Robinhood is one of the most popular stock trading apps on the market today. With so many users on the site looking for pot stocks to buy, it can be difficult to discern the best ways to use the application.
Millennials continue to use the app to trade stocks. They have become one of the biggest driving forces behind the growth of the Robinhood stock trading app. The issue of investing in cannabis stocks comes as the majority of these marijuana stocks are listed on Canadian exchanges or the OTC. Some of these stocks cannot be accessed by Robinhood. Regardless, there are some ways that allow the average investor to access certain marijuana stocks on Robinhood.
The Dual Listing Method
One of the most prominent ways to invest in cannabis stocks has been through companies listing on both U.S. and Canadian exchanges. This option gives the investor a better chance of having access to the potential returns from the Canadian side of the company.
The pot stocks to watch that choose to dual list, often have access to more capital. Additionally, they have a wider breadth of investors due to the reach they have around North America. Hedge funds and other institutions can sell and buy pot stocks that list on major US exchanges like the NYSE or NASDAQ.
How to Buy Pot Stocks On Robinhood
Often times, it’s essentially the same process for trading marijuana stocks as it is for other companies. One of the things to keep in mind is that often times, these companies have a sizable difference in trading volume. This is something that should be watched by more conservative investors. That’s because it can make it difficult for the quick trade in pot stocks without high average trading volume.
The volatility of marijuana stocks, however, is something that many look for in particular industries. Volatility can be a positive for those looking to potentially make higher returns. Additionally, investors should be aware that it can also mean the higher potential for losses. One of the benefits of Robinhood is that pot stock investors have a lot of access to data and various research tools. They also incur low to no trade fees when it comes to actually buy certain pot stocks.
Aurora Cannabis (ACB Stock Report) is one of the foremost marijuana stocks to watch on Robinhood. The company, currently worth upwards of $5 billion, was able to uplist to a major U.S. exchange. By doing so, they have given investors in the U.S. the option to put money in. Aurora Cannabis is one of the largest marijuana stocks in the whole of the industry. The company serves as a benchmark for where the industry is going at a given moment. For this reason, they remain a pot stock to watch moving forward.
All in all, Robinhood is one of the most versatile platforms for trading a wide variety of cannabis stocks. Investors need to do the proper research to find out which companies are right for them. For now, the options seem to be all on the table.