Penny stocks are common shares of smaller publicly traded companies that trade for less than $5 per share. Due to their incredibly low prices, an investor may hold thousands of shares for a fairly low amount of money. Penny stocks frequently trade outside of the key stock exchanges because they have listing criteria, including a minimum share price.
Here are the top penny stocks investors should keep a look out for this week.
5 Best Penny Stocks to Watch
The possibility for extremely high profits is the single most appealing feature of penny stocks. There are also many risks, so before you start investing in penny stocks, learn more about how they operate on the market.
Here are the 5 best penny stocks to watch out for this week:
1. Touchpoint Group Holdings Inc. – Up 114.29%
Touchpoint Group Holdings Inc. (OTC: TGHI). This is a corporation that deals with media and technological innovation. Through its subsidiaries, the company creates software that provides a robust fan engagement platform to improve the fan experience and promote economic parts of the sport and entertainment industries.
Touchpoint Group Holdings Inc started the day trading at a price of $0.030 with a volume of 51.49M shares.
2. GGToor Inc. – Up 110.04%
GGToor Inc. (OTC: AXTG). This company built an interactive website through its subsidiary business, Shadow Gaming Inc, that will enable a variety of choices for players, organizers, and leagues to self-register for all scheduled events. Each registrant will have their own administration panel, where they may edit their profile and monitor their stats as well as their competitors’ stats in real-time.
GGToor Inc started the day trading at a price of $0.14 with a volume of 42.89M shares.
3. Industrial Nanotech Inc. – Up 41.86%
Industrial Nanotech Inc. (OTC: INTK). This company uses nanotechnology to design, manufacture, and market industrial quality insulation solutions in the United States and globally. It has intellectual rights to a combination of a certain category of secondary carrier component nanocomposites.
Industrial Nanotech Inc started the day trading at a price of $0.012 with a volume of 24.09M shares.
4. World Series Of Golf Inc. – Up 23.24%
World Series Of Golf Inc. (OTC: WSGF). This is a sports entertainment firm that organizes amateur golf tournaments and events and aims to develop branded items, entertainment, and multimedia based on its own golf tournament format.
World Series Of Golf Inc started the day trading at a price of $0.018 with a volume of 21.02M shares.
5. Icoa Inc. – Up 21.90%
Icoa Inc. (OTC: JPEX). This is a supplier of wireless and wired broadband internet networks in public places based in the United States. The business offers a variety of services and solutions.
Icoa Inc started the day trading at a price of $0.017 with a volume of 105.21M shares.
How To Buy Penny Stocks
Buying penny stocks can be done in a few simple steps. If you understand the risks involved and want to get started, follow the steps below.
1. Research Companies
Using stock screening tools is a common approach that investors use to find the best penny stocks to invest in. The simplest method to narrow them down is to screen for stocks with a price of less than $1. You may then narrow the selection further based on your portfolio and investment goals
2. Select a Brokerage
If you do not have an existing brokerage account set up, you must first select one that suits you. Here are some of the most popular brokerages for penny stocks:
- eTrade — Free Stock Trading – Award winning platform and mobile app!
- TradeStation — Also Free stock trading – intuitive stock trading tools. Cash bonus for new accounts (conditions apply).
- Charles Schwab: With its regular stock trading accounts, Charles Schwab provides penny stock trading, allowing customers to trade Over-the-Counter Bulletin Board (OTCBB) and Pink Sheet securities online via the Schwab online platform and smartphone app. The fee for penny stock trading is $4.95 each trade
- Robinhood: On its brokerage platform, Robinhood provides hundreds of different penny stocks. They provide their customers with the tools they need to control risk and trade penny stocks in a convenient and easy manner. Robinhood even has a mobile stock trading application that allows you to trade penny stocks and charges no fees for trading penny stocks
- Fidelity: The broker’s stock screener may look for penny stocks that trade on over-the-counter platforms. Fidelity also does not charge any additional fees for trading penny stocks, and there are no specific account requirements. Customers of Fidelity Investments pay the broker’s standard $0 commission on penny stock transactions. Orders may be placed using the company’s website or smartphone app
3. Open Your Trading Account
You must first create a trading account before you can purchase and sell penny stocks. This can all be done online, and the process is cheap and simple. Make sure the penny stock companies you’re interested in are reputable before opening a trading account with any brokerage you think could be appropriate for you. Do your homework and research each firm.
4. Make a Deposit & Purchase Penny Stocks
After you’ve linked a valid payment method to your account, you’ll need to deposit cash in order to buy penny stocks. After your account has been fully activated, you may begin investing.
5. Monitor Your Performance
It’s important to closely monitor your penny stock investments after you invest. Each brokerage offers different stock screeners and applications that help you monitor the specific details of each of your investments.
Finding the Best Penny Stocks to Buy
If you’re thinking about participating in penny stocks, be sure you’re doing it as part of a broader investment plan. Never put money into penny stocks that you can’t afford to lose. It’s important to find the best penny stocks on the market that can help you find massive returns on your investment.
- High Relative Trading Volume: When a stock has a greater relative volume, it is more active because more traders are monitoring and exchanging it. It is critical to avoid illiquid penny stocks. The majority of penny stocks trade merely a couple thousand shares each trading day.
- Float: The quantity of shares accessible for trading on the open market is referred to as floating stock. Low float penny stocks are extremely appealing due to their potential for extraordinary success. Stocks with a high float are less volatile and more consistent.
- Company News: It’s important to follow the latest news and update for any penny stocks you plan to invest in. Examining news articles and press releases is an excellent approach to conduct research on a penny stock firm.
Should You Invest in Penny Stocks?
Investors who prefer penny stocks see them as having numerous appealing characteristics, including a cheap stock price that allows them to purchase a large amount of shares and the possibility for large returns. It is always wise to understand the risks involved with penny stocks.
Every investor would be wise to research companies and only invest what they can lose. Interested investors should consider consulting with a financial advisor to help you start investing in penny stocks.
Frequently Asked Questions
It is true that penny stocks may make you a huge amount of money. The problem is that penny stocks constantly rise and drop by large amounts. Technically, investing in penny stocks can potentially make you rich, but it is very improbable.
Penny stocks are high-risk investments with small market valuations that trade at a cheap price. If you’re thinking about investing in penny stocks, be sure you’re doing it as part of a larger investment strategy.
If you intend to invest $1,000 in penny stocks, it may be wise to diversify your investments over many stocks in several sectors. Before you start investing in penny stocks, you need to understand how they function and the risks involved.
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