How to Capitalize on IqOption Marijuana Stocks?
Do IqOption Marijuana stocks worth your time and money? According to David Kretzmann, chief analyst with Motley Fool, marijuana is in a great position to become the new crypto. Think about buying Bitcoin in 2013, when one bitcoin was worth only $130, and selling it for $19,535 at the end of 2017. Over this period BTC increased in 150 times. Not everybody agrees that marijuana stocks will be able to show similar increase. Nevertheless, it goes without saying that this absolutely new asset category may be quite valuable to investors who know how to trade it.
One cannabis ETF and 5 cannabis stocks may be found on the IQ Option platform, and they are traded as CFDs. In this article, we will tell you more more about these assets and how you can trade them, but first of all, look at the complete list of marijuana-related assets:
Why to trade cannabis CFDs on stocks?
During many years marijuana was an illegal tendency of “bandits”. However, everything changed in 2012, when Washington and Colorado appeared to be the first 2 United States which legally allowed the use of the marijuana. After that, a number of companies have been working in the sector of marijuana cultivation and distribution. Several of this companies became public and started working with international investors.
Nowadays, The US is the world’s number one marijuana manufacturer. In addition, 16.3% of its 327 million population use marijuana.
How to trade IqOption marijuana stocks?
There is no one specific strategy that will be the best in order to trade cannabis stocks (just like with other assets). During a number of years, the cannabis industry has became a multibillion-dollar business, yet before it was an illegal activity. If you understand when it is the best time to buy and sell CFDs on stocks of the corresponding companies, you may achieve high results.
However, keep in mind that although there is a hype around cannabis, it still has many things in common with other commodities. Downpours and droughts are most likely have an effect on the supply and the price of cannabis on the market. Bad crops usually lead to lower stock prices. Moreover, seasonality may have an influence.
Other aspects, like buybacks, management initiatives and cost-cutting programs also may have an impact on te on the stock price. Generally speaking,marijuana manufacturers are just companies which sell their goods. The more money they make, the higher their stock prices will be, and conversely. If the companies won’t achieve certain aims, the stock price will decrease.
You may use all the technical analysis indicators that you would have used with other assets, they work perfectly with marijuana stocks as well. Develop a trading strategy and see if it works for the company you selected.
Keep in mind that in spite of medium-term increase potential and high expectations, shares of cannabis-focused companies may lose value just like other assets. When you work on IQ Option trading platform there is no need to buy the company’s share to sell them. If the trader believe that the price will fall, he will think about opening a sell position, and this is the concept behind trading on any other assets as well. You may also speculate on both negative and positive cannabis stock price movements. At the moment the industry is not stable and the trading volume is high respectively, and it means that there is an availability of many trading opportunities. Nevertheless, it may probably change because there are no warranties in trading.