stocks must do.
By: www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
Fundamental analysis of level 3 ADR’s is easier because of
the English language materials which the company must furnish investors. These are typically large companies
that trade in high volume.
By: www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
As a Substitute for Commodity Futures
Trading
By: www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
To the degree that Brazil is a huge producer of soybeans,
oil, and coffee trading offshore stocks from Brazil can be a way of tracking
commodities at the level of the producer.
By: www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks
For those who both trade futures and foreign stocks it can be a way of getting twice
the back for the buck from the same basic analysis.
By: www.profitabletradingtips.com/profitable-trading-tips/trading-offshore-stocks