Can You Really Buy Penny Stocks With A Day Job?
Do you work a full-time job but want to find penny stocks to buy? You’re not alone. While the pandemic put more than 3 million new accounts into the Robinhood app, things are starting to get back to some semblance of normalcy. That is, at least, on a more basic level.
Even if it’s remote work, people are now beginning to go back to a day-job. The 10 AM “Yolo trades” might be a thing of the past for some budding scalpers who caught the trading-bug earlier this year. But does that mean the dream of making money in the stock market is over? In my opinion, not by any stretch of the imagination.
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But if you can’t be in front of your trading platform or have a mobile app open, trading can be difficult. Now, there’s a huge caveat to this article. In order to actively trade with a full-time job, there will be some attention you need to place on your holdings. It might not be minute-by-minute. But setting up price alerts, keeping stop limits in place after entering a trade, and monitoring corporate & industry developments is what many “full-timers” are implementing.
Trading Penny Stocks With A Full-Time Job
These basic backstops essentially work as just that. If you aren’t monitoring your trade every second of the day and a penny stock experiences a sharp drop, having a stop order in place will help protect you from a big loss. If you aren’t familiar, stop-loss or stop-limit orders are safety nets traders can set that trigger a sell order if/when a stock drops to a certain level.
There isn’t a need for any manual intervention. Furthermore, you can set price alerts that send you an update to alert you that a stock has reached a certain price. While they won’t automatically buy or sell a stock for you, it will give you an update on certain price levels. These are helpful when you haven’t bought a penny stock yet, but want to take advantage of a price dip, for instance.
Trading penny stocks on Robinhood or any broker, for that matter, requires timing and patience. You can only leave your desk so many times in a day and many companies don’t look highly upon someone “playing with their phone”. However, if you are able to stick to a strategy, put things in place to limit losses, and have some time during the day to check in on your active trades, there are ways to make money in the stock market.
Penny Stocks On Robinhood To Watch
- Gerdau SA (GGB Stock Report)
- Rolls-Royce Holdings (RYCEY Stock Report)
- MannKind Corporation (MNKD Stock Report)
One of the strategies is called swing trading. This is a trade that lasts a few days and possibly, a few weeks depending on the trend. You’ll want to find stocks with consistent trends that have a lower likelihood of high-volatility swings. I know it might seem boring but if you can’t monitor the market every minute of the day, what you give up in volatility, you will probably make in peace of mind.
Once again, not all penny stocks will be the best for swing trading. Furthermore, not all penny stocks you think are good swing trades will be winners. In this case, I have to emphasize that protecting against loss is very important when it comes to passive trading. With this in mind, here’s a list of penny stocks on Robinhood to watch right now. Will they be good buys or should you avoid them at all costs?
Robinhood Penny Stocks To Buy [or Avoid] #1: Gerdau SA
Gerdau SA has been one of the basic materials stocks to watch this year. After dropping in March, GGB stock has maintained a consistent uptrend. As boring as some swing trades might be, the fact is, GGB was $1.65 in March and now trades over $4. You can also see on the chart, that move didn’t come overnight and while there were spurts of volatility, it wasn’t nearly the same as some of the biotech penny stocks we’ve seen this year. Needless to say, mining penny stocks are a hot topic especially this year. The discussion on infrastructure spending, fiscal stimulus, and general economic recovery overall is a frequent one being had.
Gerdau produces steel and steel products for a wide range of applications. This ranges from traditional construction to automotive and agricultural products. We’re talking things like nails, rebar, mechanical construction bars, and reinforced steel to name a few. With operations in North and South America the company has cast a wide net. Mainly, however, Gerdau generates most of its revenue from operations in Brazil.
GGB Stock Trend
Something to note with GGB stock right now is that it’s climbing days in advance of its next earnings report. In its Q2 earnings call, CEO Gustavo Werneck said the company would report third-quarter results on October 28. Considering that is 3 trading sessions away, will GGB stock be on the list of penny stocks to buy or avoid heading into next week?
Robinhood Penny Stocks To Buy [or Avoid] #2: Rolls-Royce Holdings
Normally you don’t see OTC penny stocks on Robinhood. However, it looks like, at least for now, there’s been an exception to the rule. Rolls-Royce Holdings, as of this article, is tradable on the platform. Where most people associate the brand with high-end luxury cars, the real story with Rolls has little to do with the cars itself. BMW actually holds the rights to the name and marque for use on Rolls-Royce cars.
The company’s history is built upon a strong foundation of engineering. Everything from aerospace and defense to power systems and big data, Rolls has worked to establish itself as a leader in the industry. This year was a tough one for it and many companies that have a hand in aerospace. In fact, prior to COVID, RYCEY stock was trading north of $10.
RYCEY Stock Trend
Over the last few weeks, Rolls has reached a few milestones that have reestablished some confidence in the market. This has resulted in a climb from under $1.40 to current trading levels above $3. Again, this move didn’t happen overnight. Furthermore, the selling took the stock so low that analysts actually considered it over sold even in light of the recent financial issues the company is trying to navigate through.
“RR [Rolls-Royce] is set to post record gains for this week as investors are buying the stock as it is way too cheap.”Naeem Aslam, chief market analyst at AvaTrade
The company’s recently announced a $13.9 million investment in its Power Systems business for new R&D. This is set to expand its MTU power generation manufacturing facility in Minnesota. Rolls is also leading the nine-member consortium to design the “rapid assembly” nuclear power stations to help the UK meet carbon emissions targets. Will these latest milestones continue fueling this latest uptrend in the penny stock?
Robinhood Penny Stocks To Buy [or Avoid] #3: MannKind Corporation
One of the other penny stocks that has quietly mounted a triple-digit move this year is MannKind Corporation. Shares were just 80 cents in March and currently trade above $2. Again, that move didn’t come overnight and took a few months. Not only were there a few big breakout days, but the general trend has also maintained itself during this period.
Aside from presenting in a few investor conferences last month, MannKind has been relatively quiet as far a press is concerned. The company develops and commercializes inhaled therapeutic products. It offers a product called Afrezza which is an inhaled insulin for improving glycemic control in adults with diabetes.
MNKD Stock Trend
Again, the overall trend has been relatively bullish since March. That isn’t to say it can’t change and many know how volatile penny stocks can be no matter the prior direction the price is moving. Something that investors might be looking at right now is MannKind’s upcoming earnings.
The company’s expected to announce these in early November. Right now, analysts at Zacks expect the company to report sales in a range of $15.5 to $16 million. In its last quarter, the company reported an EPSloss of 5 cents, which was in line with estimates while sales beat analyst expectations coming in at $15.11 million compared to $14.76 million. Its gross profit was also $3.3 million, higher than the $1.7 million the previous year; a 94% increase.
In light of this, will MNKD stock continue along this 7-month trend heading into its next earnings report?