Penny stocks can be a goldmine that many investors avoid because they feel the risk outweighs its benefits. While trading penny stocks can be risky, you can mitigate risk by doing extensive research and making a trading strategy.
Your trading strategy should include using stop-losses in the event your penny stock investment does go bad. It will help you lose less money if that makes sense. Sometimes in any given market, certain conditions can make the goal to avoid loss versus generate gains.
Whether you’re an experienced trader or just getting started, penny stocks carry with them an allure. It isn’t every day that you can invest $100 or $1000 and see that double within a few days. Nonetheless, understanding risk and having a set strategy in place are keys to getting started on the right foot.
New To Penny Stocks? Check Out The Basics: https://pennystocks.com/category/learn-to-trade-penny-stocks/
List Of Penny Stocks For October 2019
Technical indicators also help when it comes to finding the best penny stocks to buy. If you’re just getting started, learn about RSI and MACD indicators at first. This will at least give you a sound base for understanding other, more advanced indicators.
Once you’ve got the basics down, you might also want to think about opening a penny stock paper trading account. With this, you’ll be able to practice and test your strategy without risking real money.
Though you won’t make money with winning trades, you also won’t lose any money either if a trade goes the wrong way. This is only the tip of the iceberg in relation to research. In any case, to help you kick off your research, we have culminated a list of penny stocks to watch this month.
Catalyst Pharmaceuticals, Inc. (CPRX)
Biotechnology penny stocks are always exciting. Where else can you see industry speculation piggyback off of stock price speculation? There are few industries like that. Catalyst Pharmaceuticals (CPRX Stock Report) skyrocketed from May to mid-September of this year.
That rally saw the penny stock jump from $2.23 to as high as $7.67 before dropping like a rock in September and early October. Heading into the middle of the month, however, shares are reversing briskly. What has helped improve sentiment this week came from some insider buying by its director, Charles O’Keefe.
Last month the company’s CEO, Patrick McEnany picked up shares of the company as well. You can check out all of the Form 4s on the company’s SEC Filings page. The company recently presented at the 2019 Cantor Global Healthcare Conference earlier this month but results haven’t been reported yet.
Catalyst develops and commercializes innovative therapies for people with “rare debilitating, chronic neuromuscular and neurological diseases.” The company’s new drug application for Firdapse® 10 mg tablets for the treatment of adults with LEMS was approved in November 2018 by the U.S. Food & Drug Administration. Firdapse is now commercially available in the United States.
With established history like this, will Catalyst be prepped to have another go at new highs before 2020?
GameStop Corporation (GME)
The sorted history of GameStop (GME Stock Report) has presented new opportunities for a different kind of investor. However, the “potential” has also attracted traditional investors alike. Back in 2016, GME stock was trading north of $31 a share. Today it’s a penny stock.
Needless to say, the last few months have been very bullish for the company. What helped kick start this rally was a big endorsement from “The Big Short.” This is partially true. The person who inspired the movie, Michael Burry, who the movie was based on, revealed that he owned 3 million shares (back in August) and felt the company was undervalued.
At the time, GME was trading around $3.20 a share. Since then, the penny stock climbed as high as $5.82 while maintaining a steady uptrend in October. If you aren’t up to speed on GameStop, the company is a video game retailer. Here’s the question, with this uptrend, is this just a game the bears are playing or is GameStop set to head higher this year?
YRC Worldwide Inc. (YRCW)
When you think about logistics, planes, trains, and automobiles come to mind. YRC Worldwide (YRCW Stock Report) focuses on trucking. The stock hit 52-week lows of $1.95 in August but ever since, it has been increasing in price like mad. The first part of the 2 month move began after the company announced the opening of its new Minnesota service center.
“Here at YRC Freight, we work to continually enhance our services for the benefit of our customers. It’s how shipping is done,” stated YRC Freight President T.J. O’Connor. The company also maintains an integrated footprint that includes short-haul and long-haul options. Holland, New Penn, Reddaway, HNRY Logistics, and YRC Freight fall under its umbrella of brands.
The company recently reorganized its operations in the US. It now operates 4 divisions and 17 areas of operation. This move was done to streamline the business better than it was before. The changes “allow [YRC] to take advantage of the many strengths throughout the enterprise and will better align [its] cost structure to what is an increasingly dynamic marketplace,” CEO Darren D. Hawkins said in the memo.
