3 Things to Watch for With Penny Stocks This Month

When it comes to trading penny stocks, there is a lot for investors to consider. For starters, penny stocks are volatile and tend to be much more risky than other types of stocks. This is because penny stocks are under $5 per share, which means that volume can be extremely high. Therefore, we tend to see major movements with penny stocks at a high frequency.

On the other hand, some penny stocks can have very low volume due to no news circulated about the company. This means that large price jumps can happen with no notice. So, always make sure to have a well defined penny stock trading strategy before investing in penny stocks.

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When trading penny stocks, always remember to do your research. There are a lot of nuances to trading, and it’s easy to get caught up in the hype. Always make sure you know what you’re buying, and never invest more than you can afford to lose. With so much news circulating constantly with small-caps, investors need to understand all of the factors on the table before investing. So, with all of this considered, let’s take a look at what you need to know about trading penny stocks in July 2022.

3 Factors to Watch For in July 2022

  1. Market Trends to Watch in 2022
  2. How to Trade Penny Stocks
  3. What to Watch in the Next Few Months

Right now, there are many market trends that are at play. The major trend right now is the bear market that we have witnessed in the past few months. This bear market has penny stocks very much in play. But, trading in a market downtrend is not easy and can lead to big losses if you don’t know what you’re doing.

trends penny stocks

Just like any other investment, penny stocks require due diligence and a level head if you want to be successful. Some current trends include rising bullish interest with biotech stocks, the climbing price of oil and gas, and more. These have caused large volatility and penny stocks have seen some big swings.

The current market trend is very important when considering penny stocks. You need to be aware of the conditions and how it can affect your investment. Penny stocks are more volatile than other stocks and can be much riskier, so tread carefully.

How to Trade Penny Stocks

If you’re thinking about buying and selling penny stocks, it’s crucial to know how to trade. With trading penny stocks, it all comes down to having a trading strategy. This is typically separated into two distinct categories: short term trading and long term trading.

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One one hand, we have short term penny stocks strategies such as scalping and day trading. These are penny stocks strategies where you hold onto penny stocks for a very short period of time, typically only a few minutes, hours or days. These can be great for traders of all types, but, they require a lot of time, energy and focus.

On the other hand, we have long term penny stock strategies. These are penny stocks strategies where you hold onto penny stocks for a longer period of time, anywhere from a few weeks to a few months. These can be great for more passive traders who don’t want to spend all day glued to a screen. And, if you have confidence in the long term trajectory of a company, this can be a great way to take advantage.

What to Watch in the Next Few Months

penny stocks months

Some of the biggest issues in the stock market right now include inflation and rising interest rates. With the most recent jobs reports showing positivity, it is very difficult to say what will happen in the coming weeks. But, what we do know with certainty is that volatility will likely continue. This is something that many traders are used to and something that can be a benefit if used correctly. While inflation is not the only issue, it is a pressing one. 

And as a result of the pandemic, we have also seen major issues surrounding the most recent bear market and the threat of a recession. So, with this, many investors are trading right now with a high level of cautious optimism. Considering that, what are you watching with penny stocks in the coming months?

3 Penny Stocks to Watch Right Now

  1. Jaguar Health Inc. (NASDAQ: JAGX)
  2. Oatly Group (NASDAQ: OTLY)
  3. Opko Health Inc. (NASDAQ: OPK)

Which Penny Stocks Are You Watching?

While making a penny stocks watchlist is not easy, it is important to penny stock traders. Why? Because penny stocks are very volatile and can make large percentage swings in price very quickly. This is both good and bad news. You can make a lot of money quickly trading penny stocks, but you can also lose a lot of money just as quickly.

[Read More] Best Penny Stocks To Buy Now? 4 To Watch After Jobs Report

So, always make sure that you have a well-thought-out trading strategy that can adapt to the shifting market conditions. At the end of the day, trading penny stocks is not easy. But, with the right tools by your side, it can be possible to make money with small caps. With that in mind, which penny stocks are you watching right now?

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