The type of stock trading that most people are familiar with involves exchanges like the NASDAQ or the New York Stock Exchange. The truth is that not all stocks qualify for such listings, especially most volatile penny stocks which sell under 10 cents, on those well-known national exchanges. Stocks that do not qualify for this type of listing can be found on pink sheets stocks listings or over the counter (OTC) Markets.
What Stocks Have High Volatility?
The problem with penny stocks, really, is the fickleness of the market, so you have to remain vigilant. Once you find most volatile penny stocks at bargain prices with their outlook looking relatively bright, you have to buy those shares immediately because their worth might double overnight.
The early bird always catches the worm, and this seems to be the rule of thumb in a highly volatile market which is usually found when it comes down to trading penny stock.
List Of Penny Stocks With High Volatility Of 2018:
1. Civeo, Corp. (CVEO)
2. Tuesday Morning, Corp. (TUES)
3. Digital Turbine, Inc. (APPS)
4. Gerdau SA ADS (GGB)
5. HTG Molecular Diagnostics, Inc. (HTGM)
6. Legacy Reserves LP (LGCY)
7. Luna Innovations, Inc.(LUNA)
8. Harmony Gold Mining ADR (HMY)
9. Quest Resource Holding, Corp. (QRHC)
10. Histogenics, Corp.(HSGX)
The Risks In Buying Volatile Penny Stocks
There are many rewards promised for anyone who wishes to trade penny stocks. Monumental gains have been experienced in a matter of hours in this field. Microcap Millionaires have been made out of people who have invested a few thousands. Success has been proclaimed by investors who have experienced substantial profit in this business.
Are Penny Stocks Worth It?
But with every success story shared by those who trade penny stocks, there are stories of despair and frustration that can be shared by those who have experienced terrible losses in this industry.
Whenever anyone would trade penny stocks, he is making his investment susceptible to numerous high risks, after all. What are these risks, and so are penny stocks worth it you might ask?
Consider the following:
- People who trade penny stocks deal with a highly volatile market. Diligence is required because the value of penny stocks rise and fall in a matter of minutes. Miss that minute of glory, and chances are, your shot at gold would be lost forever.
- The word “penny stocks” is a misleading term. Each share may come at a low price, but you would usually trade penny stocks by the thousands. This means that you stand to lose more if your investment suddenly falters.
- Penny stocks are sometimes issued by less than reputable companies. There are even occasions when dummy corporations issue penny stocks so that they could earn fast from the Initial Public Offerings (IPOs) and thereafter disappear from public sight.
- The value of penny stocks is driven by hype. A few press releases here and there, a mention in a generally circulated newspaper, a full page ad in a leading magazine, and the value of the stocks would increase. But as with everything that is driven by hype, whenever we trade penny stocks, we would have to deal with the consequences that would result once the hype dies down. Will the penny stocks be able to stand on their own? Or will they sink so deep without the support of a marketing push?
- Those who trade in volatile stocks would also have to deal with this industry’s failure to make use of traditional stock charting methods. This would result in a lot of uncertainty about your dealings as well as the stocks themselves.
So how should you cope up with these risks when you trade penny stocks? This tip is as simple as it is effective: recoup your capital as soon as possible, then invest in new stocks using the profit you have earned. This way, when you trade penny stocks, you would only stand to lose what you have already earned and not what you have taken out from your original funds.
Volatile stocks under a dollar operate in a very fickle market. This is why a lot of people consider them to be high risk but potentially high yielding investments. Your penny stocks may be worth a literal penny each today, but it could easily balloon to a dollar or so tomorrow.
How much money do you need to start trading penny stocks? Let’s watch the video below for the answer:
Penny stocks are very tempting to individuals that have limited resources or that are just getting started in stock trading. Just because they are cheap or , are at times under 10 cents, does not mean that they are a sure thing.
Remember many penny stocks are offered by companies that are just starting out and looking for capital, therefore many experts feel that there is an elevated amount of risk associated with them.
Knowing when to sell your penny stocks need no further elaboration. Knowing when to buy penny stocks, on the other hand, needs deeper contemplation. That’s why it’s important in how to know what stocks to invest into.
Top 10 Penny Stocks of 2017:
- Mannkind Corp. (MNKD)
- Sharps Compliance Corp. (SMED)
- Viveve Medical Inc. (VIVE)
- Sharps Compliance Corp. (SMED)
- Ascena Retail Group, Inc. (ASNA)
- The Joint Corp. (JYNT)
- Buzztime Inc. (NTN)
- Famous Dave’s of America Inc. (DAVE)
- Medical Transcription Billing Corp. (MTBC)
- Kingold Jewelry, Inc. (KGJI)
Can You Make Money Trading Penny Stocks?
