Investing overseas, especially in large, well-established markets like the US and Canada, is an exciting way for Zimbabwean investors to build wealth and diversify risks.
However, with opportunity comes risk—something every investor must understand and manage carefully.
By the time you read this, I will still be in Zimbabwe enjoying family time. I encourage you to subscribe to my YouTube channel, Streetwise Economics, where I share more practical investing lessons tailored for you. If you want personalised coaching, book a session at www.streetwiseeconomics.com.
This article is designed to explain risk management in simple terms and introduce practical strategies for investors starting out or looking to grow their international portfolios.
Risk in investing means the chance that your investment might lose value.
The stock markets in the US and Canada are more established and regulated than many others, but they are not risk-free.
Prices go up and down daily due to company performance, global economics, politics, and many other factors.
For investors from Zimbabwe, risks also include currency fluctuations between the Zimbabwean dollar or US dollar and Canadian dollar, political and tax differences abroad, and unfamiliar market behaviour.
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Managing these risks intelligently gives you the best chance to protect and grow your capital over time.
One of my core strategies is to invest only in companies or sectors I understand. This means if you know how a company makes money, who its customers are, and what challenges it faces, you will be better prepared for ups and downs.
For example, many Zimbabwean investors may understand basics about tech companies due to their everyday use of phones or computers. Investing in big tech stocks on the NASDAQ or NYSE can feel more familiar and less risky than buying shares in an industry you know nothing about.
Start by researching companies, reading annual reports, company news, and investor presentations. The more you understand, the more confident and controlled your investment decisions will be.
Never invest money you cannot afford to lose or that might be needed urgently. I always advise keeping a cash reserve — an emergency fund — outside of your investments.
This protects you from having to sell stocks during market downturns, which often leads to losses.
Think of your cash like a safety net that gives you freedom. You don’t need to rush to pull out investments when the market falls, because you have a buffer to support you.
For more advanced investors, options trading can be a useful way to generate income and reduce risk. Two popular strategies I use and teach are:
Cash-secured puts (CSPs): You sell the right for someone else to sell you a stock at a set price. You keep the premium paid by the buyer as income. This strategy works well if you want to buy a stock at a lower price than current market value, but you get paid just for agreeing to buy if the price drops.
Covered calls (CCLs): If you already own a stock, you can sell the right for someone to buy it at a higher price. You get paid a premium, reducing your effective cost. If the stock price rises above the strike price, you may have to sell your shares, but you still keep the premium and gains.
Both methods allow you to generate cash flow and manage risk by setting prices where you are willing to buy or sell, creating a more disciplined approach to market fluctuations.
Continuous learning is key to managing risk. Follow trusted sources, read books on investing, watch educational content (including on my Streetwise Economics YouTube channel here), and join investor communities online.
It’s okay to spend money on books, courses, or financial advisers. Just make sure any investment advisor or mentor has a strong past track record and credentials you can verify. Don’t be afraid to ask for proof of results or references.
For Zimbabwean investors, who may face limited local options for quality financial advice, this step is especially important when dealing with foreign markets.
Practical tips for Zimbabwean investors investing abroad:
Convert money wisely: Currency exchange fees and timing matter in a market where the Zimbabwean dollar fluctuates significantly. Plan currency exchanges during stable times wherever possible.
Understand tax rules: The US and Canada have their own tax rules on foreign investors, including withholding taxes and reporting obligations. Work with a tax expert familiar with cross-border investing.
Beware scams and false promises: International markets attract scams. Stay vigilant and always verify information before acting.
Start small and scale: You don’t need a lot of money to begin investing internationally. Start with affordable ETFs (exchange traded funds) that track broad markets like the S&P 500 or TSX Composite before buying individual stocks.
Over the years, my approach to managing investing risk in US and Canadian markets has been simple but powerful:
Stick to what I understand; never chase hype.
Use cash reserves to avoid forced selling.
Employ options as part of disciplined income and risk reduction.
Dedicate time to continuous learning and reliable advice.
Be practical about currency and tax realities when investing abroad.
By incorporating these steps, any Zimbabwean investor can build a resilient portfolio designed to weather market swings and capitalise on growth.
Managing risk is the cornerstone of successful investing, especially for Zimbabweans looking to grow wealth beyond local borders. Remember, markets will always have ups and downs. Your goal is to be prepared, informed, and patient.
Thanks for reading this article. I hope it gave you clear and useful ideas on how to manage your risks while investing in the US and Canadian stock markets. Until next time, trade and invest wisely!
Subscribe to my YouTube channel, Streetwise Economics, for more beginner-friendly investing insights. For personalised coaching, visit www.streetwiseeconomics.com.
Happy investing!
- *Isaac Jonas is an economist based in Canada and principal consultant at Streetwise Economics. He is also a retail investor, retail trader and content creator, focusing mainly on the US and Canadian capital markets. He regularly shares insights via his social media handles and YouTube Channel (Streetwise Economics). His website is www.streetwiseeconomics.com and can be reachable on [email protected]. Disclaimer: This article reflects data and market conditions as of July 30, 2025. Always consider your personal circumstances and risk tolerance before acting on any financial information. Let’s keep learning and adapting—together.
