3 Ways to Make Money With Penny Stocks This Year
Investing in penny stocks can be a great way to make money if you know what you’re doing. Because of that, it’s crucial to take these three steps into account. In this article, we’ll look at three different strategies for investing in penny stocks in 2022.
How to Make Money With Penny Stocks in 2022
The first strategy is to find stocks that are undervalued by the market. You can do this by looking at the company’s earnings and revenue, and comparing them to the stock’s current price. If the stock is trading for less than its book value, then it might be a good investment.
The second strategy is to find penny stocks that are in a growing industry. You can do this by looking at the sector that the company operates in, and making sure that it’s growing. You can also look at the company’s earnings growth and revenue growth to make sure that it’s headed in the right direction.
The third strategy is to understand what is going on in the stock market, and use that to your advantage. Because there is so much information around, using data and news can help you to understand where the next winners may be.
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This means looking at the most recent geopolitical updates, understaffing the U.S. economy and its trajectory and more. We all know that penny stocks are extremely volatile and speculative. And because of this, they tend to be swayed by the news very easily. In the past few weeks, the majority of news has related to the tension in Ukraine.
And because of this, investors are paying attention. Now, the latest update involves rising interest rates in the U.S. As you can see, the market is always changing, and investors are always adapting. So, with this in mind, let’s take a quick look at three penny stocks that investors are watching in March 2022.
3 Penny Stocks to Watch in March 2022
- Color Star Technology Co. Ltd. (NASDAQ: CSCW)
- Clover Health Investments Corp. (NASDAQ: CLOV)
- BioNano Genomics Inc. (NASDAQ: BNGO)
Color Star Technology Co. Ltd. (NASDAQ: CSCW)
Color Star Technologies is a penny stock that we have discussed numerous times in the past few months. And recently, we’ve seen a sizable uptick in the amount at which CSCW stock is moving. In the past five days or so, shares of CSCW stock have climbed by over 15%. This is a sizable gain and reflects both positivity surrounding the company and the industry at large.
Now, despite a one-year drop of more than 75%, we have begun to see a small bullish turnaround for the company. For this reason, let’s take a closer look at why shares of CSCW stock have been climbing recently. The biggest news for Color Star recently came on March 9th. On the 9th, it announced a cooperation agreement with Guangxi Qiuyinong to show off virtual art on the Color World metaverse platform.
“Although our software Color World is a beta version now, from the users’ feedback after it was released, the software construction and screen experience are both quite satisfactory, which makes us more confident to continue investing in the R&D and optimization.”
The CEO of Color Star, Lucas Capetian
With this exciting news in mind, will CSCW be on your list of penny stocks to watch?
Clover Health Investments Corp. (NASDAQ: CLOV)
Another penny stock that has been seeing attention in the past few weeks is Clover Health Investments. Over the last month period, shares of CLOV stock have shot up by over 55%. This was and is big news and continues to be the reason that so many investors are watching CLOV stock right now.
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The largest recent news from Clover Health came on February 23rd when it announced its Q4 2021 financial results. In the results, the company posted total revenue up by over 160%. In addition to this, the company stated that total revenue for 2022 is expected to be more than $3 billion.
“We are really excited about where Clover sits today and our prospects in the future. We are enabling physicians to provide great healthcare to all, especially those in underserved communities, and are pleased to see increasing focus from CMS on health equity.”
The CEO of Clover Health, Vivek Garipalli
Considering this, do you think that CLOV is worth adding to your penny stocks watchlist?
BioNano Genomics Inc. (NASDAQ: BNGO)
On Thursday, March 17th, shares of BNGO stock managed to climb by over 10%. This is the largest recent gain we’ve seen with BNGO stock, and is indicative of major positive sentiment for the company right now. If you’re not familiar, BioNano Genomics provides genome analysis solutions.
This allows it to offer sequencing, microarray data, visualization, and much more. Right now, there is a large emphasis on biotech penny stocks. And because of that, companies like BNGO have continued to see more and more attention. So, with all of that considered, is BNGO worth adding to your penny stocks watchlist or not?
Are Penny Stocks Worth Buying?
When it comes to stocks, there are a lot of different opinions out there. Some people believe that investing in penny stocks is a great way to make money, while others think that it’s not worth the risk. So, what’s the truth? Is investing in stocks worth it or not?
Well, there’s no easy answer to that question. It all depends on a variety of factors, including your investment goals, risk tolerance, and financial situation. If you’re looking to make a quick buck, then stocks are probably not the best option for you.
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However, if you’re willing to take on some risk and you’re patient enough to ride out the ups and downs of the stock market, then penny stocks can be a great way to achieve your financial goals. So, is investing in stocks worth it? Ultimately, that’s a decision that you’ll need to make for yourself. But if you’re willing to take on some risk and you have a long-term investment horizon, then penny stocks can be a great choice.
