With the markets in turmoil over the past year and a half or more, many investors are looking for new ways to build on their portfolio. Not knowing which way the American markets will turn next has left a sour taste in the mouths of many who made their fortunes in the markets in the past. Many investors are turning their sights to international markets and investing in stocks and companies that are not traded in American waters. The risks of investing internationally are great but if you’re a risk taker, it may just be worth your while.

You can certainly gain a lot by investing in international markets, however-if you are gambling the only capital you have on these markets, you can easily come up on the short end of the stick. As with other investments in American markets, you must weigh the consequences of your actions and the risks involved with trading.

When you invest in an overseas corporation, you’ve got to realize that the biggest reason you stand to lose everything is that there are no regulations over the money that you’re putting out there, no standards through the United States that these companies or markets have to abide by. You’re on someone else’s turf, in essence. You have to play by their rules, not the other way around. Because of this, you really don’t have a leg to stand on legally if things go south.

Companies outside of the United States are subject to some variables that you’re not accustomed to. Instead of worrying about how the markets will do because of supply and demand and the actions of the company that you own stock in, you’ve got to deal with a whole new set of circumstances. Countries go through civil and social unrest and coup frequently, especially in many of the Caribbean nations where investments are rooted.

These countries are well known for having civil wars and companies that were once prosperous disappear over night. You have no way of getting your money in these situations. In essence, if you put your money into a foreign company, you are gambling with your money. You can make great gains but you stand to lose everything, too.

To those who have made it rich with these sort of investments, the risks of investing internationally are outweighed by the gains that they stand to make. If you’re going to make the gamble, do it in small amounts.