A 4-Step Guide On How To Invest In Week Stocks

 marijuana investing tips
David Robinson By David Robinson | Author

 marijuana investing tips

Investing? You'll Do Just Fine

Many have asked, "How can I buy stock in Marijuana?". In short, you'll want to open a brokerage account. However, the long answer is slightly different, What in the name of Hades are you thinking? There are serious concerns in investing in OTC stocks and we've discussed these previously, of the 57 stocks that are for marijuana, over 60 percent of them are traded as over the counter stocks.

If you're a first-time investor, are you ready to make the choices with your hard-earned money and take the plunge to learn how to invest in weed stocks - a risky and nearly volatile investment theme? As the topic gains more popularity, perhaps you're ready. Try not to fear. You're going to do just fine.

how to invest in weed stocks

1Brokerage Account

Start out by opening a brokerage account. Ally Invest offers an inexpensive account that is only $1 per deposit and the trades are just $4.95 each. You can purchase the stocks on the Over-the-counter market as well as on the major United States exchanges. However, you'll be out of luck for Canadian exchanges.

Interactive broker accounts are the ideal option for a serious retail investor however, you'll have to have $10,000 at the ready as a minimum deposit in order to open your account. You can purchase Canadian dollars and purchase Canadian stocks on the Canadian exchange that they are traded on. The trades are approximately $1 per exchange. After you've chosen to open an account, you'll want to move to the stock selections.

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2Stock Evaluation

Never buy the stocks and ask about them later. Always do your research first and then choose. For each stock that you are considering, avoid their website. Go instead to their regulatory filings that are readily available online.

For United States stocks, you can go to the SEC filing website online. Canadian stocks are on SEDAR. You can open the quarterly earnings reports. Here you can read what to watch for in the Over-the-counter stocks and find out of any of them have red flags.

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3Select Your Marijuana Stock

Once you've opened up your brokerage account, you should ask yourself which marijuana stock to buy. It's suggested that you should try some of the larger Canadian Growers. Here you'll find that the cannabis theme will help you to pony up the required monies in order to invest in any number of the 11 VC firms which invest in cannabis. Avoid buying any of the over-the-counter stocks that aren't on the ADR with the guide of holding them long-term for investors. In 99 percent of the cases, your money will be up in smoke.

You'll have to do some research on your own. You won't need a degree in finance however, you should use common sense. When you are choosing your dealer to get your eighth of skunk weed, you wouldn't front them the money. You'll have them show you the goods before you pony up your hard-earned cash and you'll do a smell, squeeze, feel and look test to ensure that you're really getting a full eighth. If it's light, if it doesn't smell or look right, you're not going to buy.

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4Important Steps Before Investing

Now that you understand how to buy your marijuana stocks, it's suggested that you avoid buying marijuana until you've done the following steps: Use 80 percent to the money you plan to spend on the stocks, and invest it in Vanguard Total Stock Market your trades will be under the ticker VTI. Here you'll see that ETF represents a full basket of stocks that trade in the United States. As an alternative, you may invest part of that money in the Betterment Robo-advisor platform. Here you will find the safest and the low-cost means to invest in your future. Put some of your money into this account each month.

If you can manage to afford an eighth of the chronic each week at $40 per sack, you can put this $50 into your Betterment accounts. Only after you've committed to your future should you consider a brokerage account and invest in your marijuana stock. If you're paying over $4.95 per trade you're paying more than you should be. Ally invest is a low fee brokerage and if you're spending less money on your transactions and more on stocks you'll make more. You can make 30 trades per quarter even if it does drop to $3.95 per trade. With this guide, you're well on your way to learning how to invest in weed stocks.

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