If you’re interested in adding a global dimension to your portfolio but don’t know where to begin, ADRs may be worth considering. ADRs offer the opportunity to invest overseas with minimal confusion and hassle, and can help you benefit from the financial success of other regions of the world.
Why do ADRs matter? Let’s look at it from the point of view of the company, and that of the investor.
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.
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.
Why is earnings season important? Because this period can create a huge opportunity for investors and traders to take advantage of significant stock runs that occur as a result of these earnings releases. The bottom line is that you must pay attention closely to this period.