What’s up with psychedelic stocks these days? Seems like more companies join the space daily… Could it be the next hot sector? I wouldn’t go that far yet. But there are a few reasons I’m watching the sector for future potential… There’s a psychedelic ETF — the Defiance Next Gen Altered Experience ETF (NYSE: PSY).
What’s up with psychedelic stocks these days? Seems like more companies join the space daily…
Could it be the next hot sector?
I wouldn’t go that far yet. But there are a few reasons I’m watching the sector for future potential…
There’s a psychedelic ETF — the Defiance Next Gen Altered Experience ETF (NYSE: PSY). TV talking heads are discussing the potential of psychedelics … And one of these stocks is a recent IPO backed by a billionaire investor.
Plus, Texas government officials recently gave the OK to allow research on psychedelics as a potential PTSD treatment.
All these could be signs of massive potential in the psychedelic sector as it gains more mainstream attention.
But the science is in its infancy. Most companies in the space are developmental stage companies that trade on the OTC markets. So you won’t be able to trade most of these psychedelic stocks on Robinhood. (Check out this post if you need tips on picking a broker.)
But as scientific breakthroughs emerge, we could see more ‘real’ companies get on board. That’s why I’m preparing for the potential hype in this sector now…
Top 9 Psychedelic Stocks
If you’re looking for psychedelic stocks to watch, here are the top 9…
Familiarize yourself with these companies and the treatments they’re developing. That way you can be prepared when the time is right.
Because when news hits one of these stocks, it could offer sympathy plays in the entire sector.
And as demand for psychedelic treatments increases, and researchers discover more breakthroughs, we could see more companies jump on the hype train…
Just like we have with every other hot sector in the past.
To help you prepare for this emerging sector, here’s a rundown on some must-know psychedelic terms…
- Psilocybin is the hallucinogen in some mushrooms that make them ‘magic.’
- Ketamine is a sedative drug that induces a trance-like state. It’s commonly used in anesthesia.
- Ibogaine is a naturally occurring psychoactive substance found in plants.
- MDMA is a psychoactive drug mainly used recreationally. It’s known as ecstasy or molly to party-goers.
- DMT is a chemical that occurs naturally in the brain and in some plants and animals. It’s used as a recreational psychedelic. Its effects are short-lived, sometimes lasting only a few minutes.
- LSD is one of the most potent hallucinogens and has the potential to alter people’s perception of reality.
Definitely some mind-altering stuff.
Now, here’s my list of the top 9 psychedelic stocks to watch…
Psychedelic Stocks #1: Compass Pathways (NASDAQ: CMPS)
CMPS is working to develop a psilocybin formula to potentially treat patients with treatment-resistant depression. The company’s formulation is currently in Phase 2b clinical trials.
It’s one of the stocks included in the psychedelic ETF I mentioned earlier. It’s also the highest-priced stock on this list.
Psychedelic Stocks #2: Mind Medicine (NASDAQ: MNMD)
MNMD is a biotech company that develops psychedelic therapies to potentially treat addiction and mental illness. It’s working to develop treatments using psilocybin, DMT, MDMA, and LSD.
It could be one of the most well-known psychedelic penny stocks. It received tons of attention and traded high volume when it was uplisted from the OTC markets to the Nasdaq in April. The stock’s also included in the psychedelic ETF.
On June 17 the company announced it appointed a new Scientific Advisory Board member.
The trading volume has remained high since it started trading on Nasdaq. The company now has access to more traders and investors who don’t trade OTCs.
The stock’s been trading sideways for a few months. A breakout over $4 could create a big move.
Psychedelic Stocks #3: Cybin Corp (OTCQB: CLXPF)
CLXPF is a Canadian psychedelic mushroom stock. It’s working to develop psilocybin capsules and tablets to potentially treat psychiatric and neurological conditions like depression and anxiety.
On May 18 the company announced Phase 2 trials for its psilocybin formulation to treat depression were approved in Jamaica.
The company’s also busy acquiring patents … On May 20 it filed its 12th patent to protect its delivery methods. And on May 26 it filed an international patent to protect its psychedelic drug developments.
The company announced it will target anxiety disorder indications with its “proprietary psychedelic molecule CYB004” on June 16…
Dr. Alex Belser, company CCO said, “With the advent of the COVID-19 pandemic, rates of anxiety have increased 3-fold, leaving many folks in a debilitating state. We think that treatment with psychedelic medicine may help.”
