The Best 2017 Marijuana Company Penny Stocks
Marijuana Penny Stock Trading brokers are now becoming cheaper thus making it easier for retail investors to invest their savings. It can be frustrating to find a good trading platform and depends on the type of stocks you plan to trade (whether pinks sheets or OTC), the amount of capital available to you, and how frequently you trade. Each week I receive dozens of emails inquiring about which brokerage to use but it is a challenging question to answer since it involves multiple factors.
Marijuana Penny Stocks going into 2018
3 Important Things to Look Out For
Surcharges: Depending on your broker, most add surcharges to shares less than a dollar. TradeKing charges an additional 1 cent for every share below $2 meaning that if you buy 5,000 shares it will cost you an additional $50. If you don’t keep close watch on those small charges they can easily add up and eat into your potential profits. You should choose a brokerage with a flat commission rate or one that offers sizeable discounts on large orders. For instance eTrade, Charles Schwab, and TD Ameritrade all offer either flat fees or massive discounts and no hidden fees.
Trading Restrictions: You should be capable of trading shares through an online platform and be wary of firms that force you to make your trades over the phone. Some brokers have restrictions in place especially with regards to issues such as short selling your penny stocks.
Volume Restrictions: The number of shares you are ideally allowed to trade is unlimited.
Different brokers have different account minimums, trade restrictions, commissions, and fees. Other important considerations include market maker routes, executions, software/trading platforms, and the quality of customer service. The greatest hindrance is not having sufficient starting capital and brokerages don’t like to deal with poor traders. If you live outside the U.S. in a country such as the U.K. or Australia, finding a penny stock friendly broker will be harder.
Marijuana Penny Stocks have had a negative reputation over the years and for good reason. The vast majority (90%) of those companies represent poor investments that are not something anyone would like to put in a 401k. Most of them are simply shell companies created with a sole purpose of ‘pump and dump’.
Marijuana Penny Stock Trading going into 2018
Etrade is an obvious top choice overall since it charges a flat fee and offers outstanding trading software. Currently, Etrade has a promotion where traders with accounts of over $10,000 can trade free for the first 60 days.
The minimum deposit for a cash account is $500 and $2,000 for a margin account. Discounts are offered on large orders and penny stocks have no surcharges. Great research investment tools are available and the executions are very fast.
It is best suited for traders that trade frequently due to the tiered pricing structure, meaning that it is not recommended for non-active investors since they will have to pay additional commissions. The customer service is below average when compared to others while 24/7 phone and email support is available. The basics of the stock market are taught through video lessons.
The major limitation is that it does not accept traders from some countries. It is currently Tim Sykes favorite broker.
Interactive Brokers might have poor customer support but are still your best bet if you plan to short shares priced below $2. They have some of the best borrows for Cannabis Penny Stock Trading even though shares for shorting go fast.
Fees are levied for canceling or modifying an order and a monthly inactivity fee of $20 is charged. Unless you are a day trader, the commissions can be expensive. Interactive Brokers traders comprise mainly of massive institutions and high net worth individuals.
Unlike Etrade, Interactive Brokers accepts international traders and does not discriminate against particular countries.
This broker has been operating for more than 40 years. In 2009, Ameritrade took over Thinkorswim. The broker has a solid trading platform with helpful charting tools as well as tutorial options to help you get started. In spite of this, their trading platform has experienced minor technical errors in the past leaving those customers that were looking to exit trades quite angry.
TD Ameritrade has no inactivity or monthly fees making it perfect for long term investors. Trade execution is great and the borrows are decent if you would like to short penny stocks. The broker offers free paper trading demo, which is great for beginners looking to test strategies and get a feel of the market.
The main drawback of TD Ameritrade is the $9.99 fee, which is much higher than that charged by other brokers. It can be argued that by charging more than the competition they are able to offer better customer support or it could be that they are greedy like the rest of the players on Wall Street.
One of the best things about SureTrader is the chance to bypass the pattern day trader rule since it is located offshore in the Bahamas. The pattern day trader rule is a rule set by the SEC that does not permit traders with accounts below $25,000 from executing over 4 or 5 day trades over a 5-day business period. This can be quite annoying and makes it hard for traders to grow their accounts fast but still protects day traders from losing money.
