There are thousands upon thousands of people who buy penny stocks. The hope’s that the cheap stocks will rise quickly and allow them to make a hefty return on their investment. It is possible to make a substantial gain if an investor makes the right pick. But as we always say, it’s also important to remember that the wrong penny stock can also lead to significant losses.
Managing risk is a big key to making money with penny stocks. If you treat these stock like the lottery, you’re likely to see the same results. But what do you mean J. Phillip? Well, how many times have you won a big lottery? My guess is that for most of you, not that many times. Similarly with penny stocks, if you treat them like a lotto ticket, you’re ignoring the fact that proper diligence can lead you to winning trades more often than a quick pick will help you win the lotto.
Therefore, due research on a list of penny stocks is necessary. Watching the latest movements in the market is also a good way to discover penny stocks to buy. Here is a look at two penny stocks that have made significant moves recently. Will these moves continue this month?
Penny Stocks Up Big in July #1:
One of the penny stocks that managed to generate significant gains in July was electric utility vehicle maker Workhorse Group Inc (WKHS Stock Chart). We’ve reported on this company a few times since the infamous “Trump Tweet”. Needless to say, the market has continue to rally behind this penny stock to watch.
WKHS stock rose by as much as 75% in July on the back of speculation that one of its joint ventures was going to be awarded the multibillion-dollar USPS contract. In addition to that, the company is the frontrunner for buying automobile giant General Motor’s production facility at Lordstown, Ohio. During a visit to the town, Vice President Mike Pence seemed to confirm that a sale was imminent.
He made the comment on July 31 and soon after the Workhorse stock rallied by 15%. For a brief moment on Wednesday, Workhorse Group stock was no longer in “penny stock definition” territory. However, since then, shares have settled below $5 during Thursday’s morning session
Penny Stocks Up Big in July #2 Rekor Systems, Inc
The other penny stock that had a hugely impressive run in July was Rekor Systems, Inc (REKR Stock Chart). The penny stock shot up by as much as 125% during the course of the month. Rekor entered into a highly important partnership on July 16. This was when it announced that it was inducted into the NVIDIA Metropolis Software Partner Program.
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The company’s expertise will be used in video streams. That was the big trigger for the rise in Rekor System stock. Additionally, on July 31, the stock rose 12%. But at the time there was no penny stock news with relation to the company’s business. So, keep that in mind.
While it is true that penny stocks can be a source of excellent returns, experts believe that the investor, who has a keener eye on the market and tracks stocks diligently, has a better chance of success. Also, you should check for the sort of penny stock trading volumes that are being generated in particular stocks. A high volume generally indicates that there is a lot of attention on a particular penny stock.