We analyze some of the most popular companies in the marijuana sector in the United States, Canada and the United Kingdom, and we give you the keys to start trading with your shares.
What are marijuana stocks?
Marijuana stocks are the stocks of companies engaged in the cultivation, development, and supply of Marijuana pouches as well as medical and recreational marijuana.
Why is interest in marijuana stocks increasing?
Steps toward regulating and legalization of marijuana in the United States and Canada have increased interest in companies in this sector.
Thirty-six US states have legalized the use of this controversial plant for medicinal use, and sixteen have also legalized it for recreational use. On October 17, 2018, Canada legalized the retail sale of cannabis, which boosted the actions of companies in the sector.
By trading stocks in the marijuana sector with derivatives, such as CFDs, investors can make a profit whether the stocks are rising or falling.
How to invest in the cannabis industry?
To create an effective investment or trading strategy in cannabis stocks, it is important to know the sector and the different industries in which the companies participating in this market operate.
How to start trading in marijuana stocks
- Login or open your real account
- Select the market to trade
- Confirm your type of operation: Sell (go short) or Buy (go long)
- Choose the size and levels for risk control.
- Open your operation
Types of marijuana products
Broadly, there are two types of products that are fueling the growth of this industry: medicinal and recreational.
Most companies are immersed in the production and development of medical marijuana in the form of unprocessed plants and products made with cannabinoids, compounds naturally present in the plant.
Regarding recreational marijuana, it is understood as that whose use is not medicinal. If other countries follow in Canada’s footsteps and legalize recreational marijuana, more companies are likely to focus on this area of the industry.
Types of stocks in the marijuana sector
There are a variety of companies specializing in different kinds of products. The three main categories of actions of marijuana belong to:
Producers: are the companies that grow, sell and distribute cannabis to consumers and businesses. Due to legal restrictions, US-based producers are not the main players in this category. However, Canadian growers have gained some notoriety since the product was legalized in October 2018.
Biotechnology: these companies are dedicated to the research and development of new products. Although they do not always work with the plant, but with synthetic forms of the compounds present in it, biotechnology companies are included within the sector.
Suppliers: These companies do not grow or develop marijuana or related products but provide the tools and materials necessary for growing marijuana, such as lighting systems, hydroponics, specific soil for cultivation, and fertilizers.
The best stock to invest in are marijuana.
The general and market interest in marijuana has led to significant growth for companies in the sector in recent years. We’ve looked at six of the most popular marijuana stocks:
- Canopy Growth Corp (CGC)
- Cronos Group (CRON)
- Aurora Cannabis (ACB)
- Tilray (TLRY)
- HEXO Corp (HEXO)
- Jazz Pharmaceuticals (JAZZ)
- Sundial Growers
- Associated British Foods (ABF)