The media has been lying to you.
I assume you’ve become sucked into all the hype about the ‘pot stock revolution’ and you’re probably terrified that you’re going to miss out on a sure thing.
What they’re giving you is the furthest thing away from a sure thing, but it’s not too late to reveal those profits they’re hiding from you…
In Monday’s episode of WSI TV, Sean and I revealed how we feel about 5 different pot stocks that the “experts” have been raving about all over the internet.
The conclusions we came to were:
- AMMJ – Your classic pot stock… this stock is sitting around $0.80 and has been too volatile to contain.
- INSY – We deemed that this stock was stuck under its 200-DMA.
- CRBP – This one has been around for less than 3 years and doesn’t have enough data to be trustworthy.
- SMG – this stock looks the best of the bunch.
- ABBV – ABBV is overstretched and looks like it’ll free fall soon.
Clearly the best stock out of that bunch is Scott’s Miracle Grow (SMG), and that’s not even a full-on pot stock.
Scott’s produces fertilizers for marijuana dispensaries.
Regardless of this pot stock craze, I’m a firm believer that the “experts” on this subject are steering you down a long, dark path that’ll see thousands of dollars drained from your account.
There’s a fundamental reason why I think the expert-recommended pot stocks are going to fail, and that reason is founded upon years of research:
When all the sellers have turned to buyers, you’ll see the security start to sink.
It’s like the S&P 500. Only when all the bears turn to bulls will you see the beginning of a bear market.
Think about it like this: if everybody is trying to crowd one end of a canoe… eventually, it’s going to tip.
So, what should you do to play this volatile industry?
Follow some simple rules…
- Stay away from stocks that haven’t been around for at least 3 years. Successfully trading stocks relies heavily on solid previous data.
- Steer clear of pot stocks that are trading for under $3 or so. This number isn’t set in stone, but chances are they’re unreliable.
- Don’t buy into pot stocks that jump around day after day. If the stock was $60 yesterday and $10 today, it could just as easily drop down to $0.60 tomorrow.
- Don’t commit 100% of your money to this new industry.
Keep all these rules in mind as you move forward.
The “experts” will soon move onto the next “hottest” thing, and there’ll be a whole new set of rules, but, as always, we’ll be here to guide you through everything that’s thrown your way.
