Penny stocks like other investments carry risk. The difference between something like a blue chip stock and some of the stocks under $5 is how much risk is involved. Aside from the usual market risk, headline risk, economic risk, etc. traders need to understand price risk. This is to say, the lower the price of a stock, the higher the chances of increased volatility. With that comes the risk of big losses quickly.
Now that I’ve probably scared some of you, let’s get to the real story. Penny stocks are risky, sure, but they’re not anything close to playing roulette or taking aim at a dartboard blindfolded. There are plenty of ways to make money in penny stocks, you just need a strategy.
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Take into account things like what’s going on in certain industries. Look for government-fueled catalysts. Find corporate headlines early and keep an eye out for new filings. All of these are fundamental catalysts to look for and ones that can signal increased momentum.How Can You Make Money In Penny Stocks?
Another thing I continue seeing is that more novice traders go into each trade the same exact way. But the fact of the matter is each trade is different. Taking a “swing trade” mentality on a stock better suited for a day trade is just as risky as trying to day trade a stock that’s better suited for short-term scalping. In any case, I’m sure you see my point. However, if you’re new to penny stocks and want to learn more, we’ve got a 60+ page eBook you can download for free.
If one thing’s noticeable before all else, it’s usually trading volume. Even before you read headlines from a company or research an industry, if you see irregular or higher volume, typically “something” is happening. Obviously, this isn’t the case for all penny stocks. This week we’ve seen plenty that’ve jumped big without any apparent fundamental catalysts. However, in general, the volume can be an indicator for those searching for penny stocks to watch.
In any case, whether you’re trading or investing in penny stocks, the goal is the same: make money. While this month has been a wild one for the market, in general, it has also seen an uptick in trading volume for several penny stocks. Will that bode well during the second half of the month for these stocks under $5?Penny Stocks To Watch: GT Biopharma Inc.
In this case, GT Biopharma Inc. (GTBP Stock Report) has seen an increase in activity and the company has announced several key updates during the period of this spike in momentum. A lot of the focus has been on the company’s lead treatment candidate, GTB-3550 for acute myeloid leukemia. The first patient enrolled at Dose Level 3 in its GTB-3550 TriKE™ Phase I/II clinical trial, recently showed positive results. This kicked off the initial momentum we’ve begun seeing.
What’s more, is that GTB-3550’s interim results were selected for presentation at the 62nd (ASH) American Society of Hematology Annual Meeting. The company has pointed out that in addition to the presentation, “your abstract will also be published online in November supplemental issue of the journal Blood”. The first publication will be in the online ASH meeting program on November 5, 2020.
Meanwhile, the platform that GTB-3550 is built on, TriKE™, has become a target of expansion for the company. The company recently brought on new Advisory Board members to help expand the therapeutic indications for TriKE ™ to non-hematologic cancers such as prostate. In addition, GT Biopharma inked a deal with Cytovance® Biologics to manufacture 3 of GT’s TriKE™ therapeutic product candidates using Cytovance’s Keystone® bacterial or mammalian expression systems.
In light of these updates, GTBP stock has climbed from around $0.16 in late September to highs this month of $0.25 so far.Penny Stocks To Watch: Senmiao Technology Limited
One of the companies we’re covered throughout the last few months has been Senmiao Technology Limited (AIHS Stock Report). The initial interest stemmed from irregular volume and from there, pointed toward fundamental catalysts. Since late September, AIHS stock has been on the move, experiencing aggressive swings in price on heavy trading volume.
This week, AIHS stock continued that trend, and Monday we saw a strong surge from the auto penny stock. While there weren’t any headlines to speak of yesterday, that wasn’t the case Tuesday morning. Senmiao announced that it signed a Framework Agreement with BYD Auto Sales Co., Ltd. The deal outlines the sale of BYD manufactured electric vehicles to Senmiao. The two will also joint-promote EV vehicles for China’s ride-sharing/ride-hailing markets.
Obviously, EV penny stocks have been red hot this year. That heat was turned up after Tesla’s Battery Day event. CEO Elon Musk spoke of big initiatives not only for Tesla but for the entire EV ecosystem. This essentially sparked much greater interest in related names. Senmiao aims to provide an initial deposit and expects to purchase at least 5,000 vehicles from 2020 to 2021.Penny Stocks To Watch: ReWalk Robotics
A few days ago, traders turned their attention to ReWalk Robotics (RWLK Stock Report) during aftermarket trading. There weren’t any apparent catalysts, nor were there any updated filings. So what was the big secret? As you can see, shares of RWLK stock pulled back shortly after. However, that spike put the penny stock on watch lists to see what, if anything, might follow. This week, ReWalk came out with a formal update.
The robotic medical device manufacturer announced that the Centers for Medicare & Medicaid Services authorized the company as a Medicare Provider. With this certification, ReWalk can now bill Medicare directly for procurement of its ReWalk Personal Exoskeleton for Medicare beneficiaries and is now listed in the Medicare.gov Supplier Directory.
This certification is immediately effective in the majority of U.S. states, and the Company is working through additional administrative tasks to achieve accreditation in most of the remaining states. Something to consider, however, is what the CEO mentioned in a statement.
“Accreditation does not guarantee coverage policies, so the Company is evaluating pathways and opportunities to adjoin accreditation with provider policies to get our Personal Exoskeleton to more members of the spinal cord injury community.”Larry Jasinski, ReWalk CEO
Will this pose a risk for RWLK stock moving forward?Penny Stocks To Watch: Iterum Therapeutics
One of the premarket penny stocks to watch on Tuesday was also Iterum Therapeutics (ITRM Stock Report). Shares actually spiked late in the afternoon on Monday with momentum continuing Tuesday morning. While the penny stock hasn’t been all that active during the past few weeks, it did see a noticeable spike at the end of September.
This came as the company announced that, based on discussions at a pre-NDA meeting with the FDA, it plans to proceed with an NDA submission for sulopenem etzadroxil/probenecid. This is the company’s treatment for uncomplicated urinary tract infections.
Where the latest bout of excitement comes into play is what Iterum announced Monday. After the closing bell, the company said that it would have two data presentations at the Infectious Disease Society of America IDWeek™ 2020 from Phase 3 trials. The event takes place from October 21st – 25th where Iterum’s two data presentations will include a poster presentation of the results of SURE-2 in complicated urinary tract infections. There will also be a late-breaker oral abstract presentation of the results from SURE-1 in uncomplicated urinary tract infections (uUTI).
In June 2020, the Company announced top-line data from the SURE-1 trial demonstrating that oral sulopenem was statistically superior to oral ciprofloxacin in the treatment of patients with uUTI caused by a quinolone non-susceptible pathogen.