Legalization is spreading in several states \u2014 that could be strong news for marijuana stocks.\u00a0 On June 29, New Mexico became the newest state to legalize recreational marijuana. Adults can now possess two ounces and grow up to six plants for personal use. As of July 1, newly relaxed laws came into effect in three additional states. In Connecticut, adults can now carry up to one and a half ounces. And in South Dakota, medical marijuana patients can carry up to three ounces. In Virginia, adults can carry one ounce of marijuana and also grow up to six plants. Retail recreational sales are still years away in some states. But these are all signs of changing attitudes toward marijuana. That\u2019s why you should be familiar with different marijuana companies, what they do, and where they operate... Many of the Canadian marijuana stocks on my watchlist are positioned to take root and grow in the U.S. market. Study up and be ready to strike when you see your strategy and pattern. Now, let\u2019s dig into my list of the top 10 marijuana stocks to watch in July and why... Should You Trade Marijuana Stocks? First, you should NEVER blindly trade someone else\u2019s picks. Not even mine. I want you to understand how to choose stocks to trade and create smart trading plans. That\u2019s how you can really take advantage of hot sectors and trading opportunities. You\u2019ve gotta think about what makes stocks move, how they move, and what you can learn from these movements for future trades. I\u2019m watching marijuana stocks because they\u2019re volatile. Many are former runners, and they can move on news and hype. Any new development could be a potential catalyst for a spike. But before you get too excited thinking you\u2019ll find the Tesla of marijuana stocks \u2026 Do yourself a favor and go back and study history. I\u2019ve seen this kind of crazy action before \u2026 In 2018, marijuana stocks went nuts on news that Canada legalized recreational use of weed on a federal level. What happened almost immediately after legalization day came and went? All the weed stocks crashed. Some even tanked to new all-time lows. So learn to trade these stocks. Don\u2019t invest in them long term. Be prepared to strike when a stock fits your pattern and strategy. Always stick to your trading plan and rules and NEVER believe the hype. Top 10 Marijuana Stocks to Watch in July 2021 Remember, this is a watchlist. There\u2019s no guarantee any of these stocks will fit your trading pattern or style. And if you blindly buy them hoping for the best, you\u2019re on your own. That\u2019s not what this watchlist is for... If that\u2019s your plan, I suggest you save your money and paper trade until you figure out a strategy that works for you. Use my stock picks to understand the thought process behind how I build a watchlist so you can work to build your own. Some of these stocks are higher priced. You don\u2019t have to trade them. Learn the top lessons here then make your own watchlist. Here\u2019s my list of marijuana stocks to watch in July 2021... Marijuana Stocks to Watch #1: Khiron Life Sciences Corp. (OTCQX: KHRNF) KHRNF is a Canadian marijuana stock. The company grows and distributes medical marijuana. On July 2 the company announced it completed its first medical marijuana sale in Brazil. \u201cThrough the Company's strategic alliance with CANNAB, a patient association that connects physicians, patients, academic institutions, and suppliers, a three-year-old child from Salvador de Bahia suffering from epilepsy has received six units of Khiron high-CBD 100mg\/50ml extract. \u201cThe importation of Khiron's medical cannabis on behalf of the patient was authorized by ANVISA (the Brazilian National Health Surveillance Agency).\u201d Read the full press release here. The company also recently announced results from its annual meeting. KHRNF has spiked in the past, but it needs more volume for a big move. The right catalyst or sector news could bring in that volume. Watch for that. Marijuana Stocks to Watch #2: Livewire Ergogenics Inc. (OTCPK: LVVV) LVVV acquires and manages properties for organic marijuana cultivation. On June 17, the company announced that the Regulation A offering was fully subscribed and is now closed. Company CEO Bill Hodson said, \u201cThe Company is utilizing the funds raised to accelerate the development of the Estrella Ranch project and support the preparation and continuing build-out by our affiliate company Estrella River Farms to create the world\u2019s first Estate Grown Weedery\u2122.\u201d Read the full press release here. SEC filings show the company raised $1.65 million from the sale of roughly 271 million shares. On July 2, the stock had a big green day and traded high volume. I\u2019ll watch for it to potentially continue higher, especially if it can break above $0.0186. Marijuana Stocks to Watch #3: Cresco Labs Inc. (OTCQX: CRLBF) Cresco Labs grows and sells marijuana flower, edibles, and extracts under multiple brands. Last month the company announced it\u2019s expanding its Good News brand to include edibles and vape pens. Cresco Labs CCO Greg Butler said, \u201cThere\u2019s so much opportunity for Good News, and we\u2019re thrilled to bring easy to use, simple to understand and approachable products to our consumers in California, Illinois and Michigan.