You may ask yourself, “what are penny stocks, and should I invest in them?”. 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 (like the NYSE or NASDAQ) because they have listing criteria, including a minimum share price. Here are the top penny stocks investors should keep a lookout 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 that you can buy:
1. Imperial Petroleum Inc. – Up 87.93%
Imperial Petroleum Inc. (NASDAQ: PLYN). This is a mining and energy corporation with a varied portfolio. In Louisiana and Texas, the company is involved in the production and exploration of crude oil and natural gas, as well as the creation of a biofuel subsidiary.
Imperial Petroleum Inc started the day trading at a price of $2.18 with a volume of 105.19M shares.
2. SmartMetric Inc. – Up 66.67%
SmartMetric Inc. (OTC: SMME). This company is engaged in the technology industry. SmartMetrics recently developed a payment card with a fingerprint sensorthathas been gaing traction on the market.
SmartMetric Inc started the day trading at a price of $0.0225 with a volume of 3.68M shares.
3. Yoshitsu Co. Ltd – Up 33.33%
Yoshitsu Co. Ltd (NASDAQ: TKLF). This business sells and distributes Japanese beauty and wellness products. Makeup, skincare, perfume, and body care are among the companies offerings.
Yoshitsu Co. Ltd started the day trading at a price of $3.40 with a volume of 28.22M shares.
4. One World Universe Inc Com – Up 32.00%
One World Universe Inc Com (OTC: OWUV). This is a mission-driven benefits firm located in California that implements worldwide humanitarian projects. Profits from the sale of products and services are used to better the lives of individuals living in the hardest settings and their communities.
One World Universe Inc Com started the day trading at a price of $0.198 with a volume of 3.69M shares.
5. iQSTEL Inc. – Up 26.42%
iQSTEL Inc. (OTC: IQST). This is a technological firm that provides a wide range of services to the telecommunications and Internet industries. The company, along with its subsidiary, provides international long-distance voice services.
iQSTEL Inc started the day trading at a price of $0.67 with a volume of 5.04M 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:
- E*Trade — 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 Right Now
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 number 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.