First off, TRADE AROUND AND BEFORE NEWS. This one is important. Due to the slow nature of illegal marijuana gaining legality, publicly traded equities will shoot up whenever positive news comes about via the media. News of impending recreational or medical legalization will cause the stock to (generally) move. If you source news frequently and are politically savvy, you'll be able to generate some nice returns.
Secondly, THESE EQUITIES WILL DROP QUICKLY AFTER A SPIKE. Can't say it enough. HEMP was up something like 700% in the past few weeks, only to peak after a gain of 89% on January 9th. It dropped some 40% the next day and another 20-odd percent the next. They will continue to drop or fluctuate until another important piece of news is published. This happens with practically all marijuana and hemp related equities.
Third, and most importantly, THESE ARE PENNY STOCKS (with the exception of Medbox (MDBX)). Don't invest too much into these (although the rate of return is considerably high). I cannot stress this enough.
It's also worth noting that like with recreational marijuana prices in Colorado, the market is so young, it hasn't fully developed yet and prices have yet to normalize. This is vital.
I'll continue in the next post tagged "INVESTING" detailing the operations of the 5 major firms who operate in this space - Cannabis Science, Inc. (CBIS); Medical Marijuana, Inc. (MJNA), Growlife Technologies, Inc. (PHOT), Hemp, Inc. (HEMP), and Medbox, Inc. (MDBX).
Secondly, THESE EQUITIES WILL DROP QUICKLY AFTER A SPIKE. Can't say it enough. HEMP was up something like 700% in the past few weeks, only to peak after a gain of 89% on January 9th. It dropped some 40% the next day and another 20-odd percent the next. They will continue to drop or fluctuate until another important piece of news is published. This happens with practically all marijuana and hemp related equities.
Third, and most importantly, THESE ARE PENNY STOCKS (with the exception of Medbox (MDBX)). Don't invest too much into these (although the rate of return is considerably high). I cannot stress this enough.
It's also worth noting that like with recreational marijuana prices in Colorado, the market is so young, it hasn't fully developed yet and prices have yet to normalize. This is vital.
I'll continue in the next post tagged "INVESTING" detailing the operations of the 5 major firms who operate in this space - Cannabis Science, Inc. (CBIS); Medical Marijuana, Inc. (MJNA), Growlife Technologies, Inc. (PHOT), Hemp, Inc. (HEMP), and Medbox, Inc. (MDBX).
No comments:
Post a Comment