How Can Day Traders Profit from Marijuana Stocks
When you begin your day as a day trader, you are starting your hunt for volatility. There is no better way to make money with quick trades each day than with stocks that make big moves. Volatility is a day trader’s best friend, so that makes marijuana stocks another BFF to the day trader.
Marijuana stocks are ripe for volatile moves because the industry is young and growing. Medical marijuana began to come into the mainstream only a scant 15 years ago and recreational marijuana acceptance hit the public just a few years after that. The regulatory environment is changing across states nearly every year, so the opportunities for weed entrepreneurs are growing all the time. Which is why the sector is such a great place for traders to get involved.
Beyond just the medical benefits of the marijuana plant, companies are looking to take advantage of hemp, another product with a variety of uses. Hemp seeds can be used in bread and granola products as well as organic body care products. The stalks of the hemp plant can be formulated into clothes, biofuel, paper products and a whole host of other things. Some analysts believe that the hemp products industry could be valued at more than $620 million in the United States. Companies like Hemp Inc. are making inroads into the the industrial hemp sector and might be ripe for profit opportunities.
Marijuana stocks can also enjoy a boost from companies that are manufacturing oils and extracts for recreational use. There are scientific companies in Western Canada and the Pacific Northwest that are learning how to extract cannabis from raw fresh frozen whole plant material for medical uses. The benefits of this industrial process can mean that companies like Lifestyle Delivery Systems can be another stock with great potential. Creating alternatives to smoking for marijuana products could make the use of the product much more health-conscious and respected by doctors.
These science based companies are working on cannabis-infused breath strips, for one innovative product. One of the major benefits of using this type of delivery system is that you can control the dosage and quality. That provides a great benefit to the customer and makes the product safer to use. The financial repercussions for a seller of that product are great.
Even though the federal environment of regulations, lead by US Attorney General Jeff Sessions, is hostile to marijuana production and research, the long-term view of the industry is bullish. And the short-term can provide plenty of volatile moments for day traders to take advantage of. Sessions has dedicated much of his career to the demonization of cannabis and cannabis-related products, but he is just one man. The idea that he can keep the whole industry down for long is silly.
Marijuana stocks, with their explosive potential growth and extended gathering of public opinion, are on the way to being dominant in the marketplace. There is no stopping the movement, so that means that there is more potential for profits to come.