By. Doris Reins

A global, worldwide-decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.

The risk of an investment's value changing due to changes in currency exchange rates. 

The risk that an investor will have to close out a long or short position in a foreign currency at a loss due to an adverse movement in exchange rates. Also known as "currency risk" or "exchange-rate risk".

The index in some foreign countries have produced double to triple digit returns in the past.

High returns attract investors looking for ways to invest.

Choice #1

Buy stocks in a foreign country. This can be harder than buying

domestically

Contact a brokerage firm that provides the service.

Choice #2

Set up a brokerage account with a firm in the foreign country of your choice.

Are you going to buy and hold on to the stocks ?

OR

Do you want to make quick money day to day?

Your answer will determine your trading style and the amount of

work you will need to do.

Often referred to as day trading

Advantages:

Allows you to invest an amount of money at a high yield interest rate.

Gain access to the return sooner rather than later.

Set goals for the future

How much do you want to have by retirement age?

When do you want to retire?

How much do you want to invest each month?

Pay yourself first

Invest set amount before paying others

15% of monthly income is suggested.

PROS: secure financial future no burden to family as you get older

CONS: Investing in just one or two can cause you

to lose everything. Money is not easily accessible if needed

Political Consider the political stability and property rights

of the country where you are investing.

Finacial Chance of loss due to drop in value of foreign

currency.

Cultural Chance of loss in foreign market due to

differences in consumer preferences