Trading Marijuana Stocks

Trading Marijuana Stocks


Trading Marijuana Stocks By www.ProfitableTradingTips.com The
state of Colorado has legalized marijuana for recreational use. Is there money to be
made trading marijuana stocks? Technical analysis of these stocks may be difficult because of
small trading volume. But, if other states adopt similar laws, trading marijuana stocks
could be profitable to get in before stocks surge and get out before they level off. So,
before we look at trading marijuana stocks let us look at the law in Colorado. Colorado Law Regarding Marijuana Use Colorado has two sets of laws regarding marijuana.
These have to do with recreational use and medical use.
Colorado Amendment 64 says that adults aged twenty-one or older can grow up
to three immature and three mature cannabis plants privately in a locked space, legally
possess all cannabis from the plants they grow (as long as it stays where it was grown),
legally possess up to one ounce of cannabis while traveling, and give as a gift up to
one ounce to other citizens 21 years of age or older. Consumption is permitted in a manner
similar to alcohol, with equivalent offenses proscribed for driving. Public consumption
remains illegal. Amendment 64 also provides for licensing of
cultivation facilities, product manufacturing facilities, testing facilities, and retail
stores. This law allows for sales of marijuana for
recreational use, taxation of profits from these facilities, and various ordinances relating
to such establishments. It is the potential for profit from recreational use of marijuana
that is of primary interest in trading marijuana stocks. Medical Use of Marijuana Colorado Amendment 20 allows for the use of
marijuana in the state for approved patients with written medical consent. Patients may
possess up to 2 ounces of medicinal cannabis and may cultivate no more than six cannabis
plants (no more than three of these mature flowering plants at a time). Conditions recognized
for medical cannabis in Colorado include: cachexia; cancer; chronic pain; chronic nervous
system disorders; epilepsy and other disorders characterized by seizures; glaucoma; HIV or
AIDS; multiple sclerosis and other disorders characterized by muscle spasticity; and nausea.
Colorado medical cannabis patients cannot fill prescriptions at a pharmacy because under
federal law, cannabis is classified as a schedule I drug. Instead, patients may get medicine
from a recognized caregiver or a non-state-affiliated club or organization, usually called a dispensary. Trading Marijuana Stocks When considering how to trade stocks in this
new arena, one should always consider the adage from the California gold field days
of the mid-19th century. There is often more money to be made selling picks and shovels
than in digging for gold. There are those who will be growing marijuana, those who will
be selling it or potting plants or seeds, and there are those who will be providing
the infrastructure needed to sell marijuana. Here are a few examples of folks who may make
money in the world of recreation and medical marijuana: GreenGro Technologies sells growing systems
and equipment to marijuana farmers. Its stock went up fifty percent of late
GW Pharmaceuticals deals with medicines derived from marijuana. Its stock rose a few percent
at best. Hemp, Inc grows industrial hemp and sells
hemp seeds as food went up fifty percent. MedBox makes high-security storage and dispensing
machines for controlled medicines. Its stock rose by fifty percent.
MediSwipe Inc sells financial processing systems to the medical industry. Its share price recently
climbed by about 70%. Two California firms dealing with marijuana
for medical use rose in price,Medical Marijuana Inc. and Cannabis Science. The potential size of the market is probably
in the tens of billions of dollars albeit illegal at the current time. The estimated
size of the legal market in the USA is a billion and a half and expected to hit two and half
billion dollars a year with use by marijuana tourists and users coming in out of the shadows.
This includes medical use, primarily in California. When trading marijuana stocks remember that
these are small companies and many are penny stocks. Data for trading may be scarce or
lacking. They are prone to being pumped and dumped by initial investors. This may be an
arena in which you will need on site experience and will need to pay close attention to daily
detail. As always do not be afraid to sit on the sidelines if trading marijuana stocks
makes no sense to you. For more insights and useful information about
trading stocks, options, futures or Forex, visit www.ProfitableTradingTips.com.

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