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My Best Tip For Trading Penny Cannabis Stocks on The Rise - YouTube

Channel: Timothy Sykes

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- Today I'm gonna teach you about marijuana stocks,

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weed stocks, CBD stocks.

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(upbeat instrumental music)

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The question I'm gonna answer right now is,

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what do I think about weed stocks?

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I've made millions of dollars going long, hot stocks.

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I've made millions of dollars going short,

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meaning I bet against the same hot stocks.

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It doesn't matter what sector they're in.

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I've seen so many hot sectors.

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Right now weed stocks are high.

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Different countries, different states are in different,

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I guess, different times of acceptance.

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I don't know what the right wording is.

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More and more countries and more and more states

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are making it legalized.

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I don't care.

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I'm not here to tell you to smoke weed or not to smoke weed.

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I'm not interested in the legal issue.

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What I'm interested in is patterns.

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I love, I love, I love patterns.

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And weed stocks fit my patterns

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because they can go up exponentially

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in two, three, four days.

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And then they can also crash in two, three, four days.

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So, I look for that volatility, both sides.

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I'll give you an example, two recent stocks,

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IGC and NBEV.

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I-G-C.

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They're both rumored, or now they have press releases.

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Before they were a rumor, but now they have press releases

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saying they're getting into the CBD drink space.

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Cannabis beverages or CBD beverages.

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So, is it weed?

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Is it cbd?

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Is it cannabis?

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Is it hemp?

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I don't care.

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This sector is so hot because you have all of these

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big companies like Molson, Coors, Diageo, Coca-Cola

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getting interested in potentially investing

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in CBD based drinks.

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So, these have been the hottest stocks.

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IGC, I think, went from one to 10,

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Now it's back down to three when I'm making this video

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or it's in the fours.

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NBEV went from like two to like 12.

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Now it's back down to, like, five or six.

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Actually it just bounced to like eight.

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So, it's all over the place,

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and that's what I want you to learn to love.

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Not like is this a good company?

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Is this a scam?

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That's what non-students think like.

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That's what most penny stock traders

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and investors think like

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and this is why 90% of traders lose.

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Because it's not just, is this a good company?

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Is this a bad company?

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Is their product good?

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Focus on the patterns.

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I'll give you one example, okay?

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Do not buy any hot stock.

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I don't care if it's in the weed sector or any other sector,

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on the third green day.

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If it's been up two days in a row, the third green day,

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statistically, usually it fails.

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Either it's going to fail right in the morning

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and have a big drop or it's going to fail in the afternoon

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and have a big drop.

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If it's in the morning, I actually like to dip by

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the morning panic on the third green day.

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Even if eventually is gonna finish red,

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that first big crack, if the panic is big enough,

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it usually offers up a nice bounce.

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It's kinda like a bouncing ball.

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The first bounce, is the best.

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If it happens on the third green day, fantastic,

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or the fourth, or the fifth, or the sixth.

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The longer a stock is up, usually the bigger the

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crash it will have, and the bigger the bounce,

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after the bigger the crash.

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So, I'm waiting for the patterns, to come to me.

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Weed sector, fine.

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CBD sector, fine.

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Bring it on, whatever you wanna fucking call it, okay?

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I don't care why the stock is up.

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I don't care about the hot sector.

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I'll give you a little tip here,

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no matter how much you love any sector,

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it's going to fail eventually.

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Everybody thinks, oh, this time it's different.

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This is different.

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I've heard this about weed.

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I've heard this about biotech.

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I've heard this about cryptocurrency.

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I heard this about Blockchain, oil, gold, China, low float,

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police equipment stocks, ebola stocks, medical stocks, Y2K.

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I mean the list goes on and on.

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We see these little hot sectors

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and they pop up for a few days, or weeks, or even months.

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And everyone gets all riled up and not one of them,

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not one of them, has ever actually lasted.

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The stocks go up and down, a lot.

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There's a huge amount of volatility,

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but not any one of these hot sectors has ever just said,

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you know what?

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We're gonna stay a hot sector.

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We're just gonna keep going up.

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All these stocks, they go from one, two, three, four

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to 10, 12, 15, 20.

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They go up three, four, five, six times

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making five or six times your money

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in a few days on the way up.

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That is usually best case scenario.

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Obviously there's outliers sometimes.

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You'll make thirty times on your money,

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but if you make these kinds of exponential returns

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in a few days, trust me, take profits.

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I don't care if you sell too soon.

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I care much if you sell too late

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because too many people have these big profits.

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They're like, I believe, I believe, I believe

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and then the stocks crash and they never take their profits,

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and trust me, it's a terrible thing

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to have unrealized profits and not take them.

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It's probably better that you didn't

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even have any of the profits, and gotten your hopes up,

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in the meantime.

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Just be dubious, be doubtful, be suspicious of any stock

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that runs up exponentially in a few days or a few weeks.

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Obviously I have a problem with my patience.

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I usually sell these stocks too soon,

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but I would rather err on the side of caution

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and I would rather you err on the side of caution too.

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You can always get more aggressive later on

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once you have a lot more experience or a lot more money.

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In the beginning, play it safe.

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Take singles.

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Don't go for home runs if it's in the weed sector,

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or anything else.

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