Are Cheap Penny Stocks Worth It?
If you’re new to trading penny stocks, you may ask yourself, “Are they worth it?” I can confidently say…it depends. All jokes aside, how you approach the stock market today and your taste for risk will determine a lot of the answers to that question. Presuming you’ve got a handle on some of the basics of trading cheap stocks, you’ve likely seen how impressive the gains can be, especially when referencing stocks like AMC, GME, and other meme stocks that have broken out to record levels in the past.Click Here To Watch TTG Live On YouTube
Taking price risk into account on its own, the cheaper the stock, the more likely you are to encounter higher levels of volatility. Case in point, a stock trading for $10 must move a whole dollar to record a 10% move in price. I say “whole dollar” because another stock trading for $0.50 only needs to move five cents to record the same percentage change. So you’re risk/reward can dramatically change depending on the price of the stocks you’re watching. In this article, we look at some of the lowest-priced names in the market. These can be bought for less than a dollar menu item at your favorite fast food restaurant.
Several have turned heads in the stock market this week for myriad reasons. Some are gaining speculative attention thanks to recent trends in the retail market. Others have released updates on new milestones reached by the companies. We look into what’s going on with some of these popular penny stocks and see if any future or upcoming potential catalysts could be worth considering if these are on your list of penny stocks to watch.