Shares/Stock Penny Stocks

greenieS

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If you want to trade penny stocks, then this article is for you!

There is no doubt that the best penny stocks are volatile. After all, the very definition of a penny stock in the UK is a company whose share price is less than 1 pound, and in the case of penny stocks in the US under $ 5.

What Are Penny Stocks?

The term penny stocks or penny stocks refers to:

✅ All shares listed on the UK or European stock markets whose price is less than GBP 1 or € 1

✅ All shares listed on US stock exchanges worth $ 5 or less

These stocks are generally very low priced, which makes them more volatile and therefore more risky.

5 of the Best Penny Actions

If you are looking for a list of the best penny stocks to watch, then keep reading! Remember that some of the penny stocks do not stay the same for a long time and can easily start to grow if more and more investors are attracted to these stocks. So you need to act fast, but make sure you document yourself in advance!

Here is a list of penny stocks in the UK and the US that are traded on major stock exchanges, such as the London Stock Exchange (LSE), the New York Stock Exchange (NYSE), etc. (at the time of writing in June 2021):

Rolls-Royce (LSE), 98p
Cineworld (LSE), 81p
Lloyds Banking Group (LSE), 46p
Southwestern Energy Company (NYSE), $ 4.94
Ambev SA (NYSE), $ 3.42
As you can see from the list above, there are some very famous companies that trade in the form of "penny stock" shares in the UK, such as Rolls-Royce and Lloyds Banking Group! These could be very interesting in the long run for some investors.

Penny Stock Trading- Advantages and Disadvantages


Short-term or intraday traders prefer penny stocks because of the volatility they offer, while long-term traders prefer this type of stock because there is a possibility of a significant increase in the future if they become blue stocks. chip.

For example, the shares of Ford and Xerox were originally penny stocks. However, there are a small number of such shares that have reached such a market value. Unlike blue chip stocks, these stocks are highly volatile and can often fluctuate sharply during the day.

The share price is generally low because the companies in question are relatively small and at an early stage of their life cycle, so investing in such shares is highly speculative.

However, with the right trading strategy and risk management, the risk can be minimized, but not completely! Therefore, do not invest more than you can afford to lose! That's why Admirals allows you to open a Free demo trading account to test your trading strategy in a risk-free environment!
 
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