Given this, shares maintained October’s bullish trend. Further expansion and streamlining could pose beneficial outcomes for the company as it continues to build out its operations. Will it translate into higher share prices?
Ecoark Holdings, Inc. (ZEST)
Ecoark Holdings, Inc. (ZEST Stock Report) focuses on agricultural technology. Its wholly-owned subsidiary, Zest Labs ™ offers the company’s Zest Fresh™ solution. The system allows Zest to offer quality management of fresh food. Zest uses predictive analytics to help customers improve the freshness and quality of foods that can expire. So, things like produce, meat, dairy, etc.
The company’s stock had a hard drop this past summer but recently it has been one of the best penny stocks to watch. Since the beginning of October, ZEST stock has been in a noticeable uptrend.
The move so far has seen shares go from $0.50 to as high as $0.75. This 50% came without any news from the company. In fact, the most recent, formal news from Ecoark was published back in August announcing the sale of convertible preferred stock.
Ecoark sold $2 million of Series B Convertible Preferred stock to 2 institutional investors. Shares convert at $0.51 a share. In times like this where there is little news, it’s important to keep a close eye considering the move so far.
Youngevity International, Inc. (YGYI)
This penny stock has had a rough 2019 but it hasn’t been a bad, short-term day to day trade according to many traders. If you look at the chart, YGYI stock has seen periods of bullish trends followed by bearish drops.
This month, Youngevity International (YGYI Stock Report) has been in a more bullish trend. The stock opened at $4.40 on October 1 and has climbed as high as $4.82 this week. Volume isn’t that big so it the trend doesn’t appear to be fueled by overambitious investors. The company itself focuses on lifestyles businesses.
Youngevity operates 3 business segments that include commercial coffee, commercial hemp, and direct selling. So it appeals to a wide range of investors. When marijuana stocks were hot, YGYI stock popped but obviously declined along with the sector.
In this case, the company has focused more on its other business units. This month the company did a deal with BeneYOU LLC. They are a nutritional and beauty product company. Through this deal, Youngevity will buy some of the assets of BeneYOU.
BeneYOU CEO Ryan Anderson said, “Like Youngevity, we know making Customers and Associates the most important factors in our decision-making process leads to their satisfaction.
We are especially gratified that the consistencies between our companies are as strong as they are, and we’re hopeful that we can bring this transaction to a successful conclusion by the end of this month.”
Are Penny Stocks Safe?
The short answer is that no investment is technically safe. There’s always risk involved and a chance you could lose your entire investment. Penny stocks are some of the highest risk equities you can get involved with. But with great risk can come great reward.
This list showcases some of the best penny stocks to watch up to this point in October. All of them have sustained longer-term trends than just a single day. However, when it comes to day trading, you’re in a completely different ballpark. You need to pay close attention to the stocks on a minute-by-minute timeline.
If you’re in a live trade, turning your head away from your screen can cost you big money. Stocks that fall under this definition can fluctuate by 30% or more at a moment’s notice. So if you’re getting involved with the wild west-style market, you will likely need to be able to handle risk well.
How Can I Buy Penny Stocks?
Most virtual brokers allow trading of penny stocks. Now, keep in mind that this is based on the definition of a penny stock, not the exchanges the stocks trade on. Here’s how it works. Brokers like E-Trade, TD Ameritrade, Fidelity, Interactive Brokers, and others allow you to buy and sell penny stocks on all exchanges. This includes NYSE, NASDAQ, and the Over The Counter (OTC). Other brokers like Robinhood restrict access to certain penny stocks.
For example, if you wanted to buy penny stocks on Robinhood trading on the NYSE or NASDAQ, you’re ok to do so with a few exceptions. This depends on certain NYSE or NASDAQ companies. However, OTC penny stocks are inaccessible if you’re using Robinhood as your preferred broker. Check out some of the most popular penny stocks on Robinhood this month, here.
While this isn’t a good or bad thing, it does handcuff you if you want to participate in buying stocks trading on the OTC. The ultimate choice is up to you. Now, many brokers allow you to invest in penny stocks without facing large trading fees. Robinhood is completely free, however, the restriction makes it less than optimal if you like those kinds of stocks.
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