Buying Cannabis Stocks Low And The Aurora Cannabis Breakout
TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
In my last post I talked about taking partial profits on the way up in a Stage 2 advance so that you have extra liquidity to take advantage of pullbacks. We finally got a big dip in cannabis stocks at the end of the week last week and it offered better entry points than chasing stocks when they are overbought and extended from the 30-week moving average.
ACBFF had a massive breakout yesterday on the back of positive news. The stock offered a low risk entry point because it was the least extended of the major cannabis producers.
Trading is all about risk/reward and when you enter a stock with a tighter stop you can increase the position size. This is why buying early in Stage 2 breakouts is crucial because it offers the best risk/reward buy point.
Video Length: 00:03:20
Disclosure: I am long ACBFF.
Disclaimer: The views and opinions expressed are for educational and informational purposes only, and should not be considered as investment advice. The ...
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