If you are familiar with investing on the stock market, it might be a good idea to diversify and invest in stocks in major markets other than the US. The Japanese Stock Market is one of the largest foreign stock markets.
This stock market investment is similar to investing in stocks in the US. When considering investing in Japan’s Stock Market, the first thing you should do is familiarize yourself with the three most popular indexes on the Tokyo Stock Exchange. These are the Nikkei 225 and TOPIX, as well as J30.
You should do your research on any company you are interested in investing in before you make any trades on Japan’s Stock Market. This is similar to what you would do if you were buying stocks from the NASDAQ or New York Stock Exchange. Although this will be harder and you may not have access to financial statements for Japanese companies you should do your research to determine if they are good investments. To learn more about these companies, the Tokyo Stock Exchange has an English-language website. Talking to an advisor can help you decide which stocks are best to invest in, and which ones would be more risky.
To trade, you must be a member licensed by the Tokyo Stock Exchange. To do this, it is best to open an account at a large brokerage firm that has reliable connections with members of the exchange. Once you have decided on the trades you wish to make, your broker will pass this information to the Tokyo Stock Exchange. The trades will be executed. This process can take a while so you may end up receiving or paying a different amount than you originally intended.
The same applies to investing in stocks in the US. You should only invest money you can afford to loose. And you shouldn’t invest all your assets in one place. Diversification will reduce the chance of losing everything and increase your chances of actually making money.