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How To Trade Stocks While Living Abroad

Money is always important. The bigger your bank account, the more opportunities open up. One great way to increase your funds is through investing. And in this article, I’ll show you a simple (but effective) system to trade stocks with very little risk.

It’s an easy way to create extra income streams. Plus, there’s very little start-up cost. And, trading stock is less volatile than buying crypto coins.

There aren’t huge market swings or crazy plummets.

As such, these assets are a great alternative to investing in BitCoin. Especially if you’re worried about the massive fluctuations cryptocurrencies experience.

But that’s not all…

Why Trade Stocks?

We’ve already covered a few arguments for investing in the stock market. However, there are other advantages too.

The main ones involving time, effort, and ease of understanding.

I’ll explain:

  • Low-Effort – Compared to most ventures (like opening a restaurant or flipping houses), investing is fairly simple. You research stocks, look for valuable assets, and then buy them. There’s no physical labor or special requirements. If you’ve got a trading account and money, you’re all set.
  • Established Companies – “Blue chip” stocks are based around stable businesses like Disney, Coca-Cola, IBM, and HJ Heinz. Many of these 100+ years old, and still growing. They’re nice safe choices, especially if you’re investing long-term.
  • Ease Of Understanding – Many stocks require very little technical knowledge before buying. You don’t need expertise in shipping or logistics to understand the value of Amazon.com. Likewise, investing in Disney is a no-brainer. There are enough common sense picks to succeed no matter what.

As far as low-risk investments go, stocks are an excellent starting point.

Blue chip established brands steadily increase, giving you a nice flow of passive income.

When Investing In The Stock Market, Play The Long Game

Warren Buffett says it best: “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

This is true for all investing, but especially important if you’re trading abroad. Why? Because sometimes infrastructure prevents you from making quick transactions.

Trying to game the system with split second deals is tough when you’re overseas.

Living in Vietnam, I know expats who’ve tried this, only to get wiped out from a single fluke accident. Case in point, a buddy of mine lost $1,600 due to a power outage. By the time he got back online, his “quick profit stock” dropped to nothing.

Don’t make this mistake.

Trade stocks with good, long-term value.

They’re always worth something.

For example, last weekend I invested $10,035.27 into Vanguard Funds. These are long play assets, and they’ve shown continual growth over the past five years.

(Here’s The Assesment, Order, And Growth)

Within four days, my investment grew by $151.13.

That’s a nice, low-risk gain. Without any stress or frantic dash to sell off at the perfect time.

If you’re going to trade stocks, pick investments with longevity. They’re safe, stable, and don’t require precise market timing.

Recommended Reading

The stock market, like cryptocurrencies, is a hotbed for scammers.

You’ll see lots of high-priced seminars and subscription services floating around. All promising to “beat the market.” In reality, most of these are junk.

That’s not my opinion either. It’s something most legitimate investors warn about.

According to stocktrader.com:

Many paid subscriptions come from independent traders and services that claim to have fantastic returns and can ‘teach’ you how to be successful. 99% of them are a scam and come with higher prices of $99 – $149 per month, or more.

Fortunately, there’s lots of great advice out there. Plus, it’s very affordable. Almost all the top investors write books. And for the price of a paperback, you’ll learn their secrets.

I’ve bought a few titles which paid for themselves (and turned a profit) within one transaction.

That’s an excellent return on investment.

Five Books To Get You Started:

  1. Beating The Street I mention this book in my crypto coin article. Why? Because it’s an excellent title, covering all the fundamental skills necessary for successful investing. One of my favorite pieces of advice: “Never invest in an idea you can’t illustrate with a crayon.” In other words, look for simple and practical businesses. Then buy their stock.
  2. How To Make Money In Stocks – Often considered the best modern book on investing, this is another must-read. You’ll learn how to spot rising opportunities, how to forecast the market, and how to maximize your returns. This title’s easy to read and covers just about every aspect of the stock market. A perfect blueprint for making intelligent investment decisions.
  3. Reminiscences Of A Stock Operator – And oldie but goodie. Written in 1923, this book withstands the test of time. Based on the career of Jesse Livermore (often considered the greatest trader in U.S. history), you learn how to play the market for maximum profit. While I prefer buying blue chips over speculating, this is still a fascinating read, and one that many investors consider an all-time classic.
  4. The Little Book of Common Sense Investing – The first investing book I ever read. This title is all about playing the long-game. In it, you’ll learn why day trading and short-term investments are rigged against the public. Plus, you’re introduced to the boring-but-powerful results of investing in mutual and index funds. Well worth a read, especially if you’re just starting out.
  5. The Little Book That Beats The Market – While the name makes it sound like a cheesy “get rich quick scheme,” this is anything but. Written by Joel Greenblatt, founder of Gotham Capital, this book details a simple strategy for picking winners. By calculating a return on capital, you’ll uncover “hidden gems” which are quickly rising in value. While the system doesn’t work every time it’s used (Greenblatt stresses this repeatedly), it does turn a profit in the long-run.

Read at least three of these to get a good grasp on how the stock market works.

Closing Thoughts

Investing is a great way to increase your wealth. While living abroad makes day trading tough, you’ll still profit by picking good assets with long-term growth.

ETFs and blue chips continually raise in value, making them both safe and profitable.

If you’re looking for a new stream of passive income with no start-up requirements, this is an excellent option.

Rob: