Whether you’re using TD Ameritrade, ETrade, Interactive Brokers, or Robinhood, penny stocks are one of the hottest investment vehicles this year. Obviously, by the number of accounts opened, Robinhood has been one of the fastest-growing this year. But even if you use another platform, you’ve likely come across a penny stock or two that’s piqued your attention.
Where would you even start with the number of penny stocks breaking out hundreds and thousands of percentage points this year? The crazy part is, there were so many “new” penny stocks for the simple reason that coronavirus lockdowns triggered a huge sell-off across the market.
I’d be willing to bet that we saw more 1,000% moves on significant volume surges this year than in years prior. Either that or maybe it’s just the fact that there’ve been so many recently that makes me think that.Trading Penny Stocks On Robinhood, Webull, & Others
The millions of new traders opening up accounts this year gained access to one of the wildest markets in history. We went from a full-blown bear market to new, all-time highs in the matter of a few months. Now, as we approach the election, volatility is back in a big way. It’s important to keep your strategy in mind.
Cut losses quickly, set a plan to stay in winners longer, etc. The wild swings that the market has made, created a great atmosphere to capitalize. But it sometimes requires a fast hand. If you’re using a mobile app like Robinhood, penny stocks and their volatility are something to keep in mind. Something else to consider is your trading style, in general. For instance, when you buy penny stocks, do you purchase your entire position at one price? Some traders have found great ways to stay in winning trades longer while taking minimal losses on losing trades by employing the tier trading strategy.
As the name suggests, this entails entering and exiting trades in different chunks, or “tiers”. When a trade works in your favor, scaling in to and out of that trade keeps you in the winning trade longer. When it comes to a losing trade, you have only risked a small amount of capital to “test the waters”. So instead of taking a 20% loss on 100% of your capital, you’re only taking a 20% loss on, say, 20-25% of your initial capital. For more information on the tier trading strategy, click here.Robinhood Penny Stocks To Watch
- MMTEC (NASDAQ:MTC)
- Remark Holdings, Inc. (NASDAQ:MARK)
- Borqs Technologies, Inc. (NASDAQ:BRQS)
- Can Fite Biopharma ADR (NYSE:CANF)
The point of all of this is to make sure you’re taking profit when possible and avoiding the “bag holder” syndrome so many new traders fall prey to. With this in mind, are these on your list of penny stocks to buy or sell right now?Robinhood Penny Stocks To Buy [or ignore] #1: MMTEC
MMTEC, Inc. (MTC Stock Report) might not be one of the penny stocks you’ve come across this quarter. However, it was a high-flying one back in the second quarter. Shares ended up rallying from around $1.10 to highs of $7.70 within a matter of weeks. The catalyst was the company’s earnings results. Though they showed a wider loss, revenue jumped. This ultimately triggered the massive run in May and early June. However, as you’ll see on its chart, that ended much quicker than it lasted. Shares crashed back to sub $2 levels within days of reaching that $7.70 high.
Since then, things have been very quiet for the company up until this week. The last 3 sessions have seen price and volume start picking up. There hasn’t been any news nor has there been filings; nothing. While tech stocks have been hot, MMTEC might need a bit more digging to understand what’s going on right now. Its main revenue driver comes from the company’s Gujia segment. It provides market data services and investor relations management services to customers in China.
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What we can see is that some Chinese stocks are getting attention in the stock market today. Thanks to a series of momentum stemming from Nio Inc. and others, traders could simply be reacting based on a sympathy strategy. However, it’s worth noting the 3-day trend and increasing volume in the interim. Will this trend continue into the end of the week?Robinhood Penny Stocks To Buy [or ignore] #2: Remark Holdings, Inc.
Remark Holdings, Inc. (MARK Stock Report) has been one of the popular penny stocks Robinhood traders have watched amid the “reopening” trend. Conveniently coined “reopening penny stocks” these are companies that could benefit from the economy “going back to a new normal”. In Remark’s case, the company has been a notable one to watch as it has worked to deploy video imaging technology to scan for high-risk scenarios that could result in an outbreak. Specifically, its thermal imaging technology can identify when someone might be showing symptoms of a virus.
Ever since April 28 when the company gained media attention for its thermal imaging, MARK stock has been on the move. We’ve watched it rally as high as $3.56 and after pulling back, it seems that the company started gaining attention at the beginning of September. Much of the company’s progress and source of speculation have stemmed from images and updates on Remark’s Twitter feed.
Just last week, MARK stock sparked after another tweet from the company. It showed its technology at the Las Vegas Raiders Arena. Again, there haven’t been many formal press releases discussing these images. However, the company has remained active on social media. At the end of last month, Remark received its GDPR certification for its AI platform and family of thermal detection products. In light of recent events, will this “re-mark” a bullish trend for MARK stock?Robinhood Penny Stocks To Buy [or ignore] #3: Borqs Technologies, Inc.
Borqs Technologies, Inc. (BRQS Stock Report) has been steadily trending higher over the past 4 sessions. Wednesday marked the largest 1-day move so far. However, there hasn’t been much news from the company other than what was announced earlier this month. On the 5th, Borqs announced it filed the annual report for the year ended December 31, 2019.
One of the things that might have shed some light on the company was the Apple Event this week. Borqs operates as a software development company. It is engaged in software, development services, and products providing customizable smart connected devices and cloud service solutions. Whether or not this is a sympathy move in light of that event is up in the air. However, the biggest focus for tech has centered around data and connectivity. Last month, Borqs inked a deal with Juniper Systems providing component design with technologies enabling Juniper to deliver ultra-rugged tablets and handhelds to use in field data collection areas.
The biggest question is whether or not this momentum can continue. I know there’ve been plenty of traders looking at the latest 3-day move. But will this end up becoming one of the penny stocks to buy or avoid following this week’s first-half move?Robinhood Penny Stocks To Buy [or ignore] #4: Can Fite Biopharma
Can Fite Biopharma (CANF Stock Report) is another one of the penny stocks on Robinhood growing in popularity this week. The company’s recent announcement could have become a short-term catalyst for the week. Whether this is a “buy the rumor, sell the news” event is yet to be seen.
However, on October 15th the company is set to host a conference call providing an update on its Phase 3 psoriasis study and positive interim data analysis. The company will also discuss recommendations from the study’s Independent Data Monitoring Committee. Since the call isn’t set until after the market closes on Thursday, the next 24 hours could be “interesting” to say the least.
Wednesday’s market action saw CANF stock put in its highest single-day share volume in weeks. Furthermore, taking a look at the formal headline from its data analysis on October 6th may reveal some hot button items. Specificially, the company said that the Independent Data Monitoring Committee conducted a pre-planned interim analysis of the Can Fite’s Phase 3 Comfort™ trial of Piclidenoson for the treatment of psoriasis and recommended to continue with this psoriasis study.
“While the interim analysis data continue to be blinded to Can-Fite, and the results have only been available to the IDMC, their recommendation to continue the Phase III psoriasis study and also to drop one of the dosing groups are highly encouraging.”Dr. Pnina Fishman, Can-Fite CEO
Interested To Learn More About Tier Trading Discussed Earlier? Check Out The Video Below