\u201d Read the full press release here. On June 24, the company announced the opening of its fourth dispensary in Pennsylvania. That brings its total number of stores across the U.S. to 33. This stock isn\u2019t very volatile, so swing for singles on any potential trades. I\u2019ll watch it for increased volume with more sector momentum. Marijuana Stocks to Watch #4: Innovative Industrial Properties, Inc. (NYSE: IIPR) IIPR is another marijuana stock that acquires, owns, and manages properties leased to marijuana companies. It\u2019s higher priced but close to a breakout level around $200. If the stock can get above it, we could see a retest of the yearly highs of $222.08. I\u2019ll watch for a breakout to new 52-week highs, which could create a bigger spike. Marijuana Stocks to Watch #5: Sundial Growers Inc. (NASDAQ: SNDL) SNDL is a Canadian marijuana company that produces and sells cannabis and vapes. The chart looks like a #7 from my 7-step framework \u2014 the long kiss goodnight. But the stock makes my watchlist because it\u2019s a favorite among Reddit penny stock traders. When the sector heats up, a lot of traders will remember SNDL\u2019s supernova run in February. So they could expect the stock to spike again. That could create a self-fulfilling prophecy. Like I always say \u2014 history doesn\u2019t repeat itself exactly, but it often rhymes. Marijuana Stocks to Watch #6: Tilray, Inc. (NASDAQ: TLRY) TLRY is another Canadian marijuana company. It grows and sells marijuana flower, extracts, capsules, and hemp-based foods and beverages. It\u2019s another one of Reddit traders\u2019 top pot stocks. When sector momentum hits, there could be a lot of traders with eyes on TLRY. There will be a shareholder meeting on July 29. Shareholders will vote on a few proposals. One is the approval to issue more shares \u201cto acquire and finance attractive businesses that would help Tilray grow and create value for stockholders.\u201d Read the company chairperson and CEO\u2019s letter to shareholders here. Usually, when companies create more shares, that\u2019s considered a bad thing. It dilutes the value of existing shares. But if the company can put a positive spin on it and has a plan for the income it could generate, it could be a positive. That\u2019s why I never try to predict the market. I\u2019ll watch for a reaction to the voting results before planning a trade. Marijuana Stocks to Watch #7: High Tide Inc. (NASDAQ: HITI) HITI is another Canadian marijuana stock. It sells marijuana, smoking accessories, and lifestyle products in 87 retail stores across Canada. On June 25, the company announced it\u2019s expanding its presence in the U.S. by acquiring a U.S. e-commerce platform. Raj Grover, HITI president, and CEO said, \u201cIn alignment with our intention to become a dominant player in the U.S. e-commerce marketplace through a combination of organic growth and accretive acquisitions, specifically targeting businesses with strong brand loyalty, I am thrilled to announce the acquisition of Daily High Club.\u201d Read the full press release here. On June 28 the company reported second-quarter financial results. And on June 29 it announced the opening of two more retail cannabis stores. In that press release, the company president said, \u201cI also look forward to sharing more information imminently about our expanded e-commerce footprint in the United States.\u201d That could mean an upcoming news catalyst. I\u2019ll watch HITI to potentially bounce to the upside. Marijuana Stocks to Watch #8: HEXO Corp. (NYSE: HEXO) HEXO produces and sells marijuana. It\u2019s another Canadian marijuana stock looking to take advantage of the growing U.S. market. The company announced the acquisition of its first U.S. production facility in Colorado on June 28. The stock\u2019s trading in a channel between $5 and $7.50. It likely needs sector momentum for it to break out. Marijuana Stocks to Watch #9: OrganiGram Holdings Inc. (NASDAQ: OGI) Yep, another Canadian marijuana stock. OGI offers marijuana flower, oils, extracts, and edibles under multiple brand names. The company will report third-quarter earnings on July 13. I\u2019ll watch for a reaction to the news before planning a trade. Marijuana Stocks to Watch #10: Trulieve Cannabis Corp. (OTCQX: TCNNF) TCNNF is a U.S. medical marijuana company. On June 23 the company announced it opened a new dispensary in Florida. And on June 30 it acquired a dispensary in Massachusetts. I\u2019ll watch TCNNF for a potential breakout over $40. See the Stocks I'm Watching Want to know which stocks I\u2019m watching every week? Subscribe to my weekly watchlist and I\u2019ll send the stocks I\u2019m watching right to your inbox. SUBSCRIBE to my no-cost weekly stock watchlist here. Want to see the stocks I\u2019m watching every day? Join Profit.ly and you\u2019ll get my list of stocks to watch every morning. Also, check out these blog posts: \tTop Penny Stocks List Weekly Update \tTop Biotech Penny Stocks to Watch Conclusion: Should You Trade Marijuana Stocks? When it comes to trading penny stocks, volatility can be your friend. Marijuana stocks have plenty of volatility and hype right now, so they\u2019re creating a ton of opportunities. But that doesn\u2019t mean you should trade just any stock in the sector. You\u2019ve got to be diligent about your research and studying. Only choose the setups and patterns that work for you. If you want to make the most of weed stock opportunities, you\u2019ve got to invest in your education account first. I share my 20+ years of experience trading penny stocks with new traders in my Trading Challenge. I want anyone who\u2019s dedicated to take advantage of what I\u2019ve learned \u2014 both good and bad. If you\u2019re accepted (you have to apply and I only accept dedicated traders), you\u2019ll get access to tons of video lessons, live trading, and Q&A webinars. Plus, you can get trading commentary from me and the top traders and moderators in my Challenge chat room. I purposefully trade with a small account so I can be on the same level as new traders. I also show every single trade publicly so I can use every trade as a lesson. But don\u2019t apply if you\u2019re looking to get rich quick. That\u2019s not what I teach. Trading isn\u2019t easy. You have to study, work hard, and put in the time and dedication. Ready to get started? Apply today. What do you think about these marijuana stocks to watch? Are any of these tickers on your watchlist? Let me know in the comments, I love to hear from you!