In the U.S., marijuana is still federally illegal. However, its cousin hemp is due to become legal at the federal level based on the farm bill that was passed by Congress on Wednesday.
For investors, the key question is how to profit from hemp becoming legal. When I wrote “How to potentially become a marijuana millionaire, albeit carefully,” the most important word in the headline was “carefully.” Being careful also applies to hemp. Let’s explore with the help of a chart.
Chart
Please click here for an annotated chart of New Age Beverages NBEV. Please note the following:
• New Age Beverages has the potential to be a big, indirect beneficiary of the federal legalization of hemp.
• The chart shows The Arora Report buy and sell signals on New Age Beverages.
• The chart shows that this is a very volatile stock. My 30-plus years in the markets have taught me to be humble. In the business of investments and trading, The Arora Report’s calls on the volatile New Age Beverages have been on target. Having said that, it is important for investors to be humble, as it is very easy to make a wrong call and lose money on this stock.
• As another note of caution, investors should consider New Age Beverages a speculative stock. Risk controls are extremely important. Risk controls include proper position sizing, scaling in the buy zone, scaling out in the target zone, adjusting quantity based on changing conditions and scaling out in the stop zone.
• As of this writing, New Age Beverages is approaching our first target zone. Target zones and stop zones are given simultaneously with the buy zone. The second target zone is higher. We are likely to take partial profits into the strength.
• Note from the chart that, at this time, volume is not high compared to the prior high-volume periods. This indicates that Wall Street has not caught on to the potential of this company. If Wall Street jumps on board, the stock could go much higher.
• RSI (relative strength index) shows that the stock is overbought. This means that a pullback could happen anytime.
• New Age Beverages has a portfolio of cannabidiol-infused beverages. Cannabidiol is known as CBD.
• Hemp is rich in CBD but has very little THC.
• Marijuana has CBD, THC and several other molecules. It is the THC that makes marijuana users high.
• There are claims that CBD cures a number of illnesses.
• In our analysis at The Arora Report, CBD beverages are the next big thing….Read more at MarketWatch.
How To Make More Money In Marijuana Stocks And Avoid Losses
A large number of investors have been correct in their thinking that marijuana will be big. Such investors have also been correct in thinking that they should selectively buy some marijuana stocks and also selectively short sell other marijuana stocks that are artificially pumped.
In spite of the good knowledge and good decisions, many investors are losing money instead of making money in marijuana stocks due to high volatility, pump and dump schemes and faulty analysis that is touted in the media.
So you want to learn the secrets and techniques to consistently make money in marijuana stocks! You already know that a little bit of effort to learn will reap rich rewards.
Why not join a large group of investors who are attending the online on-demand coaching seminar, Make Millions in Marijuana—Albeit Carefully. To register, please click here.
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