Recently, SureTrader’s CEO, Guy Gentille was indicted by the SEC for manipulating penny stocks. It should be noted that while SureTrader was not involved in the schemes this scandal has tainted their reputation. Hearing such news about a company’s CEO would make any trader feel uneasy and for this reason, trading over $2,000 with them is not recommended.
The account minimum is $500 and the charges are $4.95 for every trade for up to 1,000 shares but an ECN fee of .003 is charged for routing. The leverage currently offered is 6-1 and future plans are to increase this to 20-1.
The information pertaining to this company available on Google is very limited and while the company was established in 2000, it does not even have a Wikipedia page.
ChoiceTrade is better suited to OTC stocks and only costs $7 for every OTC trade. The broker has a volume surcharge of 1 percent for any trade over 500,000 shares. There is no account minimum but an inactivity fee of $30 is charged for every quarter.
However, this is not how it works. Patience is needed and you should paper trade for not less than 3 months. Keep in mind that you need to learn before your earn. Once you are ready, it is advisable that you start trading with not less than $2,000. Interactive Brokers and Etrade are the top 2 online penny stock brokers with great reputations.
Marijuana Penny Stock Trading going into 2018
Is it possible for people to really make a substantial profit using Penny Stocks, even to become millionaires? Certainly there are some people who make huge amounts of money with stocks, ordinary people who trade in their own time perhaps as a hobby rather than as a professional trader. It is very likely however that although they started on penny stocks they eventually moved up to other potentially more profitable stocks using larger sums of money once they felt they were more experienced, and had more money to spend. Of course the question then becomes how do you start making profits quickly in penny stocks with the least risk?
Before we answer that question, let us quickly define exactly what we mean by penny stocks. There are different precise definitions, but in general the phrase refers to low priced, highly speculative stocks which normally sell at less than $1 per share. They are very volatile and can rise and drop hundreds of percentage points in minutes, sometimes as much as 400%. This can of course be dangerous, but can also be extremely profitable if you know what you are doing.
Of course, as with all stock trading, and particularly in the volatile penny trades market, not every decision will be correct, even the software cannot predict every possibility. But on average the software is reported to create gains of 105.28% per week, even accounting for the trade recommendations which do not work out. Could this be the key to making significant profits from penny trades without spending years as a trader? Apparently if someone had put $5000 on each of the recommended trades over 4 months last year they would have made $387,684 in profit.
Cannabis Penny Stock Trading going into 2018 2018
Part III of III in this series of articles on Ponzi schemes will examine a real world, ongoing scam, the con man behind it and a few of the hundreds of investors victimized by his criminal enterprise, Millennium III Corporation.
History: At an early age, Gregg Scott Luce was falsely led to believe that his Maine based blood line was directly connected to the storied Time-Life Henry Luce legacy. It's unclear whether this fallacy was instilled within him by personal dementia or a collective familial dementia. Luce fled his highly dysfunctional family at age nineteen and began trafficking in marijuana. Within a five year period, petty trafficking grew to major distribution: cargo planeloads of product, much of it brought in directly from Jamaica.
Ten years into this venture, Luce realized that a much greater profit margin was to be realized in trafficking cocaine. It was the early 1980's and cocaine was a popular and accepted recreational drug amongst the establishment. There wasn't the stigma attached to the narcotic that exists today. Luce was driven to the quick fix by impatience, an entrepreneurial spirit, ruthless and boundless ambition, and an insatiable craving for the recognition, cash and cache that had eluded his family for the better part of a generation as it strived, futilely, to identify itself with the gilded Time-Life Luce lineage.
Sociopathology, single minded focus and indifference to the body count in his wake, both literally and figuratively speaking, allowed Luce to establish a port of entry distribution hub in Seattle, Washington, and rapidly dominate the unclaimed US Northwest territory. Coming from a family of commercial fishermen, Luce was well versed in nautical maps. The Pacific Northwest's unsettled, remote coastline allowed inconspicuous ingress and egress of transport planes from Colombia. Luce leased a pier and houseboats off Lake Washington, hosting cocaine fueled parties frequented by prominent area artists, business leaders, attorneys, politicos and bankers.
Within a five year period of time, the distribution network extended north to Canada and as far Southwest as Aspen, Colorado, where his cartel's administrative team oversaw operations. The growing business invested in a Nascar race team. Product was transported to merch drop points in trailers used to ferry cars and pit equipment from city to city.
