Penny Stocks

PGC, MVF, AJJ: Healthcare penny stocks with decent price returns in last 52 weeks

 PGC, MVF, AJJ: Healthcare penny stocks with decent price returns in last 52 weeks

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 ...

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ADY, SNG and KP2: Three ASX penny stocks racking up high gains today

ADY, SNG and KP2: Three ASX penny stocks racking up high gains today

  • March 11, 2022 12:57 PM AEDT
  • Aayush

Highlights The ASX Small Ordinaries index was trading 0.11% lower at 3,218.8, by 11:00 AM AEDT. ADY, SNG and KP2 are a few ASX penny stocks delivering stellar gains today. Investing in penny stocks should be avoided if investors lack adequate ...

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AHI, MYR and AEV - Three ASX penny stocks racing higher today

AHI, MYR and AEV - Three ASX penny stocks racing higher today

  • March 10, 2022 01:57 PM AEDT
  • Aayush

The Australian market is trading higher on Thursday, taking positive cues from a strong rebound of US stock market. However, a retreat in commodities is putting pressure on the materials and energy sectors, both of which were down by 2.02% and 2.95...

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TZN, K2F and OAU - Three penny stocks racing higher today

TZN, K2F and OAU - Three penny stocks racing higher today

  • March 09, 2022 02:18 PM AEDT
  • Aayush

After a flat opening, the Australian market gained momentum by Wednesday noon as investors ignored Wall Street’s overnight selling. By 12:30 PM AEDT, the ASX 200 was trading 0.82% or 57 points up at 7,037.3. Image Source: © 2022 Kalki...

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TMS, RAB and TZN: Three ASX penny stocks shining bright today

TMS, RAB and TZN: Three ASX penny stocks shining bright today

  • March 08, 2022 01:51 PM AEDT
  • Aayush

Despite negative cues from global markets, the Australian market opened on a higher note on Tuesday. However, investors’ cautious stance couldn’t support the benchmark index ASX 200 much, leading to a fall of 0.33% to 7015, by 12:30 PM ...

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ICN, KP2 & COB: Three ASX penny stocks delivering high gains today

ICN, KP2 & COB: Three ASX penny stocks delivering high gains today

  • March 07, 2022 02:38 PM AEDT
  • Aayush

The Australian market started the week on a positive note but quickly slipped into the red zone as bears took over in the first one hour of trading. Negative global cues coupled with red-hot crude oil prices, which bolstered to US$139 per barrel on...

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NOR, BIR and GME - Three penny stocks defying market gloom today

NOR, BIR and GME - Three penny stocks defying market gloom today

  • March 04, 2022 02:09 PM AEDT
  • Aayush

Highlights The benchmark ASX Small Ordinaries index tumbled 2.67% to 3,159.9, by 12:30 PM AEDT. NOR, BIR and GME are a few of the ASX penny stocks making a splash today. As penny stocks are highly volatile, investors must do proper due diligen...

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ZBT, FHE, RNO - Three ASX penny stocks creating buzz today

ZBT, FHE, RNO - Three ASX penny stocks creating buzz today

  • March 03, 2022 01:29 PM AEDT
  • Aayush

The Australian market opened on a higher note on Thursday, taking cues from global markets. The US and European markets rebounded from their opening lows and ended the session strongly higher, giving a headstart to the Australian market. The benchm...

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MLS, 99L and COB - Three ASX penny stocks investors are betting on

MLS, 99L and COB - Three ASX penny stocks investors are betting on

  • March 02, 2022 01:53 PM AEDT
  • Aayush

The war between Ukraine and Russia is in its sixth day with all talks to call a truce seem make no progress. In the midst of heightened geopolitical tensions, the Australian market continues to be volatile. The benchmark ASX 200 index, which was do...

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NGY, TIG, BNR: Three ASX penny stocks starting March on high note

NGY, TIG, BNR: Three ASX penny stocks starting March on high note

  • March 01, 2022 02:28 PM AEDT
  • Aayush

Kicking off March on an upbeat note, the benchmark ASX 200 marched 1.24% higher to 7,136.8, 12:30 PM AEDT. Despite heightened geopolitical tensions regarding the Russia-Ukraine war and an RBA meeting on monetary policy later in the day, Aussie inve...

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MPR, NEW: Two ASX green penny stocks with over 10% past-month gains

MPR, NEW: Two ASX green penny stocks with over 10% past-month gains

  • March 01, 2022 09:37 AM AEDT
  • Ashish

st. The concept of renewable energy has gained traction over the past few years amid the shift in global focus towards the headwinds triggered by climate change. It has resulted in the green sector getting substantial investments and the Austr...

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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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