The fact remains, cannabis stocks are still speculative at best. At the close of 2019, three of the top five largest companies crashed...TRST, ACB and HEXO all cratered. At the beginning of 2019, they were considered best in class. We actively avoid cannabis for just this reason, it is simply too difficult to know who will come out on top.
That being said, if you do invest, there are two actions that we recommend you take:
1 - Set a stop loss. To protect your investment from a crash like we've seen with the three stocks above, setting a stop loss is a must.
2 - Take your profits. At one point, we were in Cannabis and we cashed out at hefty gains. Set yourself a target - whether it be 20%, 50%, 100%, 200%....know what your target is and when you hit it...sell and book your profits. On a personal note, when i hit 100% in a position, I sell half and let the rest ride. It is a strategy that has worked well for me. Although I limit my upside, I am guaranteed to break even and it takes emotions out of investing.
Emotions is why retail investors underperform. If you have a plan and stick to it, you are more likely to come out on top.