Cheapest Stocks Under $1 on the Market
The cheapest stocks on the market always catch the eyes of young investors. It’s a great way to get your “foot in the door” so to speak. However, these cheap penny stocks come with a lot more risk than you can imagine.
So, why are stocks listed for such low prices? And what are the most intriguing penny stocks available? Let’s take a closer look below.
The Cheapest Stocks to Consider for Your Portfolio
The stock market in the long-term is nothing like gambling. This is a common misconception. Investing in stocks increases the overall wealth of Americans. Short-term trading or gambling, on the other hand, simply takes the money from the loser and gives it to the winner. The house or brokers also get their cut and this lowers returns.
Trading the cheapest stocks in the short-term is no different. You shouldn’t buy into penny stocks and expect quick returns solely based on the low share prices. That’s like playing Russian roulette. You are destined to fail.
Just like any investment, you have to do your research and buy into promising companies with the potential to grow. And as a rule of thumb, the lower the share price of a stock, the more risk comes with it. It’s actually not that “cheap” after all.
In most cases, these are companies that aren’t established within their respective industries. Or they may not have any profitability at the current moment.
But taking on risk isn’t always a bad thing for your portfolio. And for new investors, it can be a great learning experience with the opportunity to make real money.
Yes, there is a lot of risk when buying the cheapest stocks available. But, higher risk can lead to higher reward.
Here is a list of cheap stocks under $1 that you may want to consider:
- Gevo Inc. (Nasdaq: GEVO)
- Miragen Therapeutics (Nasdaq: MGEN)
- Northern Oil & Gas (NYSE: NOG)
- Sunworks Inc. (Nasdaq: SUNW)
- Jaguar Health (Nasdaq: JAGX)
These five stocks look to have growth potential after a rocky few months for the stock market. From clinical-stage biotech companies to commodities, there’s a little bit of everything to consider. And for a larger list, check out these top 20 penny stocks.
Are Penny Stocks Always a Bargain?
Bringing in huge returns on penny stocks will make any investor smile. But, that’s more likely for a day trader than a long-term investor.
While they may seem like a bargain, these stocks can wreak havoc on your portfolio if you don’t play them correctly. This is where your research can make all the difference.
To determine the potential of the cheapest stocks, you should consider every angle. Look at their recent earnings reports. Check their market cap and dig deep into the internet for any news reports. It’s also important to analyze these stocks’ price changes over both the short- and long-term.
Most companies provide annual updates and press releases through their own websites. Don’t skip a beat and search every corner before investing.
This is where you may find the next diamond in the rough. While there’s no uniform textbook to buying penny stocks, there are ways to cut down your list with proper research. The more information you have, the better decisions you can make.
Investing in Cheap Stocks
Balancing your investment portfolio can give you the ability to take on more risk in cheap stocks. For the latest penny stock trends and investor analysis, sign up or the Trade of the Day e-letter below.
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About Corey Mann
Corey Mann is the Content Manager of Investment U. He has more than 10 years of experience as a journalist and content creator. Since 2012, Corey’s work has been featured in major publications such as The Virginian-Pilot, The Washington Post, CNN, MSNBC and more. When Corey isn’t focusing on Investment U, he enjoys traveling with his wife, going to Yankees games and spending time with his family.