Buying and Selling Pot Stocks
There is nothing like the fast-paced and lucrative world of marijuana stocks.
But, if you don’t know where and how to buy pot stocks, you can’t make money off them.
I want to arm you with all you need to know to start on your own path to marijuana-fueled riches.
Today, I want to share some tips to buying and selling pot stocks..
BUYING Pot Stocks
Pot stocks can be thinly traded and volatile.
For the chance at the biggest gains, you must pay close attention to the market and its price action.
Also, due to their volatility, you should only use “speculation” money to buy pot stocks.
Never, under any circumstances, buy any stocks with money that you need to pay the mortgage or feed your family.
Risk management and position sizing are very important. So I repeat: You should NEVER trade with money you can’t afford to lose.
You should keep your positions small — no more that 2% of the money you have set aside for trading should be used on any one trade.
2 Musts for Buying Pot Stocks:
- Every time you buy a pot stock, you should use a limit order. This allows you to set a ceiling on the price you’re willing to pay. If the price goes up quickly, a limit order protects you from paying too much.
- Every time you buy a pot stock, you should also have a stop-limit strategy in place. That means you know exactly how much you’re willing to lose on a position before you even buy your shares.
Here’s what you need to know for max profits when it’s time to cash out.
SELLING Pot Stocks
I’ll say it again… Pot stocks move fast.
That’s why you need to have a predetermined sell price figured out ahead of time when you make a buy.
A good rule of thumb for stocks is to take gains until you earn your initial stake back.
Typically a 100% gain. Then sell half your position and let the house money ride.
For pot stocks, considering the fast action, pulling in a 25–50% gain before selling half is advisable if you want to be more defensive.
It also doesn’t hurt to have some next-level guidance.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily