Trading Nasdaq and NYSE

[joey]

Does anyone know how to trade the Nasdaq and NYSE markets using Stop Loss orders. Have tried some local brokers and etrade but none seem to offer the Stop Loss facility.
Can anyone out there help.

Thanks

[Phaedrus]

Joey,
Open a US trading account with Ameritrade - they have everything you will need and more. $11 per trade, free if it takes longer than 5 seconds. Take a look at http://www.ameritrade.com

[joey]

Thanks for that Phaedrus. But it says you have to be a US citizen or
permanent resident to open an account. How do you get around that.
Thanks for your advice.
Joey

[Phaedrus]

Joey, that's only to open an account using their fast-track "Express Application". Use the "Online Application" option. NZ citizens are accepted, I assure you!

[moimoi]

Hi Phaedrus,

In terms of trading in the states have you any idea as to the taxation situation.??

Would one have to file a return in the states?

I will check with my accountant but i suspect he will be clueless :-0


cheers
moi

[Phaedrus]

Moi,
No matter how clueless your bean counter is, he knows more about your personal financial setup than I ever will. In any case, I do not consider myself competent to give advice on taxation matters.
No, you don't have to file a return in the USA.
Time you got a new beanie perhaps?

[Longtack]

Moimoi - Apply for tax exemption with your application to Ameritrade.
They may include one with the pack

[Ricardo]

I use e*trade, no problems. Tax situation has been discussed here before, but basically a matter of signing a form declaring yourself a non-resident alien Form W-8BEN, readily available on web sites of whoever you sign up with.

[Ricardo]

Further to your mention of stop=losses, be careful until you are familiar with what you are trading. Because the sytems are automated there is no kindly broker checking the orders. What this can mean with some of the smaller but volatile Nasdaq stocks is that you can be stopped out first trade of the day, only to see further trades immediately recover to the previous days trading range.

Have a look at some short term intraday charts. It doesn't seem to happen with the large caps.

[joey]

Thanks for that Ricardo.
I'm asking this question because I'm thinging of subscribing to a newsletter called Changewave and investing on the US markets.
Has anyone heard of this Changewave and Tobin smith.

[Gryffyn]

What's he promising?

[Gryffyn]

Google has heaps on them...

Tobin Smith is the founder of ChangeWave Research. He serves as editor of ChangeWave Investing , a growth-stock investing newsletter, and ChangeWave ProTrader , a short-term trading advisory newsletter. He also contributes articles to ChangeWave's WaveWire e-letter, which is read by more than 150,000 investors each week.

Toby is a contributing market analyst for the Fox News Channel, a charter panelist on the network's Bulls & Bears weekend investing roundtable, and is a frequent guest expert on Your World With Neil Cavuto and Fox & Friends . Toby has also appeared on CNBC, CNNfn, Bloomberg TV, CBS Radio, the Yahoo! Finance channel, Tech TV and other leading media outlets.

Since 1980, Toby has delivered more than 1,000 speeches on how to put your money on the winning side of change. In 1995, he became vice president and group publisher of Phillips International. As vice president, Toby launched the company's Interactive Media Group where he refined the investment strategies and approaches featured in the flagship service ChangeWave Investing.

In June 2000, his book ChangeWave Investing: Picking the Next Monster Stocks of the New Economy hit the streets debuting on the New York Times , Wall Street Journal and USA Today bestseller lists. In October 2001, the long-anticipated sequel, ChangeWave Investing 2.0 , debuted as the #1 selling business book on Amazon.com and was a Wall Street Journal bestseller.

[Gryffyn]

He seems a bit gung ho on some matters, e.g. in response to a question about terror attacks in the USA:

TOBIN: It is a tragedy anytime we lose an American to terrorists. But all I have to say is, “Bring it on!” At the end of the day, all the terrorists are going to do is make us madder, which makes us more resilient. This past week, the market finally figured out that the economic expansion is only 10-15 months old—economic expansion normally lasts 50-60 months! Investors were feeling like the game was over and were irrationally pessimistic. Now they are rationally optimistic.

[Leai_Se_Tupe]

I receive the Changewave e-letter which I read for fun and then forget. Now and then I'll check out a stock that's being recommended (am watching Hepalife HPLF.OB at present) but I haven't done any more than that. It all sounds 'too good to be true' to me. Here's the first part of the most recent newsletter to give you an idea...

Subject : Their Pain. Your (potential) 100% GAIN

July 18, 2004

Dear Investor,

I love my job. Unless some Fairy Godmother can swish her magic wand

and turn me into Phil Mickelson, I can't think of a better way to

make a living.

I love working with knowledgeable investors like you.

I love the intricacies of the market.

And I love the very wise and successful pros I work with, who are

sharing more and more of their "secrets" with me every day.

Case in point, Jon "Doctor J" Najarian, my "options guy"-and one of

the slickest traders I've ever met.

He's got a new options trade-easy-to-implement, with strictly

defined risks-to help you make a pile of money from a situation that

has many investors bawling their eyes out.

http://iplacereports.com/?sid=5EGV022


And by the way, he had another trade just like this a couple of

weeks ago that he closed out for 80% gains in just 5 days-this one

could be even better!


So take it away, Doctor J.,

(I'm sure you'll see what I mean)

[Ricardo]

re Changewave
I use Tobin Smith as a "preliminary filter" to narrow down selection. As the US market trades literally thousands of stocks, there is no way you can research them all. There is good logic in how Tobin is picking his ones. As he has quite a following it also means there is good liquidity even in the small caps he recommends.

As a stock picker he is not perfect. Quite a number of his picks will be short/medium term disasters. (the long term hasn't happened yet - he makes it clear enough some of the changewaves will take a while). If you apply stop loss rules and get out of his mistakes quickly you should be OK with his picks.