Investing in the US Stock Market
US Market Profile - A Land of Opportunity
With the largest economy and stock exchanges in the world, the United States offers what many international investors are looking for:
- Access to the world's most capitalised stock market
- A very liquid stock market
- Diverse investment opportunities
The United States remains the most important market in the world for investors. Its lucrative business climate, including regulation and taxation rules, makes it very attractive to foreign investors. No other international financial market comes close to the size, accessibility, transparency and liquidity of U.S. stock markets.
US markets are better capitalized
The U.S. stock markets represent the biggest single concentration of wealth in history. In terms of market capitalization, no other financial market comes close to the combined U.S. stock markets. As of March 2020, the market capitalization of the NYSE was valued at US25.53 trillions.
| Country | Stock Exchange | Market Capitalization (USD Trillions) |
|---|---|---|
| United States | NYSE | 25.53 |
| United States | NASDAQ | 11.23 |
| Japan | Japan Exchange Group | 5.1 |
| China | Shanghai Stock Exchange | 4.67 |
| China | Hong Kong Stock Exchange | 4.23 |
| Europe | Euronext | 3.67 |
| China | Shenzhen Stock Exchange | 3.28 |
| United Kingdom | London Stock Exchange | 2.92 |
| Canada | Toronto Stock Exchange | 1.75 |
| India | BSE India | 1.51 |
U.S. Stock Markets are More Liquid
Just looking at the NYSE alone, the trade value was 2 times that of Shenzhen, 3 times that of Tokyo, and almost 7 times that of London. U.S. markets are still the biggest in terms of turnover as well as value. That means there's a very high chance of finding a buyer or seller of any particular stock at any given time.
| Country | Stock Exchange | Monthly Trade Value (USD Billions) |
|---|---|---|
| United States | NYSE | 1,452 |
| United States | NASDAQ | 1,262 |
| China | Shenzhen Stock Exchange | 763 |
| China | Shanghai Stock Exchange | 536 |
| Japan | Tokyo Stock Exchange | 481 |
| South Korea | Korea Exchange | 277 |
| United Kingdom | London Stock Exchange | 219 |
| India | Bombay Stock Exchange | 210 |
U.S. Stock Markets Offer Greater Diversification
U.S. markets offer access to a huge variety of U.S. companies seeking to raise capital. With almost 6,000 companies to select from, you can invest in major companies and brands from all over the world who list their shares on U.S. financial markets.
| Country | Stock Exchange | Number of Companies |
|---|---|---|
| United States | NASDAQ + NYSE | 5,700 |
| China | Shanghai + Shenzhen + Hong Kong | 5,500 |
| Japan | Tokyo | 3,600 |
| United Kingdom | London | 2,600 |
Source: Wikipedia, Investopedia
US Stock Market Investing Tips
Be updated with the current market forecasts to determine the strong and weak times to invest in the US stock market. Being on top of the current US stock market trends will give you better chances of buying and selling at the best times, thus eliminating guesswork and churn rate. You'll have peace of mind investing in the right companies to get the most of your money.
Check out these other US stock market investing tips:
- Remember that investing involves buying a company's stock share, which makes you a part-owner. Pick the company instead of thinking of the "stock". Know the company's performance, competitors, and long-term prospects.
- Write down the essential things that make every stock worthy of your money. Set a clear basis on what things you find attractive about a company, and opportunities you perceive for the future. Also, set your expectations, as well as the metrics that matter most.
- Avoid unpleasant results by "buying in thirds", which is similar to dollar-cost averaging. Divide the amount you're planning to invest by three. Choose three separate points when buying shares, such as at regular intervals (like monthly or quarterly) or depending on company events or performance. For instance, you might want to buy shares before a new product launch and then place the next third of your investment into play if it becomes a hit. If not, you can divert the remaining amount elsewhere.
- If there are a lot of choices and you can't decide what companies to invest on, you can buy "the basket"" to be a long-term winner. Buying a basket of stocks will eliminate the pressure of choosing "the one". The gains can be used from the winner to offset any potential losses. It's a great strategy to help you identify the best company to invest and double down your position if desired.