It is a gamble, you see, whenever you deal with penny stocks. But it doesn’t have to be a pure game of luck. Intelligent speculation is the key, and this article should guide you whenever you’re planning to buy penny stocks.
You can magnify your gains on betting on futures through futures trading. You have to do your homework though.
Research the particular market where the stocks you are spotting do operate. Try to be on the lookout for the following factors before deciding to buy penny stocks:
- How fragile is the market? If it is a pretty stable industry, chances of a spike in value would be less.
- Who are the people behind the industry? The strength of a business lies in the people running it, just as much as other economic factors. Try to study the portfolio of the managing team behind the company before you buy penny stocks attached to its name.
- What has been the trading history of the penny stocks involved? Lessons can be learned by studying the trends posted by the said stocks.
- How favorable is the immediate future for the said market?
Research is an investor’s best weapon when it comes to making the most of pink sheets penny stocks information. Additionally, regardless of what types of stocks or how many stocks a person purchases, no one should ever invest more than they can afford to lose.
This can be determined with a reasonable degree of certainty after considering the factors above. Never the less high volume penny stocks are usually considered low risk stocks therefore are the most sought after by experienced investors.
One popular penny stock day trader who is consider an expert and which you might have heard of is Jason Bond. He has been successful in day trading and has taught others to profit from swing trading in stocks. His service is named Jason Bond Picks more more information on his service please read our article on his membership service by clicking here.
Which Stock Trading Site’s Are The Best For Beginners?
There are sites available that can help a person maximize their earning potential when trading penny stocks and can even provide information to help a person choose between the different stocks listed in pink sheets penny stocks list. As with any type of stock, an investor should do a bit of research in order to determine whether or not the company is a good investment.
Building a stable and successful investing portfolio mostly depends on the brokerage account you decide to beginning with. The right stock brokerage platform can server as your guide in learning the ups and downs in your stock trading.
Below are a few trusted institutions licensed to buy and sell stocks which all can be accessed online using your desktop computer or mobile device:
The above 5 trading stock platforms listed above have been proven by beginners and seasoned penny stock investors.
Video on how to find and buy penny stock with etrade:
Buying The Most Volatile Penny Stocks
Whenever you want to buy volatile penny stocks, you have to remember the basic rule in trading: sell when it is hot and buy when it is not. So buy penny stocks when their prices are low. Additionally, buy penny stocks when all indications point to a rise in value in the near future.
Indeed, it is that simple. You just have to keep these things in mind whenever you want to buy penny stocks. Better yet, you could assign a broker to buy penny stocks on your behalf. This would make things easier for you when venturing out in making money when buying penny stocks.
Finding Hot Penny Stocks In Online Forums
Penny stocks can prove to be a very lucrative investment if an individual is able to correctly identify the right stock to purchase. One excellent way to get information and even opinions from experienced individuals is to make use of penny stock forums.
Using forums, investors can share information and knowledge which can help beginners in avoiding the common mistakes that many inexperienced investors make therefore helping novice in investing good stocks.
This is a great way for a person to minimize their risk while maximizing their chance for seeing returns on their investments. Because penny stocks typically are cheap stocks, many inexperienced individuals make the mistake of thinking that they are low risk.
There are a number of different penny stock forums that a person can choose from. For many individuals, choosing the right one boils down to a matter of personal preference.
The most important thing to keep in mind when looking at the different forums is whether or not the individuals that participate have the experience necessary to provide useful information.
Although it might be entertaining for individuals that do not have a lot of experience with this type of investing in talking to other people in similar situations, finding good advice is crucial. Many penny stock forums allow individuals to browse around the site before registering.
There are those, however, that require person to register before they can access any of the information on the site. Once a person has chosen a forum that they like, it will almost always be necessary to register before it is possible to participate in any of the penny stock trading discussions.
A person concerned about their security while on the forum may want to consider opening a secondary e-mail account that they used solely for registration. This is also an excellent way to avoid spam and unwanted correspondence.
Another thing to keep in mind when participating in one of the penny stock forums is that almost every discussion group has a set of rules that individuals must abide by or risk banishment. These rules help to keep the conversation civil and productive.
People that post offensive content or pornographic material are often banned. It is also crucial that a person verify any information that they receive in a discussion forum before making a decision based on it. Even if an individual seems to have the knowledge and experience necessary to provide good advice, it is always a smart move to double check any information.
Again penny stock forums can have excellent resources in finding the hot penny stocks today.
If you are looking for a seasoned and successful penny stock guide in order to minimize your lost and increase in your penny stock trading profits consider Matt’s Morris penny stock newsletter called Microcap Millionaires.
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