This story originally appeared on PennyStocks Are These Top Penny Stocks Worth Buying?
May is here, and thus, so is another month for penny stocks. Because speculation is standard with the territory, any factors including something as simple as the beginning of a new month can have a positive or negative effect on penny stocks .
Now, why are penny stocks so speculative? Well, the short answer is that due to their low price (any stocks under $5 ), values tend to shift very quickly. In addition, most investors tend to swing trade these stocks, which in turn, adds to their high volatility.[Read More] Tech Penny Stocks to Buy in 2021? Check These 3 Out Lastly, most cheap stocks tend to move very quickly when news is announced. This includes everything from balance sheets to corporate filings and company updates. So, while none of this should serve to incite fear, […]
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