3 Hot Penny Stocks on Reddit For Summer 2021
As Summer comes on fast, penny stocks are heating up. While typically, the Summer is a time when the market slows down in volume, access to trading platforms like Robinhood could mean that this is a thing of the past. And, with the major influence of Reddit on penny stocks, investors can only hope that volume remains incredibly high.
In the past few days, we witnessed another rise in value for AMC Entertainment Holdings Inc. (NYSE: AMC). This is due to the sway of Reddit and more specifically WallStreetBets. These traders aim to beat out large institutional short positions, and invest on emotions rather than fundamentals. While this can be a good strategy, sitting on the sidelines and finding the most talked about penny stocks on Reddit can be another good strategy.
But as always, do your own research. There are hundreds if not thousands of penny stocks out there. And, only a handful offer true value to investors. Because of this, it’s easy to come across penny stocks that may look good in the short term, but have no value in the long game.
And, the influence of social media makes these stocks move extremely quickly. This can result in both big gains and big losses. But, most of the time, investors will hop on board due to the fear of missing out or FOMO.
While trading penny stocks doesn’t take a doctorate in economics, it is wise to educate yourself on how to trade. This is the best way to avoid losing money and to make potentially winning buys and sells. With this in mind, let’s take a look at three Reddit penny stocks for your Summer 2021 watchlist.