Protect Your Portfolio in 2 Simple Steps

Protect Your Portfolio in 2 Simple Steps

A few weeks ago Ray Blanco joined us to share some of the ins and outs of buying fast-moving marijuana stocks.

(If you missed it, you can find it here.)

Ray believes there’s a lot of opportunity in the marijuana industry. He’s been tracking these fast-movers since the first large wave of legalization started to hit the states in 2016…

But as I learned from talking to Ray, stocks that can hand you fast profits can kill your portfolio just as fast.

Ray joins us again today to share some tips to protect your money when investing in the fast-paced marijuana market.

Read on for Ray’s pot trading tips.

With Purpose,

Dr. Patrick Gentempo

Patrick Gentempo

RayPRO Trader Tips: Pot Edition

Trading stocks is inherently risky. The is especially true when it comes to small marijuana companies.

These stocks carry with them a degree of volatility. The same forces that can drive these stocks higher can drive them lower… fast.

If you aren’t careful, you can lose a lot on your investment.

Fortunately, there are tools at your disposal that can help protect your money and allow you to make much smarter market moves than those just winging it.

One of those tools you can use is called a stop loss order.

How to Minimize Risk With Stop Loss Orders

A stop loss is a type of stock order you can make with a broker that ensures your security will automatically sell when it hits a specific price. A stop loss limits your risk by allowing you to exit your position as soon as you hit a specific loss threshold.

For example, you can place a 10% stop order. This means if your position loses 10% of its value, this will automatically trigger your broker to sell your shares.

This minimizes your loss without having to stare at your portfolio every minute of the trading day.

But a stop loss isn’t the only tool that will immediately make you a better trader. Limit orders are one of those tools, too.

How to Pay the Right Price for the Right Stocks

Did you know you could be paying too much for overbought stocks?

Stocks don’t run up in a straight line forever. They correct, they consolidate and they often go back down before going back up again.

If you buy a stock at its peak, you most likely have overpaid for a stock that is destined to correct. That’s why when investing in pot stocks especially you need a limit order when making your trades.

With limit orders, you place a price restriction on how much you’ll pay for a stock. That means when you place your order, you do it with a set “buy-up-to price.” By using a limit order, you will never pay more than you are willing to.

The great thing about stop losses and limit orders — they minimize your risk and help maximize your gains.

And simply by using these two tools you should be able to substantially increase your profits when investing in the fast-moving and lucrative world of pot stocks.

To a bright future,

Ray Blanco