How To Trade US Stocks From Nigeria & Overseas – Learn How to Open a US Stockbrokerage Account, Pick Profitable Stocks As Non-Resident Citizen Living Abroad.
As a Nigerian who is looking for overseas investment opportunities in a market like the US, it is quite difficult to find a market that offers unrestricted access to the financial market. Spend some time to research all the regulated stockbrokers in the US, you will notice that one of the countries that are hardly accepted in their client record is Nigeria. While I understand the regulatory reasons for such decline, and the need to ensure sanity in their global financial market, I still feel there are sincere local traders and investors to consider.
I had already reviewed one of the low-cost US stockbrokers that accept non-US resident like Nigerians to register in their trading and trade US stocks online as long as their applications, after being reviewed, are approved.
Why are foreigners/non-US resident showing increasing interest in US stocks despite the presence of local stock market in their countries? The US stock market remains the world’s largest and most liquid stock exchange in the world. Not only does it give you access to the biggest trading opportunities in the US, it also lets you diversify your portfolio into foreign-currency-denominated assets. Besides, the number of publicly listed US stocks representing major sectors is more than 7000, and that of foreign listed stocks in the market keeps increasing as they seek access foreign currency capital for expansion.
For us here in Nigeria, the market is a perfect alternative to trade stocks and diversify equity portfolio away from the Naira, especially now that the NSE index performance has shrunk from a peak of 45,000 points in February 2018 to 38,000. As of this writing, the NSE index has just returned to a negative path, posting -0.56% YTD on the back of higher than expected selling pressure.
This bearish trend as pointed out in my post on how to pick stocks in a bearish market is very strong, the dollar against emerging market currencies is gaining momentum as the FED reserve increased US rate from 1.5% to 1.75%, foreign investors are looking to explore the carry trade strategy; buy currencies with increasing yield and sell currencies with falling yield.
Also, the political landscape, as the country’s general election approaches, isn’t clear, so fund managers are re-adjusting their portfolio to cushion the effect of possible risk.
If you look at the NSE market outlook in near-term, it makes more sense to cut equity exposure until the market regains its strength (Watch my videos on how to analyse general market sentiment) and diversify into the foreign stock market.
Diversifying into the US stock market offers a perfect hedge against exchange rate risk arising the US dollar strength against the Naira and lets you trade various asset classes beyond equities; ETFs, mutual funds, forex indices and sector indices. Each of these asset classes tracks the performance of virtually all the segments of the US and world economy, for instance as the US dollar index continues to strengthen against emerging market currencies, there is a tradable FX ETF that tracks that movement, as the Oil price increases on rising tension in the middle east, there is an Oil ETF shares to trade, even the overall market indices, S & P, Dow 30 and Nasdaq have their ETFs too.
Another catch I love so much about US stocks is that there is no limit to their daily price movement, a stock can rise and fall by more than 100% depending on investors’ sentiment. Take a look at the snapshot of two stocks that gained 143.12% and 105.23% on a single day:
You won’t find such opportunity in our local bourse as regulatory and allowable changes are capped at +/- 10% daily.
The summary of these is that you need to look beyond the local stock market by giving foreign stock trading a try, but not without having a proper understanding of strategies to picking stocks that will rise.
How I Trade US Stocks Online from my Laptop PC
The way you pick Nigerian stocks is totally different from US stocks.
Firstly, in Nigeria, you have first-hand access to local business, economic news and government policies impacting SMEs directly from local TV stations and daily newspapers, but on foreign investments, you rely more on financial websites like MarketWatch, Financial Times, Bloomberg, WallStreet Journal, BBC, CNBC, Forbes, etc, my question is, how fast can you catch up on international breaking news or company-specific news in the US, UK, Canada, China, etc?
Another reason for the difference is that the US stock brokerage platform I trade on requires that I buy/sell trade at least five (5) times in a quarter or else, I will be charged $35 for inactivity. This is a clear message that they are only open to active traders that would buy and sell equities in a matter of days or weeks and not 3 – 1 year.
What does this mean? You can’t replicate your normal stock trading prowess in the NSE market here. Besides, If you apply the same strategy I shared on how to pick best-performing stocks in Nigeria stock exchange, you might lose all your money to the $35 quarterly fees on inactivity.
The first time I registered with ChoiceTrade, I lost all my deposits on fees, not that I wasn’t picking great stocks but the comfortability of holding on to a winning stock for a long time cost me $35 fees until my account turned “red”. The active trades were closed and used to pay accrued charges.
From then, I started backtesting strategies that would help me trade more than five (5) times in a quarter, and still make money, then I discovered a system that focuses on fast-rising stocks with a profit target of 10-15% in days or weeks.
This strategy isn’t 100% fool-proof but has helped me achieve 70-80% win rate in the last 1year.
To help you understand how this strategy works, I have created a practical video course on “How to US Stocks for Profit”. The goal of this course is to teach you how to pick the top gaining US stocks with a step by step blueprint.
I also went into details, hands-on with examples, to discuss potential trade opportunities, strategies and where to find recent news and what analyst are saying about your selected stocks before placing a buy order.
How to order
This course isn’t created for everybody, but the few who understands the potential of diversifying away from Naira portfolio into foreign currency market.
The cost of my video is N12,500. I know the cost is a lot more, why am I charging so much? Simply because you can make more money in profit with the strategies shared in the course. And I would rather have few traders in my circle who are actively engaged rather than a crowd of people who signed up just because the cost was low.
If you would like to join my exclusive Us stock traders circle, pay into the following account details:
Access Bank – 0055285296
Account Name – Ndukwe Ogechi U.
After payment, send your “US Stocks, Name. email address” to 08084219399