The pot stocks trend is far from over. All the stocks we talked about in the series, TLRY especially, have been on monster runs the past month, and seem like they still have juice left in them. However it is one thing to know what stocks to trade and what patterns to look for, and another thing to actually MAKE money. In this article, we are going to talk 4 essential skill sets that you need to make money on pot stocks, and all other stocks as well.
Timing Your Trades
Even if you have a stock like TLRY that goes from $100 to $200, you will not make money (and possibly lose money) if you buy, sell, or short at the wrong times. Timing is the difference between winning and losing traders. A lot of people believe that TLRY is very overvalued. They may be correct in the long run, but the stock keeps surging up, and could end up squeezing you, and blowing up your trading account. You HAVE to learn timing in order to become a successful trader. Check out this video to learn how I time my trades:
Psychology
In trading, it is not the market makers, the algos, and insiders that stop you from making money consistently. It is the person you see when you look at when you look in the mirror. In order to become a successful trader, you have to know yourself, and your strengths and weaknesses very well. You have figure out how to stop getting in your own way.
Trading strategies are simple, but its our own psychology that stops us from executing them correctly. Understanding the concept of preserving your mental capital is just as important as preserving your financial capital. Watch this video to learn about mental capital and trading psychology:
Risk Management
Risk management is the difference between winning and losing traders. Many novice traders focus on their win percentage, and think it is the only metric that determines whether they are a profitable trader or not. The reality is that metric means nothing without knowing your risk vs reward. Anyone can make money in the stock market.
Your risk management is what determines whether you keep the money you make. Making money over an extended period of time requires you have to successful risk management in order to survive. Risk management is what determines how much of the money you make you actually keep. Check out this video to learn everything about it:
Scanning
This component is important, but not quite as important as new traders think. Finding the right stocks to trade is not difficult. The hard part is buying and selling at the right times, or shorting and covering at the right times, risk management, and psychology. However, it is important to learn scanning to find stocks before they go on big runs, but also to become self sufficient. Our scanners are useful for giving us alerts to when pot stocks are picking up momentum. Check out this article to learn all about how we do our scanning.
Free Webinar On Pot Stocks
On our free webinar we will go through all of these concepts in detail, and how you can use them to trade pot stocks profitably. Join our next live webinar where we will go through all Weed Stocks we’re trading + get our Weed Stock Guide free. Reserve your seat here.