As with most narco-centric businesses, Luce's venture operated on borrowed time. When the DEA and Feds broke up the drug ring, all senior personnel, save for one individual, escaped. The captured operative refused to turn state's evidence, permitting his associates to quietly seek out other business opportunities. Luce took a two year hiatus lying low and pored over recent economic trends. It was the early nineties and the Nasdaq bubble had begun to gestate. Silicon Valley, Boston, Austin and Seattle were the new Wild West. Greed and green were in the air. In the fast paced world of new media startups, the "cocktail napkin to boardroom" paradigm ruled, as did drugs, violence, treachery, and legal manipulation: otherwise known as Twenty-First Century corporate best practices. Easy deals were the currency of success; futures contracts and penny stocks were the new blow. The careful vetting of business plans demurred to the haste of being first to market with a given product . Venture capitalists indiscriminately showered IT neophytes and veterans alike with more seed money than most could realistically hope to match in profits. Boom-bust high tech gold fever was in full force. Luce couldn't have scripted a better entree into legit business.
Ponzi Scheme: Thus marked Gregg Luce's emergence from the organized crime of drug trafficking to the organized crime of Wall Street. The founding of Millennium III Corp. (MIII) commemorated Luce's introduction to Fortune 500 society at the VC cotillion. In order to fly under the radar of SEC regulations and regulators, the newly minted CEO of MIII, a broadband media streaming company, limited his initial investor pool to thirty-five non-accredited shareholders. He later violated the SEC Rule 505 exemption provision with inclusion of an additional ten investors. Rather than issue shares to investors, Luce issued "convertible note loan agreements": an instrument convertible to either buybacks or shares in MIII at maturation. Luce took his tortured business model a step further, arguing the corporation maintained a non-profitable trust that secured investor monies. In this and subsequent cons, Luce argued, with poetic license, that the initial corporate form would somehow morph into a "bank", thereby ensuring the liquidity of MIII's capital funds and the security of investor monies.
Like a parasite seeking out a host body, Luce would not only insinuate himself into the business lives of his marks but their personal lives, as well. The key to his con -- and that of many confidence men -- was to appropriate the professional and social networks of his victims in order to feed his scam. If one investor dries up, another in the network is primed and can be approached.
As a consequence of his relationship with Luce, the marketer was losing credibility, standing and relationships within the tight knit naturopathic community. Further fomenting discord was Luce's volcanic temper. He had a history of violent outbursts, lashing out at those that would question him, particularly minorities and women. Not exactly consistent with the New Age humanist perspective. Luce's true character was revealed when his temper flared. Despite the grave liability he presented his host, the businessman was so taken in by the scam artist's charisma that he was in denial.
The marketer's good friend, another prominent businessman in Los Angeles's homeopathic community, was not so enamored by Luce or deluded by his charisma. In fact, when introduced to the con man at a Hollywood Hills party, he found his pitch too good to be true and Googled Luce's name on his Blackberry: up popped my name with a warning to prospective Millennium III investors. He called my office the following day, sharing his concern for his friend's well being. It took repeated sit downs and patient conversations with the marketer, armed with documentation I provided him, to objectively layout Luce's history and machinations. Even with hard, tangible facts in front of him, the marketer remained incorrigible. It took a second round of documents and direct correspondence from my desk to the marketer's in order to shake him free from the con man's Svengali-like choke hold on his reasoning capacity. The marketer kicked Luce to the curb.
In the past five years, Luce has successfully mounted three separate financial scams, even being so brazen as to threaten law suits against investors who severed ties with him after realizing they had been swindled. Consistent with all successful con men, Luce has a keen eye for identifying a need in his mark, then convincing the mark that he is uniquely positioned to satisfy that need --despite lacking the intent, ability or desire to deliver on his promises.
Luce is beginning to unravel and grow ineffectual. The con man has become entangled in his own web of deceit. Unable to keep his lies straight, he contradicts and exposes himself at every turn. His temper, misogyny and racism have surfaced repeatedly as the intensifying scrutiny of law enforcement, bilked investors, lawyers and accountants attenuates stress by directing klieg lights on his various Ponzi schemes.
Con men are often difficult to apprehend, because they are not driven by monetary gain, alone. They are sustained in large part by the adrenalin rush experienced moving in for the kill, gutting then hanging their prey to bleed out. Luce is particularly skewed in this respect, often forfeiting the big score in order to slink away and mount another scam in another state. Stealing just enough cash to continue the ruse, but not so much bounty that criminal or civil suits are filed as a matter of course.