Making money from the cannabis industry is definitely not an easy task. In this unique series of articles, we are uncovering some of the best and most profitable ways people are making money from it, without even touching the stuff.
In the first article we discussed Shoutouts. In our second article, we explained to you all about Weed Affiliate Marketing. Now comes the best of the best. The cream of the crop: Pot Stock Trading
What is Pot Stock Trading
2016 was a major turning point for the Pot Industry. A new president was elected, 4 additional states were legalized for recreational marijuana use. That prompted many to get into the industry, regardless of whether they live in a legal state.
As Steve DeAngelo, put it; “ You don’t need to live in Colorado to make jars, you don’t need to live there to make software”. And as we say; you definitely don’t need to live in a legalized state to make money from trading it.
The problem is that there are still many obstacles in the industry that are preventing people from making money from it, that people are finding extremely creative ways to get involved. One way is Pot Stock trading.
What are Pot Stocks?
Similar to normal stocks that have publicly traded companies behind them, Pot Stocks are also stocks that have companies behind them. The only difference is that these companies specialize in the cannabis industry. These companies specialize in growing the plants, selling them to distributers and even conducting research on fields related to cannabis. For example, there are Pharmaceutical companies like Vancouver-based Abattis Bioceuticals Corp and London-based GW Pharmaceuticals (GWPH) that invest millions into marijuana research to better the medical industry.
In fact, there are hundreds of publicly traded companies that have a firm footing in the marijuana industry. Some of these companies are large corps that have extremely high valuations and some are smaller companies. These company stocks are often known as “penny stocks”.
Now we have to be honest, penny stocks can be pretty risky, but if invested in correctly, they can also be extremely lucrative.
Some of the top Pot companies include Medical Marijuana Inc., Terra Tech and GW Pharmaceuticals, which is a company that uses cannabinoids to create prescription medications. It was founded in 1998 and trades on the Nasdaq. There is also Innovative Industrial Properties, a real estate investment trust fund that buys and leases property to marijuana growers.
Ways to Make Money from Pot Stocks?
There are actually a few way that you can make money from Pot Stocks. Please note that in order to trade Pot Stocks you will need a trading account with a broker. Also, please never risk money you can’t afford.
Ok so enough with the babbling…Let’s move on to the methods.
#1 Set and Forget
The idea here is to purchase a penny stock and simply forget about it. Well, actually, it’s not that simple. First, you will need to do your research. Find out which stocks have the best potential. Who are the investors and what’s behind the company.
You see, most of these companies trade at ridiculous prices. For example, one of our team members bought 3000 shares at 0.06 per share and sold it a couple of months ago at $4.20 a share. That’s a 12k profit!
Now that’s the upside!
The downside of trading Penny Pot Stocks is that many of these companies don’t evolve into anything, some of them just stay around penny prices for years, while others may even go bankrupt.
So you need to choose them carefully!
#2 Trade Large Corps
This method also requires knowledge but is practiced by thousands if not hundred of thousands of people worldwide. Online trading has become quite a popular form of income for many individuals and especially Pot Stock Traders.
In order to trade Pot Stocks, you will need to learn the field. It’s not rocket science but you will have to learn how to trade. This requires knowledge, a good trading strategy, determination, and patience. It is like any field. You will have to learn the lingo and understand how to read the markets and charts. Successful Pot Stock traders turn trading into a career, as it can be quite rewarding.
If you pursue a Pot Stock Trading Career, you’ll eventually find that you’ve converted one of your rooms at home into something like this:
#3 Let a Fund Do it For You
Ok, this method is easier said than done as most of the time it will require quite a large investment.
A fund is a company that manages your money and invests in the stock market. There are niche funds that even specifically invest in particular industries. For example, The American Growth Fund Series II E (MUTF:AMREX) is a diversified mutual fund that has a marijuana focus. While the Series II fund was established in February 2011, in July of 2016, the fund reorganized to focus on cannabis.
Companies like The American Growth Fund Series II E, basically manage your portfolio and shift your money over 20 marijuana-related companies according to performance.
The upside about this method is that you are putting your money with people that have experience and understand the market. The downside is that they can charge hefty fees and it will require quite a large investment.
How to Get Started as a Newbie?
There are many ways to get started:
- There are so many articles on Pot Stock Trading on the internet that you’re best bet would be to Google Search the topic.
- Most cities have colleges where you can learn to become a trader. Again, Pot Stock trading is similar to regular trading but only with a twist.
- There are a few companies that provide online courses. There aren’t many, but some of them are quite impressive.
- We’ve actually teamed up with one of the top Pot Traders in the industry and developed a 10 lesson course that will give you the basics you need to get started in the industry.
Feel free to check out the Complete Course Here.
A word of Warning
Pot stock trading isn’t for everyone. You should also never risk money that you can’t afford. Go into Pot Stock Trading with an open mind and have patience. No one is born a trader overnight. Think of it as a business. Even when opening a business you are going to invest money, so the same goes here.
Final Thoughts About Pot Stock Trading
If you are looking for an alternative way to Make Money Online and are interested in learning a new field, then Pot Stock trading is definitely something you should consider. You can find Comprehensive Courses Online that will take you through step-by-step to becoming a trader. The good thing about this method is that if you discover that it is not for you, you aren’t committed. Simply stop!
Missed out on the first article of this series: How to LEGALLY Make Money From Weed, Without Selling It – Part 1