Investors are attracted to penny stocks because of the small amount of capital needed for a large amount of exposure and upside potential. On the other hand, penny stocks carry a lot of risk for investors. They are some of the most volatile stocks in the market. It’s not uncommon to see over 50% swings in just a single day.
Penny stocks are best in moderation, as a supplementary piece to an overall investment portfolio. This is because of the inherent risk of huge losses that could happen at any time. But, if you can scale a position properly with a penny stock that has tons of momentum, it has the potential of being an extremely profitable investment.
Having some exposure to penny stocks for their growth potential is good, but don’t be too heavily reliant on them. Below are three different hidden gem penny stocks with huge upside potential. Mullen […]
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