Psychedelics are in the broader classification of hallucinogenic drugs that are primarily used to alter the state of consciousness. Many people have in mind the question of if it is legal to invest in companies that produce psychedelics. The answer is yes. It is entirely legal to invest in Psychedelic companies provided they are licensed and regulated by the respective ministry of the government.
The rise in various forms of mental illness globally has raised the production and use of psychedelics. The psychedelics stock market is still new, as evidenced by the psychedelic companies, which are still relatively small.
Why are Investors Investing in Psychedelic Stocks?
The truth is there is no sure bet when it comes to stocks. However, psychedelic stocks seem promising and have a brighter future as compared to other stocks. Psychedelic drugs are mainly used to treat mental illnesses like depression, addiction, and anxiety. Compared to other traditional forms of treating mental illness, psychedelics are more efficient and reliable in handling mental disorders. For this reason, many investors are beginning to consider investing in Psychedelic Stocks as they now represent the modern markets.
Due to the unforeseen coronavirus pandemic and other significant calamities that have faced the world, there has been a rise in the opioid epidemic to deal with mental disorders. The use of opioid medication may have some severe effects in the future; hence is not the most reliable way to deal with mental illness. Thus, the only suitable solution for people living with a mental disorder is the use of psychedelics.
While most investors are showing interest in psychedelic stocks for all the lucrative financial reasons, a few are looking at it from a social perspective. These investors invest in psychedelic stocks to ensure that psychedelic drugs are easily accessed by doctors who can carefully administer them to patients suffering from mental illnesses and disorders.
How to Invest in Psychedelic Stocks
The significant advantage of investing in psychedelic stocks is that their trading is entirely similar to any stock trading platform.
The initial step is to register and open an account with a brokerage firm. A brokerage firm is a financial institution that provides retail investors with a platform to trade different forms of securities like shares and stocks.
After successfully opening up the account, the next step is to deposit money in the account to facilitate the buying and selling of the securities.
The next step entails selecting your preferred company to invest in from the list of available psychedelics companies in the market. It is essential to have some basic knowledge of the attributes of different psychedelic companies as it helps you make the best decision. You could also research online and find out how psychedelic companies operate.
It is also vital that you decide on the number of shares you would like to purchase. To find out how many shares you will own, you need first to know the share price (the price of each share).
You now divide your desired total amount between investing by the unit price of shares to determine how many shares you will own. For instance, if you settle on investing $10,000 and your chosen stock cost is $100, you will only own 100 shares in the company.
The final step is executing the buying or selling via the broker’s platform, where brokerage fees are deducted from the account.
Examples of Companies That Trade Psychedelic Stocks
Atai Life Sciences
The Atai Life Sciences is a successful psychedelic company majorly owned by the renowned billionaire Peter Thiel, a legend in the stocks market trading world. The company, launched in 2021, is among the largest biotech companies that have ventured into the stocks market, with its main focus being on psychedelic drugs. The company boasts of ten programs where six are operational while four are in the clinical testing face. Among the notable drugs in the clinical testing phase is the RL-007 drug, which, if successful, will be a treatment for the mental disorder schizophrenia.
The renowned biotech company was established by George Goldsmith and Ekaterina Malievskaia back in 2015. Initially, the company began as a non-profit organization with the main aim being to research psilocybin care for anxiety patients. In September 2020, the company switched to a profit-making company and appeared on the Nasdaq Stock Exchange. Present-day, the company is among the biotech companies that have done the largest clinical trial in the history of medicine that seeks to use COMP 360 for treating resistant depression.
You must understand psychedelic trading comes with numerous risks, just like the other securities. Before making any investment, the number one rule is to ensure you only invest what you can comfortably afford to lose. It is also a wise financial decision to diversify your portfolio as different securities reduce the volatility of losing your savings.