Investing in marijuana is not limited to growers or retailers.
There are many companies that provide support services to the industry. There are biotech and pharma companies that make cannabinoid-based drugs and service providers who have gotten on board since the legalization of marijuana use in certain states. These different types of organizations mean you can choose stocks or ETFs from a number of sources when investing in this burgeoning marketplace. Here are the steps on how to invest in marijuana stocks online.

Step 1: Research the company.
Always start by researching the company or even companies that you will be investing in. Check SEC filings and other documents needed by diverse regulatory agencies, read the latest news on these companies at sites like Yahoo Finance, get a feel for market sentiment using StockTwits or Twitter.

Step 2: Determine the amount to invest.
As a rule of thumb, never invest more than you can afford to lose. Although promising research will usually lead to solid returns, this is not always the case. Stocks are volatile, and contingencies may sometimes be unpredictable.
Brochstein believes people are too confident with just one or two ideas and that a company in such an emerging industry as marijuana is hard to pick the winners. Brochstein says his longer-term focused model portfolios have 12 names for this reason. For more details on investors, you can read about leading investors in marijuana stocks.

Step 3: Decide on your timeline.
Once you have established your thresholds and set a trading plan, it is crucial to stick with these guidelines. It would be wise to establish the rule “If the stock falls below X or surges above Y I will sell”

Step 4: Pick a broker.
Once you’ve gone through the initial steps, buy your shares. You can go old school with a brick-and-mortar broker like Scottrade or sign up for an online brokering platform such as TradeStation or TD Ameritrade. Both options will make you able to purchase stocks once registered and funded on one of these platforms.

Step 5: Buy the stock.
This step sounds like it is self-explanatory, but it’s a bit more complex than you might think.
“Generally there are 2 types of ‘buy’ orders: market order and a limit order. A market order will accomplish the purchase at the present market price, while a limit price might give an investor a lower entry point.

Step 6: Sell the stock.
Get the best results of your investments by selling them when they’ve reached their peak. Whether you sell with a market order or limit, use what you make to keep investing and enjoy life!