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All too often, people trading penny stocks make decisions based on one good story.
That can work in the short run.
But betting on unfounded hopes and dreams is a recipe for disaster when investing.
This is especially true with low-priced stocks.
The best penny stocks should benefit from the most powerful trends in the world today.
Investors who want the massive potential gains from penny stock investing should focus on those with a real business producing real cash.
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2020 was a lot of things.
It was the year of the pandemic.
It bought us one of the more hotly contested elections in some time.
And it was the year of a massive stock market crash, with the major indexes dropping by 35% or more.
But 2020 was also the year of the quickest market recovery in history – with prices rushing back to new all-time highs in a matter of months.
2020 was a fantastic year to invest and trade in low priced penny stocks.
New traders flocked to the market during the early stages of the lockdown.
And many of them have stayed even after the world began to reopen.
Intelligent speculation in penny stocks has made a lot of money for a lot of people in the past year.
With the vaccine finally arriving, we could see a full reopening of the economy that drives the markets higher.
This would create even more massive opportunities for low priced stock investors.
Here are the three best penny stocks to buy with 300% upside...
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Institutions are a driving force in big stock moves.
They have trillions of dollars under management, and when they pile in or out of stock, they will move prices.
That's happening right now with our best stocks under $10.
In fact, institutional buying could send our best stock today soaring 124%.
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2020 gave birth to a huge wave of new traders.
And their buying could provide the backdrop for a continued rally in penny stocks going into the new year.
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2020 has been a great year to trade penny stock breakouts.
And with my help, 2021 is going to be even more prosperous for you because I'm going to show you exactly what to look for.
Buying penny stocks that are moving higher and nearing their 52-week highs has worked much better and has been particularly profitable in 2020.
The break above the 52-week high often attracts breakout traders that use the new high list to pick stocks.
Their buying can help push the stock above the $5 mark, allowing more institutions to get involved in the stock.
This type of trading is not for everyone.
It is very volatile at times.
You will have some good months, and you will have some bad months.
But if you can live with volatility and swings in your account balances, you can make a lot of money with penny stock new high breakouts.
Because we want new high list traders to help lift our stock higher, we want to buy when the stock is moving up and nearing the 52-week highs to get in ahead of the new high list buyers.
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Investing in psychedelic stocks today could be like getting in on the ground floor of the medical marijuana industry.
Investors who think they missed the explosion in pot stocks in 2018 need not worry.
Right now, there are newly legal, early-stage psychedelic medicine companies conducting trials that most of Wall Street is completely missing… Just like people weren’t sure if marijuana had any medical benefits back in 1996, microdoses of magic mushrooms, LSD, ketamine, MDMA, and DMT are now being tested for medical benefits of their own.
These studies have FDA approval.
That means there is a real possibility some companies will win federal approval to sell these drugs.
And that’s creating a brand-new opportunity for investors to get in on the ground floor of these psychedelic stocks… .
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Today’s best pest penny stock to buy is getting hedge fund interest.
This could send its price rocketing as high as 158% in a matter of weeks.
Most institutions have specific guidelines that do not allow them to invest in stocks that trade for less than $5 a share.
However, hedge funds and other traders that are not managing huge pension or endowment funds do not have these restrictions and can jump into low-priced stocks they find attractive.
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There are several different ways to evaluate penny stocks using fundamental and technical analysis… One that has worked very well in 2020 is buying low prices stocks when they move to a new 52-week high.
There are hundreds of thousands of traders tracking the new high list looking to jump into a breakout momentum stock just before it makes a big move.
We can improve our odds of success even further by watching for large volume increases and identifying the catalyst for the breakout.
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We all love a low-priced stock.
Wall Street telling us we shouldn't is a lot like our parents telling us candy was bad for us.
Sorry Mom, but we just came across one of the best stocks under $5 right now.
And it has the potential to pop 300% in a short time.
Sure, a move from $50 to $100 and $5 to $10 is the same percentage rate of return.
But it takes a lot less cash to create the buying pressure needed to move the $5 stock than it does to move the needle for the $50 stock.
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Penny stocks have gotten a lot of attention from the media this year.
We have seen Robinhood investors drive some ridiculous moves in low price stocks that ended badly when reality interceded… One of the best examples this year is Eastman Kodak Co.
(NYSE: KODK).
The stock went from being an irrelevant $2.10 bankrupt company on July 24, to as high as $60.00 per share just five days later on July 29.
This insanity was driven by speculative retail investors who probably didn't start buying until Kodak was $10 or more… And if they haven't exited the position yet, they're sitting on some pretty hefty losses now that KODK is only trading for about $8 per share.
All that being said, this does not mean we should quit looking for low priced stocks with the characteristics that could lead to massive gains.
When these low-priced stocks begin to move, and the big institutional money realizes these are real companies with growing profits and sound balance sheets, their buying pressure can drive the shares higher than you ever imagined…
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