Marijuana has been used for quite some time now, and with the legalization and decriminalization of marijuana, the cannabis market is sure to grow fast. That’s why this is the perfect opportunity to jump on the hype train and make your infant steps in the world of Marijuana stocks. If you want to know how to invest in marijuana stocks online, you will be ecstatic as you will be learning many things about marijuana stocks.
Once you decided to ride the train, the next part should be understanding different market specifics and assess various opportunities that lie ahead in the world of marijuana. So, buckle up your seat and get your mind ready!
Things You Need to Know When Investing Marijuana Online
Before clicking here and there, it should be ideal for you to know different kinds of things you need to know. Besides, no one wants to go to war clueless, right? So here it is.
Different Kinds of Cannabis Stocks
Cannabis can be used in two ways, either medicinal or recreational. In turn, these marijuana companies focus on these two things.
As of March 2020, the use of medical marijuana is completely legal in 33 states. On the other hand, buying cannabis products can be purchased freely for only ten states. Thanks to the recently signed Federal Farm Bill, a bill takes hemp out of the schedule 1 substances. By this, it will dramatically increase the hemp farming that will lead to market liberalization.
As the bill provides a better condition for cannabis growers and retailers, the cannabis market is bound to increase, and the number of cannabis companies as well.
If you want to invest in marijuana stocks, you should know that there are several categories of marijuana stocks you need to know.
- Ancillary Products and Services – these are the companies that provide services and products to the marijuana industry. These services and products include hydroponics, packaging, distribution, lighting systems, and many more. They are the companies that most growers and producers rely on.
- Cannabis-associated Biotech – these are the companies that develop medicines based on the compounds found in cannabis. They are the pharmaceutical world of the cannabis industry.
- Marijuana growers – when planning to invest marijuana stocks, these are the companies you should consider. These are the companies that grow and cultivate marijuana. They are the ones who distribute the final products to either cannabis-product making companies or customers.
Most of the companies work in these three major categories. When trying to assess each other, you should pay attention to several factors of corporate operations.
Pinpoint the Best Cannabis Stocks
Earning money is highly dependent on how you can be strategic about it. Although cannabis stocks are one of the biggest potential opportunities you have, remember that cannabis stocks aren’t created equally.
If you aren’t willing to go through the process of analyzing hundreds of companies on your own, the best thing would be going through reports and sites about the world’s biggest performers at the time being and the most encouraging cannabis industry legislatures.
As of 2018, these are the best cannabis stocks you can invest in.
1. Tilray
The Tilray company is one of the most promising and packs the highest potential among the group. This company specializes in the making of medical products derived from cannabis. Since it was made, Tilray’s stocks increased by a whopping 600 percent! Many suggest that this company has lots to offer and should be on the rise.
2. Canopy Growth Corporation (CGC)
In North America, the CGC was the very first cannabis stock to be publicly dealt with. This company has been one of the most reliable and steadiest marijuana stocks. Aside from that, the company has a well-established connection in big companies such as Constellation brands – a big company producing beverages.
3. CannTrust
This company has one of the highest production capacity at around 100,000 kilograms per year. Canntrust is also a company known for its widespread international growth and the formation of secure distribution channels.
4. Aurora Cannabis
Although their past performance is quite volatile, this is another company that also has the potential and is worth noting. This company was a complete unknown back in 2017 and skyrocketed to the Wall street discussion.
Aurora Cannabis also acquired Farmacais Magistrales – the earliest and lone Mexican distributor of raw THC supplies.
5. Origin House
Formerly called the CannaRoyalty, they are one of the companies that are leading the Californian market. This company is highly notable for building one of the biggest logistics in the world’s biggest structured market. (California)
Their assets are quite diversified, too; their portfolio features intellectual property, partner products, research, distribution channels, and infrastructure.
Steps on How to Invest in Marijuana Stocks Online
To make it simpler for you, here are the steps you should be doing when investing in marijuana stocks online. Here are the steps on how to invest in marijuana stocks online!
Step 1: Research Everything About the Company
Before you start investing, it is crucial for you to know the background of the company. Whether they are performing well or not. To understand what are the top choices of cannabis companies, read articles and news about them from popular sites such as Google, Yahoo, or Benzinga.
Step 2: Determine the Money you are Willing to Invest
As a general rule, never invest more than you can afford to lose. While doing research will be of considerable value, this may not be necessary for the stock market. Stocks are up and down, and for the most part, contingencies are volatile.
Step 3: Decide on Your Agenda
Deciding when to sell and when to buy is essential. Try to figure out what your threshold is and go from there. For example, “if your stocks plummet below X or rise above Y, you’ll sell it.
Step 4: Choose a Broker
Once you get to the idea, you are now actually ready to buy your very first shares. Choosing a broker is quite overwhelming, you can go for the traditional ones, the Scottrade, or go for online brokers such as TD Ameritrade or TradeStation. Either option will offer you the opportunity to buy and sell your stocks once you’ve created and funded your account.
Step 5: Stock Buying
Although this may sound self-explanatory, it is quite complicated than you might think. When buying stocks, there are two general “types” of order: the limit order and the market order. A market order will approve the purchase at the current market price. On the other hand, a limit order only executes if the stock’s cost falls at or below the limit price.
Step 6: Stock Selling
Once you feel that you have earned enough from your stock, this will be the appropriate time to sell it. Again, you are greeted with two options as well, limit and market order. When you successfully sold your stocks, you can do anything about it, or reinvest.
Conclusion
Knowing the basic principles of investing in cannabis stocks and learning the steps on how to invest in marijuana stocks online plays a vital role in your cannabis stocks journey. Remember that stocks are generally volatile, and there is no secret recipe for success when it comes to it.
As long as you are making out of your humble beginnings, then you are good to go. Remember never to invest more than you can manage to lose.