How to Invest in Marijuana Penny Stocks
The world of marijuana is rapidly evolving, and with it, the opportunities for investors. In North America alone, 18 states plus Washington, D.C. have legalized recreational marijuana, and October 2018 brought full legalization in Canada. A relatively unknown Canadian company is poised to cash in on the marijuana revolution, thanks to a recent deal with the Ontario government. Here are a few tips for investing in marijuana penny stocks. But beware of these risks: medical marijuana card in binghamton ny
Before investing in marijuana penny stocks, it’s important to understand the risks involved. The marijuana industry is still in its infant stages, and penny stocks can carry substantial risks. But investors should remember that marijuana penny stocks represent the best opportunities for high-risk investing. As long as you know your investment horizon, you’ll be able to profit from any potential upside surprises. As with any other investment, it’s important to diversify your risk.
If you’re new to investing in marijuana stocks, start with a list of marijuana penny stocks that are gaining popularity in the market. These stocks often have the fastest growth and the lowest price-to-sales ratio. This ratio can be a substitute for a rough assessment of a company’s value. If the company has high sales, it will produce more profits in the future. If marijuana penny stocks are growing in popularity, investors can expect high profits in the near future.
As the legal market grows at a similar pace to the internet, investors can make big money on these shares. Cannabis stocks have surged more than five times in the past five years, with some stocks reaching almost 5,000 percent. That means, a $100 investment could turn into $20,000 in today’s market. Maple Lead Green World, for instance, rose seven-and-a-half-times and Endexx increased by over thirty-fold.
Despite the potential for high profits, investing in marijuana stocks isn’t for the novice investor. Marijuana is a nascent industry and remains a Schedule 1 drug at the federal level. Research before investing in marijuana penny stocks. You can make money if you do your homework. If you research well and stay vigilant, marijuana stocks can be profitable investments. The future of this industry is bright.
Before investing in marijuana stocks, learn as much as you can about each company you’re considering. Research the company’s management, growth strategy, financial health, cash on hand, and any deals with other nations. A good marijuana stock, HEXO, has risen from a high of $11 earlier this year to $4.16. At that price, it seems like a good accumulation zone. You might even want to look into buying a stock before it hits the high of $11.