3 Penny Stocks That Climbed During Trading
After an interesting day of trading penny stocks and blue chips, investors need to be on their toes. This means understanding exactly what is going on in the stock market and how to take advantage. Because there are so many factors at play right now, traders need to have a well-thought-out trading strategy on hand. This could be a short-term or long-term focused portfolio. But, what’s important is that the strategy provides consistent results.
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When it comes to penny stocks, there are a lot of things to watch out for. First and foremost, don’t listen to hype alone. Rather, make sure to do your own research before buying or selling any penny stocks. Secondly, be sure to have a clear exit strategy in place. This will help you cut your losses and maximize your chances of profitability. Lastly, don’t be afraid to take profits when they come.
Many traders get too caught up in the idea of making a quick buck and end up selling too early or too late. So, make sure that you know your entry and exit plan, and use that to your advantage. While there is no cookie-cutter way to make money with penny stocks, having a consistent way to trade that aligns with your risk profile, will be your best chance at making money with small caps. So, with that in mind, let’s take a look at three penny stocks to add to your watchlist right now.
3 Penny Stocks For Your Watchlist Right Now
Gingko Bioworks Holdings Inc. (NYSE: DNA)
With over 4% in gains during trading and into after-hours, shares of DNA stock are in focus right now. In the past few weeks, we’ve covered Gingko Bioworks numerous times. This is the result of its popularity in the market and high volume. With an 80% drop in the last six months, it’s clear that there is quite a large amount of volatility with DNA stock. But, with Cathie Wood purchasing over 4 million shares in the company and its recent Q1 2022 financial results, it could be worth taking a closer look. In its financial results, the company announced a staggering 282% increase in revenue YoY.
This brings it to a total of $168 million, which is no small feat. Additionally, the company posted that it began 11 new cell programs in Q1, which is 175% more than it had in the first quarter of the year prior. Lastly, it announced an increase in its guidance for full year revenue from $325 million on the low end to $390 million on the high end. All of this has helped to bring in more popularity for DNA stock recently. So, with all of this in mind, will it be on your penny stocks watchlist or not?
Kinross Gold Corp. (NYSE: KGC)
With major bullish sentiment for gold penny stocks today, KGC saw over 4.8% in gains. This gives it a five day uptick of more than 12%, which is quite substantial, especially for a mining stock. If you’re not familiar, Kinross is a Canadian-based senior gold mining company. It has interest and projects in several mines around the world. This includes those in locations such as the U.S., Brazil, Mauritania, Chile, Canada, Russia and more.
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While there is no news that is driving the price of KGC stock up right now specifically, we can look at the larger gold industry. When we see times of economic turmoil, often, investors will turn to gold. This is because gold is considered a safeguard asset or one that can hold its value regardless of inflation. So, with inflation and interest rates rising right now, it’s a no brainer that KGC stock and other gold stocks would see bullish sentiment as well. So, with that considered, will it be on your list of penny stocks to buy this month?
Iamgold Corp. (NYSE: IAG)
Another gold stock that saw gains during trading on May 19th is IAG stock. At EOD, shares of IAG had shot up by more than 9.6%, which reflects the overall bullishness with mining stocks right now. As stated earlier, the price of gold stocks is controlled by; you guessed it, the price of gold. And, with gold ore rising in value during trading on May 19th, it makes sense that IAG and other gold stocks would climb as well.
With housing prices falling, mortgage rates climbing, and more, we should continue to see interest in mining stocks climb. But, keep in mind that there is a high level of volatility surrounding the stock market at large. And, when it comes to mining stocks, we tend to see this volatility multiplied. So, make sure to keep an eye on fundamentals alongside speculation. This will help to show if there is real value behind the company, or it is purely speculative. Whether this makes IAG stock worth buying or not is up to you.
Are Penny Stocks Worth Buying or Not?
While finding penny stocks to buy in 2022 can be challenging, it doesn’t have to be. Right now, traders can use the factors that are at play in the stock market to have the best chance or profiting. Because penny stocks are so speculative, investors can build a trading strategy around the high level of movement in the market.
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While there are plenty of strategies to choose from, at the end of the day, it all has to align with your own risk tolerance. So, with this considered, which penny stocks are you buying in May 2022?
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