Tomorrow’s the last day to sign up for our Urgent Cannabis Investor Briefing, which we’re holding online this coming Wednesday, May 8.

At the briefing, we will introduce the first-ever cannabis stock rankings, based on the Weiss Ratings.

We will name the three stocks at the top of our rankings right now.

Plus, we will explain our ranking-based strategy that spins off an average of $20,000 in spendable cash per month.

And the timing couldn’t be better.

In fact, just in the last few days, two states and the District of Columbia have proposed new laws that will greatly expand the scope, reach and profits of the cannabis industry.

In Illinois, Gov. J.B. Pritzer announced new legislation on Saturday, less than 48 hours ago.

It would allow marijuana possession for residents 21 and over, provide a $20-million low-interest loan program to promote business ownership, and expunge about 800,000 low-level drug convictions. Tax revenue from the state’s cannabis industry would be invested in communities that have been devastated by drugs.

Ohio is proposing a new measure that will expand medical marijuana access to about half the state’s population, or another six million people. It would add five more ailments to the list of qualifying conditions to get a medical marijuana card including anxiety, autism spectrum disorder and opioid addiction.

And District of Columbia Mayor Muriel E. Bowser has just announced legislation to legalize and regulate marijuana dispensaries in the nation’s capital, setting up a potential showdown with the federal government.

Right now, the laws in D.C. are mixed: Residents can grow small amounts but they can’t buy it legally. What most irks the District’s politicians, however, is a quirk in federal laws that prevent them from collecting taxes on the industry.

The mayor is hell bent on changing that. She says she wants to make sure D.C. can collect its “fair share” of the revenues.

The Right, the Wrong and the Riches

Politicians debate endlessly about the right and wrong of legalization:

Recreational marijuana runs into the most resistance, and for obvious reasons. Medical marijuana is far more widely accepted, also for obvious reasons. But what’s primarily driving this accelerating trend is the riches. With legalization …

Desperately needed money flows into city and state coffers from cannabis tax revenues …

Still more money flows into the local economy from the cannabis industry and new jobs, while …

Nationally, money from cannabis profits piles up in the brokerage accounts of investors.

Back in 2016, for example, when major legalization ballot initiatives passed in eight U.S. states, leading cannabis stocks doubled and tripled in value:

  • GW Pharmaceuticals shot up 228%.
  • KushCo Holdings jumped 252%.
  • And Corbus Pharmaceuticals skyrocketed 668%.

More recently, the same thing happened in Canada, as Ottawa began to seriously consider nationwide legalization and Canadian cannabis stocks went through the roof:

  • A leading grower, Canopy Growth, rose by 100%.
  • Cronos Group, a medical cannabis producer, jumped 121%.
  • And Tilray, a research and tech company, soared 398%.

But I have a word of warning. Contrary to what you may be hearing …

Making money in the cannabis boom is NOT a no-brainer.

Like with in any investment, there are also pitfalls.

Many investors get stuck in thinly traded stocks that may be easy to buy but are almost impossible to sell.

Others rush in to buy precisely when it’s time to take profits and move on to the next opportunity.

Here are some basic steps to follow …

Step 1. Avoid illiquid cannabis stocks. As a basic rule of thumb, stick with stocks that boast average trading volume of 100,000 shares per day or more.

Step 2. Focus on innovative companies in the forefront of medical marijuana, already legal in 33 states. Legalization for recreational usage is far behind, and most of the companies that profit primarily from the recreational side are not nearly as promising. They also run counter to the views of most conservative voters and investors.

Step 3. Needless to say, don’t bet the farm on any one company. Diversify. Keep a fair amount of cash in reserve. And continue investing in other promising stock market sectors.

Step 4. Join us on Wednesday for our cannabis briefing. It’s free for Money and Markets readers. But you do have to register here. And tomorrow, Tuesday May 7, is the last day to do so.

Good luck and God bless!