Andrew Baxter

  Trading US stocks from Australia has never been easier. The development of online trading platforms, faster internet access, and electronic transactions means you can be set-up within a week, and buying some of the most well known companies from the largest stock exchange in the world. Investors need to be aware of the risk of a fluctuating currency when trading US stocks from Australia. Once you have funded your account with Australian Dollars, purchasing shares from a US exchange will either be on margin with a RegT account, or will require US dollars for a Cash account. Cash Accounts For Cash accounts, you can transfer funds into USD as you need to purchase shares. Or, you can transfer a lump sum across (which will reduce fees), and have your capital sitting in US dollars in preparation of entering stock positions. If the Australian dollar rises while you have US dollar exposure, the value of your cash/stock in Australian dollar conversion will decrease. This...

  Market Trend, The trend is only your friend if you are in the market! Over the course of a trading week, there is a huge amount of data that flows around, most of it relevant in some context, some more important than other for stock market investing .  Two things that captured my attention last night was the move down in iron ore prices and the move up in the US market – opposite indicators, yet both seem to be having a similar effect!  The rising US market is making people nervous (albeit not the US consumer, who seems to be out in force) as is the drop in iron ore prices. Let’s start by looking at the US – the world’s largest economy.  The Dow Jones index has continued its longest rally since 1996.  What that means, folks, is the stock market is going up.  However, how many out there remain unconvinced, arms folded and are wearing their Bearskin hats? The thought of “better get out now, before it collapses!!” mindset reminds me of a ...

So, you have an interest in investing or generating Cashflow? One of the most common trading strategies used by successful traders, for generating cashflow, is covered calls or buy/writes.  This is a strategy that has the potential to significantly increase your returns – above and beyond that of simply shares. According to the ASX, a recent study* has shown that “through a range of active and passive covered call strategies, you can make your shares work up to 7.25%pa harder” Often, investors spend a lot of time working out the relative benefits and weaknesses of using this stock options strategy on either Australian or US stocks. Some use clumsy tools and even the newspaper to try and find out the best opportunities for them. At times they don’t know what do next, if the share price moves up, if it falls or if it stays static. When it all gets too hard, most investors seek input from a specialist advisor to assist them with placing or managing the position. But, ...