Penny Stocks

OZM, SBW and ACW: Why these 3 ASX penny stocks are shooting up today

  • May 13, 2022 02:01 PM AEST
  • Aayush
 OZM, SBW and ACW: Why these 3 ASX penny stocks are shooting up today

On the last day of the week, the Australian market opened the session on a positive note with the benchmark ASX 200 trading 1.46% up to reclaim the 7,000 mark as intense selling pressure which persisted throughout the week seems to be abating. S...

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IPB, BXN & X2M: Three ASX penny ticking over 10% higher today

IPB, BXN & X2M: Three ASX penny ticking over 10% higher today

  • May 06, 2022 12:56 PM AEST
  • Aayush

The Australian stock market opened today’s session with a deep cut of over 2%, taking cues from a sharp sell-off on Wall Street, as investors fretted over aggressive rate hikes across the world which led to a noticeable dent in investors&rs...

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MOH, PNM & PKO: Three ASX penny stocks racking up decent gains today

MOH, PNM & PKO: Three ASX penny stocks racking up decent gains today

  • May 05, 2022 12:03 PM AEST
  • Aayush

Highlights The ASX Small Ordinaries index gained 1.44% or 45.4 points to 3197.1 by 12:30 PM AEST today. MOH, PNM and PKO are three ASX penny stocks that are outperforming the market today. Proper due diligence and a high-risk appetite are requ...

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AZI, 1VG & E33: Why are these ASX penny stocks racing higher today?

AZI, 1VG & E33: Why are these ASX penny stocks racing higher today?

  • May 04, 2022 01:08 PM AEST
  • Aayush

Highlights The ASX Small Ordinaries index was 0.49% down at 3,184 by 12: 30 PM AEST today. AZI, 1VG & E33 are some of the ASX penny stocks flying high in today’s session. Investors must do a proper due diligence before investing in p...

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MMG, SPX & LCY: Three ASX penny stocks making strides today

MMG, SPX & LCY: Three ASX penny stocks making strides today

  • May 03, 2022 01:31 PM AEST
  • Aayush

Highlights Small caps are trading negative so far in the day as investors’ risk appetite has diminished in light of an impending rate hike event. MMG, SPX and LCY are three ASX penny stocks delivering massive gains today. Investing in pe...

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E33 & RAB: Two ASX penny stocks that have shot up over 100% today

E33 & RAB: Two ASX penny stocks that have shot up over 100% today

  • May 02, 2022 01:09 PM AEST
  • Aayush

Highlights The ASX Small Ordinaries index tumbled over 2.1% to 3228 by 12:30 PM AEST. E33 and RAB are two ASX penny stock that have more than doubled today. Investing in penny stocks is risky, therefore, while investing in this space, one shou...

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HCD, CSE & ICE - Three ASX penny stocks ending the week on a strong note

HCD, CSE & ICE - Three ASX penny stocks ending the week on a strong note

  • April 29, 2022 01:00 PM AEST
  • Aayush

Highlights The ASX Small Ordinaries index shot up 1.27% to 3,294.8 by 12:30 PM AEST. HCD, CSE and ICE are three ASX penny stocks that are delivering massive returns on Friday. Penny stocks are highly volatile in nature and hence call for robus...

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JXT, ASP & AQN: Three ASX penny stocks racking up over 20% gains today

JXT, ASP & AQN: Three ASX penny stocks racking up over 20% gains today

  • April 28, 2022 01:16 PM AEST
  • Aayush

Highlights The Australian market is trading higher today, after three sessions of steep losses. JXT, ASP and AQN are three ASX penny stocks surging high today. Investing in penny stocks requires a special skillset and a high-risk appetite due ...

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SZL, LBY & AHI - Three ASX tech penny stocks that are down 70% in 2022

SZL, LBY & AHI - Three ASX tech penny stocks that are down 70% in 2022

  • April 27, 2022 02:10 PM AEST
  • Aayush

Highlights IT stocks have been hammered this year on account of worries over aggressive interest rate hikes and sky-high valuations. SZL and LBY are two fintech stocks that have gone below AU$1 this year. One should not fall for much-claimed e...

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BMG, LNU & MCA - Three ASX penny stocks going against the grain today

BMG, LNU & MCA - Three ASX penny stocks going against the grain today

  • April 26, 2022 12:57 PM AEST
  • Aayush

Surging COVID-19 cases in China and renewed concerns over interest rate hikes have spooked the Australian market today. The benchmark ASX 200 index plunged over 2.3% at the open with all 11 sectors witnessing selling pressure. Image Source: &cop...

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LRV, AW1 & WIN – Three ASX penny stocks defying market gloom today

LRV, AW1 & WIN – Three ASX penny stocks defying market gloom today

  • April 22, 2022 01:55 PM AEST
  • Aayush

Highlights The Australian market opened with a deep cut of around 1.5%, spooked by US Fed Chair’s comments on aggressive interest rate hikes. LRV, AW1 and WIN shares have been going against the grain in today’s weak market. Investi...

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Frequently Asked Questions

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.

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.

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.

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.

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