Tech Penny Stocks To Watch Before 2021
When it comes to penny stocks, speed can be very important. What I mean by this is that, for the most part, these are better suited for day traders than investors. Now, I said, “for the most part”. This isn’t to say that it’s bad to invest in all penny stocks. One of the toughest things for new traders to understand is how and when to take a profit. It’s so easy to ask yourself “will it just keep going” or “if I sell, I might miss out”. The fear of missing out or leaving money on the table is probably one of the biggest reasons traders get burnt with stocks under $5.
So how do you get over this FOMO? Have a strategy and a set of rules. The fact of the matter is that if a bullish trend is truly strong, you’ll have more opportunities to enter a trade. There’s also a strategy called tier trading that can be implemented. I won’t get into the full “how to day trade” discussion in this article. But I’ll give you a brief synopsis of day trading using a tier trading method.
In short, this method involves scaling into and out of trades in pieces. The first “tier” would be a small starter position. Let’s say you wanted to put $1,000 into a given stock. Your starter might be something like $250 or 25% of your overall capital. If the trade continues how you planned, another tier would be built on. This might be something a bit larger, say 50% of your overall capital.
Assuming the trade moves further how you planned, you might take initial profit to recoup your principle. This secures your money and if the stock pulls back, protects you from incurring a loss. Furthermore, let’s say the stock continues higher after that. You still have a small position that acts as a lower cost average to then build back upon.
Tech Penny Stocks To Watch
- Professional Diversity Network (IPDN Stock Report)
- GEE Group (JOB Stock Report)
- IZEA Worldwide Inc. (IZEA Stock Report)
With the idea of “speed” in mind, here’s a list of fast-moving penny stocks today. Will they be viable trades based on your strategy?
Tech Penny Stocks To Watch #1: Professional Diversity Network
Professional Diversity Network is no stranger to big moves in short timeframes. It’s also no stranger to leaving traders “holding the bag”. Knowing this, if IPDN is on your list of penny stocks to watch, understand volatility can play a huge role right now. Why do I say this? Wednesday morning the company announced a partnership with Phala Network. Phala is a technology company specializing in confidentiality-preserving and privacy-first blockchain application development.
As we know, bitcoin and blockchain stocks are in a very bright spotlight right now. Thanks to the price of bitcoin soaring this year, many traders are simply hungry for related headlines. Again situations like this can pose a higher degree of risk/reward. As we’ve already seen today, IPDN stock skyrocketed early on to highs of $5.56 and almost immediately pulled back soon after. That pullback was a hefty 31%. Now the question becomes, will IPDN be able to rally again before the end of the day?
Professional Diversity Network has been in the trading discussion off and on for a few months now. Mainly, the company focuses on matching qualified job seekers with employers and helping to break down barriers for all jobseekers. This latest move to build a blockchain option into its platform could further enhance PDN’s offering. Regardless of the fundamentals here, the bigger focus in the short term is likely a low float penny stock with a news catalyst. So, again, if IPDN stock is on your list, keep this in mind.
Tech Penny Stocks To Watch #2: GEE Group
GEE Group could be moving in sympathy with IPDN. The company, as the stock symbol may suggest, is a staffing solutions provider. Unlike IPDN, JOB stock has been climbing the last few days and further extended gains on Wednesday. What else has helped things on Wednesday is news of its own.
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Specifically, GEE Group announced its fiscal 2020 and Q4 results late, Tuesday afternoon. Revenue for the quarter was down compared to the same period in 2019. This was echoed in the total year’s revenue as well. However, moving forward into 2021, it looks like the company expects a recovery trend to take hold.
“Demand for our services through the end of 2020, absent the holiday schedule, continues to improve. We anticipate that the employment environment will continue to recover as we enter the New Year. The widespread use of on-demand labor coupled with continued requirements for full time hires, will benefit our Company in 2021 and beyond. Our talented field leadership team and local office professional staff continue to deliver outstanding customer service, and thus we are optimistic about GEE Group ‘s continued success as we enter into 2021.”Derek E. Dewan, Chairman and Chief Executive Officer of GEE Group
Whether it’s sympathy momentum fueling this move or headline catalyst, JOB stock has a history of quick jumps and swift pullbacks. In light of this, it’s important to keep the technical trend in mind in my opinion.
Tech Penny Stocks To Watch #3: IZEA Worldwide Inc.
IZEA Worldwide Inc. is another one of the tech stocks to watch. However, unlike IPDN and JOB, IZEA stock has seen a more consistent trend in December. Albeit a huge jump in price, the move came with plenty of volume, consistent price appreciation, and news. The company most recently announced a new contract for influencer marketing services. It came from an existing client who is a Fortune 100 retailer according to IZEA.
Further to this, IZEA explained that the contract, in combination with other recent wins, pushed its Managed Services bookings growth in Q4 to a 47% jump compared to last year.
“We are thrilled to be able to deliver annual growth of Managed Services bookings during the most challenging and unpredictable year in our history. While we are winding down the 2020 calendar year, our team remains focused on maintaining our positive momentum and entering 2021 with the wind at our back.”Ted Murphy, IZEA’s Chairman and CEO
If you remember from earlier this month, the company announced strong growth in Managed Service bookings. At that time the year-over-year increase for the 4th quarter was already 40%. Furthermore, Managed Services customer counts more than doubled between the 3rd and 4th quarter this year according to IZEA. In light of this growth, will 2021 become an even stronger year?