If you are a fundamental trader, you need to research the Chinese stocks thoroughly. Always follow your trading plan and never trail off it. Below is a couple of tips on how you can pick the best Chinese stocks:
Read Financial News Sites
Don't just depend on market news and press releases from the company itself. There are plenty of financial news on the Internet like Dow Jones, BBC, Dow Jones and a few other trustworthy sites in the Asia and Pacific region. These sites will give you an overall idea of how the market is performing generally.
Understand The Company
You must fully understand what services or products the Chinese company provide. Get to know their business strategy and how good their managerial expertise are. A lot of the information are usually covered in their annual reports and via the general financial news media.
Compare Companies
Always compare the Chinese company against other Chinese company in the same field. Furthermore, compare that Chinese company against the whole Asia-Pacific region. You be surprised that sometimes the stocks are outperforming all the other companies in the same industry.
Get A Chinese Friend In China
The really good way to invest in China and have an idea of any breaking news is to make friends with a Chinese in China. It is really hard for a foreigner to know exactly the mood of the country. Your Chinese friends could also give you a good stock tip and potential company collapse before major mainstream media companies inform you. Try not to make friends over the Internet because there are a lot of con-artists. Instead, make a trip to China and visit some of the factories and companies that you are interested in.
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