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Study This Strategy Before You Invest In Foreign Stock Markets

Re-balance when investing in foreign stock markets

 

In one of our previous blog posts we have seen what the trap is you can fall in when you invest in foreign stock markets. In this post you will learn a strategy for how to avoid that trap.

The unique catch that foreign stock markets pose to an investor is the currency risk. When we talk now here about foreign stock markets, we assume that these markets use a different currency than the currency in your home country.

 

Now here is the principle rule:

Trend Following PDF

Trend Following PDF

 

If you want to start trend following with stocks and funds, read attached PDF. In this free PDF you find the basic tools for trend following. And you can read in the PDF how to use these tools.

You find the Trend Following PDF at the bottom of this web page. Just click on the link there and you can download the PDF. If you do not find the PDF at the bottom of the page where you read this now, please click here to go to the original location of this article.

Avoid This Trap When Investing in Foreign Stock Markets

Investing in Foreign Stock Markets Trap

 

When you invest your savings in foreign stock markets, you can still lose money despite markets going up. The risk here is the currency trap. Read on to understand this trap and how to avoid it.

Imagine the following situation. You have invested some of your savings in a foreign stock market. The reason is that you expected that market to go up much more than the stock markets at home. And you invested in the safest possible way:


S&P 500 lost over 12% in 2 Months

Despite some of the best days every, the S&P 500 has lost more than 12% during the last 2 months.

The 3 months before that, it had lost already 5% since its peak end of April.

This situation is a good example that trend signals are not capable to tell you if the market is at its top.

But long-term trend signals can tell you when the long-term trend has turned down.

Nobody knew in May orJune that April was the peak.

Stock Market Investing Guide for Savers

Stock Market Investing Guide to ride long-term trends and bubbles

The Stock Market Investing Guide to ride good times and escape bubbles.

 

Jack was desperately looking for a stock market investing guide. He was desperate because he saw all his friends around him earning more money in the stock market than that he could save from his normal salary. Jack was focusing on his job and his family. He had no time to spend on researching stocks and investments.

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