Since most of my trades of the best emerging cannabis stock opportunities don’t involve companies listed on the New York Stock Exchange or Nasdaq, let’s take a look at your best options for buying TSX, CSE, or OTC stocks (in no ranked order).:
Interactive Brokers LLC (interactivebrokers.com) – Investors may trade Canadian stocks with no notable restrictions. Our research team have asked if trades with three of our first five recommendations for the CSE listing of a stock could be made, and a representative said they could do so with no problems.
Fidelity Investments Inc. (fidelity.com) – Fidelity will allow you to buy through Canadian exchanges and automatically converts your purchases to Canadian dollars when buying a stock from there. Fidelity does have a policy that it will automatically convert attempted purchases of stocks trading at a penny stock prices – the Securities & Exchange Commission defines a penny stock as anything trading for less than $5 per share – to whatever the OTC stock is.
Charles Schwab Corp. (schwab.com) — Like Fidelity, Charles Schwab will also trade any Canadian stock and does the automatic conversion to Canadian dollar. It also has the same policy about penny stocks – it will automatically convert attempted purchases of those stocks to the OTC stock for that company.
TD Ameritrade (tdamertrade.com) – This broker will accept trades on Canadian exchanges. However, you would need to call in and talk to a live broker to make such a trade. Meanwhile, a customer can place their own trade for an OTC stock on the online platform.
All brokers may require additional fees beyond normal costs. Please reach out directly to your broker.
When trying to trade cannabis stocks as an American investor, you might occasionally find limitations in what kinds of stocks you can buy at some brokerages, however. Not all of them will trade Canadian or even OTC stocks, though access has improved immeasurably over the last year or two.
Fortunately, most of the biggest U.S-based brokers now allow you to trades stocks listed in Canada, notably ones on the Toronto Stock Exchange (TSX)and the Canadian Securities Exchange (CSE) just as if you were buying Apple or Ford.
Whenever a stock trades in Canada and the United States over-the-counter (OTC) markets for our Cannabis Investor’s Report or The Cannabis IPO Insider members, my trade instructions will tell you where it’s best to buy the shares. If you’re trading a stock which NICI has not recommended, you generally will do a little better buying it on a Canadian exchange than getting it OTC.
But first, you have to sign up with an online brokerage.
Signing up with any online brokerage is easy. It’s like applying for a credit card or renting a car. In fact, signing up for a brokerage account is almost as easy as signing up to be part of the National Institute for Cannabis Investors.
You just go to the sign up area on the website and put in all your information: name, address, and so on. You’ll also enter a banking account number so you can actually put money into your brokerage and then make your stock buys.
It’s all normal and no riskier than using your credit card at a grocery stores or gas station.
The short answer is “no.” Unless you are an angel or pre-IPO investor, investors may buy and sell stocks as frequently as their brokerage allows.
The National Institute for Cannabis Investors is not a broker, dealer, or licensed investment advisor. We are a publisher and are prohibited from providing individual investment advice. As a courtesy to our subscribers, we provide a list of brokers on our website. No person or company on that list should be considered as permitted to engage in rendering personalized investment, legal, or other professional advice as an agent of NICI. NICI does not receive any compensation for these services. Additionally, any individual services rendered to NICI by the companies listed are considered completely separate from and outside the scope of services offered by NICI. Any contact and resulting relationship is strictly between you and the company.
Any investment contains an element of risk. There are some risks that an investor can control, and others they can only guard against. General economic factors, inflation, market value fluctuations, and general conservatism are all risks to every investment. It is important to make well-judged investments based on thorough research in order to minimize your risk. It is also important to speak with a financial advisor in order to better understand these risks and market terminology to help assist you in making better decisions for your long-term portfolio.
We get this question a lot, and it’s impossible to answer, because every investor’s objectives and risk tolerance are different.
The short answer: That’s entirely up to you and your broker.
In general, we do recommend two risk management principles: 1) following a “position sizing” discipline that works for you and 2) using trailing stops to protect your principal and your profits. Beyond that, we can’t offer any advice about how much to invest in any position.
One rule of thumb you may want to follow is to make certain you don’t have any more than 2% of your risk capital exposed to any single investment (unless specifically advised by the editor). Studies show that this helps keep risk down to palatable levels, while still allowing you to build a diversified risk portfolio capable of stellar performance over time.
When your 2% max investment is combined with a 25% trailing stop, you should never lose more than 0.5% of the value of your total portfolio on any one play. Let’s say you have $100,000 to invest. The max you would put into any position is $2,000. And with a 25% trailing stop, the most you could ever lose in that play is $500 (1/200th of your total).
When it comes to controlling risk and position sizing, there are many rules, but one trumps them all… don’t play the game if you don’t have the cash to back it up.
Note: The Securities and Exchange Commission regulates the financial publication industry. Due to regulations enforced by this agency, we are prohibited from providing our customers with personalized investment advice. Because we are financial journalists – not advisors or brokers – newsletters and investment advisories should never be interpreted as personalized investment advice. Any decisions related to investment amounts should be left entirely up to you and your broker.
It is no way a crime to buy a stock that is on a public stock exchange in the United States or Canada. U.S. government restrictions on the use or sale of cannabis in no way include people buying regular stock in a publicly traded company.
First off, go through the resources here on the NICinvestors.com website. NICI has assembled free reports, videos, how-to training sessions, and more that can turn even the most intimidated new trader into an expert in rapid fashion. But, if nothing else, look out for the regularly occurring trade alerts and follow the advice of Executive Director Greg Millier, who is also NICI’s lead analyst. Of course, make sure you have a way to trade stocks – be it a physical broker or an online account that you put money into.