Are These 5 Companies On Your List Of Penny Stocks Right Now?
There’s no doubt that penny stocks are best known for volatility. No matter how you look at it, the general feeling about these cheap stocks is speculative in nature. However, one thing you shouldn’t do as a trader is to treat these like a lottery ticket. There are viable companies out there that are working to build a real business. The things you see in movies like Wolf of Wall Street or Boiler Room are typically few and far between.
Are penny stocks risky? The answer there is, of course, these stocks are risky like all investments. However, due to the lower prices, small shifts in value can swing percentage moves dramatically in one direction or another. It’s this factor that can give a bad taste in the mouths of those who are new to buying penny stocks. The reason being is that these “noobs” will tend to treat penny stocks like a lotto ticket. At the end of the day, these are investments, no matter how risky. So they need to be treated as such.
So, keeping this in mind, you should put work into researching one of these types of stocks just as much as you would Facebook or Twitter. Look for things like strong news, big corporate filings, and upcoming presentations that could lead to speculative momentum.
Also, if you can’t manage to be at your computer every minute of the day, it may be best to look for penny stocks to buy that could have the potential to become swing trades. With this in mind, here are 5 stocks that have started to trend this month. Will they be the best penny stocks to trade next week as well?