Momentum Penny Stocks: What They Are and The Best Ones to Buy
Momentum penny stocks are a type of penny stock that’s traded on momentum. That is, they’re bought and sold based on what the stock price is doing. And where it seems to be headed. And sometimes traders also look at the momentum of the markets in general.
There are several strategies that investors use to trade momentum penny stocks. Some buy when the stock is moving up, and sell when it starts to move down. Others use more complex strategies. Such as buying when the stock is moving up and selling when it reaches a certain price target.
Whatever the strategy, the goal is to make money by buying low and selling high. Momentum penny stocks can be a great way to make money in the stock market. But they can also be very risky.
If you are thinking about trading momentum penny stocks, it is important to do your research. Plus, make sure you understand the risks involved. Momentum penny stocks are not for everyone, and they can be a very risky investment. But if you understand the risks and are willing to take them? Momentum penny stocks can be a great way to make money in the stock market.
3 Reasons Why Penny Stocks are So Volatile
Penny stocks are shares of small companies that trade for less than $5 per share. They are often volatile and risky, but can also be very profitable. Here are three reasons why penny stocks are so volatile:
No. 3 Lack of Information
Penny stocks are often not well known or covered by the mainstream financial media. This lack of information can make them more volatile. Why? There is less public knowledge about the company and its prospects.
No. 2 Low Trading Volume
Another reason penny stocks are so volatile is because they have low trading volume. This means that there are fewer buyers and sellers in the market, which can lead to large price swings.
No. 1 Greater Risk
Penny stocks are also more risky than other types of stocks. Because they are often less established companies with fewer resources. This makes them more likely to fail, which can lead to big losses for investors.
Despite their riskiness, penny stocks can be very profitable for those who know how to trade them. If you’re thinking about trading penny stocks, be sure to do your research. Understand the risks involved.
Best Momentum Penny Stocks
No. 4 Sonoma Pharmaceuticals Inc. (Nasdaq: SNDA)
Sonoma Pharmaceuticals Inc. is a momentum penny stock that has broken out in recent months. The company’s share price has risen by 30% since March 2022. And it shows no signs of slowing down.
It’s a clinical-stage pharmaceutical company that focuses on developing treatments for skin conditions. The company’s most promising product is its topical antifungal cream. Which is currently in Phase three clinical trials.
The company’s share price has been on a tear in recent months. And investors have become more bullish on the company’s prospects. Sonoma Pharmaceuticals is a risky investment. But, it’s one that could pay off big for investors.
No. 3 Better Therapeutics Inc. (Nasdaq: BTTX)
One of the best momentum penny stocks to buy right now is Better Therapeutics Inc. Better Therapeutics is a biotech company that is developing novel treatments. Specifically, for autoimmune and inflammatory diseases.
Better Therapeutics has a strong clinical pipeline. And it includes several product candidates in various stages of development. The company’s products are based on its proprietary tech platform. Which is designed to target specific disease-causing proteins. This technology has the potential to be used to treat a wide variety of diseases.
It is small, with a current market cap of over $54 million. And the company’s up over 77% year-to-date. So, this makes a wonderful buying opportunity.
If you’re looking for a momentum penny stock to buy, Better Therapeutics is a great choice. The company has strong fundamentals and a promising product pipeline. Its stock is also trading at an attractive valuation. This makes it a good long-term investment.
Keep Reading This Article and Find Out the Top 2 Momentum Penny Stocks to Buy Now
Enter your email below to read the reveal the top two momentum penny stocks.
You’ll also be opted in to receive our free daily e-letter, Investment U, where you’ll find expert investment insight, analysis and stock picks for all the best investment opportunities.
Nunc ut lorem quis urna auctor ornare quis in sem. Donec sodales viverra ante, et scelerisque libero iaculis sit amet. Phasellus fermentum vitae tellus quis suscipit. Ut bibendum aliquet odio, a venenatis augue fermentum at. Nunc fringilla dui lorem, congue blandit ex egestas in. Vestibulum dapibus orci ut felis consequat euismod. Sed pretium, risus vel blandit porttitor, diam diam sodales dui, in lobortis lorem ex vitae est. Nullam ac venenatis massa. Integer blandit, diam et fringilla semper, nulla dui suscipit urna, eget hendrerit quam ex rutrum tellus. Nam imperdiet, nibh nec mollis vulputate, felis ante posuere leo, at ultrices nulla neque vitae mi.Nunc ut lorem quis urna auctor ornare quis in sem. Donec sodales viverra ante, et scelerisque libero iaculis sit amet. Phasellus fermentum vitae tellus quis suscipit. Ut bibendum aliquet odio, a venenatis augue fermentum at. Nunc fringilla dui lorem, congue blandit ex egestas in. Vestibulum dapibus orci ut felis consequat euismod. Sed pretium, risus vel blandit porttitor, diam diam sodales dui, in lobortis lorem ex vitae est. Nullam ac venenatis massa. Integer blandit, diam et fringilla semper, nulla dui suscipit urna, eget hendrerit quam ex rutrum tellus. Nam imperdiet, nibh nec mollis vulputate, felis ante posuere leo, at ultrices nulla neque vitae mi.
Integer blandit, diam et fringilla semper, nulla dui suscipit urna, eget hendrerit quam ex rutrum tellus. Nam imperdiet, nibh nec mollis vulputate, felis ante posuere leo, at ultrices nulla neque vitae mi.Nunc ut lorem quis urna auctor ornare quis in sem. Donec sodales viverra ante, et scelerisque libero iaculis sit amet. Phasellus fermentum vitae tellus quis suscipit. Ut bibendum aliquet odio, a venenatis augue fermentum at. Nunc fringilla dui lorem, congue blandit ex egestas in. Vestibulum dapibus orci ut felis consequat euismod. Sed pretium, risus vel blandit porttitor, diam diam sodales dui, in lobortis lorem ex vitae est. Nullam ac venenatis massa. Integer blandit, diam et fringilla semper, nulla dui suscipit urna, eget hendrerit quam ex rutrum tellus. Nam imperdiet, nibh nec mollis vulputate, felis ante posuere leo, at ultrices nulla neque vitae mi.
Final Thoughts on Momentum Penny Stocks
If you’re looking for momentum penny stocks to buy, the above are all great choices. These companies have strong fundamentals and promising growth prospects. And their stocks are trading at relatively attractive valuations. So they could be good long-term investments.
And overall, momentum penny stocks are a good way to profit from the momentum in the markets. These stocks tend to be volatile, so they can provide substantial gains in a short period of time. But they can also lose value just as quickly. So it’s important to do your research. And only invest in momentum penny stocks that you’re confident in.
