If you want to fulfill a truly original idea to invest your savings, you will have the ideal setting in the most exotic stock exchanges in the world to satisfy this curious desire. Because indeed, it is already possible that you can access the rarest equity markets. And that until a few years ago it was practically impossible for it to open positions in some of its securities. Now it is possible, and formalize the operations from your usual bank.
The possibility of opening up to new markets it's huge. Vietnam, Moldova, Botswana Tanzania or Ecuador are some of them. Surely you do not have much information about them, and even less the operations you have carried out in your stage as a small investor. But in any case, it is one of the many alternatives you have to enter international equities.
The first question that you will ask yourself from now on is how you can formalize operations and on what financial products. In principle, access to their markets will be very difficult for you to do. It is almost mission impossible for you to develop operations from Spain, and only from some countries will this possibility be opened. For one it may be a more than extravagant option, but for others it will undoubtedly be a new way to make the heritage profitable.
From investment funds
Not that there will be no choice but to go to investment funds if your desire is none other than to buy shares in these exotic markets. You will not have any problem, since the main managers have made products that have these characteristics. And whose investment portfolios are based on the equities of these countries so strange to many investors.
However, the investment is not exclusively in these stock markets, but rather they are combined with other more traditional and conventional ones. Both of the most important and emerging countries. And that are also present in mixed nature funds, so that the investment is protected through fixed income. You can choose between different formats, which include some countries that have these special characteristics.
Exchange-traded funds, better known as ETFs, also generate these curious formats, although their offer is significantly lower than investment funds. To the point that your selection will raise you major problems taking positions in these markets. And in any case, it involves a combination of buying and selling shares on the stock market and investment funds.
Commissions and other expenses in its management
If you are going to open positions in some of these markets now, and having to manage abroad, it will entail much more expansive commissions. To the point that you will wonder if it is really worth doing this special stock management, but also so risky. The expenses will practically double the nationals, and in some cases even more demanding. Not surprisingly, it is the price you will have to pay for going to these curious financial markets.
The only advantage when opening positions is derived from the possibility that they are under an upward trend that invites them to buy shares of companies that are listed on these international markets. They are little known values, or to be more exact, without any reference to them. Take this into account before you are interested in them, and in this way avoid more than one problem at the time of formalizing your purchase operations.
What can I get from these bags?
These markets pose a great risk for all operations, which can lead to losses being greater than those contemplated. With the real possibility that handicaps are installed in the investment portfolio made through these original markets. In return, they can also generate very generous profits, since the prices of their securities are governed by volatility. Broader than that developed in other stock indices of more conventional markets. Not in vain, they can develop differences in their price, in the same trading session, of up to 20%.
They are not stock exchanges, therefore, favorable for all investor profiles. But on the contrary, only for the most experienced, and that they are used to operating in such original bags with more than one operation. From this scenario, if you do not have very clear ideas, it will be better to refrain from taking positions. Of course, if you do not want to take more than one dislike from now on. Do not forget it under any circumstances.
These bags can be used to when all other possibilities have been exhausted. That is, when there are no longer options for higher yields in traditional stock markets, and you want to remain linked to equities, even with stock markets as far away from your environment as you are. But in any case, you should not under any circumstances risk a lot of money, but rather the opposite.
Your investments will be very small in all cases. With no more than 20% of the capital destined for investment. And always under greater protection of your operations. It will be highly advisable, if you can, that place a stop loss order. You will have no other objective than to limit the possible losses that may be generated in the investments. Another aspect that you should take into account is that these stock exchanges have completely different schedules than the national markets. And therefore it will be more difficult for you to operate with the values.
Another drawback that arises from these complicated markets is that you will have many problems to follow the operations in real time, as well as that it will be impossible to achieve it. Not surprisingly, these markets are very complicated to operate in relation to the more traditional ones. It is convenient that you take it into account from now on if you do not want to make excessive mistakes that you can regret from now on.
What advantages can you get?
As in any financial market, you will have benefits that can be of great help to configure your investments. You should not undervalue them as you can sometimes opt for these unorthodox markets. And that would basically be the following lines of action that can be presented at any time and in various settings.
- It assumes in one more alternative that you have within the variable income, and that you can use it at any time. Especially if the main options fail.
- It is a way to make profitable the different savings with respect to other financial assets, and that when they show a favorable evolution may be the object of your interest in the investment.
- They can contemplate values that show an evolution in the financial markets very favorable for your interests, and above that presented by other values in your environment.
- They will help you increase your financial culture, and that can be very useful for other operations in conventional markets. To the point of increasing your knowledge of equities above that of other investors.
- If you know how to trade through these new exchanges, they can be opened for you more business opportunities. Although it will be necessary that you have more information about the behavior in the financial markets.
- Its high volatility It will benefit you to increase profits, as long as you can control your positions, and undoing the positions at the moment in which the first signs of weakness are given.
Its main dangers
You will also have to assess the damages that this kind of stock market operations generate, and assessing whether it will really be worth it for you to opt for these complex markets. After this analysis, it will be the final moment in which you will have to assess all the inconveniences that your operations will generate. Basically there would be no choice but to have the following.
- Don't try to win those you have lost in other equity markets, since you would be making a mistake that is very difficult to solve. It can make you lose more money than initially raised.
- Limit your contributions to the minimum you can, and if it can be at the testimonial level, much better for your interests as an investor. In any case, do not invest all or a large part of your capital.
- You would make a serious mistake, that you could pay with many euros on your bill. Only if you are used to some of its markets will you have it open to operate with certain guarantees.
- You will not have excessive referrals to take positions, not even that of the specialized media. And as a consequence of them, you will only have intuition to make up the investment.
- The supports and resistances to buy and sell the shares will be much more difficult to detect, and with it the risks will rise significantly. Not surprisingly, the control over the movements will be much more complicated.
- Keep in mind that many of these markets are incipient, and even in other more manipulable cases, and that can harm your interests as a small investor that you are.
- And if you finally have no choice but to invest your savings in the stock markets of these countries, do it to short-term operations, and under very modest contributions that do not excessively alter your personal assets.
Final conclusions
Of course, they are not the most recommended stock markets for investment on a domestic scale. They are really very unknown, and with hardly any direct references that make you propose operations with certain guarantees. However, not all stock markets are the same, and you can even find one that fits your characteristics as a retail investor. Take advantage of them, but controlling all their movements. And at any sign of weakness, undo the positions at the first moment.