By. Doris Reins

 A global, worldwide-decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.

 The risk of an investment's value changing due to changes in currency exchange rates.  The risk that an investor will have to close out a long or short position in a foreign currency at a loss due to an adverse movement in exchange rates. Also known as "currency risk" or "exchange-rate risk".

 The index in some foreign countries have produced double to triple digit returns in the past.  High returns attract investors looking for ways to invest.

Choice #1  Buy stocks in a foreign country. This can be harder than buying domestically  Contact a brokerage firm that provides the service.

Choice #2  Set up a brokerage account with a firm in the foreign country of your choice.

 Are you going to buy and hold on to the stocks ? OR  Do you want to make quick money day to day? Your answer will determine your trading style and the amount of work you will need to do.

 Often referred to as day trading  Advantages: Allows you to invest an amount of money at a high yield interest rate. Gain access to the return sooner rather than later.

 Set goals for the future How much do you want to have by retirement age? When do you want to retire? How much do you want to invest each month?

 Pay yourself first  Invest set amount before paying others  15% of monthly income is suggested.

 PROS: secure financial future no burden to family as you get older  CONS: Investing in just one or two can cause you to lose everything. Money is not easily accessible if needed

 Political Consider the political stability and property rights of the country where you are investing.  Finacial Chance of loss due to drop in value of foreign currency.  Cultural Chance of loss in foreign market due to differences in consumer preferences