Over the years, penny stocks have managed to create a lot of wealth for investors. The possibility of generating enormous returns from small investments makes these stocks attractive. However, it should also be noted that it is easier said than done. An investor needs to conduct thorough research in order to discover potentially winning stocks.
If you make the wrong choice then there is every chance of making losses as well. Keep in mind that just as quickly as something can rise, it can fall at the same rate or faster. Make sure you take time to learn how to trade penny stocks before jumping in headfirst.
Once you have sound footing and a good understanding of how to research and how to trade, you’ll be well-positioned to start. On that note, here is a look at three penny stocks to watch before next week. Will they be able to continue their trends?
Penny Stocks To Watch #1 FuelCell Energy
One of the penny stocks that could be considered by investors is FuelCell Energy (FCEL Stock Report). It has made highly impressive gains in recent weeks. The company’s stock has gained more than 100% after it announced that the wastewater facility in Tulare, California is now operational.
FCEL stock further extended its gains on Tuesday as it climbed by as much as 49.50%. This came as the optimism surrounding the company continued to build. Trading volumes shot up to as much as 6.4 million shares prior to the beginning of the trading session. By the end of the session, more than 151 million shares had been traded in the market.
This obviously reflects the sort of interest in the stock at this point in time. The stock has soared over 200% over the past week and continued to make new highs on Thursday. Since the beginning of November, shares of FCEL stock climbed by a staggering 1,121%. Can that remain the case to finish out the week?
Penny Stocks To Watch #2 Tarena International
Another penny stock worth considering is that of Tarena International Inc (TEDU Stock Report). It has managed to record a more than 240% increase in price since the beginning of November. On December 18, the company announced that the NASDAQ Hearings Panel provided it with a compliance extension.
The data has been extended to April 24, 2020, and it proved to be a positive development for Tarena. The rally started soon after. It continued well into this week as investors continued to pile on to TEDU stock. There hasn’t been a noticeable pull-back (yet). But it’s important to keep in mind the kind of basic fundamentals of trading. In cases like this, it’s vital to understand how to manage risk.
[Read More On TEDU] Can These Penny Stocks Move Higher?
Stocks won’t go up in a straight line forever. So, if there is a pull-back, you don’t want to be the one getting stuck holding a bag. This isn’t to say TEDU is topped out whatsoever. But I’d rather make sure everyone keeps that in mind in the meantime.
Penny Stocks To Watch #3 Protalix Biotherapeutics
The third penny stock that has gained momentum over the course of the past week is Protalix Biotherapeutics Inc (PLX Stock Report). Back on December 19, the company announced that it is going to induct two highly accomplished biopharmaceutical executives to its board.
The people in question are Gwen Melincoff and Pol Boudes, both of whom became board members effective January 1, 2020. PLX stock has rallied 32% over the past week and on Friday it gained another 13.50%. It did pull back from Thursday’s highs of $3.74. However, PLX remains well-above where it was at the start of the fourth quarter in 2019.
