Cannabis Industry Investing can be tricky, and one
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Posted On: 06/20/2021 4:22:48 PM
Cannabis Industry Investing can be tricky, and one is nearly always asking should I buy, sell, or just hold.
Buying and selling stocks can sound exciting, complicated, and confusing all at the same time.
Stock markets consist of lots of people buying and selling at different prices because they all have different ideas about what those stocks will do based on a stocks perceived value. One investor might think a stock will go up, while another thinks it’s going to go down. So who’s right? The fact is, most have no idea at all, even though they say they do. People often HOPE their stock will go up, but hope is not a particularly good tactic. Others BELIEVE their stock will go up --- typically because investors believe in a company's management.
Something to keep in mind is that most believers end up broke, but not because they picked the wrong company or the wrong management. Instead, one's investing tactics typically trip investors up. For example: If one believes too deeply, then one may never sell, and in the highly risky penny stock market, that can lead to ruin. On the other hand, many sell far too early, and by so doing they sacrifice big gains that could have been made by holding longer.
Everyone wants to own the next Amazon. One could have bought Amazon in 1998 for about $15.66 per share. Today, Amazon shares trade for $3486.90. That means a $16,000 investment could have made you a millionaire worth nearly three and a half million dollars today.
In the short term, any given stock could go up or down on any given day, for a variety of reasons. Perhaps the business behind the stock is bad and the company is going to lose money. Or the stock price might change because of a report from an analyst, a rumor, or overall economic news.
Because of volatility, it can be very risky for individual investors to buy and sell stocks to make a profit --- if done quickly and often, this is generally called flipping. I personally do not recommend flipping unless you really enjoy the anxiety that comes with it. Anxiety can cause one to have sleepless nights and can ruin relationships. A flipper will nearly always be nervous because they almost always worry if they made the wrong choice.
Keep in mind, past performance is no guarantee of future results. For example, in 2018 the S&P 500 saw a loss of 6.24%, whereas in 2019 it saw a 28.88% gain.
It can be hard to know when to buy and sell stocks, even for professionals. Money managers try to beat the market by actively buying and selling stocks instead of investing.
While investing can be risky, there are still lots of reasons people want to trade stocks: because they enjoy it, because they want to take a more active role in their financial goals, because they want to make specific choices with their investments (like investing in socially conscious businesses or in businesses they support).
My advice: New investors just starting out should: diversify, start small, focus on overall investing, and have long-term goals. Remember, cash in hand is better then hoped for gains any day of the week. Cash in hand can buy your groceries, while hoped for gains can't buy one anything.
Cannabis Investing 101
Kgem
Buying and selling stocks can sound exciting, complicated, and confusing all at the same time.
Stock markets consist of lots of people buying and selling at different prices because they all have different ideas about what those stocks will do based on a stocks perceived value. One investor might think a stock will go up, while another thinks it’s going to go down. So who’s right? The fact is, most have no idea at all, even though they say they do. People often HOPE their stock will go up, but hope is not a particularly good tactic. Others BELIEVE their stock will go up --- typically because investors believe in a company's management.
Something to keep in mind is that most believers end up broke, but not because they picked the wrong company or the wrong management. Instead, one's investing tactics typically trip investors up. For example: If one believes too deeply, then one may never sell, and in the highly risky penny stock market, that can lead to ruin. On the other hand, many sell far too early, and by so doing they sacrifice big gains that could have been made by holding longer.
Everyone wants to own the next Amazon. One could have bought Amazon in 1998 for about $15.66 per share. Today, Amazon shares trade for $3486.90. That means a $16,000 investment could have made you a millionaire worth nearly three and a half million dollars today.
In the short term, any given stock could go up or down on any given day, for a variety of reasons. Perhaps the business behind the stock is bad and the company is going to lose money. Or the stock price might change because of a report from an analyst, a rumor, or overall economic news.
Because of volatility, it can be very risky for individual investors to buy and sell stocks to make a profit --- if done quickly and often, this is generally called flipping. I personally do not recommend flipping unless you really enjoy the anxiety that comes with it. Anxiety can cause one to have sleepless nights and can ruin relationships. A flipper will nearly always be nervous because they almost always worry if they made the wrong choice.
Keep in mind, past performance is no guarantee of future results. For example, in 2018 the S&P 500 saw a loss of 6.24%, whereas in 2019 it saw a 28.88% gain.
It can be hard to know when to buy and sell stocks, even for professionals. Money managers try to beat the market by actively buying and selling stocks instead of investing.
While investing can be risky, there are still lots of reasons people want to trade stocks: because they enjoy it, because they want to take a more active role in their financial goals, because they want to make specific choices with their investments (like investing in socially conscious businesses or in businesses they support).
My advice: New investors just starting out should: diversify, start small, focus on overall investing, and have long-term goals. Remember, cash in hand is better then hoped for gains any day of the week. Cash in hand can buy your groceries, while hoped for gains can't buy one anything.
Cannabis Investing 101
Kgem
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