Trading Foreign Stocks
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Trading Foreign Stocks

August 20, 2019

Trading Foreign Stocks By What is the point of trading foreign stocks
when there are plenty of US stocks to trade on the NYSE or NASDAQ? Trading foreign stocks
in Asia can put traders where the growth is. Trading foreign stocks in Europe can put traders
in situations of high market volatility and potential profits as the European debt crisis
threatens a wave of sovereign debt defaults and a plummeting Euro. Sorting out who the
winners will be and who will be the losers in trading foreign stocks, as usual, will
take both fundamental and technical analysis of individual stocks and broader market trends.
Trading foreign stocks does not require trading on a foreign stock exchange. Many foreign
stocks trade in the USA as American Depository Receipts. Level II and III ADR’s require supervision
by the SEC and, thus, have similar reporting requirement to US companies. Thus, a trader
will have solid numbers on which to base his estimate of the stock’s margin of safety and
intrinsic stock value. Trading on the NYSE or NASDAQ these stocks can be profitably followed
with technical analysis tools such as Candlestick stock charts. Steps for Trading Foreign Stocks Trading foreign stocks, like all stock trading,
profits those who find and use the appropriate data for trading, learn a stock’s fundamentals
and closely follow stock price patterns with Candlestick analysis. The Eurozone’s economy
is equal to or slightly larger than that of the USA. China’s is still substantially smaller
than that of the USA or the EU but is growing at nearly ten percent a year. Both economies
have many large company stocks that trade in the USA as ADR’s. To trade these stocks
a trader will commonly develop a trading strategy. For example, a potentially viable strategy
in China might be to simply look for growth stocks. In Europe, on the other hand, a trader
may choose to look for stock volatility or stocks that gradually become cheaper as the
Euro falls. If companies in Europe, such as Siemens, have substantial sales outside of
the Euro Zone they may continue to have a strong balance sheet even if the Euro falls.
Thus a trader could look for a stock in the Euro Zone with a high price to earnings ratio.
He could follow via Candlestick patterns as well as quarterly reports and news about the
Euro. In the periods of market inefficiency that follow changes in fundamentals, such
as a debt default in Greece or Italy, he could profitably buy stock, sell stock, sell short,
or profit from buying options as Candlestick signals indicate. American Depository Receipts Getting accurate and up to date stock information
is often a problem when trading foreign stocks on a foreign stock exchange. Here is where
American Depository Receipts are useful. The level II and III ADR’s are regulated by the
Securities and Exchange Commission and must provide periodic and accurate reports of their
financial condition and plans. Because these foreign stocks trade as US stocks do on the
NYSE or NASDAQ they are readily tradable during US business hours. Using Candlestick pattern
formations and Candlestick trading strategies a US trader can trade European or Asian stocks
and take advantage of the growth and volatility that often leads to trading profits. For more insights and useful information about
trading stocks, options, futures or Forex, visit

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