Buying Penny Stocks on May 20th? Here’s What You Need to Know
With penny stocks and blue chips more volatile than ever, there is a lot that investors need to keep track of. Although trading penny stocks can be difficult, with the right strategies on hand, it can be much easier than previously imagined.
[Read More] Why These Penny Stocks Climbed on May 19th, 2022
Now, the best course of action for buying and selling penny stocks is to understand your investing goals. Once you have this figured out, it’s time to familiarize yourself with what is going on in the stock market. With this considered, let’s take a look at what you need to know about buying penny stocks on May 20th, 2022.
Stock Market Recap, May 19th, 2022
On May 19th, U.S. stocks fell once more. This comes on the back of the worst trading day since June of 2020. And as we all may know, the majority of the bearish sentiment in the market right now is due to rising interest rates, and the threat of even higher inflation in the near future.
While Thursday, May 19th, was nowhere near as bad as the day prior, we still saw the S&P 500 drop by around 0.6% during intraday trading. A bear market is defined as 20% down from a recent high, and with the S&P 500 down by around 19% since its all-time high in January, we are approaching that number. So, with that in mind, let’s take a look at what you need to know about trading penny stocks on May 20th.
What to Know About Trading Penny Stocks Today
With some of the worst trading days in months occurring in the past few days, there is a lot for investors to know. In order to protect your finances, it is crucial to have a full and consistent understanding of what is going on in the market.
Right now, investors are grappling with issues such as inflation, rising interest rates, and geopolitical tensions. And as a result of all of this, we are seeing a major bear market take hold. So, keep all of this in mind as we end another painful trading week for penny stocks and blue chips.
3 Penny Stocks to Watch Today
Bitnile Holdings Inc. (NYSE: NILE)
On May 19th during trading and after hours, shares of NILE stock managed to shoot up by over 7.9% and more than 3.7% respectively. This follows a five day gain of almost 10% for the company. Because NILE stock is so volatile, many investors choose to avoid it.
However, the company does have exposure to the fast-paced cryptocurrency market. This means that if you’re looking for large and volatile price movements, NILE stock could be for you. So, with that in mind, will it be on your penny stocks watchlist today?
Epicure Inc. (NASDAQ: XCUR)
During trading, shares of XCUR stock shot up by over 2.7%. And while this may not be a lot, in after-hours on May 19th, we saw shares of XCUR stock shoot up by more than 15%, which is quite substantial. So, why are XCUR shares climbing right now?
The most recent news from the company came a few days ago when it reported its Q1 2022 financial results. In the results, it announced a $1.6 million rise in revenue over the same quarter in the previous year. And, the company also announced that it held more than $27.6 million in cash on hand. Considering that, do you think XCUR stock is worth buying or not?
Waitr Holdings Inc. (NASDAQ: WTRH)
Another decent gainer on May 19th was WTRH stock, which shot up by more than 10% during trading and into after hours. This comes after a five-day uptick of more than 16%. Right now, these gains are a great sign for investors as the company has dropped by more than 25% in value in the past month.
The most recent news for it came a few days ago when it announced its Q1 results. In the results, it posted revenue of $35 million, which is slightly less than the $38.6 million it posted in Q4 2021. So, while this is not encouraging news, its recent bullish momentum is.
Which Penny Stocks Are You Watching Right Now?
With high volatility in the stock market right now, investing in penny stocks is all about understanding how to take advantage. This means knowing what factors are impacting the stock market, and which could benefit your portfolio. So, with all of this in mind, which penny stocks are you watching right now?