Discussions
7 people like this. Showing 35 of 35 comments
IF you invest inUSA, then you must sleep here during the day and work in the night. Otherwise by the time you wake up in the morning her, you may find yourself in a big shit.
2012-10-09 08:05
I do invest in US and Asia market... No need to be in US... I start watching the US market at 9:30pm till 3am.. and continue to look at Asia market at 9am till 4pm. What is the problem? So far, the investment is great!
2012-10-09 08:20
Look at gold mining stocks like EGO, AUQ, AUY, KGC & ABX. All these can buy after being oversold.
2013-02-23 08:55
I am interested in trading US stocks, any recommendation of brokers ? Someone whom we can work with from Malaysia. Appreciate your advice.
2013-11-16 09:25
Hello please am a nigerian and I really want to invest in US stocks but no broker seems to be accepting my country, what do I do.
2014-04-24 23:27
Scimitar , I also interested in US stock, but don't know how to get the broker ? Can u give us some advise.
2015-01-08 04:07
A few friends told me that US market is better than Bursa. Appreciate advise from sifu how to get a broker
2015-03-19 06:36
recommend thinkorswim ( under TDAmeritradeasia.com) - starting funding USD 2500 . OR Interactivebroker starting at 10K USD with cheaper brokerage. , need any further info can let me know if you really interested . ( i am currently full time trader on US market. ( only if u are really keen n passionate in trading in US market n would like to spend time & effort to learn further. ) otherwise dont contact me, becos to trade in US, u need good n persistant n discipline in your learning spirit . if not stay where u are now. be safe.
2016-11-25 08:39
Ikan Bilis
someone recommend to me sure trader saying that the starting fund is USD 500. Do you know about sure trader?
2016-11-28 05:15
hi..ikan bilis...im very much interested in trading in US..how to contact u?
2016-11-29 08:27
hi,ikan bilis ..currently i m using cimb itrade to trd in us market . . i found it was expensive.. how do i contact u .?
2016-12-08 01:25
hi guys, we have a platform investment on U.S blue chips stock. interested parties pm me. thank you.
2017-11-08 02:32
Excuse me, I am new here. Jason87, how to pm you? I see no other click that link to you...
2019-04-10 10:38
basically an account of less than 5K USD cant do much trading to be frank, unless u trade option small small on ( stocks less than 20bucks) n have to control tight risk as u cant afford to loss.
i am doing sell put ( write secured put) pick only small counter less than 20 prefer $15 but hass to be more than $5 . dont touch less than $5.
2019-04-10 23:23
so far in market can open TDAmeritrade.com.sg for asian. for the rest go to tdameritrade.com. superior platform n safe. cheaper brokerage (can nego for lower rate , PM me i teach u how to )
2019-04-10 23:27
ten percent of what please giving you 100% of the profit ? I do see that you promoting here very risky things which are not exactly suitable for a lot of things anyway. Please do explain that all to myself anyway. I do not get how it's all going with you.
2019-07-13 12:57
Hi, Anyone using Kenanga for US/ Hkg trades ...?
Pls advise on their platform & cost economics....
Grazie!
2019-09-22 12:28
Lol at the last message here, yes for sure it's like that anyway totally and completely for example. How do you plan to get going with it no matter what ? I do agree it should be dealt in some way or manner. Obviously do not use any services from that scammers anyway no matter what they say.
2019-10-26 14:31
Can somebody please do let me know what is going on here anyway. I am totally and completely lost with all of that. Care to share with me all that stuff or not ? I am entirely not possible to make this happening. I do not really get of what is going on there for whatever reason.
2019-10-27 06:35
to invest in US if u are from ASIA basically use below regulated broker ( by the US SEC :
1)TDAMeritrade.com.sg ( its platform is Thinkorswim)
2)futubull (can trade US , HK, China )
3) interactive broker ( IB)
4) fidelity
so far above as i know accepting asia clients and most of their brokerage is FOC for stock trading but small chargers for derivatives
you need to check above urself .
2021-11-18 06:16
Rakuten Trade has just launch US trade in early 2022 for Malaysian account holder.
2022-04-13 06:23
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Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
scimitar
US Presidential Election is coming! Normally the rally will start when the election is starting.
2012-09-09 01:46