Should These Penny Stocks Be On Your Buy Or Sell List Today?
No one ever wants to end up buying penny stocks that fail to break out. But how do you find the best ones? As we’ve discussed this weekend, there are many ways to find the best penny stocks to buy. It all begins with determining the timeframe you plan on holding such stocks.
If you’re day trading, the plan should be focused on getting into and out of trades in a shorter time frame. If you’re looking for penny stocks to invest in or swing trade, then you’ll be looking for things like consistent trends and lower levels of volatility. While all penny stocks on your watch list may not work out as successful trades, the more research you do, the better.
Efficiently Trading Penny Stocks
Something else to consider is what to do once you’re actually in the trades themselves. The goal should always be to make money and avoid taking losses. Easier said than done, I know, but taking small losses are just as important as securing gains. Here’s an example to think about: Let’s say you make 10 trades and 7 of those trades were technically losing trades.
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You managed to cut losses quickly and only lost about 10% of your initial capital, total. However, the 3 winning trades ended up returning 20% each. While you’re technically looking at a low “win rate”, you’re net-positive at the end of those 10 trades. Instead of taking large losses on the losing trades, you cut your monetary losses early. Sometimes the best trades you can make are the ones that save your account from imploding.
Strategy definitely has a place in your overall approach to trading, obviously. But slight nuances like this are key to becoming consistently profitable. With that in mind, are these on your list of penny stocks to buy now or should they be avoided at all costs?
Penny Stocks To Buy [or avoid]: Hexo Corp.
A continuation of last week’s marijuana market momentum, Hexo Corp. (HEXO Stock Report) pushed to new October highs on the 12th. As we discussed this weekend, marijuana penny stocks and larger-cap stocks in the space are experiencing a new uptrend after the Vice Presidential debates.
Vice Presidential candidate Kamala Harris said marijuana would be decriminalized at a federal level in the United States under a Biden administration. She also said that the Biden administration would expunge the criminal records of people convicted of marijuana-related offenses in the past. On top of this, the Democrat-backed HEROES 2.0 package for stimulus relief included some verbiage on the SAFE Banking Act. This would effectively allow banks and other financial institutions to work alongside state-legal marijuana businesses.
Considering that this is more of a sector-wide move, HEXO stock has experienced a strong 4-day move. The biggest question right now is can it continue? Canadian markets were closed on Monday for the country’s Thanksgiving. This likely saw fewer market participants that would have normally been trading pot stocks on Monday. We’ll have to see how this scenario unfolds as the week goes on.
Penny Stocks To Buy [or avoid]: Camber Energy Inc.
Camber Energy Inc. (CEI Stock Report) was a popular energy penny stock last week that saw a move to highs of $1.25. After pulling back on Friday, the early morning session on Monday has seen an about-face in price. Just before the 11 AM EST hour, CEI stock hit a high of $1.08 along with an uptick in trading volume.
One of the key points of interest with Camber is its pending merger with Viking Energy Group Inc. Friday, the companies announced that they are currently working to finalize an amendment to Camber’s Registration Statement on Form S-4. Camber said it planed to file early this week, to respond to customary Securities and Exchange Commission comments.
Once Camber has cleared comments from the SEC on the Form S-4, the parties plan to promptly move forward with setting the record dates for their special meetings to seek stockholder approvals for the merger. As the week progresses, this could be a point of focus for traders following this company closely.
Penny Stocks To Buy [or avoid]: Marathon Patent Group Inc.
Another one of the penny stocks we’ve discussed recently is Marathon Patent Group Inc. (MARA Stock Report). Though the company hasn’t released any of its own news, MARA stock has benefited from sector catalysts. Marathon mines digital assets. It owns crypto-currency mining machines and a data center to mine digital assets. The company operates in the Digital Currency Blockchain segment and its crypto-currency machines are located in Canada.
Since the end of September, the price of Bitcoin has climbed. With that, so have several cryptocurrency stocks. The big news last week has helped boost the crypto market even more. This came from digital payment company, Square (SQ Stock Report). The company announced that it bought 4,709 bitcoins, worth approximately $50 million. This is roughly 1% of the company’s total assets as of the end of its second quarter.
The company expressed that it believes “cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose.”
As the prices for cryptocurrencies like Bitcoin continue to rise, related stocks like MARA could be on the watch lists of many traders. This week began with MARA stock reaching premarket highs of $2.50 on Monday.
Penny Stocks To Buy [or avoid]: Nano Dimension Ltd.
Nano Dimension Ltd. (NNDM Stock Report) continued extending its multi-day move that began last week. Shares of the company have been trading higher ever since the end of September. The company recently completed a $16.9 million financing going toward “working capital”.
While there haven’t been many new developments from the company, NNDM could be experiencing sympathy momentum from other 3D printing stocks. Recently, shares of companies like 3D Systems and Stratasys Ltd were flying high. The company provides machines for the fabrication of Additively Manufactured Electronics (AME). Nano Dimension’s printing technology allows for a comprehensive manufacturing printing platform for round-the-clock 3D printing of electronic circuitry.
With this latest surge, NNDM stock has once again made a new October high. Over the last few months, one of the consistent areas of resistance has been around $3.30. If NNDM stock can test this area again, will it manage to break and hold above it for good or is another pull-back coming?