4 Penny Stocks to Watch in May 2021
With penny stocks, there are a few key things investors should keep in mind. There’s no such thing as a free lunch and an informed trader can be a successful one. The idea of turning a profit with penny stocks entices traders of all kinds. However, many people end up watching their portfolio turn red. This is the result of investing in cheap stocks without a proper strategy or a trading education.
As a stock sees large upward momentum, investors will want a piece of the pie and therefore try to buy-in. Trust me, we all have a story of the one that got away. Once a penny stock has made substantial gains, it tends to pull back quickly which is known as a correction. This leaves the investors who bought because of FOMO (fear of missing out) losing substantial amounts of capital in a short period. To be successful one has to trade both technically and without emotion.
Technical and fundamental analysis are distinct strategies in use by investors every day. These are tools used to make an informed decision on how to create a list of penny stocks to watch. Unlike technical analysis, which considers chart movements, fundamental analysis considers company-specific factors.
Performed together, these strategies can set one up to trade with the best chance of seeing profits. These are things we want to consider as we move into May and consequently, start forming a penny stock watchlist.
As we look for penny stocks under $5 investors need to consider where the most value is and which companies make sense given your investing strategy. May has already started off strong, with high volume across the board; whether it be stimulus, reopening of businesses, or just overall confidence in economic recovery. With this in mind, let’s take a look at four penny stocks that are must-sees for your May watchlist.
4 Must Watch Penny Stocks For Your May Watchlist
- Digital Ally Inc. (NASDAQ: DGLY)
- Ault Global Holdings Inc. (NYSE: DPW)
- SunLink Health Systems Inc. (NYSE: SSY)
- Nokia Oyj (NYSE: NOK)
Digital Ally Inc. (NASDAQ: DGLY)
As a developer, marketer, and manufacturer of the latest video recording products, Digital Ally is contracted by a large range of groups. This includes law enforcement, emergency response, fleet safety, and event security agencies among others.
As a tech penny stock, DGLY succeeds by advancing the quality of its technology. Digital Ally’s products are becoming the standard for security practices around the world. Its pipeline includes products such as vehicle and body cameras, software storage systems, automatic recording technology, and a variety of other tools used in safety operations.
DGLY is showing its commitment to keeping up with modern challenges through its product development. One example of this is the recent launch of its Shield Health Protection Product line. This includes…