Are Cheap Penny Stocks Worth The Risk?
In this article, we’ll answer the question, “What are penny stocks” and we’ll go over a few notable names to know right now. So let’s get started.
What Are Penny Stocks?
These typically represent shares of companies that can be bought for less than $5 a share. Some traders take it a step further and make their own definition. This might entail something like stocks under $2 or penny stocks under 50 cents. However, according to the Securities & Exchange Commission’s definition of penny stocks, the $5 mark is the upper threshold.
Regardless of the definition, the goal is always to make money with these stocks. So where should you start? Assuming you’ve got a bit of the basic of day trading down, the next step is putting together your watch list. Some will focus on certain industries while others will seek out stocks by price. Recently it would seem that the latter is more relevant than anything else.
Those who fall into this category need to keep a few things in mind. Specifically, cheaper penny stocks tend to carry higher levels of inherent risk. This is simply due to the fact that small changes in price can mean big changes in percentage gains or losses. For example, if you’re looking at penny stocks under 50 cents, even a 10 cent move is a 20% change or more in the value of that position. In this article, we’re going to look at a few stocks that are trading below $1.50. While they aren’t the cheapest stocks, they are some of the most active right now. It will be up to you to decide if they’re the best penny stocks to buy before the end of the month.
Penny Stocks To Buy Under $1: Guardion Health Sciences
If you’re looking for cheap stocks right now, those that trade under $1 are among the cheapest. Keep in mind that the lower the price, the higher the volatility in most cases. Guardion Health Sciences is one of the cheaper stocks on this list. Over the last few months, GHSI has continued climbing after hitting 52-week lows in November. It hasn’t been a small rebound either. Since then, GHSI shares have climbed from just $0;.165 to highs of $1.04.
The company produces various products for use in the medical food and medical devices industry. Its products include Lumega-Z, GlaucoCetin, and others. These medical foods provide vision aiding benefits to patients. Additionally, the company has several medical devices in its pipeline such as its VectorVision, CSV-1000, and MapcatSF. The majority of what Guardion is working on is involved in ocular health.
Right now, the company’s Lumega-Z is a near-term focus. It’s being developed for an adult market as a vision health and support product. It’s also being formulated as a visual attention and energy drink for the youth market. The angle for the energy drink is to target consumers in video gaming and other close-up device viewing markets. The initial round of testing has been…