APAC stock trading: Step-by-step guide

Asian Pacific stock markets attract a large amount of interest and trading volume. The Tokyo Stock Exchange in Japan, Hong Kong Stock Exchange, Bombay Stock Exchange in India, and Shanghai & Shenzhen Stock Exchange in China are known to be the major stock markets in the Asia-Pacific region, commonly known as APAC.

If you are looking to trade or invest in APAC stocks, but don’t know how and from where to commence, then read this basic guide below for some useful information.

Understand Your Needs

First things first, know your needs before you start online stock trading. Learn what is important to you in the trading field. Your response might be based on your investment goals and long-term investment curve.

If you are a beginner, you should start with getting basic market knowledge and improve your existing financial literacy. Assess your individual needs, and decide whether you are looking to trade individual stocks, stock market indices, or other assets such as commodities.

Pick an Online Trading Platform

Take your time to choose the best trading platform for your needs. You should narrow down your options depending on market reputation, investors’ or traders’ reviews, trading fees, etc. You must understand that the retail trading of stocks might be complicated if you don’t have previous experience. Hence, to protect your investment, you need to pick a transparent and user-friendly broker, such as easy Markets, that provides negative balance protection, no slippage, and guaranteed fixed spreads. These features will help you better manage risk when trading, and keep on top of your trading costs.

Get an Education

Trading stocks online is not an easy thing to attempt, specifically when you are a new and inexperienced investor/trader in APAC markets. You may agree that mistakes can be quite costly. Hence, it is ideal to learn every possible thing about APAC stock markets before you invest your money.

There are a lot of free educational resources available online that can help you become a successful trader, investor, or broker. You can also read books related to market analysis, investment strategies, risk management, or trading, all of which can broaden your horizon. You can even join an investment club or online trading group to gain knowledge from field experts.

Open a Trading Account

Stating the obvious, but after you have found a good and reliable broker, it’s time for you to open up your account. This will involve filling out online forms with your personal details such as name and address. You might be required to complete a questionnaire to assess your level of trading experience. Brokers will also require copies of your ID and source of funds documentation for anti money laundering purposes.

Start Researching Stocks

When your trading account is open and active, you are ready to make your first investment or trade. But, at this stage, you may have to play very safely. Avoid putting all of your eggs in one basket. And for that, you need to begin searching about different APAC stock options available online.

To learn more about APAC stocks, you are required to conduct a market analysis, financial analysis of companies located in the region, understand economic sentiments, review public information, check outside research reports on APAC stocks performance, and consider recent company news & risk ratings of APAC industries. This way, you can ensure that your trading decisions are based on comprehensive data.