ADR stands for American Depositary Receipt (sometimes also spelled depository). An ADR is a security that allows foreign companies to trade on the US financial exchanges. If you’re not buying shares of a foreign stock directly, how do ADRs work?
The reality, though, is that even a depressed market sector doesn’t need to impact your trading by a significant degree, especially if you’re into penny stocks or day trading. You’re looking for individual opportunities.
A sector, in some ways, is just another way of saying “industries.” In the finance industry, however, investment sectors refer to the specific delineations between different types of stocks and securities. Healthcare, energy, pharmaceuticals, and tech are just a few examples of investment sectors.
You can calculate your initial investment using an initial investment formula, but if the result is more money than you’re comfortable with investing, it’s moot.
Here’s where things get a little messy… You can open lots of different types of trading accounts, each of which might require a different initial investment. Let’s have a look at your options today.
Some people make an initial investment in the six figures, while others start with several hundred. What I want to share with you today are the considerations you need to take into account before you make that initial investment.
Yesterday we talked about forex trading strategies. I explained technical and fundamental analysis and emphasized how important it is to do your own research, and to look at patterns and charts. Today let’s talk about some of those patterns, charts and some basic terminology that goes along with forex trading.
Researching and learning the basics (like reading this issue) will make you a more informed trader. You’ll be less likely to lose your cool (and your shirt) to poor investment choices.
Forex stands for foreign exchange, but I’m not talking about students here. Instead, I want to help you learn how to take advantage of forex trading just like you would when trading stocks.
Knowing about investment sectors can give you a good foundation to understand how the market works, how groups of similar stocks behave and react, and how investors perceive them.