Post by
Ghostinthedark on Apr 08, 2021 1:11pm
How to Buy Pot Stocks, like APHA
I strongly recommend you swing trade all pot stocks.
Swing trading is holding for more than one day, but not forever. You buy and sell, then buy and sell again...
I hold and trade only Hexo, OGI, Vff, APHA
I am all cash with APHA at this time.
Weed, TGOD, Fire( until today), ACB are lousy bets because of horrendous financials. EPS are brutal.
.....
Consider using this easy way to buy and hold pot stocks.....
If you buy in at the wrong time, you become a bagholder.
The key is to understanding a chart---bullish/range, bearish/downtrend, range---price moving sideways.
You want to trade the uptrend only.
So you want to find potential bottoms or support levels.
You look at a chart----not the 1 minute, 5 minute, 1 hour, not even the daily chart.
You check the weekly and monthly chart before buying in and holding----making a swing trade.
Then you ask two questions?
1. Is the stock price in an uptrend or down trend on the weekly or monthly time frames?
2. Then you look at the support (low share price on the monthly time frame...
Your goal is to buy at support and ride the uptrend, surfing the waves up and down until earnings. ( But you must be sure that analysts are
bullish about the stock, and there are not poor financials)
So, using this method, what two pot stocks are a buy right now?
Hexo- $7.78 bottom
Vff- $15.38... or so.
Earnings for both stocks have already been reported...
Why??
Hexo---bottom is around $7.78----the lowest since earnings a couple of weeks ago...
Here's how to play Hexo: We know that the share price popped to $10.50 only 10 business days or so. We also know by reading a chart that Hexo rarely dropped below this price for the past 2 quarters ( recall the 1 to 5 reverse split)
So, you could buy Hexo now, say 300 shares, or $2100 and hold until next earnings, riding the highs and lows. Unless there is bad news for Hexo, the stock is highly likely to pop back up to $10.50 on or the day before earnings.
So, on a $2,100 investment you have made $750 in three months...
......
Let's do the same for VFF...Stock was as high as $24 only 6 weeks ago.
Stock traded as low as $15.38 today----a price not seen in 2 months. There is no reason to believe that the share price won't pop back up to $19 or higher between now and next earnings in May.
So, you are tight for cash, you buy 100 shares at today's price, then ride the bag and hold strategy. In 3 months the stock will likely move back up to $19 or higher
So, you just made $400 or 25 %
.....
What aboutOGI. It's a little more complicated..
The bottom could be $3.88, today's but it did fall to $3.00 last month.
So you must be careful. Suppose you wait until later today or tonorrow at end of day. OGI is trading around $4.00. You know that the stock hit $4.49 last week,
So, unless there's bad news, the stock will likely move back to this price or higher just before earnings.
Suppose you buy 400 shares today at $4.00, and then do the bag and hold until earnings, assuming that there are no earning estimates that will disappoint. Stock goes back to $4.50 or higher, you just made a quick $200.
.....
What about APHA???
Well, earnings are suppose to disappoint. The share price is tanking like a plane shot out of the sky.
You wait until after earnings.. Look what happened to VFF. The stock dropped $5 in 3 weeks because there earnings fell short by $6 million.
You can make a lot of money with a small amount of cash.
To do this, you must be able to read a chart---determine
1.The trend
2. Determine support ans resistance
3. Understand Moving Average and Moving Average Crossover
4. Understand Bullish and bearish volume
5. Know when earnings will be reported
6. Know that bullish earnings mean the stock price will pop---the streeet runs up the share price, or shorts the stock, depending on "earnings---whether they are higher or lower than estimates
7. Understand "the herd mentality "investor sentiment
8. Lastly, check with Zacks or Yahoo Finance to determine whether to buy, sell, hold