Monday, November 24, 2008

Buy Chinese Stocks

China is an up and coming world power. If you know what to invest in, you can make a lot of money. This article teaches a few ways to buy Chinese stocks.

China is on the rise. It will be one of the premier global powers very soon. But when investing in China, one must be very careful. It is an extremely volatile market. But there is plenty of money to be made - if you know what you are doing.
Step2
Before making any purchases of Chinese stocks, you must do extensive research. As I said, the market is very volatile. I would read every news story about the particular stock before you buy it. Study everything out thoroughly. Here is a list of quality Chinese stocks to consider, with the ticker symbol in parentheses and its industry: China Fund (CHN), banking China Mobile (CHL), telecommunications China Life Insurance (LFC), insurance Baidu (BIDU), search/advertising Petrochina (PTR), oil Canadian Solar (CSIQ), solar energy
Step3
Again, research is critical. I recommend typing the ticker symbol into Yahoo Finance and then clicking on the "Analyst Estimates" tab on the left. This will show you what the analysts covering the company expect them to earn next quarter and next year. I good rule of thumb (although it may seem counter-intuitive) is to buy the stock when everyone is saying there is no way it can go up. That's when you look for a good buying opportunity. Similarly, sell the stock when everyone is saying that there is no way it can go down.

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