Are Penny Stocks Worth it?

Wait, what’s a Penny Stock?

Also known as Micro Caps, Penny stocks are the shares of companies that trade below $5 USD.

Are Penny Stocks popular?

That low entry barrier makes these guys super-popular. Much like cryptocurrency trading, the fact that you can buy large quantities with a relatively small upfront investment is very attractive to speculative traders.

What makes Penny Stock trading risky?

Penny Stocks are much riskier than normal stocks, for a couple of important reasons.

#1 Lack of information

The cornerstone of any successful trading strategy is research. Quite simply, there’s not a lot of that around for Penny Stocks.

#2 Potentially poor liquidity

Penny Stocks as a whole are popular instruments, but individual Penny Stocks aren’t always so, which can mean a lack of liquidity for some.

So, are Penny Stocks worth it?

The answer to that question depends entirely on how much you’re willing to risk. The low price and easy entry can seem like a bargain, but the hidden risk of volatility is too much for many traders.

What’s on the trading agenda this week?

There’ll be a quiet start to a crazy-busy week ahead. Here are all of the top events to trade in week 28.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Contentworks Agency

Contentworks Agency

Contentworks Agency provides compliance friendly content to banks, forex brokers, fintechs and many other sectors.