Stock trading. Another ancillary market within Cannabis geared for success
The Cannabis market, needless to say, is sparked up. As multiple ancillary markets are positioning themselves for immense success within this industry, the stock-trading sector is poising itself for performance on a higher level. However, as I’m sure many of you have read, trading in this burgeoning market can be.. somewhat hazy.
Just like in any new market, there has to be time for some maturity before you can start seeing profitability— and it’s never guaranteed. Because of the status of Cannabis at the federal level, many companies are not hitting the mark in terms of acceptability or profitability to make it onto legitimate exchanges.
Because of this, the majority of the exchanges many companies are trading on are over-the-counter: which are not required to meet many of the regulatory standards of more established ones. Todd Campbell, founder of E.B. Capital Markets, LLC offers some insight through his blog into the few companies he believes are poised for serious market success because of their scale. In looking at individual companies, I have come across two that allow users to examine and trade multiple companies through one platform.
This company, started by an investment advisor, wealth manager and wealth journalist, allows users to create portfolios encompassing Canna-businesses that are traded on multiple exchanges. These companies include both direct product companies as well as other ancillary businesses that trade on the NYSE, the NASDAQ, international, and OTC exchanges (although OTC exchanges can be more risky).
Unlike Cannabis Stock Trades, the HMMJ ETF looks to match the performance of the North American Medical Marijuana index. An ETF, or exchange-traded fund, is a security created to behave the same way as a given index or collection of different securities— in this case the North American Medical Marijuana Index. Where an investment in a single company puts all your eggs in one basket, an investment in an ETF diversifies that investment and minimizes risk because the fund holds multiple shares in multiple companies through a given index that it tracks.
Just like before any other investment decision, it should go without saying that you should consult a professional before investing— especially in this market. Investing is inherently risky. With the future of Cannabis looking brighter and brighter, although still uncertain, investing in this market can be daunting. So be smart, read up, and hopefully this industry will provide a high ROI.
Patrick Riddle is the author of this blog and the co-founder of Third day co-op, which strives to get Cannabis medicine to those who need it most. To learn more about their mission visit them at www.thirddaycoop.org