What Penny Stocks Are Investors Watching as Russia Enters Ukraine
Trading penny stocks in the last few weeks has been complicated to say the least. While prior to this time, the emphasis from the market was on increasing interest rates, now, it is fully dependent on what occurs with Ukraine.
Only recently, Russia decided to enter Ukraine, and since, sanctions have been placed on the former with major economic implications for the world, wreaking havoc on the stock market. Because of this, we’ve seen major up and downs with penny stocks and blue chips, and it doesn’t look like this volatility is going anywhere anytime soon. Because our world moves so quickly, news continues to come out daily with updates on the situation.
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And every time it does, we often see either a positive or adverse reaction from the market. As you may know, penny stocks are highly volatile and extremely reactive. This means that paying attention to the news is more important than with any other investing. So, with all of this in mind, let’s take a look at three strategies and tips that investors are using to make money with penny stocks right now.
3 Strategies to Make Money With Penny Stocks Right Now
- Understand How News Affects Penny Stocks
- Which Industries Are Penny Stocks Traders Watching?
- How to Make Money With Penny Stocks in 2022
Understand How News Affects Penny Stocks
Understanding how news affects penny stocks is a crucial step to investing. While it can be difficult when just starting out, investors will quickly find that news is the largest driver of price movement in the stock market. While penny stocks are more subject to volatility from news, the entire stock market is incredibly reactive. And because of this, using the news as a basis to find penny stocks to buy, can be an effective way to make money with small caps.
Right now, the main news as we all know has to do with Russia and Ukraine. And in the past two weeks, this has continued to drive the price of all stocks, not just penny stocks. Those two knew how to take advantage of this event, brought in plenty of profits, however, those who did not, quickly saw losses add ups. When it comes to understanding the news, there are obvious ways to make money with events, and less obvious.
Take the Ukrainian conflict for example. When it began, we saw many defense stocks climb substantially in a short time frame. This makes plenty of sense as defense is an obvious industry that could experience growth. However, we also witnessed the price of energy penny stocks climb significantly. This is obvious, however, not as obvious as the former. So. Taking all of this into consideration is crucial when attempting to make money with penny stocks in 2022.
Which Industries Are Penny Stocks Traders Watching?
Right now, there are several industries that investors of all types are watching. The first and foremost as mentioned above, is energy. In the past few weeks, the price of oil has jumped tremendously. We recently witnessed WTI reach over $116 per barrel. This is a significant move and highlights the effects of the Russian invasion of Ukraine.
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Moving forward, we are also seeing a large emphasis on renewable energy penny stocks and blue chips. This has to do with the same reason that fossil fuel based stocks are climbing. But, as we see our dependence on fossil fuels result in skyrocketing prices, many investors see the future of alternative energy. This includes nuclear power, solar, and other renewable energy sources.
Lastly, we are seeing an increased emphasis on mining stocks and gold stocks in particular. During any time of geopolitical conflict, investors will turn to gold stocks as a way to hedge bets against conflict. And, that is exactly what is happening right now. While gold stocks can still be volatile, the underlying resource does not tend to move in great amounts daily. But, in the past few weeks, we have seen the price of gold climb substantially. So, with all of this in mind, which industries are you watching right now?
How to Make Money With Penny Stocks in 2022
Making money with penny stocks in 2022 is similar to many years prior. However, right now, we have several extreme factors that are in play. This includes the conflict in Ukraine, rising interest rates, and inflation. Because all of this is happening simultaneously, it can be difficult to keep up. But, understanding exactly what is going on in the stock market and how to take advantage is crucial.
In addition, traders should have a well thought out trading strategy that can stay updated with the times. This means knowing your tolerance for risk and using that daily. And, traders should also have a through understanding of their long term goals. This will help to solidify which penny stocks are worth buying and which are not. Considering that, which penny stocks are going to be on your list this year?
3 Penny Stocks to Watch Right Now
- Zomedica Corp. (NYSE: ZOM)
- Southwestern Energy Company (NYSE: SWN)
- Tellurian Inc. (NYSE: TELL)
Are Penny Stocks Worth Buying in 2022?
The short answer to this question is that it is completely up to you. While it can be difficult to pick the best penny stocks to buy, understanding what the trends are and using them as an advantage, is easier than imagined. Now, if we consider what’s going on in the stock market, we can begin to think outside of the box to find ways to profit.
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One thing to keep in mind is what your tolerance for risk is. With such a high degree of volatility in the stock market right now, prices continue to surge and fall by large amounts, daily. So, with all of that in mind, do you think penny stocks are worth buying in 2022?
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