"An investment in knowledge pays the best interest." These words were spoken by Benjamin Franklin over 200 years ago and they remain highly important today.
Before you can invest successfully, you need knowledge, especially when you are investing internationally. You can benefit from investment resources like central bank data, regulatory agency information, investment research and global finance terms.
Country economic information that can be pulled from central bank reports can be important in your decision making as well as the local regulatory environment for foreign investors.
Good investment research allows you to find better trading opportunities and a strong comprehension of global financial terms and phrases will provide you with an advantage over those who don't take the time to understand the market, the products or the language of finance.
A key responsibility of a central bank is to set and monitor a country's monetary policy.
Each central bank analyzes and publishes their country's economic data, which helps investors better understand the country specific risk and rewards that an investor in that country may experience.
Following key economic data and knowing how it will impact local companies or products on the exchanges will offer many advantages.
The local securities and commodities regulatory agencies establish the rules and regulations for exchanges and investors in their country.
Before investing in a foreign market, review the regulators website to understand if foreign ownership is allowed on the local exchange. In addition, for greater investor protection, it is important to know who the regulatory agency is and if they have a history of enforcing investor protection.
The last place you want to trade is in a country that has an unfriendly regulatory environment for foreign investors.
With global investment research, always choose quality over quantity but make use of all the research that you can get your hands on.
While investment banks have large teams to generate investment research, you need to be aware if this research is on one of their investment banking clients. Rarely will an investment bank provide a negative report on one of their clients so use all the available research that you can find for your decision making.
In addition to company specific investment research, don't forget that research on market sectors, industries and other related factors can help you make the best decisions.
It would make life easy if all country's and exchanges used the same financial terms and phrases but with regional and cultural differences, this is not always the case.
We learn new languages to communicate with others, transact business and to take advantage of benefits that the language provides. Global finance is a specialized language that if understood and mastered, it will provide benefits that will help to decrease risk and improve returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.
The most successful investors and risk managers use every tool at their disposal. Buying and selling securities is easy but doing it successfully takes work.
The GlobEx Markets website is built upon the founding principle of Knowledge, Access and Opportunity, which is comparable to a three legged stool. If you take away one leg, the stool will collapse.
To successfully invest internationally, you need knowledge, you need access and you need opportunity.