Are you ready to invest into penny stocks but unsure of which penny stocks are the best? Discover what our best picks are for today and 2016
Investing In Penny Stocks
Penny stocks have gotten a bad reputation - after all, you might think, shares below $5 seem less than trustworthy, to say the least. As a result, most investors would probably trust stock behemoths like Amazon or Apple, because that’s where they imagine their money is safe and steadily growing.
But you should know better than that.
Penny Stock Essentials
Penny stock markets can generate a very quick profit, if you play them carefully. Of course, you have to take into account the recent fluctuations, as well as different factors such as the company’s debt load, net profit and so on. A sound judgment and being able to control your emotions are key when it comes to stock market success, regardless of whether the share is $500 or $5.
In fact, for someone planning to spend a modest amount (say, for instance, $1000), investing in penny stocks is probably the better option; if you find the right company, your profits could soar through the roof. You must make sure, though, that you don’t hold too much of one single stock – that’s quite easy to do in penny stocks, when $5000 could secure you a big position in a $1 stock. We wouldn’t recommend doing that, however: you might be stuck trying to get rid of your shares.
That’s why it’s probably best to invest smaller sums in more than one company, and we’re here to help you with that. We’ve pooled together different data about different companies and created a list of the top penny stocks to buy in 2016. Remember, penny stocks are very volatile, and you need to stay on the upside of the price swing – always watch the stock market, and make sure you don’t keep your money in one place for too long.
Top Penny Stocks Today Based On Economic Trends
Two industries seem to be promising in the near future: mining and health care.
Mining companies have met with terrible succes in 2016, with giants such as Coeur Mining going ballistic (a 517% increase) in comparison to the end of 2015, and thus moving out of the penny stock area.
However, there are still mining companies that have relatively cheap shares and that have shown some serious potential. One of them is HECLA Mining Company (Nasdaq: HL), who has seen a constant rise over the past few days, as well as a 243% rise since the beginning of the year.
Health care is another hot industry. Ekso Bionics Holdings Inc. (EKSO) has been on a recovery trend since the beginning of July, after starting the year quite slowly. Novavax Inc (NVAX) has been doing great since the beginning of summer, and its recent attempts to create a vaccine for the Zika virus might mean that it will be one of the more stable companies in the years to come.
Top Penny Stocks Today Based On Recent Performance
Taking into account the recent share prices is another useful way to get an idea of where to invest your money. For instance, Sequenom Inc (SQNM) has seen a recent increase of almost 175%, making it one of the most tempting options at the moment.
Clean Diesel Technology (CDTI) is also very promising, with a daily increase of 11,45% and a recent increase of 39,62%. It’s also likely to be one of the more stable options for the rest of the year.
Lightbridge Corp (LTBR) is another promising company, with recent growth trends followed by short declines. If you’re looking to invest in it right now, you might catch an upturn of a few percents that will generate some profit, if you time your moves carefully.
Keep Your Eyes Open
Penny stocks can be a good way to make a quick profit, if you’re willing to do your research and not afraid to take a few risks. We’ve shown you the recent trends in the economy and in the stock market so that you can make an informed decision as to what shares to buy.
However, we recommend that you do additional research on the companies in which you plan to invest – Google up their names, see how well they’re doing and watch out for any deals they might sign. Stay informed and always check the recent fluctuations, so that you always know where to place your money. Keep your eyes open and your money moving and you should be making a profit in no time!