The pot stock thing has already happened--many of us may have been too busy eating Twinkies to catch it (I was). The good point here is that the "legalized" version of the industry is new, as far as Wall Street goes. That said, the industry is by no means run like regulated industries (being that there is a lot of cartel involvement, not that they don't dip their toes in Wall Street's pool). They're still trying to figure out how to regulate it and so far, they have managed to make the illegal stuff more affordable and attractive all over again. Much like the crypto business, there has been a lot of scamming in the financial sector. Of course there is demand for the thing itself . . .
In getting back to the stock, since the stocks are still relatively new (and played out quickly), they trade like newer stocks, with lots of volatility (which is not a bad thing, so long as you actively manage your holdings). So long as you can ignore the cable-news version of volatility, like it's some kind of bad word, you can benefit from it, but you have to work with it. You cannot be passive.
While a lot of algorithmic trading (60%+ of the market's activity) sticks to large caps like Apple and GM, it also finds a home in the craps, like ACB and NBEV (popular pot stocks). So, if you look at a chart for Ford or GM, you'll see a trend line that goes for a year, but with a pot stock, the line on the graph will go for a week or two. The modern stock does not have a long-term brain.
An hour or two (or twelve) using the resources available free on Yahoo!finance (not the videos) can provide a great deal of helpful enlightenment here.
Term of the day: Average True Range
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