Buying Penny Stocks on August 8th? Here’s What You Need to Know
If you’re thinking about investing in penny stocks, now is a good time. The stock market has been on a tear lately despite months of mostly bearish sentiment. Now, while penny stocks have been climbing as of late, there is still a very substantial amount of volatility across the board. This means that there are still plenty of opportunities for smart investors to make a killing. And on the flip side, there are plenty of ways to lose money with penny stocks.
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Of course, as with any investment, there are risks involved. Penny stocks are often more volatile than even the overall stock market, so it’s important to do your homework and know what you’re getting into before you invest. With that in mind, let’s take a look at what happened with penny stocks on August 5th.
Stock Market Recap, August 5th
On August 5th, we saw the July jobs report come out with major positivity. The report was more than double what investors expected, which is a double-edged sword. On one hand, it is great news for the economic recovery of the U.S. But, on the other hand, it could give the green light to the Fed to begin raising rates even more.
Either way, it is the most important factor in the stock market right now. On August 5th, both penny stocks and blue chips lost slightly, although they remained mostly flat. Considering this, here’s what you need to know about trading penny stocks on August 8th.
What You Need to Know About Buying Penny Stocks on August 8th
On August 8th, we expect there to be volatility in the stock market across the board. While we can’t predict anything with certainty, we do know that there are a lot of factors that are causing major market movement in both directions.
So, keep this in mind and understand exactly what is going on and how to take advantage. While buying and selling penny stocks is not easy, it can be profitable if done correctly. Considering that, let’s check out these three penny stocks that investors are watching right now.
3 Penny Stocks to Watch Right Now
Aileron Therapeutics Inc. (NASDAQ: ALRN)
One of the larger gainers on Friday, August 5th was ALRN stock. With over 9% in gains during trading and another 29% in gains in after hours respectively, many investors are watching ALRN stock right now. And, with a one month drop of over 38%, it’s clear that this recent gain is encouraging. So, why are shares of ALRN stock up right now?
The biggest recent news from the company came a few days ago when it outlined it strategy for strengthening its Phase 1B clinical trial of ALRN-6924. This is the most recent news from the company and is likely the cause behind these recent moves. With this in mind, do you think that ALRN stock is worth adding to your penny stocks watchlist or not?
Sientra Inc. (NASDAQ: SIEN)
Another big gainer from Friday was SIEN stock. During trading and into after hours, SIEN stock shot up by over 30% and more than 2.8% respectively. This brings it to over $1.43 as of EOD on Friday, August 5th. To understand whether SIEN stock is worth buying or not, we have to take a closer look at the company and its recent news.
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While the company has not reported anything in the past few days, it will be reporting its Q2 2022 financial results on August 11th. Ahead of this, we could be seeing bullish momentum in anticipation of potentially good numbers. While it is tough to say with certainty, it’s obvious that SIEN stock could be an interesting addition to your list of penny stocks to watch this week.
Creatd Inc. (NASDAQ: CRTD)
CRTD is a penny stock that we have discussed numerous times in the past few days. This is due to its major spike from July 1st to July 20th of over 60%. And since then, we have seen a decline in the value of CRTD stock, however, it did make a big announcement a few days ago.
On Friday, August 5th, the company announced the acquisition of a majority stake in the stock trading app, Orbit. Orbit is a social media focused trading app which is an interesting addition to the financial world. And while the long term potential of this deal is very much unknown, this is an exciting update nevertheless. Considering that, is CRTD worth buying or not?
Are Penny Stocks Worth Buying Right Now?
If you’re wondering whether penny stocks are worth buying, there are a few things you need to consider. First, what is your investment goal? Are you looking to grow your wealth over time, or are you trying to make a quick profit? Second, what is your risk tolerance?
Are you willing to lose money in the short-term in order to potentially make more money in the long-term? Finally, do your research and understand the risks involved with penny stocks before investing. While there’s no guarantee that you’ll make money by investing in penny stocks, if you do your homework and are comfortable with the risks, it could be a profitable venture.