Day trading is not a profession for the faint of heart. You need skills, concentration and willingness to take risks. Learning to day trade can take years of screen time, logging hours in front of multiple monitors and searching for patterns in daily stock charts and spreadsheets. From marijuana stocks to biotech stocks to financial companies looking to make a fortune of cryptocurrency, the sector is almost beside the point.
The real point is to look for volatility. You need lots of up and down movement in a daily market in order to make a real killing from day to day. Or really, even to make just a 5-10% gain on a stock on a particular trade. Day trading is all about making as many singles, doubles and triples, while avoiding outs and locking in the occasional home run. It is all about consistent record keeping and smart plays.
Which is why marijuana stocks are such a perfect sector for day traders to play in. The sector is so new, compared to shipping or steel or newspapers or soft drinks, so the upstart potential is there for many companies. And the market is so young, that regulation is imperfect and unreliable, which makes for a volatile sector. Marijuana stocks are perfect for the day trader, who is an investor looking to go against the grain.
When you are a day trader, what you profit from most often is a momentum day trading strategy. You do research at night and early in the morning, on the hunt for a real hot stock that is about to trade up as soon as the market opens. A young company, with a low float and the tendency to fluctuate is a perfect candidate. For many in the emerging cannabis industry, that describes their marijuana stocks to a T.
Trading marijuana stocks can be pretty risky. Day traders thrive on risk. They eat risk for breakfast. But smart day traders always have risk management strategies in place in order to make their plays as safe as possible. If you are looking to jump on a brand-new weed-focused, social media company, you need to be prepared for anything. With the current administration in Washington and an uncertain regulatory environment, you might not want to hold marijuana stocks long-term. But for the day trader that feeds on volatility, this sector is like manna from heaven.
Every day, you need to search the market with stock scanners and chat room investigation for the hottest stocks of the day. Very often, these days, marijuana stocks are going to be those hot stocks. From medical marijuana companies to recreational producers popping up in Colorado to hemp manufacturing concerns that can now sell their products without governmental interference, the industry is boundless. It just takes a savvy trader to jump on the bandwagon and ride it to profitability.
Marijuana stocks are a growth industry. You need to be able to jump on the train sooner, rather than later, in order to make moves and build up serious profits. Real day traders are ready to make weed stocks their bread and butter.
Latest posts by Colin Shaw (see all)
- 3 Tips For Getting To Know Your Target Audience Better - July 17, 2019
- 3 Things You Can Do Today To Give Your Business A Boost - July 4, 2019
- Design Your Business Website With These Aspects In Mind - July 3, 2019