Penny stocks being low priced are often seen as a big risk because of their high fluctuation in the market. But experienced investors make a fortune with these volatile penny stocks. In this article we will explain the benefits, the how to, the risk and story of most volatile penny stocks.
Why Invest In The Most Volatile Penny Stocks?
The problem with penny stocks, really, is the fickleness of the market, so you have to remain vigilant. Once you find the 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 High Volatility Stocks:
- 3d Printing Stocks
- Technology Penny Stocks
- Pharmaceutical Penny Stocks
- Cannabis Penny Stocks
- Gold & Silver Mining 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 couple thousand dollars in penny stock trading. And success has been proclaimed by investors who have experienced substantial profit in this business.
5 Trading Tips On Penny Stocks
Most 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. But it’s important in knowing when and which stocks to invest in and just as important is to know when to sell. Having a good plan and information before you start trading will make it worth while in your penny stock trading.
- 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.
A simple way to minimize your loss in penny stocks is to invest your profits and secure your investments with each trade you make. By using this simple tip you gain experience with the profits you make and not lose your beginning capital therefore with due time and experience you will accumulate increase your profits with penny stock trading.
How much money do you need to start trading penny stocks? Let’s watch the video below for the answer:
Learn How You Can Make Millions With Microcap Stocks… Click Here.
Risk Factors When Penny Stock Trading?
Research is an investor’s best weapon when it comes to making it in trading pink sheets stocks and regardless of what types of stocks or how many stocks a person purchase, no one should ever invest more than one can afford to lose.
Consider these factors in your trading:
- 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?
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 for more information please read our review article of his membership service by clicking here.
Which Stock Trading Site’s Are The Best For Beginners?
There are sites that help investors maximize their earning potential when trading penny stocks and do provide information on choosing 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 therefore it is important to know such site’s or platforms.
Building a stable and successful investing portfolio mostly depends on the brokerage account you decide to beginning with. The right stock brokerage platform can guide you in learning the ups and downs in your stock trading.
Below are a some trusted penny stock trading platforms which can be accessed online using your desktop computer or mobile device:
- Charles Schwab
- Ally Invest’s
- Merrill Edge
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 E-Trade:
Main Rule In Trading 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 invest in 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.
Penny Stocks Forums: Finding The Cheapest Penny Stocks
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 some of the cheapest stocks around, 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 most volatile 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 success in penny stock trading you might want to consider Matt’s Morris penny stock newsletter called Microcap Millionaires.
S&P 1500 Stocks Trading For Pennies
|Company||Ticker||Index Constituents [Primary Listing]||Stock Price On 3/18/2020||Sector||YTD Ch.|
|HighPoint Resources||(HPR)||S&P 600||0.23||Energy||-86.2%|
|Denbury Resources||(DNR)||S&P 600||0.27||Energy||-80.7%|
|CBL & Associates Properties||(CBL)||S&P 600||0.31||Real Estate||-70.7%|
|Oasis Petroleum||(OAS)||S&P 600||0.37||Energy||-88.7%|
|TETRA Technologies||(TTI)||S&P 600||0.37||Energy||-81.1%|
|QEP Resources||(QEP)||S&P 600||0.38||Energy||-91.5%|
|Laredo Petroleum||(LPI)||S&P 600||0.39||Energy||-86.4%|
|Nabors Industries||(NBR)||S&P 600||0.40||Energy||-86.1%|
|J.C. Penney||(JCP)||S&P 600||0.42||Consumer Discretionary||-62.5%|
|Callon Petroleum||(CPE)||S&P 600||0.45||Energy||-90.7%|
|Akorn||(AKRX)||S&P 600||0.55||Health Care||-63.3%|
|Gulfport Energy||(GPOR)||S&P 600||0.58||Energy||-81.0%|
|Ring Energy||(REI)||S&P 600||0.68||Energy||-74.2%|
|Acorda Therapeutics||(ACOR)||S&P 600||0.75||Health Care||-63.2%|
|Cedar Realty Trust||(CDR)||S&P 600||0.86||Real Estate||-70.8%|
|U.S. Silica Holdings||(SLCA)||S&P 600||0.88||Energy||-85.7%|