It’s no secret that we are a big fan of weed and especially marijuana stocks. Some of us here at marijuanabreak have been trading them for quite a few years.
What’s the deal with Marijuanabreak?
Well, the site was originally created around the idea of teaching people to invest. We even created our own Marijuana Stock Trading Course, which is sold on the site. Slowly the site developed, became more popular, the community grew, and before we knew it, we found ourselves running a full blown website packed all different things related to medical marijuana and investing.
We understand that we are not financial advisors and don’t pretend to be. There we try to keep the site pretty diverse so that everyone will find something useful and interesting.
We also have our own help-mail, so if you have any questions about the anything, feel free to reach out at [email protected]
Want to know more about what we do, then take a look at our Facebook page. It’s always updated and Jerry, our Social Media Manager is constantly answering questions. Do you know that we even have a grower on the team, so if you have growing questions, shoot them over.
In this article, we are going to focus on one aspect of the industry that we have a great passion for. And that is Marijuana Stock Trading.
Is it for Everyone?
Over the last couple of months, weed stocks have become the center of attention, especially on Wall Street. But the question is whether there is potential or is just a bubble on the verge of popping.
The Trump administration is crashing down on the industry, but what’s important to understand is that he is going head to head against lobbyist and big Pharma companies that are aiming to remove marijuana from the list of Schedule 1 drugs. And why shouldn’t they? There is so much money involved, that restrictions are only holding them back.
Unfortunately, we live in a world that is run by greed and capitalism, but those two things could push the industry forward, legalizing the plant. Sure, people will make money from it, but then again it will also become available to the public in all states. Kind of like going into your local Starbucks and picking up a coffee.
So why isn’t Marijuana Stock Trading for everyone?
Plain and simple, pot stocks are risky!
Most of the stocks are still penny stocks and those that aren’t are extremely volatile due to ongoing news exposure.
To make money from the marijuana sector you, first of all, have to understand the risks.
Therefore, rule #1 – Never play with money you don’t have! If you don’t have available funds, don’t get involved.
How Can You Get Involved?
There is no straightforward answer to that. And there are no shortcuts. Oh and don’t be fooled by all the news claiming that this or that marijuana stock is going to be the next Google or Procter & Gamble of pot.. No one knows which stocks are going to be winners.
Related Article: These Marijuana Stocks are About to Explode
How Can You Make Money from It?
Well, first of all, you have to have a trading plan. A strategy. You have to understand the risks and get educated. Don’t just jump into a stock because someone told you to do so.
Here at marijuanabreak, we have a pot stock portfolio. It is divided into two parts:
1) We Invest in Pot Penny Stocks.
These are common stocks valued at less than a Dollar. We don’t risk a lot, but we understand that if nothing comes out of the stock, then it is money down the drain. Sure it’s speculative, but the rewards can be outstanding.
For example, we might purchase 1000 shares of a stock trading at $0.10. That means we invested $100. Now if nothing comes out of the company and it goes bankrupt, then we’ve lost $100.
BUT, if the stock is a good one, then you can just imagine the potential. Just imagine if it climbs to $10 per share. That is a lot of money!
2) We Trade High Volume Pot Stocks
This is an entirely different approach and one that is extremely calculated. We only trade stocks that are priced over $5 and their average volume needs to be over 200k. We use different strategies which are taught in our Pot Stock Trading Course.
Every trade is monitored, and we use special things called “Orders” to get us out of trades in the event of profit or loss.
Which is Best for You?
Unfortunately we don’t have the answer to that. It depends on you, the amount of money you have and your character. What we can say is that if Marijuana Stocks is a new concept to you, then first of all get educated. Understand more about the industry and then decide. Once you’ve learned, you can open an account with a broker and trade on a demo account. Get the feel of things before you risk any money.
Want to learn more about the industry, check out our online course.
Now to Answer the Main Question –
Will Pot Stocks Grow Like Weeds in 2017?
That is a tough question to answer. It seems as if the industry is moving forward whether you like it or not. More and more companies are getting involved. Seven U.S. states have legalized marijuana use, 10 states will be debating pot reform in 2017, and the Canadian government is expected to legalize weed by spring 2018.
Legal marijuana sales are expected to reach $20.6 billion by 2020, a 178% increase from $7.4 billion now, with a compound annual growth rate of 29%. Only a small portion of U.S. states will have made weed legal by then. The vast majority of U.S. states will eventually follow suit. And the profit potential will soar even higher.
Just remember, if you decide to get involved or not, the industry is still going to move forward. Let’s just hope that it’s in a positive direction.
Want to learn more, check out our Marijuana Stock online course.