Stock Trend Investing

In one of our previous blog posts we have seen what the trap is you can fall in when you invest in foreign stock markets. In this post you will learn a strategy for how to avoid that trap.

The unique catch that foreign stock markets pose to an investor is the currency risk. When we talk now here about foreign stock markets, we assume that these markets use a different currency than the currency in your home country.

Now here is the principle rule:

If you want to start trend following with stocks and funds, read attached PDF. In this free PDF you find the basic tools for trend following. And you can read in the PDF how to use these tools.

You find the Trend Following PDF at the bottom of this web page. Just click on the link there and you can download the PDF. If you do not find the PDF at the bottom of the page where you read this now, please click here to go to the original location of this article.

When you invest your savings in foreign stock markets, you can still lose money despite markets going up. The risk here is the currency trap. Read on to understand this trap and how to avoid it.

Imagine the following situation. You have invested some of your savings in a foreign stock market. The reason is that you expected that market to go up much more than the stock markets at home. And you invested in the safest possible way: