At the same time, you will have realized how some of the most volatile penny stocks can actually work in your favor.
This is because erratic prices often bring the promise of high gains and minimal losses if you know what stock to put your money in.
For others, unstable penny stocks may be a cautionary tale about what companies to avoid. Day traders love volatile stocks.
Here is a list with penny stocks that are the most volatile:
1. Insignia Systems
For the most part, the stock for Insignia Systems does look as though it is going to improve. Nevertheless, there are some confounding performances that add to the overall uncertainty. Let’s take a closer look at this to see where it can go…
On the one hand, this does look like a positive growth opportunity for traders that are interested in short-term as well as long-term stocks. This is largely because the company has experienced some heavy losses and is only now making its way back, in the latter portion of the year. Not to mention, the small, company-instigated flash crash caused the share prices to dip even lower.
Despite this, though, there is a silver lining for this company, particularly when you look at the way that the company is performing. The general direction of the company, including its sales, make this a company to watch out for. The main reason for uncertainty here is the fact that the share price is facing a mild resistance level. Should it be able to break out of this, however, things could start looking up.
2. Dogness Corporation
Once again, this is yet another company where it can be difficult to know the direction of progress. The main issue with Dogness Corporation is that it is standing in the middle of two rather extreme share price scenarios. Should the market stabilize itself and head in a more positive course, then there is a good chance that the share prices will move in a similarly upward direction. In the event that this doesn’t happen, though, you could take on some serious losses.
Ignoring this, there are a few other points to take into consideration. On the plus side, this company offers a rather innovative product – smart technology for pet-related products. Due to this, the potential for growth is high. That being said, as the main company is based in China, many potential investors may be put off by this.
These penny stocks are almost completely geared towards investors that don’t mind some speculation. They also need to be able to accept both the high risk and reward scenario. Last but not least, these individuals will have to conduct further review of the company to be certain about its performance.
3. LUNA Innovations Incorporated
This is yet another company stock price that is at the mercy of the surrounding market. As such, if the current volatility continues, then there is a good chance that the share prices of LUNA will follow suit. In this sense, it can be difficult to pinpoint just how well it will do, at least in the near future.
See, this company shows signs of long-term progress and therefore, a good share price for penny investors. This situation can be determined by looking at how well the company has been doing over the past few years. Where it gets tricky, nonetheless, is the short-term position. So, if the rest of the market looks to be in a tough position, then these shares will certainly not fare well.
One clue that may help you to decipher the situation is to check if there is a mild support level around the price point. As long as it stays at $3.00 or more, you should be fine. Still, if it gets any lower than this, you should stay away from the stock.
4. Turquoise Hill Resources Ltd.
Turquoise Hill Resources is a company that finds itself in a rather precarious position. On the one hand, this a company that has been performing quite well and for the most part, this was reflected in the stock price. Unfortunately, sentiment towards commodities changed in the marketplace. This meant that most investors began selling their positions in relation to commodities.
Nevertheless, there is also just as much good news for investors as there is bleak news. This is because the company is actually strong enough to make a comeback on its own. Therefore, buying shares for a lower price now could be beneficial in a short while. To add to this, if market sentiment towards commodities also rebounded, you could be looking at even more profits.
All these are great volatile penny stocks for day trading.
How to Find the Best Possible Penny Stocks to Trade With
As mentioned, trading volatile penny stocks does afford you the chance to make a good profit. This, however, is dependent on you making the right selections at the best possible chance. As such, you should always remember these following tips in this kind of situation:
- Focus on the Facts: before buying stock, you will need to have a full understanding of how that company works. This means understanding the business plan and its potential for profit. At the same time, you will also need to look into how well that company can survive in a particular sector given its competitors.
- Understand the Value: the other thing that you will need to do is to understand the value of the stock that you are buying. Keep in mind, it isn’t just share price that you need to focus on. You will also need to look at the number of shares that are still remaining. This will allow you to more accurately determine what your shares are worth in the company.
- Consider All Factors: finally, there is more to penny stocks than just the company’s performance and share price. To really understand how the price will increase or decrease within a period of time, you will need to look at all compounding factors as well. This includes elements such as market sentiment, global issues, and various other aspects.
These are the most important volatile penny stocks that you need to know about. Based on this information here, you can plan how you would like to proceed with each of these companies. Just make sure that you make the best possible investment decision for you.
Top Volatile Penny Stocks for Day Trading
When it comes to day trading volatile penny stocks offer the potential for high profits.
These stocks are known for their dramatic price swings making them attractive to traders looking for quick returns.
Here are some of the top volatile penny stocks to consider:
1. Insignia Systems: Despite some confounding performances the general direction of this company including its sales makes it an intriguing option for traders.
While facing mild resistance a breakout could lead to promising results.
2. Dogness Corporation: This company offers innovative smart technology for pet-related products presenting potential for growth.
However as a Chinese-based company investors should weigh the associated risks before investing.
3. LUNA Innovations Incorporated: Although long-term progress appears positive this stock’s short-term performance is tied to market volatility.
Traders should be cautious and examine the company’s support level before making investment decisions.
4. Turquoise Hill Resources Ltd.: Despite recent challenges due to changing market sentiment towards commodities this company has the potential to rebound.
If market sentiment towards commodities improves investors could see profits.
Remember trading volatile penny stocks involves high risk and reward scenarios.
Conduct further research on the companies and consider market conditions before making any investment decisions.
By focusing on the facts understanding the value and considering all factors traders can maximize their chances for success.