How to participate in investment market from Armenia

2021–03–03 | Clubhouse discussion notes | Armenian

Main topic of discussion: What tools, channels are available in Armenia for retail, non professional investors from Armenia. How to start investing, strategies, knowledge sharing.

💹 Platforms mentioned

Trading platforms for stocks trading, which are accessible for Armenian residents:

• https://www.trading212.com
  Possibility to start trading with small amounts.
• https://www.etoro.com
• https://www.interactivebrokers.co.uk/
  Possibility of algorithmic trading on Interactive Brokers. Concern can be Wire transfer fees to replenish the account.
• https://trading-eng.ameriabank.am/
  Ameria Bank solution (which is actually based on Interactive brokers). Starting amount is $2000.

Platforms for Crypto trading:

• https://cex.io
• https://www.okex.com

Other resources:

• Morning Brew Newsletter: https://www.morningbrew.com
• Podcast Snacks Daily : https://open.spotify.com/show/5RllMBgvDnTau8nnsCUdse?si=lkQYkawmRCyLBSelOlI-0Q
• Yahoo Finance https://finance.yahoo.com

📝 Takeaways

• Before starting actual trading would be worth spending a month or so on learning, trade on simulators, to get prepared.
• Define goals and individual strategy of investing.
• As a starting point, getting ETFs are less risky.
• Buying individual stocks should be treated with a mindset that you want to own a company, not trying to make timing in the market. That thinking will guide decision whether to sell them or no.
• Do research when investing in individual company stocks (cashflow, management strategy etc). But don’t overestimate that knowledge, since publicly available information is not always trustworthy.
• When building portfolio with individual stocks, try to balance them with negatively correlated industries. Textbook example: ice cream and umbrella.
• IPOs: retail investors get stocks from secondary markets. Historic data shows that approx in 6 months after IPO stock prices drop, might be best timing to get them.
• Real estate stocks are discussed to be good option as well for investment.
• Assumption that you gain from investments only when selling it off not true: there are value and growth stocks. It is not rare for Value stocks to pay dividends.
• Bonds issued in Armenia can be good alternative to Deposits, since rates are higher and no income tax is being applied.
• Tip if you are required to provide document with your address on it, car technical passport can be an option.