Marijuana penny stocks are stocks that trade under $5 on major US stock exchanges and the OTC. These companies are extremely popular with Robinhood users and other traders looking to profit from the new Marijuana industry.
Here's how to invest in these companies and make money over the long run.
1. Research the Best Marijuana Penny Stocks
2. Open a Brokerage Account
You need a brokerage account to buy and sell marijuana penny stocks. Robinhood (full review) is the best stock trading app for investing in Cannabis penny stocks in my opinion. It's 100% free to trade and a very easy to use app.
3. Invest As Much Money as You Feel Comfortable With
Set aside a monthly goal and build a position over time if you don't have a lot of money. If you saved up some cash then try purchases anywhere from 100 to 10,000 shares depending on your risk tolerance.
Investing takes time so be patient and expect to wait 6 to 12 months before you earn anything substatial on your investment.
4. Follow your stocks by reading press release and earnings reports
Create a stock watchlist and stay up to date on the latest news and press releases. Marijuana penny stocks can jump up to 50% on positive news but also drop when a negative press release scares investors away.
Every 3 months, publicly traded companies must file a quarterly earnings report to tell investors what's going on. Read these reports every 3 months and know what's going on in the business!