Cannabis stocks, the cannabis industry, and the recently legalised marijuana are all extremely popular topics today. However, many people don’t know how to invest their money in them. In this blog post, we will give you some simple guidance on how to start Invest In The Cannabis Industry if you’re interested.
I will start by explaining what you can expect from your investment if you decide it fits your needs and goals. Then I’ll go into a few different Invest In The Cannabis Industry methods so that beginners and professionals feel confident in their choice.
What Should You Expect From Your Invest In The Cannabis Industry?
The best way to explain this is by saying “risk tolerance”. You’ll generally want to invest money that you can afford to lose without too much of a hassle. Anything you find less risky will only be a good choice if it’s something you can afford to lose, so how much money you’re willing to lose defines how much risk is involved. If two or three months of your savings are gone, and everything you’ve planned for in your life has been altered, it goes beyond being inconvenienced by the loss. There’s something more important to consider here. You might be putting yourself into an uncomfortable position where things like bankruptcy become possible.
Even if you keep yourself from pursuing bankruptcy and a similar option, living off of credit debt or loans from family or friends is no fun either. Keep this in mind as we move forward.
What Kind Of Excitement Can You Expect From Your Investment?
This question can be answered with the same response as the last one regarding risk tolerance. If you can be excited about it even if you end up losing your entire investment, then you have an excellent mindset going into investment opportunities like this. What I mean by excitement is being highly motivated to understand what you’re investing in and to gain as much knowledge on it as possible.
You want an industry that excites you because of the potential. This can be in the form of new technology or new industry trends. Whatever happens, you must find something that motivates you and makes your life more interesting because of the opportunity to make money.
How Should You Invest?
There are several different methods for investing in the cannabis industry. I’ll review some of your options below and then explain which is best for someone interested in this industry.
1) Investing with a fund.
This is generally not a good option because it limits how much money you can invest, but the advantage is that they have access to resources and can help you avoid legal issues by buying shares through them and then selling them back to you. You’ll have to pay a fee for this service, anywhere from 2% to 10%. (8% seems like a common number that most people accept.
2) Buying stocks and options.
This is the most common method of investing, and it’s also a good option if you invest with a mutual fund or other investment company. All of your money is invested in one stock or many different stocks. If you’re interested in investing in individual stocks, you can also look at investments such as ETFs that invest in multiple stocks. With this method, you’ll be able to make more gains on each investment, but it also allows much larger amounts of money to be invested in various companies.
3) Investing with a broker.
This is the only method where you can invest amounts that don’t have to be limited by a certain amount of money or units. You’re completely in charge of how much money you will put into this industry and what kind of profit you expect from your investment. You might choose to invest a large sum of money and expect it to grow, or you might opt for just a little bit at a time to maximise your chances of getting better returns.
I use an online broker called Interactive Brokers, and I would highly recommend it to anyone interested in this industry. They offer competitive fees and the ability to invest in tens of thousands of stocks, commodities, options, etc., with no holding limits. You can start small and work your way up easily when you use them as a broker.
My Opinion On Investing In The Cannabis Industry
Anyone following my blog knows I’m very excited about what will happen in the cannabis industry over the next few years. Part of why I’m so interested in this is because of the amazing technological advances that are currently being made in the cannabis industry and the fact that this technology is going to be changing things for everyone. Not only for people who want to treat their conditions with cannabis but also for people who don’t have medical conditions but can use cannabis to get some of its health benefits.
Since these developments have sparked my interest, that’s what I’m most excited about. While there’s a lot of hype and excitement around every aspect of this industry, I know there are also millions of opportunities out there waiting to be explored and exploited by someone with an eye towards profit.
I would personally recommend investing in this industry by purchasing stocks and options. I would strongly suggest using Interactive Brokers because they can invest in thousands of companies, including most publicly traded cannabis companies that trade on the NASDAQ. This would be a strong recommendation, but you can find other options.
Conclusion
There’s much more to consider when investing in a company like Canopy Growth Corp (WEED). If you’re interested in more details about how to invest in this company, I highly recommend reading some books about investing. I recommend The Intelligent Investor and Common Stocks And Uncommon Profits. Both books will give you much more insight into investing, but the first is mandatory reading to learn how to invest well.
If you take the time to learn how everyone else is investing so that you can get in on their trades, then you’ll increase your chances of getting a great return on your investment. After all, they’re doing it for a reason – making money!
