money market

How to Day Trade Marijuana Stocks

With the sudden rise of marijuana stocks, there are many investors out there asking how they can capitalize on the new and emerging sector. Day traders in particular may be able to benefit from marijuana stocks because the market is so uncertain. Not every state has legalized it, either recreationally or medically, and the federal government has a schizophrenic approach to enforcing the federal laws surrounding the cannabis plant.

Day traders are notorious hunters of volatility. The non-stop, up-and-down nature of the stock market can be very lucrative for those that can take advantage of those opportunities. It is not very difficult to do, if you put in the time to learn the right strategy and technique. That is that it is all about: Putting in the effort to educate yourself on the proper way to day trade.

One company that makes a lot of sense to look at, whether you are a short-term or long-term trader is the largest Canadian supplier of medical cannabis products: Canopy Growth. Canada is ahead of the curve on medical marijuana, so Canopy is taking advantage. In June, they posted sales that were up 127% over the same period in 2016. And the company has its eyes on expanding into Europe, in the wake of Germany legalizing medical marijuana. Even more lucrative could be the recreational market, since the Great North is looking to open the doors on recreational use in 2017.

Across the pond is GW Pharmaceuticals, a United Kingdom-based company that created a cannabis-based drug designed to help patients with epilepsy. The future is bright of that particular stocks.

When you make the decision to start trading stocks, especially marijuana stocks, you need to be prepared to take on risk. Risk management is a vital part of any investment strategy and especially so if you are day trading. As a day trader, every single trade you execute needs to haveĀ  a plan and a strategy behind it. There is no flying blind in day trading. Not if you want to be profitable.

The art of risk management is something that is learned over time. You cannot just acquire it by reading day trading books and taking online classes. You need to cultivate it with real dedication to screen time. But the most sensible way to start out is to being by paper trading. That is where you trade virtual currency in a simulated trading environment in order to practice day trading. That will give you the reps you need to become comfortable in a fast-paced and challenging environment.

It helps to spending time in day trading chat rooms as well, learning from other veteran traders that have been in the game for years. Watching over their shoulders as they livestream their desktops can give you a leg up in the day trading world. Plus, you can find a community of like minded people that share your goals.

No matter what, you need to put in the time to get better at day trading so that you can starting to profit of marijuana stocks. The opportunity is out there. Now is the time to go after it.

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