Thousands upon thousands of investors have made big money by investing in penny stocks. So, it’s no surprise that penny stocks remain one of the most popular categories of stocks for investors. That being said, it is also important to keep in mind that these stocks can be extremely volatile. Therefore, an investor needs to be careful with specific penny stocks to buy.
The best way of going about it is by doing his research and also by observing the market closely. On that note, here is a look at three penny stocks investors may add to their watch lists this week.
Penny Stocks To Watch #1 Attis Industries
The first penny stock to watch is Attis Industries Inc. (ATIS Stock Report). The stock has gone on an impressive run since providing an update on its NASDAQ listing last week.
The tech and innovation company revealed that it was notified by Nasdaq Capital Market that it’s not currently in compliance with the provisions of the exchange. Therefore it’s listing on the exchange could be in jeopardy.
This happened since the lowest bid price for the Attis stock dropped below $1. However, the penny stock news seemed to fire up the stock and it gained as much as 75% over the course of last week. Attis has been one of the penny stocks to watch this month.
Penny Stocks To Watch #1 Milestone Scientific
Next up on this list of penny stocks that made significant gains recently is Milestone Scientific Inc. (MLSS Stock Report).The company is involved in producing computerized drug instruments. In a new development, Milestone announced that it was going to attend the ANESTHESIOLOGY® 2019 Annual Meeting on October 19. We discussed this last week when looking at a few penny stocks to watch this week.
The piece of news resulted in a major rally in the stock. It’s well known that the event in question could prove to be a highly important one for any company. Once the news broke, investors piled on to the stock and the stock rose by as much as 40%. Over the year, MLSS stock has rallied from $0.35 on January 2 to highs of $1.41 last week. Will it make a move even higher this week?
Penny Stocks To Watch #3 Ballard Power Systems
Last but not the least; Ballard Power Systems Inc (BLDP Stock Report). This was the other penny stock that has performed impressively over the course of the year so far. BLDP stock had been a laggard for around 10 years prior to this. But in 2019 it has gained around 130% so far.
Analysts believe that the rise in the stock price is likely due to the company’s CEO Randall MacEwan’s comments about expectations of strong growth. That being said, the company remains unprofitable and analysts believe that unless the company can show a path to profitability, it might not be the best time to watch Ballard stock. But what do you think? Leave a comment below.
Are Penny Stocks A Good Way To Make Money?
I wanted to leave some closing thoughts about penny stocks especially if this is a new topic for you. When it comes to these cheap stocks, there are many things you need to consider before you decide to trade. For starters, is a high-risk investment right for you? Many financial advisors will argue to try and avoid higher risks. However, if you’re okay with this, then you’re one step closer, right?
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Other things you should keep in mind are things like volatility, volume, and loss. Penny stocks are highly volatile, which means that prices shift quickly. Are you ok with taking a big gain? The answer is likely yes, but when it comes to a big loss, you should also have an answer. Let’s face it, no one is a perfect trader and you’ll likely encounter some loss.
But it’s how you manage this, which will be a key to your success. Some people get married to penny stocks which means that even during deep drops, they continue to hold with hopes of the stock rebounding. The fact is that these stocks may not recover depending on why the stock dropped initially. So keeping tighter stop losses during periods of high volatility may be an example of managing higher risk trades.
Paper Trading Is An Option
Keep in mind that paper trading can be your friend. You won’t make money but you won’t lose it either. You can get comfortable with buying and selling penny stocks without risking your own money to do so. It will help you get more comfortable with how to manage risk and what to look for as far as your preferred volume profile for certain stocks.
At the end of the day, you are the only person who can buy or sell. Getting caught in the hype may suggest that you “blame the other guy.” But you have the ultimate choice. So make sure you have a strategy, tune out the noise (hype), and be able to effectively manage risk. If you’re still left with questions, check out our Penny Stocks FAQ for more.