I want to show you how to participate in the global market. It’s pity that many of us don’t participate in the global economy and as such are losing out on many goodies happening everyday in the stock market. But a good exposition on the happenings in the international stocks market will show you how to fully participate in it.
What is global stock?
Global stocks is simply having access to the shares of various companies worldwide. Trading global stocks gives you access to the biggest stock exchanges that cut across the globe such as the New York Stock Exchange (NYSE), London Stock Exchange (LSE), NASDAQ and even stocks traded on the Asia Stocks Exchanges. The opportunities are just limitless on the global stock platform because of your ability to buy the shares of companies operating in over 57 different countries of the world.
Differences between Global Stocks and Forex.
- Global stocks are basically driven by fundamentals: i.e., major news of the company makes the share prices of stocks respond to buying and selling. Though the technical aspect also play a major role, it is more fundamental than it is technical.
- With global stocks, you don’t need to sit behind your system all day watching trends of the markets as in forex which makes it less stressful.
- To make a good buy decision in global stocks, all you need is a good knowledge of the company you are buying into and just put your money to grow and work for you.
HOW TO ACCESS THE MARKET.
You only need two major things to start trading; they include:
- Internet Connection.
All you need to get stared is internet connection. With global stocks, there is no need to leave the shores of Nigeria before you can be a shareholders of any company of your choice all over the world because everything is done real time online.
- Broker
You will also need a broker to handle your buy and sell. The beauty of it is that all your orders are carried out online, at the click of the mouse, and they are instantly executed.
Two Types Of Brokers
1. Full services Stock brokers
They give you more personalized attention. The broker understands what your investment goals are and can offer recommendations on what and when to buy and sell. However, because their commissions can run as high as $100/trade, this type of account works best for those with net-worth and minimal trading activity. Most full service brokers are not a good fit if you want to trade in penny stocks (these are stocks that trade between $1 – $5). The high commission fees involved could take a huge bite out of your potentials profits. Instead, most online traders use a discount brokage firm.
2. Discount Brokage Firm
Discount brokers do not offer the same level of service but they are still available to answer your questions. They execute trades for as low 50c to $10, with commission that are low, there by leaving you with more money to work with.
I also use the discount stock brokers because of their flexibility and I really enjoy using them.
Brokers and contact Online
There are many brokers online that give you this access but I will like to recommend two reliable ones:
1 pectstocts.com: This is a discount brokage firm which is based in the USA. The beauty of this platform is that they now have a representative here in Nigeria which makes them more accessible. The commission they charge range from $0.01 to $15. The parent company in the U.S is listed on the New York Stock Exchange.
2 The second brokerage firm I will recommend is edameritrade.com. They are also based in U.S, but they don’t have any representative here in Nigeria. They are also listed on the New York Stock Exchange.
How to Buy and Sell
Buying and selling of shares on global stocks is about the simplest thing I have seen. There is no need to call a broker to do it for you but you simply do it yourself by clicking the buy button anytime you need to buy and the sell button anytime you need to sell. Once you have set your account with any broker of your choice (Preferably pectstocks.com) you can buy and sell at will.
What you need to know before you buy or sell
Basically, what you need to know are the fundamentals of the company you intend to invest in. This is about the simplest part of global stocks because of the numerous research organizations that are available online.
These research organization simply tell you companies with good fundamentals which in turn inform your decision to buy or sell. Some of them include: cnnmoney.com, googlefinance.com, yahoofinance.com, forbes.com and a whole lot more.
Categories of stocks traded on the global stocks market.
We have three different categories of stocks traded on the global platform and they include:
1: Small cap stock: these categories of stocks are traded for cents and they go with high risk because of the volatility they carry.
- Penny Stock: these are stocks that are traded between $1 and $5. They attract medium risk because they are more stable than small cap stocks.
3 Blue Chip: these are stocks that are trade above $5. These are standard stocks that are traded on major stock exchange like the NYSE. These are less risky to trade because they have very sound fundamentals. They include companies like Microsoft, Google, yahoo etc.
Advantage of global stocks
In global stocks, you have access to leverage or margin. Simply put, we can call it loan or borrowed money which is given to you by your broker. Leverage simply increases your buying power. For example, if your capital is $100 and you choose a leverage of 1:100, then you buying automatically turns to $200. This simply means you can trade more shares than you actually have.
The advantage of global stocks over local stocks trading are numerous and I tell you, there is no better way to turn over your investment than this because of its flexibility.
This year alone, I have made over 100% on my investment. But not to worry, I am here to take you by hand and teach you all you need to know to be successful in trading global stocks like me.
Futher reading: How to know when the stock market is at the top
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