CANNAINVESTOR Magazine June 2016 - Page 48

Referring to those that follow these techniques as “investors” and “traders” can often lead to heated arguments as Traders (including day traders and short sellers) consider themselves as “investors”. However, that term is generally used to classify a strategy to buy and hold investments to accumulate wealth over a period of time whereas trading involves frequent buying and selling in an attempt to outperform the returns that would be generated through accumulating wealth over a period of time. The lines between the two may seem blurred in this industry because a successful Retail Investor may have a buy and hold strategy at the “industry level” yet due to Ecoforming may be trading shares as well as opening and exiting positions of individual companies with greater frequency. In other words, such a Retail Investor may buy and hold at the macro level that is quite profitable and accomplished successfully by trading at the micro level. Fundamental Analysis uses many techniques to derive the value of a company because of its focus on the company’s core business and its future potential. These techniques also apply at the sector and industry levels. At a basic level, Technical Analysis uses charts and other data about a stock to detect repeating patterns and the successful trader times with near precision when to take a position (long or short) and when to close that position. To see this in action, look up the stock price leading up to and after a private placement or bought deal that includes the right to acquire shares at low prices for participants. The primary shortcoming of Technical Analysis in this industry is the lack of trading history for many companies and the continuously changing landscape. However, both techniques can be very successfully about the same stock at the exact same price entry point as the successful long term Retail Investor. Example: $1,000 invested in Pineapple Express (PNPL) in June 2015 was worth well over $2,000,000 mid-day on March 31, 2016! A $2,000,000 invest Y[ۈX\ H\ܝ\ݙ\ L ۈX^H H[HY\][ܝ[HXZYX^B]HXYHݙ\ H\H[H]]K\\YX[X[]KH[Y]K\ۘHYZ[Y[HXٛܛZ[وH[\H\H[\B[\ۛY[و\[\H\Z[[ٛܛYY[X]X[HYܙH\^Y\Y[Z[HYZKBSRSTԈXY^[BTTH[[[Z[X\ԛH\YX]\Hو]8'[8'H\[[HH]\Y[Y[[[YH]܈\[]\˂H]Z[[\܈\\\[H[]][ۘ[[\܈[[[\[^]][ۜ]X\KX\]XY\HX܈X܈[][X[B[Y\K\[[ۙH[]HX[قH[ \XX]]X[ ؘX\H][\[\x&\[Y]ܚ[ۜY][ۈYIHX]]H\[[[]\H[\H[\[HY\[ [ ܘY[YHˈX[]ܛY\[Y[Z\[X\Y[H\\\[\]Y]Z\ܚ›ۈ8'HۜY][ۈ\x'K[[\Y\Y\Y\Έ[[[K\[[B[[X[K\[[X\H[\X[[B[]H[HXYZ\ܚ\]\XY[H]Z[XBۛ[KYXHY\ \[\Kݙ\[ \›[ܙHZ[H][][[H][YH KHۘ\[ۈوZ\ܚ\]H^H]\B\[x&\X\\[ۈ\]ZXH[X\ٝ[H^H]Y]HY\H\Y\˂H]Z[܈\H[] YNZ[ H܂HX]Z\Y \HY\\H[]YXH[[[\Y\\\[HYYYX\BYܙHXZ[[Y[8$][H]YYB\H\Y\وHۜY][ۈ\HX^B^Z[HX[H\[Y\[\[\H\Bٚ]XH[][Y[\]H\]Bٝ[][\ [X\]Y[YK\H\Y\\HH[\H][\HYX[܈H\]H]Z[[\܋܈^[\K]Z[[\ܜ[Y[[YYY[[\[Y\˜X[YHH\وH[Hܛܜܘ][ۈ B[\[JK]X^HHX\Y\[و\[\H\[8'X\[x'KH[\H\H[[ZXX[[][\[H] ZH[X\[\[]KY\][ۈ[[]\Z[H]\]\[]\[]\ \Y]وH[\H\][[ZHH8'ۜY][ۈ\x'H[^H\H\[Y[\KH]Z[[\܈\[[Yܘ[\و\X\[H[[\]Z\\[Y\]HZ[]H]\][ۙYY[YBH\[Y\]\H[Z[HXYY[X\Hو\˂