- August 25, 2022 03:17 PM AEST
PPL to EUR: 4 ASX lithium penny stocks with over 25% past month returns
- August 19, 2022 03:23 PM AEST | Ashish
Shares of ASX-listed lithium companies have gained sharply in the past few months on account of a rise in demand for electric vehicles (EVs) globally.Read More...
Checklist to follow while investing in penny stocks
- August 17, 2022 11:48 AM AEST | Aditi Sarkar
Race Oncology, Cryosite Limited, Actinogen and Cogstate are four healthcare penny stocks whose stock value have appreciated significantly in the last three years.Read More...
What are penny stocks? How these 10 healthcare penny shares have fared YTD
- August 05, 2022 02:57 PM AEST | Ashish
Penny stocks have always been among the most talked about stocks subjects in the investing world.Read More...
AGN, NTI, OSL: ASX healthcare penny shares climbing high in last 52 weeks
- July 28, 2022 10:03 AM AEST | Aditi Sarkar
Argenica, Neurotech, Oncosil are three penny stocks from ASX healthcare with decent gains in the last 52 weeks.Read More...
From MAP to VHT – Healthcare penny stocks shining this week
- July 22, 2022 07:10 PM AEST | Aditi Sarkar
MAP, RNO, ALA and VHT are four stocks from ASX healthcare that have gained more than 20% this week outperforming the sectoral indexRead More...
AJL, FAR, RMI – ASX penny stocks with significant gains year to date
- July 18, 2022 03:50 PM AEST | Aditi Sarkar
AJ Lucas Group, FAR Limited, Resource Mining are three penny stocks from ASX with decent returns year-to-date basis.Read More...
PGC, MVF, AJJ: Healthcare penny stocks with decent price returns in last 52 weeks
- June 30, 2022 05:43 PM AEST | Aditi Sarkar
Highlights,Over the last five days, the S&P/ASX200 has gained 1.82% but is down 10.7% over the last 52 weeks,The benchmark of the healthcare index, the S&P/ASX 200 Health Care, is down 11.16% over the last 52 weeks,Paragon offers a generous dividend with ...Read More...
From PDN to CNR: ASX resources penny stocks with 50% discount
- June 25, 2022 11:00 AM AEST | Nitish Kumar
Highlights,Penny stocks continue to attract investors despite high risks.,In Australia, small-cap stocks under AU$1 are termed penny stocks.,Rising inflation, war crisis, increasing crude prices, and other factors have jolted sentiments for equity markets...Read More...
From FEX to VIP: Five ASX penny stocks that pay dividends
- June 25, 2022 07:00 AM AEST | Ashish
Penny stocks are lapped up by small investors due to their inherent ability to surprise with significant upside during a bull marketRead More...
OEQ, N1H, QUE: ASX financial penny stocks with over 25% YTD gains
- June 14, 2022 04:46 PM AEST | Aditi Sarkar
Highlights The World Bank has warned about the risks of stagflation, which refers to a period of high inflation accompanied by stagnant economic growth The Reserve Bank of Australia has increased the interest rate on Exchange Settlement balance...Read More...
Frequently Asked Questions
What Are Penny Stocks?
Analyzing a small-cap company is sometimes more difficult than doing the same for a large-cap company. The reason is the limited financial history of the company and often poor fundamentals, which make it difficult to estimate the future potential of the business. Fundamentals of a small cap can change very quickly and therefore, long-term projections are often more skeptical. Investors’ conviction and knowledge up to the industry level constitute a good part of investing in small caps. Also, investors should not get carried away by one-time windfall profits by the company as the sustainability of these profits is not proven and often is questionable.
Can You Make Money With Penny Stocks?
In one word, the answer is yes. But the answer would remain the same for the question “can you lose money in penny stocks?” However, there are a few things to consider while trading in penny stocks that can increase chances of net profitability. Penny stocks are highly volatile, therefore, quick and agile decision making is an imperative skill to possess to minimise frequent whipsaws. Good execution skills are also required to minimize the impact cost, incurred due to poor liquidity. In a nutshell, making money from penny stocks largely depends on skills of a trader.
How Do You Buy Penny Stocks?
Penny stocks are as easy to buy as stocks of other companies. An investor needs to contact a registered stockbroker of his country, who is affiliated to a recognised stock exchange. After opening a trading account with the broker, an investor can transfer funds into his trading account and start buying/selling penny stocks of his choice. However, before arriving at a decision to buy or sell, investors must do proper due diligence and adhere to robust risk management before putting their hard-earned money on the line.
You should Avoid or Buy penny stocks?
It is up to investors to decide whether they want to take high risks in their quest to chase higher potential profits or they are satisfied with steady returns from large-cap stocks. An investor with less capital, with a preference for risk aversion and who is also not capable to sustain high volatile periods, should avoid buying penny stocks. On the other hand, a short-term aggressive trader, having vast experience in the stock market can look for penny stocks, only after devising a proper risk management plan. As a note, a majority of institutional investors or big funds prefer to stick to large-cap stocks with well-established businesses.