Hasn't started anything yet, even a CDS account doesn't exist yet. But it's fun to hear people's stories about making money in the stock market?
Before getting involved, it is imperative to know the reasons why we have to seize the opportunity to invest in the US stock market, also known as Wall Street.
1. The World's Largest Stock Market
For those of you who don’t already know, the United States is the world’s largest stock market with a dominance of more than 40% of the world’s stock market. Arguably one world will be concentrated here.
If the US stock market is up, it can be said that the world stock market will also go up.
But when the US stock market goes down, it can be said that the one world stock market will go down as well.
2. Invest In Leading Companies
The stocks listed in the United States are among the world’s leading companies. For example, we can invest in shares of companies Apple, Facebook, Google, Microsoft and many others.
If in Malaysia penny stocks are stocks that are actively traded every day, but in the United States that are actively traded are these blue chip stocks. So there is no term ‘fried’ because these companies have fundamentals that are quite solid.
3. Can Buy a Minimum of One Unit of Share
On Bursa Malaysia, the minimum purchase of shares is 1 lot, which is equivalent to 100 units. Did you know that the minimum purchase of shares in the United States is only 1 unit?
If we are interested in buying 1 unit of Apple shares, we only need to issue a capital of USD135.00 or around RM540 (based on the exchange of 1 USD = RM 4).
4. Larger National Currency Rate
The rate of foreign currency is greater than that of our national currency. If calculated according to the USD currency rate, each profit will be doubled in multiples of the USD currency (up to four times) and of course this investment will be more profitable than the value of the Ringgit.
And have we ever thought, if the value of the Malaysian Ringgit falls, then it will benefit investors who invest in foreign markets?
5. Receive Dividends In Foreign Currency
The dividends we receive if we invest in foreign markets are in the form of the country's currency. Just like point #4 above, if we get a dividend in US Dollars, then our profit is automatically quadrupled.
6. No Need To Open A Trading Account In That Country
We do not need to go to the United States to open a trading account there. We just need to go to the nearest investment bank that offers Cross Border Trade (DRS) services or in English it is Cross Border Trade (CBT) by bringing the documents required by the company to enable us to open an account.
We can also register on the platform or website that corresponds to the global stock account. First check the legitimacy of the broker and make sure it is licensed.
Fearing that we would deposit a deposit later, they ran away with our money.
7. Can Develop Knowledge More Widely
When we buy shares on Bursa Malaysia, of course we are more sensitive to the current news, the current economic situation, the current political situation and all more focused on what is happening in the country. When we invest in the US stock market, of course we need to be concerned and more sensitive to overseas catalysts such as the global economic situation, the global political situation, the OPEC conference, non-farm payroll and more.
This indirectly gives us the opportunity to learn about overseas stock markets and the things that influence the volatility of global stock markets.
8. Can Apply The Stock Buying Technique That We Use In Bursa Malaysa To The Global Market
Are we used to buying stocks using Buy On Breakout or Buy On Reversal techniques? Or do we buy stocks using the Fundamental method with an emphasis on CANSLIM or 5 Magic Numbers?
That counts for the best, because we can also buy global stocks using the same technique. If the stock has broken the resistance level followed by a large volume, we can use the Buy On Breakout technique to buy the stock.
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But don't forget to share this secret with your family and friends by sharing the link to this article with them. Hopefully it will be useful because without capital you can learn to buy US stocks.