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It might be a while before marijuana becomes federally legal. But you don't have to wait to profit from the $20 billion CBD oil industry.
CBD (or cannabidiol) is the perfectly legal, hemp-derived cousin of cannabis. And it's now a federally regulated, billion-dollar market.
The Hemp Business Journal predicts CBD sales will cross into $2 billion territory this year, almost doubling from 2019. And Arcview Market Research forecasts a $20 billion CBD industry by 2024.
It's clear why investors are rushing to invest in CBD oil penny stocks today. That's why we wanted to show you the winners on our CBD oil penny stocks list.
Our top CBD penny stocks to watch have the potential to earn today's investor anywhere from 280% to 910%.
The best penny stocks are likely to soar with the tide if their industry grows significantly.
In fact, the best penny stocks can double – or triple – in price if the Dow just has a good day. For example, Senmiao Technology Ltd. (NASDAQ: AIHS), one of our top penny stocks last year, popped 268% when the Dow hit a record high in November.
So you know the top CBD penny stocks will continue to pop as long as the industry keeps on its 1,000% climb.
Today, we're going to show you some of our favorite CBD oil penny stock investments. But first, here's what you need to know to start investing in CBD.
How to Invest in CBD Oil Penny Stocks
Because CBD is so new, it might still carry some of the stigma associated with cannabis. Part of the reason is that many cannabis stocks are also CBD stocks.
So a lot of investors might be slightly gun-shy about investing here, which could affect the price.
We saw this happen to cannabis stocks all last year. They soared on a wave of hype, then lost around 50% by the end of 2019.
Fortunately, in 2020, the mystery around CBD will have been somewhat uncovered. And while the top CBD penny stocks to buy are still at their lows, investors had better hurry.
So here's how to invest in these top CBD stocks we're about to share with you.
No. 1: Open a Brokerage Account
You'll need this for any investment you make, so you might as well start now. This can be done online, or you can go in person and talk face-to-face.
You may even have a relationship with a broker and not know it. If you already have an IRA or 401(k), you can ask the broker to set up a "cash account" to begin investing.
Choosing a broker, you're going to want to avoid the ones with a high minimum investment. It's not typical of brokers, but be sure to pay attention to whether this is the case.
You'll want your broker to be established and supported by credible research. Without good research, stock traders can get caught up in "pump and dump" schemes where shares are artificially inflated. So make sure your broker has solid data behind their claims.
Once you manage to find a broker, it's time to fund your account.
No. 2: Fund Your Account
You can add money to your account anytime you want, depending on how many CBD penny stocks you want to buy.
Some brokers may have account minimums or charge commission. So ask your broker and be sure how much is actually needed to fund the account. Broker commissions usually don't exceed $10 per transaction.
The next, and most difficult, step would be to find the best CBD oil penny stocks. But we've got you covered. Here's how you can gain up to 910% on CBD stocks.