Cannabis and Hemp Stocks: How do you Invest Now?
Analysts predict the cannabis and hemp industry will surpass $75 billion dollars in less than a decade. The time to invest in cannabis and hemp is now.
In fact, there’s never been a better time in history to start investing in cannabis and hemp stocks. The massive COVID-19 selloffs have gutted the values of nearly every potstock on the market. In fact, many states are seeing record marijuana sales due to the COVID-19 pandemic. Many of these hemp and marijuana stocks are currently trading well below their price targets. If you’re interested in adding some cannabis and hemp stocks to your portfolio, the time to invest is now. But, how do you start? We’ve developed a step by step guide to help you start investing and turning profits on these undervalued potstocks.
Step 1: Open Your Online Brokerage Account
The first step to buying any marijuana stock is to get your online brokerage account. This is a quick and easy process and there are many different online brokerages to choose from. We’re big fans of Robinhood and TD Ameritrade. You’ll likely need the following information to get started:
- Name, physical address, phone number, and email
- Your bank account and card info
- Two forms of ID
Your online brokerage account will be a new account with which you can deposit funds to purchase your potstocks. You’ll also have the ability to invest in other instruments like bonds and mutual funds.
The first thing you’ll want to do is fund your online brokerage account. This can be as simple as using your banking account and routing info from a voided check.
Some online brokerage accounts will require a minimum deposit to start trading. There are typically fees associated with your online brokerage account – although online brokerages like Robinhood tout a “fee-free” service. You’ll likely pay fees to execute trades (a few bucks per trade, on average) and fees to withdrawal/transfer of funds. If you elect for Broker Assisted Orders – you’ll likely get hit with additional fees as well.
We’ve recommended a couple of the online brokerages we personally love but feel free to search independently for the one that’s best for you.
Step 2: Understand the Types of Stock Orders
The investment jargon can make this seem intimidating but there are only a few different types of stock orders you’ll want to get familiar with. This is true whether you’re buying cannabis or hemp stocks or other investment instruments.
- Market Order: This is an order to buy or sell stock at the market price at the time the order is placed. This is the most standard way of executing a trade but, keep in mind, the market will dictate the price.
- Limit Order: This is an order which is executed at a specific price you set for a specific period of time. Note, you will only have the ability to buy or sell a stock when your set price is reached.
- Stop-Loss Order: This is an order which is executed as soon as the stock reaches a specific price you set. This is probably the most important order to remember as this may help prevent loss.
Step 3: Buy Your First Marijuana Stock
This will require some research to determine the best potential investment opportunities. Due diligence is key to any smart investment and buying potstocks is no different. You’ll want to get familiar with how to analyze different marijuana companies based on their performance. Make sure you read the latest investment analysis and news from trusted sources in the hemp and cannabis investment industry. The analysts at Cannin use nine main categories when evaluating the best marijuana stock investing opportunities:
- Business Focus
- Business Size
- Market Opportunities
- Current and Future Operations
- Management Team
Until the recent COVID-19 sell-offs, a significant portion of cannabis and hemp stocks were “overvalued” and trading well-above their price targets. Of course, you could spend hundreds of hours researching marijuana stocks or you could simply sign up for a predictive stock algorithm that will allow you to make significant potential profits without all the research. A great place to start is our latest article on why revenue generation is critical for marijuana and hemp companies. Of course, we’ve got a shortlist of the best marijuana stock investments for 2020. We’ve also made our comprehensive cannabis and hemp stock reports available.
In addition to this, you’ll want to develop a clear strategy for how you decide to invest in marijuana stocks. Will you be rapidly buying and selling to make quick profits or will you adopt a longer-term buy-and-hold strategy? It’s important to set some ground rules for yourself when you’re investing in hemp and cannabis stocks.
At Cannin, we prefer more of a long-term buy-and-hold approach as some of these hemp and cannabis companies will significantly increase in value over time. Buying a position in one of the best cannabis companies today could yield a significant ROI. Look at it this way, if you had invested $1000 during Amazon’s IPO in 1997, your investment would be worth approximately $1.3MM today. With cannabis and hemp stocks, there will be few winners and many losers. The trick is to invest wisely.
Step 4: Profit
If you’ve successfully followed steps 1-3, you should be able to start turning profits investing in cannabis and hemp stocks. After reading this article, we hope it’s now easier to open your online brokerage account to start investing in marijuana stocks. As always, our team is available 24/7 with any questions you may have about investing in cannabis and hemp. Drop us a line anytime at [email protected].
Cannabis and Hemp Stocks: How do you Invest Now?
Cannin Investment Group: Your Hemp Stocks Experts
Cannin.com is your trusted resource for hemp stocks. Our team of financial experts evaluates all emerging hemp stock investing opportunities. We aggregate hundreds of hours of market research to provide tips on the best hemp stocks for 2020.
Use Cannin as your resource for:
- Cannabis and hemp stocks & investing news
- Featured cannabis & hemp stocks analysis
- Comprehensive cannabis and hemp stock reports
Is it too late to invest in hemp stocks? No! This is the perfect time to invest.
Wall Street analysts expect the global cannabis industry will have an annual value exceeding $75 Billion in the next decade. The time to invest in hemp stocks is now.
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