If financial discussions are your go-to thing, you must have also faced the penny stock dilemma.
Let us assure you that you are certainly not alone in this dilemma. A profitable penny stock is like a golden egg Goose for the investors. However, this profit comes with its share of risk.
The cheaper the stock, the more the risk.
Penny stocks are incredibly cheap in value and have higher speculation. Most penny stocks are less than one dollar, and there are penny stocks under 10 cents.
Due to high risk, many investors do not trade in Penny stocks. However, these risky stocks do have potential. But, to realize the full potential of penny stocks, one must stay alert about the workings of the organization whose penny stocks they intend to buy.
Once the fundamentals of a company are crystal clear, an individual can invest in the penny stocks of that company.
Since penny stocks are low in price, investors can buy more shares at less cost. But, how can one identify a potential penny stock? Read on for the know-how.
How To Identify The Best Stocks Under 10 Cents?
Selecting the best penny stocks under 10 cents is no child’s play, and it requires intensive planning irrespective of the broker you choose.
Timing is of utmost importance when deciding to invest in a penny stock. And, to invest at the perfect timing, an individual needs to correct knowledge and practice.
Here are a few fundamentals to keep in mind while identifying a potential penny stock.
1. Identify the prospects
If you are on a search to find out the best penny stocks to buy for under 10 cents, You should invest your time in evaluating the fundamentals of the company you are going to choose as an investment.
This evaluation will give you an idea about the future issues that might arise in the company. It would be best to look into other factors like chief patent expiry, product viability, growth aspects, etc. This evaluation will ensure that your penny stocks perform better in the long run.
2. Look beyond the upward graph line
Investing in a penny stock because it is trending can be a dumb move. An upward graph could be e a new rumor or a piece of hot news.
So, one should check the trading volume of stock before confirming their investment decisions. The value of the trading volume should be satisfactory enough for an easy entry and exit of an investor.
3. Analyse the expected market performance
You should check the stock’s price movement when you want to buy the best penny stocks under 10 cents. This research will help individuals find the most appropriate time for their entry and exit.
One must also look at the business plans and models of the company because they are highly responsible for the reputation and brand value of the company, which in turn is responsible for its price movement.
4. Take a look at the balance
Isn’t it obvious? Analyzing the balance sheet is the first and foremost thing one should do before investing in the stock of any company.
Taking a look at a company’s balance sheet helps you evaluate its strength and weaknesses.
You can understand the asset performance, capitalization structure, and equity workings. This research will help you make better decisions while investing.
5. Ascertain the liquidity of the market
Liquidity is the ease at which a commodity can be encashed. Before you buy penny stocks, make sure you check the market’s liquidity, as it will play a huge factor in determining your profitability from those stocks.
Now that you know how to identify potential penny stocks let me tell you some tips to swear by before investing your hard-earned money in penny stocks.
Things To Remember Before Investing in Penny Stocks Under 10 Cents
1. Penny stock comes with a high risk. Hence, they should invest in Penny stocks only if they’re prepared to lose in this risk-taking activity. Being greedy for quick money can lead you down the staircase of blunders. So, it is advisable not to invest all your savings in penny stocks.
2. As penny stocks are a high-risk instrument, the timing of entry and exit is crucial. If you want to enter and exit at the right time, you should stay updated with vital pieces of information about the company.
3. Sometimes, you might see a stock price skyrocketing without any actual development in the company. This so-called pump and dumb strategy is a promotional activity to gain investors, and falling into this trap can cause heavy losses in your investment.
4. Bulk trade is essential for buying penny stocks under 10 cents. If you want to make good money, you need to invest significantly.
5. Risk-taking is a good skill; however, one must know where to stop. To prevent oneself from trading beyond keep capabilities, when should impose restrictions on their account to stop them from making foolish trade decisions.
Now that we are done with all the learning. We delight you with the ten best penny stocks to buy under 10 cents.
Here’s The List of 10 Best Penny Stocks Under 10 Cents
1. Navios Maritime Partners L.P. (NYSE: NMM)
Navios, a firm that offers marine transportation worldwide, is said to have the riskiest stock shares.
But despite the risk, the shares are heavily traded on the New York stock exchange. The firm is renowned for its quality services and long term customers.
2. Virtual Medical International Ord Shs (OTCMKTS: QEBR)
Virtual medical International is an organization that provides medical assistance and education with the help of websites.
They also have virtual waiting rooms and 24-hour consultations.
Their main aim is to reduce misinformation and malpractices in the medical world.
3. Ceragon Networks Ltd. (NASDAQ: CRNT)
The Ceragon firm works to deliver products and services like telecom, marine, utilities, oil, et cetera, and its penny stock is in our good books. It has seen a 22% rise recently.
Ceragon is a hot penny stock as it is expected to see an 833% rise in its earnings per share. Partnership with a significant telecom firm has been the catalyst rumor for this penny stock.
4. Fiore Cannabis Ltd. (OTCMKTS : FIORF)
Fiore is the best penny stock with the potential to deliver tremendous gains to its investors. This firm, headquartered in Canada, is structuring its debt and convertible shares.
The core operation of this form is to ensure the development and cultivation of medical and recreational cannabis products. This penny stock has great potential.
5. Elys Game Technology (NASDAQ: ELYS)
This organization provides gaming services that are both online and land-based. With a search in the sports betting services industry, Elys dictates to be the fastest-growing firm among its competitors.
This firm’s share price has seen a 50% rise in one day. What other information do we need to invest?
6. Medical Marijuana, Inc. (OTCMKTS: MJNA)
This organization mainly focuses on creating, selling, and distributing hemp oil. Hemp oil is rich in CBD and is pharmaceutical primarily and nutraceutical.
Enterprises that deal in cosmetic, pharma, and Nutra products are the main customers of this organization. Overall, it is an outstanding penny stock, but it has seen significant ups and downs in the market. So, trade with care.
7. ToughBuilt Industries, Inc. (NASDAQ: TBLT)
The current stock price of ToughBuilt industries is affordable. The management of this organization is putting a lot of effort into maintaining the organization’s reputation.
This organization deals with designing and manufacturing Home construction products. There are also rumors that ToughBuilt will soon be operating in Latin America and Europe. The company is likely to flourish, and more and more investors are investing in it.
8. World Series of Golf, Inc. (OTCMKTS: VAYK)
One must have already guessed from the name that this organization is a sports entertainment firm, and this firm is based in Las Vegas, Nevada.
The focus is more on the commercial side of the sport rather than making it a professional one. Hence, the primary purpose of golf tournaments held by this organization is for people to have fun and play games. This stock seems to have great potential, according to the investors.
9. Great Panther Mining Ltd. (NYSEAMERICAN: GPL)
Great Panther has been in the market for only the last couple of years, and it has already doubled its share price. The core operation of this organization is to produce gold and silver, and they have their assets spread over Brazil, Peru, and Mexico.
The company’s objective is to build sustainable production and long-term shareholders.
The prices might dip because of some permit issues in Mexico. It is a double-edged sword, and please think before investing because it can go either way.
10. American Rebel Holdings Inc (OTCMKTS: AREB)
Saving the best for the last!
This firm is a winner of penny stock to buy under 10 cents. The stock of this firm has shown extraordinary growth over the last year.
The core operation of this organization is to provide gun safes, carry apparel, and backpacks.
The penny stocks might be highly speculative, but you can trust AREB.