how to buy marijuana stocks

Marijuana stocks are all the rage right now. With Canada going fully legal, the floodgates are open. But did you know that most of these companies started out as penny stocks? Ok, so maybe not Tilray stock but if you look back in history, many of these pot stocks once traded below $5 per share. Many more still do (for now).

PennyStock Pro Tip: What Is A Penny Stock?

Marijuana penny stocks are all the rage and for good reason. Think of it like the beginning of the alcohol industry just as prohibition was ending. That’s where we are right now in the cannabis industry. But there are still risks involved that you should be aware of.

Marijuana Stocks And Risk

Why are marijuana stocks so risky? Just because cannabis is legal across Canada, that doesn’t mean it’s legal everywhere else.  Since the major marijuana market can be found all across north America, the US still needs to come on board.

This is a relatively new industry and the industry is still encountering areas of illegality. In the US for instance, it is still federally illegal to buy and sell marijuana. Some states still don’t have a legal means of distributing medical marijuana. This is in spite of it now being favorable by more than 60% of the population. But this has created some opportunities for speculation on the industry.  Just as was the case with Canadian marijuana stocks, so to could be the case for US marijuana stocks.

Canada Gives A Litmus For Marijuana Penny Stocks

Look at some of the leading marijuana stocks right now. A good number of them were listed in Canada and traded under $5 a share. Those who invested in these smallcap and microcap issuers before legalization saw huge profits after legalization. But buyer beware because there will likely be companies that put on the façade of a strong company but have little or no business operations. It’s very important to do your diligence.

How Can I Buy Marijuana Stocks?

First, make sure you have an account set up with one of the penny stock brokers that allow you to buy marijuana stocks. We’ve put together a great list on this site. Make sure that you are fully aware of the fees involved with buying microcap stocks as well as cannabis stocks, specifically. Some brokers will charge different fees depending on the risk tolerance of the broker themselves.  Once you find you broker,  you’re ready to buy.

Just like buying any stock, it’s important to do your research (Here are 4 tips for those looking to buy penny stocks). Make sure you know the risk of your trade and the potential reward. Have a strategy going into your trade. When you’re ready to buy, execute your trade through your broker. Review your order before hitting “buy” and after that, you’re officially a marijuana stock investor. Easy as that.

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