How to trade stocks for of 30-50% yearly returns

The returns of investments are closely tied to the interest rates of an economy. For most developed countries this interests rates are near zero because their central banks usually desire to keep inflation at a near zero value. As a result of this fiscal policy, most investments in these markets are usually low also. Stocks will usually yield a return of 8% to 12% on the average in these economies while bonds may yield of 5%-10%.

The emerging markets on the under hand are known for amazing returns when it comes to the stocks market. Emerging markets are those countries are not yet developed but are experiencing unprecedented economic growth largely because they are moving away from dependence of export of raw materials to production of goods and services. Some of these include, China, Hungary, Morocco, Malaysia, Mexico others can be found here.

This is primarily because of the growth potential that exists for companies in these markets.  Some of these stocks have yielded returns of over 100% within a year in the past.

Some of the sectors to watch out for include 

Banking sector: This sector acts as as pivot in any economy and is usually the first to pick up or slow down when an economy is about to go into recession or boom.Their number of performing loans will increase in times of boom which will then lead to increase in profits. Watch out for the top banks in these economies.

Manufacturing: The manufacturing sector is usually a major hit when an economy is doing well as the demand of their products will be on the increase and the purchasing power of consumers (the citizens) will be able to match the price set by the manufacturers.

Steps to Trading this Markets

• Understand the industries and economy of the country by reading a briefs
• Make a shortlist
• Get a list of brokers that are reputable that trade their stocks
• Watch out/read the financial statement and strategies of your prospects
• Purchase stocks of those poised for growth

In upcoming post's we will be looking at some of these stocks that have been growing for some time and are likely to yield more returns in the coming months. Ensure you subscribe to get alerts to the post or download our app.