How to Trade in Japanese Stock Market – Explained by Kavan Choksi
Japan’s stock market is the largest one in the whole of Asia. Considering globally, the Japanese market is the fourth biggest after London Stock Exchange, New York Stock Exchange, and NASDAQ. Over the last several years, Japan has been well known for its Japan is now one of the biggest economies in the world, in fact, the third biggest. So, automobile and electronics industries and has a high reputation for being an innovative and advanced country. Japan is also now home to many of the leading computer and technology companies, digital cameras and accessories, as well as electronics.
For the international investors looking forward to diversifying their investment portfolio, the stock market in Japan can offer stocks of a vast range of industries to choose from, including healthcare, financials, information technology, automatable, energy, consumer discretionary, telecommunication services, and consumer staples, etc.
Kavan Choksi on diversifying stock investment
As e have seen above, Japan offers many opportunities to diversify its investment portfolio. Kavan Choksi points out the fact thatJapan is a matured and well-established financial market, which makes it attractive to all types of international investors with varying objectives.
You can choose between automobile manufacturers and peripheral computer manufacturers if not financial services.
Also, as one of the major stock exchanges, Japan now attracts really huge investment from worldwide. It also ensures deeper liquidity as well as a considerable volume of trades and big scope for the longer-term investors. Apart from the stock market, Japan also has a very active population trading in the forex market.
Trading in the Japanese stock market
Trading (buying and selling) stocks in the Japanese stock market is easy and straightforward. As with any other leading stock market in various countries across the globe, there are three ways to make the purchase of stocks in Japan.
- By having an online trading account through one of the authorized stockbrokers in Japan.
- Direct trading through a full-service broker.
- Directly from the share registry of the companies.
Opening an account with a broker will take all the traders to varying trading platforms and various stocks, which you can easily compare, analyze, and take your winning trading positions. It is important to be knowledgeable about the stocks and various aspects of the market to do proper stock trading. A good broker will help you with enough insights to make knowledgeable decisions.
Also, the most critical part of investing in the stock market is to maintain a well-diversified and planned portfolio to take appropriate positions. A balanced portfolio will surely help the investors minimize their risks while achieving the optimum level of return over a specific time period. Along with stocks, the major asset categories to consider for investors are bonds, equities, and cash. Kavan Choksi advises that the investors need to ensure that they maintain a well-diversified portfolio by covering all asset classes. Overall, the Japanese stock market is a complex system, which will take time for you to understand and master. This article was to provide an overview for beginners, and you can take advanced professional support from any reliable and expert consultant in order to make your investing decisions.