The world is changing faster than anyone can imagine. There are technical advances almost weekly in every industry, from digital media to computer programming to car and rocket manufacturing that rival almost any advance we have seen over the past 50 years. But one of the most interesting sectors where investors and traders can make money these days is marijuana stocks.
With the legalization wave sweeping over most the Western United States, the potential for profits is legendary. And the wave is going to make its way eastward very soon. Very soon meaning within 5 or 6 years. The federal legal environment is currently very touchy, obviously, with an administration hostile to cannabis in place. But public opinion will eventually sweep the dinosaurs away into the dustbin of history. There simply is too much tax revenue and private profits at stake.
Right now, one of the easiest ways to make money with marijuana stocks is to dabble in over the counter markets. While that is not a great option for new traders, it can be a moneymaker for investors with the experience and the savvy to tread in those spaces. There is always more risk in OTC markets than there is in the larger, well-known exchanges.
That means the market for marijuana stocks are somewhat limited. But the opportunity is there for certain traders and investors that are experienced enough to navigate those markets. Traders and investors need to have a good strategy and proper risk management in order to really make moves in these spaces. That is where a day trading education site can come in handy, for those trying to break into the day trading game.
Part of the problem with companies making it to the well-known exchanges like NASDAQ and the New York Stock Exchange is that it is so hard and so uncertain for plant-touching companies to legitimize themselves with banking partners well enough to be publicly traded. Plant touching companies, in the lexicon of the legal weed industry, means companies that actually grow, cultivate, distribute or manufacture cannabis products. Engaging in these, even in states with legal cannabis, could make the company guilty of a federal crime. With that issue, many banks and financial services companies are reluctant to be in business with them.
So many of these plant-touching companies have to deal with cash for a great many of their services and operations. As an executive at Terra Touch Corp. explains, that makes it very hard to meet the disclosure and accounting requirements of publicly traded companies on the big exchanges. Terra Touch is a California based company that cultivates and sells cannabis and is also publicly traded. From 2014 to 2016, the company more than tripled its revenue.
These complicated issues do throw a bit of a wrench into the process of investing in marijuana stocks, but the potential is clearly there. Even with these bumps in the road, the outlook for the cannabis sector is bright. The key is to get on board now!