How to Invest in Marijuana Stocks in 2021
If you’re wondering how to invest in marijuana stocks, you’re not alone. The industry is booming, and a good way to get started is by purchasing shares of exchange-traded funds (ETFs). While it’s possible to invest in single stocks of marijuana companies, exchange-traded funds offer broader exposure and access to the entire industry. One popular marijuana ETF, ETFMG Alternative Harvest, manages $1.25 billion in assets, including 40% in Canadian marijuana-related companies. It also invests in a range of companies loosely associated with the industry. marijuana card dr ny
Before you invest in marijuana stocks, remember that you should also keep your retirement goals in mind first. Many experts recommend that you keep a portion of your portfolio in broad, diversified index funds. Investing in marijuana stocks in 2021 can be risky, so consider adding a small percentage to your portfolio before you decide to put all your eggs in one basket. In addition, make sure to invest money you can afford to lose.
Cannabis stocks fall into two basic categories: micro-cap and small-cap. The first category includes companies with market caps below $250 million. The next category is micro-cap, which is where most marijuana stocks are listed. Marijuana stocks can be purchased through a brokerage firm. Before investing, take the time to research the company and the companies in it. Review the company’s financial statements and compare them with those of competitors to make sure they’re a good investment.
Another important aspect of investing in marijuana is ignoring headlines. The financial media has a tendency to create a hype cycle, which has impacted the marijuana industry. There’s still a lot of work to do, but investors should ignore the hype and focus on the fundamentals. If you don’t want to lose money, you can invest in a few marijuana stocks and start reaping the rewards. The potential reward is great, but there are plenty of risks as well. If you’re not a veteran in investing in marijuana stocks, check out our guide to investing in marijuana stocks. You’ll learn what to look for and where to get started.
To begin investing in marijuana stocks, choose a brokerage that offers a demo account and provides full access to their app. It’s important to remember that your capital is at risk, so make sure you invest in a diversified portfolio. eToro, for example, has a 68% loser rate for retail investor accounts. However, this doesn’t mean you should give up on the idea.
If you’re unsure about whether to buy marijuana stocks, check out these three companies. GW Pharmaceuticals is known for its first FDA-approved cannabis-based drug, Epidiolex. The drug is currently used to treat two pediatric diseases. It’s not a moneymaker, but it’s certainly worth your time. Meanwhile, Jazz Therapeutics is developing another CBD-based drug aimed at children with autism. Another cannabis stock, Sundial, was part of the Reddit “weed frenzy” of 2021. It traded for nearly three billion shares for a month at an average price of $3 per share.