Going down the road to becoming a day trader can be a significant journey. It is filled with hard work, dedication, intelligent design of your priorities and, when necessary, actual risk taking. Sometimes, risk takers are highly rewarded. Sometimes day traders need to be cowboys. This is why marijuana stocks can be such a vital part of a day trader’s portfolio.
Marijuana stocks are part of the fastest growing sectors in American business today. As more and more states turn to legal marijuana for tax revenue, the opportunity for profits is great. And that means that the chances for traders to get in on a brand new industry is great. The time is now to capitalize on marijuana stocks.
Canadian marijuana stocks could be one of the best places for profit growth in the near term. With legalization in full swing over in the Great North, many companies are taking advantage of the new markets. Aurora Cannabis Inc. is expected to grow quite a bit over the next few years because of its position as a leader in the province of Quebec. The company recently nailed down a cultivation license there, which puts it in a great position.
Canopy Growth Corp. is benefitting from Canadian tax policy proposals, while it is also seen as a leader in the space for international marijuana sales, as Germany and Spain continue their marches towards legalization. Canopy is well-positioned in those countries and throughout Europe to capitalize on those opportunities.
With Canada set for legalization across the whole country in July, recreational weed companies stand to benefit the most. Potentially because many established recreational marijuana companies could see investments from alcohol concerns that want to get in on the action before legal weed starts eating into beer sales.
When marijuana stocks start hitting this frenzy of growth, you need to be able to take advantage of the coming volatility. The need for day trading skills is high in this coming environment. You need to be able to apply day trading strategies to marijuana stocks much in the same way you would apply these techniques to other companies. The ability to spot stocks about to make big moves before they happen is an essential skill when you are in the day trading market. And you need to be able to apply risk management techniques to your work in the day trading market as you chase after these healthy profits from marijuana stocks.
With the up and down nature of marijuana legalization in the United States, you need to be prepared for a lot of volatility in marijuana stocks of companies based in America. The regulatory environment is uncertain in the best of times and this current Justice Department is likely to make punitive federal drug law enforcement a tool in its arsenal as it looks to distract from presidential investigations and scandal. So the day trader that is looking to make money in this industry is wise to tread lightly and be decisive and quick in their profit-seeking.