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Trading stocks in the local or global markets can help improve and enhance the returns of traders in listed securities such as stocks, sukuk, bonds, in addition to other investment products.
The success of the trader depends on the extent to which appropriate investment decisions are made.
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The choice between trading in the local market or launching into global markets is an important question that requires an answer to it with sufficient clarification, so that the public of traders can know what is the difference between them, and why we may choose to trade stocks in global markets.
International investment is a strategy of selecting investment instruments based globally as part of an investment portfolio.
International investment includes such investment tools, mutual funds, US depository receipts, ETFs or direct investments in foreign markets.
Often traders turn to global markets as a kind of diversification in the investment portfolio, to distribute investment risks between companies and foreign markets and to grow, and of course to benefit from emerging markets that can have high profit opportunities.
Some investors may prefer investments with less risk, which lead to stable returns such as certificates of deposit and bonds, while others may prefer to take a higher risk than that, in order to achieve higher value returns, and here it is possible to invest in currencies or emerging stocks.
International investments can be included in the investment portfolio and the expansion of trading stocks in global markets such as Apple Stocks , Google stocks and others, in order to provide opportunities for diversification and growth, as all types of investments involve risks, and international investment has its own risks such as:
It should be noted that all types of investment tools are subject to judicial regulation in the country to which they belong, and each of them has its own distinct risks and advantages, and the selection of investment tools that are compatible with the investor's financial portfolio depends on the investor's knowledge of the market and skills in the field of financial investment, financial goals and the current financial situation .
That is why you are required to have a lot of sophistication and skill to trade in the global markets.
You must also be fully aware of the market’s influences and know the size of their impact in the short and long term.
Governments:
Governments have a lot of influence over free markets.
Fiscal and monetary policy has a profound effect on the financial market.
By increasing and lowering government interest rates and attempts to accelerate growth in the country.
This is called monetary policy.
International transactions:
The flow of money between countries expresses the strength of a country's economy and its currency.
Countries that can bring a lot of money into their countries, whether through export or other transactions, can thus use that money for investment, thus stimulating the financial market further.
Speculation and forecast:
Forecasts and forecasts are an integral part of the financial system.
This is what consumers, investors and politicians believe about the future economic process.
Of course, future projections depend on the current state of business, economic and political trends.
Analyzing these indicators and other fundamental and technical analysis can create a forecast of future price rates and the general trend.
Supply and demand:
The supply and demand for products, currencies and other investments creates dynamic push-pull in prices.
Price rates change with changing supply and demand.
International influences of financial markets:
International transactions, the balance of payments between countries and economic powers play a big role in long-term trends, but of course, it is difficult to deal with in short-term transactions.
Currency (markets are considered Dollar forex ) is a measure of the strength of the performance of a country 's currency against other currencies.
The high demand for the currency is an indication of the possibility of an increase in its price relative to other currencies. It also plays a role at the local level, it also plays a major role at the global level.
When a country's currency is weak, this would deter investment in that country, and would dilute potential profits from a weaker currency.
Stock trading in global markets offers a great opportunity for investment, given the benefit from geographical diversity and exposure to multiple growth economies. Most financial experts and advisors consider investing in foreign stocks and entering global markets healthy for the investor’s portfolio and recommend allocating from 5-100 percent to conservative investors to a maximum of 25 percent are for risk investors.
And for investors who have experience in international investment, or who are using a trading site and would like to start adding more of them to their investment portfolio, there are many ways to earn through foreign stocks.
These methods include:
The above article presents these materials as information only, and they do not contain, and should not be interpreted as containing investment advice, or an investment recommendation.