Those who have been in this business for some time are aware of the sudden plunges of stocks at the most unexpected times. When everything seems rosy and promising, the prices just plummet without a warning and your dreams vanish in a moment. Benjamin Franklin once said, “An investment in knowledge pays the best interest”. Accessing the right marijuana news at the right time gives you an edge to know when to enter or exit the stocks market.
What news should you expect?
Given that, the pot industry is just budding; its liquidity is still low. However, as the industry expands globally, the numbers of stocks traded on a daily basis will increase. As at now, the news that really matter to this industry is related to cannabis legalization and decriminalization as a Schedule 1 drug by the DEA.
Other important news has to do with the funding of marijuana companies by lenders or venture capitalists. These will change as the industry matures and new market drivers emerge.
How do you Access Stocks News?
There majorly two ways through which you can access market news and sentiment analysis. The first one is through free sites while the latter is through paid premium services. In his book, Liberated Stock Trader, Barry D. Moore explores the difference between the two. He reveals that there is a lag of about 30 minutes between the time premium subscribers and free users of news site get breaking news alerts. This makes all the difference between losing and gaining.
You can subscribe to news sites such as BNN Bloomberg, as a premium user to get news in advance before everyone else does. Although you can still get the same news from the site on a free plan this does come too late when the damage is done.
What Should you do with Stocks News?
Stocks news come in all the time. When you have already invested or when planning to. The most important thing when you get news is to evaluate the information and compare it with your market analysis. As Harvey warns in his article News Traders, you must be able to distinguish news sources that matter and those that do not. This largely depends on the authority of the originator.
He also advises news traders to compare the information they receive from news sites with what they know about the company operations. This will help them dispel rumors and make informed decisions on whether to enter or exit the market.
Word of Caution
Moore further offers a word of caution to traders that you should not take any news at the face value. You also avoid too much news as it can influence your judgment and logical analysis. The result of which is overlooking what is obvious and end going against the market to your destruction.
Although the marijuana stock market is still at its infancy stage, news about the industry can give you infallible insights on who to evaluate the profitability of the available stocks. This information would guide you on your decision-making plan. However, your decisions should not be solely based on news. News must be verified for accuracy from known facts and decisions made with uttermost self-control without allowing emotions to get the best of you.