Day trading can be a very lucrative and independent career. When you take on the responsibility of being an at-home day trader, you need to be ready to rock. The up and down nature of stocks can be stressful for a regular investor, but the day traders live on this stuff. Volatility is the currency of the land for day traders. When stocks make big moves based off patterns or breaking news, the chance to profit is huge. Especially is you are looking at an industry getting off the ground and getting very little attention from mainstream Wall Street banks.
Marijuana stocks are perfect for day traders right now. The relatively new industry is always following trends this way and that way, ready to spike at the latest product news. And the regulatory climate makes marijuana stocks shaky, which might not sound like a good thing, except to day traders. The key is being able to follow the trends and to make sense of what is happening in the industry. And sense this industry is so volatile it makes for an excellent space for day trading.
Day trading requires the ability to make decisions in real time based on actionable strategies. But you have to learn the strategies first. So even if you think there is real opportunity in marijuana stocks, it makes sense to learn as much as you can about momentum day trading strategies like gap & go and reversal trading. The potential for profits is there, but only if you know how to implement the strategies.
And you need to be able to manage your risk effectively. Because the world of marijuana stocks is so unpredictable, the importance of risk management, always very high in day trading, because even more essential. When you trade, you need to have plan for each and every trade. And the willingness to get rid of your emotion and eliminate all favoritism. So as you research marijuana stocks in preparation for trading, stick to rational analysis. It is the only way to go.
For marijuana stocks, one of the hot markets is Canada. The country is a bit further ahead in legalizing cannabis for medical use and even recreational use than the U.S., but it remains to be seen what companies will shake out of that market. Companies with an interest and an existing business in cannabis production need to work with Health Canada in order to obtain proper licensing. The regulatory process is much more centralized in Canada than in the U.S., since most U.S. states have not legalized at this point. That makes the market is little more lucrative for traders and investors up North.
No matter what industry you turn your attention to, you need to education yourself as much as possible on the ups and downs of day trading. It takes screen time and trial and error to get good at day trading, so once you get into marijuana stocks, it makes sense to get educated in the day trading arts as well.