I have written this on another forum but I think it is useful to put here.
1) You don't need to own every marijuana stock. Sometimes I am only carrying one or two. Just because others are buying doesn't mean you should too.
2) Be a contrarian. With certain stocks that have been ignored or 'oversold,' tend to have reversals. Ask yourself: Why did so many traders dump their shares? and Is there some underlying value that people have underestimated? This is not a hard a fast rule.
3) Hold onto cash. I have been particularly inspired by Seth Klarman, a hedge fund manager, who holds nearly 50% of his portfolio in case but manages to have an annual return of 20% no matter what happens to the market (I know this sounds small in comparison to what MJ stocks do but you have to realize the guy is dealing with multi-billion dollar portfolios). Especially with so many new companies popping up it helps to have a little cash so you can take a new opportunity that you like. Holding cash also represents a 'margin of safety' just in case the market blows up in your face. I currently have 33% of my portfolio in cash (in part because my investments have done better than expected).
4) Markets are reflexive, not efficient. This is an idea George Soros talks about (another hedge fund manager). Traders tend to create over or underestimate the market and create excellent buying/shorting opportunities for the contrarian investor. In a sense, if we believe a stock to be valuable, traders will overvalue them. Ideally share-price reflects expected future earnings and underlying equity.
5) Be patient this is related to #1 but it also applies to your losers. Unless you need the cash it is never smart to panic and sell.
6) Have an exit strategy. don't be married to your stocks. You are never going to sell when the stock hits its peak price because often times those are phantom prints.
7) Don't follow the herd. Pick your own strategy and be happy with it. if you are buying a stock because a bunch of other people are buying then you will most likely start selling when everyone starts selling. Pay attention to indicators like RSI when stocks hit 70% overbought and 30-50% oversold areas. expect a reverse trend when the stock hits these areas.
8) Never buy something because a bunch of people tell you to *sigh*
9) diversify (I think 10-40% cash,if you must no more than 5-25% pot stocks (normally I would say no more than 10% but you are here so I say 25% is THE MAX), 20-35% mutual funds, 15-30% ETFs (I am not the biggest fan of ETFs however), 10-25% blue-chip.
10) look for opportunities that others don't know about or have ignored