trading brics stocks

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TRADING BRICS STOCKS By www.ProfitableTradingTips.com

Post on 21-Oct-2014

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http://profitabletradingtips.com/trading-investing/trading-brics-stocks Trading BRICS Stocks The BRICS nations, Brazil, Russia, India, China, and South Africa have large and rapidly growing economies. They have a great deal of influence in regional and global affairs. These nations combined have more than forty percent of the world population and a GDP or nearly $15 Trillion. From the viewpoint of the stock trader, how can one make money trading BRICS stocks? Where do you need to go for trading BRICS stocks and what are the pitfalls? Technical Analysis of Foreign Stocks Going back to the era of the Cold War it was hard to figure out what was going on in either Russia or China. Much of what one knew was obtained from spy satellites and debriefing of refugees. Today both of these nations have opened up significantly to the rest of the world. However, they do not have the transparency that one sees in the US stock markets. Thus a practical approach to trading BRICS stocks, especially those of Russia and China, is to use American Depository Receipts, ADR’s. An ADR is a negotiable security. It represents the stock of a non-US company but it trades in the USA in financial markets such as the NYSE or NASDAQ. Shares of such stocks are called American depositary shares or ADS’s. These stocks trade in US dollars and pay dividends in US dollars. They can be traded like any other stock on US stock exchanges or over the counter. Because these stocks trade on US markets a trader can use technical analysis tools on a computerized work station in real time in trading these shares.

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Page 1: Trading Brics Stocks

TRADING BRICS STOCKS

By www.ProfitableTradingTips.com

Page 2: Trading Brics Stocks

THE BRICS NATIONS, BRAZIL, RUSSIA, INDIA, CHINA, AND SOUTH AFRICA HAVE LARGE AND RAPIDLY

GROWING ECONOMIES.

http://profitabletradingtips.com/trading-investing/trading-brics-stocks

Page 3: Trading Brics Stocks

THEY HAVE A GREAT DEAL OF INFLUENCE IN REGIONAL AND

GLOBAL AFFAIRS.

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Page 4: Trading Brics Stocks

THESE NATIONS COMBINED HAVE MORE THAN FORTY PERCENT OF THE WORLD POPULATION AND A GDP OR

NEARLY $15 TRILLION.

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Page 5: Trading Brics Stocks

FROM THE VIEWPOINT OF THE STOCK TRADER, HOW CAN ONE MAKE

MONEY TRADING BRICS STOCKS?

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Page 6: Trading Brics Stocks

WHERE DO YOU NEED TO GO FOR TRADING BRICS STOCKS AND WHAT

ARE THE PITFALLS?

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Page 8: Trading Brics Stocks

GOING BACK TO THE ERA OF THE COLD WAR IT WAS HARD TO FIGURE OUT WHAT WAS GOING ON IN EITHER

RUSSIA OR CHINA.

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Page 9: Trading Brics Stocks

. MUCH OF WHAT ONE KNEW WAS OBTAINED FROM SPY SATELLITES AND DEBRIEFING OF REFUGEES.

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Page 10: Trading Brics Stocks

TODAY BOTH OF THESE NATIONS HAVE OPENED UP SIGNIFICANTLY TO

THE REST OF THE WORLD.

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Page 11: Trading Brics Stocks

HOWEVER, THEY DO NOT HAVE THE TRANSPARENCY THAT ONE SEES IN

THE US STOCK MARKETS.

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Page 12: Trading Brics Stocks

THUS A PRACTICAL APPROACH TO TRADING BRICS STOCKS,

ESPECIALLY THOSE OF RUSSIA AND CHINA, IS TO USE AMERICAN

DEPOSITORY RECEIPTS, ADR’S.

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Page 13: Trading Brics Stocks

AN ADR IS A NEGOTIABLE SECURITY. IT REPRESENTS THE STOCK OF A

NON-US COMPANY BUT IT TRADES IN THE USA IN FINANCIAL MARKETS SUCH AS THE NYSE OR NASDAQ.

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Page 14: Trading Brics Stocks

SHARES OF SUCH STOCKS ARE CALLED AMERICAN DEPOSITARY

SHARES OR ADS’S.

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Page 15: Trading Brics Stocks

THESE STOCKS TRADE IN US DOLLARS AND PAY DIVIDENDS IN US

DOLLARS.

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Page 16: Trading Brics Stocks

THEY CAN BE TRADED LIKE ANY OTHER STOCK ON US STOCK EXCHANGES OR OVER THE

COUNTER.

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Page 17: Trading Brics Stocks

BECAUSE THESE STOCKS TRADE ON US MARKETS A TRADER CAN USE

TECHNICAL ANALYSIS TOOLS ON A COMPUTERIZED WORK STATION IN

REAL TIME IN TRADING THESE SHARES.

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Page 19: Trading Brics Stocks

ADR’S OF RUSSIAN STOCKS INCLUDE THE OIL AND GAS GIANT, GAZPROM,

SBERBANK, AND NOVOLIPETSK STEEL.

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Page 20: Trading Brics Stocks

CHINESE BASED ADR’S INCLUDE CHINA EASTERN AIRLINES, CHINA SOUTHERN AIRLINES, SHANGHAI

PETROCHEMICAL COMPANY LTD AND YANGZHOU BREWERY COMPANY LTD.

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Page 21: Trading Brics Stocks

ADR’S OF INDIAN STOCKS INCLUDE TATA MOTORS, INFOSYS LTD, AND

HDFC BANK.

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Page 22: Trading Brics Stocks

WHEN YOU THINK OF SOUTH AFRICAN ADR’S THINK OF DE BEERS

AND DIAMOND MINES.

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Page 23: Trading Brics Stocks

BRAZIL BASED ADR’S INCLUDE PETROLEO BRASILE, RIO TINTO PLC CO, TELEFONICA BRASI, AND CPFL

ENERGIA S.A.

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Page 24: Trading Brics Stocks

AND THERE ARE A LOT MORE CANDIDATES FOR TRADING BRICS

STOCKS WHERE THESE CAME FROM.

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Page 27: Trading Brics Stocks

THE MORE OPAQUE THE MARKET THE MORE DANGEROUS IT IS TO

TRADE ITS STOCKS.

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Page 28: Trading Brics Stocks

THE UP SIDE TO TRADING BRICS STOCKS AS ADR’S IS THAT YOU ARE

TRADING ON A US EXCHANGE.

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Page 29: Trading Brics Stocks

THE DOWNSIDE IS THAT THE ACTION IS STILL TAKING PLACE OFFSHORE.

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Page 30: Trading Brics Stocks

TO THE EXTENT THAT YOU TAKE PRECAUTIONS TO LIMIT YOUR

LOSSES TRADING BRICS STOCKS CAN BE PROFITABLE.

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Page 31: Trading Brics Stocks

TO THE EXTENT THAT YOU DO NOT PAY ATTENTION, LOSSES CAN BE SUBSTANTIAL WHEN PREVIOUSLY

UNKNOWN INFORMATION LEAKS AND TORPEDOES A STOCK THAT YOU

BELIEVED WAS HEADING UP.

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Page 32: Trading Brics Stocks

ALWAYS SET YOUR TRADING STOPS WHEN TRADING BRICS STOCKS AND

ALWAYS PAY ATTENTION TO THE FUNDAMENTALS THAT EVENTUALLY

DRIVE ALL STOCK PRICES.

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