Most investors are not aware that they can trade in advanced markets like the USA from their existing trading portal or from their existing stock broker!
Dow Jones Industrial Averages(DJIA) Index and Standard & Poor’s 500 Index(S&P) or(SNP) can be easily traded from your Indian trading portals or by placing an order with your existing stock broker. These are future trading contracts and lot size of DJIA is 30 units while that of S&P is 250 units. You can legally trade in them in Indian Rupees.
Like all future trading contracts these too carry an inherent risk of wiping out your capital in no time. So tread carefully.
However, if you follow the world business news and events closely it is not difficult to project whether US markets are likely to go up or down. Initially one may - as a pilot project - buy or sell one contract each of DJIA or S&P. This would validate your understanding of US markets and embolden you to take bigger risks.
For your information these are flashed on your CNBC TV 18 screen all the time and I used to wonder why they were so prominently displayed on Indian TV channels. In fact on CNBC TV 18(HD) there are live opening bell and closing bell telecasts of US markets! In between all US stocks are discussed.
While in India a minuscule percentage of population divert their savings to stock market, in USA majority of people invest in stocks. A large number of investors definitely help the US markets as unlike India a handful of brokers cannot rig the stock market. Though the market fluctuations can be as wild!
While Dow Jones is like our Sensex - the old daddy of stock market; S&P is like our Nifty. No wonder S&P is called big daddy of all stock indices.
Please share your feed back as stock market is a journey where one learns new things everyday!
Happy investing!