The company is also co-sponsoring a study to treat COVID frontline doctors and nurses struggling with depression, anxiety, and burnout.
I’ll watch CLXPF for a multi-month breakout over $1.85.
Psychedelic Stocks #4: Field Trip Health, Inc. (OTCQX: FTRPF)
Field Trip Health is another Canadian psychedelic company. It operates clinics for psychedelic therapy and focuses on researching plant-based psychedelic treatments.
I’ll watch for the stock’s reaction to the news before planning a trade.
Psychedelic Stocks #5: Mydecine Innovations Group (OTCPK: MYCOF)
MYCOF focuses on developing nature-based medicines to treat mental illness.
The company announced the launch of its artificial intelligence drug discovery program on June 16.
“The program is focused on developing artificial intelligence/machine learning (AI/ML) supported drug screenings, including both the ability to build drugs from the receptor up and assess drugs around the receptors of Mydecine’s choosing.”
The stock is trading near its lows but looks to have found support and formed a double bottom around 20 cents. I’ll watch for it to have a first green day with a catalyst and high volume.
Psychedelic Stocks #6: Numinus Wellness (OTCPK: LKYSF)
LKYSF is another Canadian psychedelic company. It offers product research and development, cultivation, and testing of both psychedelics and cannabis.
It’s a beaten-down stock that trades low volume. I’ll watch this one for a potential trade if the overall sector heats up.
Psychedelic Stocks #7: Seelos Therapeutics, Inc. (NASDAQ: SEEL)
SEEL is a biotech company that develops potential treatments for nervous system disorders. One of the company’s lead candidates is an intranasal ketamine treatment for suicidal ideation in patients with major depressive disorders.
The company announced its inclusion in the psychedelic ETF on June 1.
The stock was in a strong uptrend for most of 2021 and made a new 52-week high of $6.60. It has since retraced and is trading sideways around $3. I’d like to see it break out of its channel over $3.60 for more potential upside.
Psychedelic Stocks #8: Mind Cure Health Inc. (OTCQB: MCURF)
MCURF is yet another Canadian psychedelic mushroom stock. It’s a biotech company that develops and distributes mushroom powders. It’s also working to develop synthetic ibogaine to use in psychedelic research.
The company also announced it has developed two ketamine-enhanced protocols for treating pain and depression. Ketamine is a general anesthetic.
I’ll watch this one for a breakout over 40 cents with high volume.
ATAI is a German biotech company that develops a number of psychedelic treatments for anxiety, depression, and addictions. The company’s also a major investor in Compass Pathways (NASDAQ: CMPS) and holds roughly 25% of its shares.
ATAI — backed by billionaire investor and PayPal (NASDAQ: PYPL) founder Peter Thiel — offered 15 million shares at $15 in its recent IPO. On its first trading day, the stock opened at $21 and made a high of $22.91.
Since it just went public, there’s not a lot of resistance on the chart. I’ll watch for it to make new highs over $22.91.
How Do I Find the Best Stocks to Trade?
The answer is right there in the question — I use StockToTrade.
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Psychedelic Stocks: The Bottom Line
Psychedelics are an emerging sector that has the potential to run on hype. It could be similar to the 2018 marijuana craze when companies dropped everything to join the mania.
Sketchy penny stocks and biotechs will jump at any chance to boost their stock prices. And I want to be prepared to take advantage of the hype and volatility that can create.
That’s why I prepare my watchlists in advance. You need to do the same. Research and prepare for opportunities now. Get an edge over other traders who are too lazy to put in the work…
That’s how you get on the path to becoming a self-sufficient trader. Use this watchlist as a guide to learn the thought process behind my trade ideas.
If you’re struggling on your own, apply for my Trading Challenge.
I can be the teacher to you that I never had. And having a teacher can greatly increase your learning curve. I’ve been trading penny stocks for 20+ years and I want to share everything I’ve learned. And I’m looking for more traders who are dedicated to learning the process, mindset, and rules.
Which psychedelic stocks are you watching? Let me know in the comments … I love to hear from you!
*Please note that Matthew Monaco, Jack Kellog, Bryce Touhey, John Papa, and Kyle Williams’ trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade. Individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose. I’ve also hired them to help in my education business.
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