Day traders thrive on volatility. And with the coming growth of marijuana stocks, there is a great chance for day traders to make real money on those stocks making big gains and big losses day after day.
When you are an investor for a long time, it always hurts to look back and see where a trend started. You can see exactly where you would have been able to take advantage of that trend and made a boatload of money. Don’t miss the boat with marijuana stocks.
Legalization is on the way, so marijuana stocks are about to really take off. Multiple states have legalized the recreational use of the plant and even more have allowances for medical use. The coming age of legalization means that marijuana stocks are a growth area that could lead to serious profits for savvy investors.
That being said, the early nature of the sector means that the volatility is still a major factor. Day traders make their living on volatility. So what you want is a way to find marijuana stocks that are ready to make big moves every day, which is ideal for day traders.
And it is not just growers and pot product manufacturers that are poised for big growth here. There are all sorts of ancillary industries that are growing up around legalized cannabis and that makes them desirable marijuana stocks as well. There are social media companies that cater to smokers, companies that track marijuana regulations throughout the United States and even marijuana media companies that create magazines, content and podcasts about cannabis use.
Medical marijuana is a more mature part of the industry so those stocks are generally more stable and ready for potential long-term growth. Still, there might be opportunity for day traders to take advantage of either kind of company, from recreational to medical, as the industry grows in fits and starts.
Remember, day traders need a lot of volatility for profits to be made. Day traders are always on the ready to jump on stocks about to make real gains and profit from them. There is danger on any corner in penny stocks and day trading, because it is the Wild West of the investment world. Which just means that marijuana stocks and day trading is a match made in heaven. Day traders are used to being against the grain.
Beyond just marijuana stocks, the industrial hemp sector can be a real boost for day traders and investors. As the historical bias against weed and smoking hemp went on, actual products from hemp that did not use THC were also discriminated against. But that is starting to change. So that is another sector of the financial world that is ripe for a lot of movement and volatility, which makes it valuable for day traders.
The bottom line is that there is money to be made from marijuana stocks. Marijuana stocks represent a growth industry and the financial world is prepared to profit from it, just like it can profit from any growth sector. Jump on the bandwagon and see what day trading marijuana stocks can do for you.
I’ve seen many of these investments go up in smoke. It can be tough to weed out which stocks will get high and stay high, and which will come crashing down. It’s a tricky, sticky business.
Cheers!
-PoF