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published on July 27, 2021
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NASDAQ Penny Stocks
Go to NASDAQ penny stocks for a complete list of NASDAQ stocks trading under $5.
Are NASDAQ Stocks Under $1 Worth The Investment?
Generally speaking, a stock is cheap for a reason, the company is not doing well. The odds of finding a penny stock that would eventually turn into a large company is very low. Most penny stocks go bankrupt in the long term, or get delisted from the NASDAQ and moved to the OTCBB market.
There are many listing requirements by the NASDAQ, one of which is that a stock cannot be trading under $1 for too long. A company may get a deficiency notice from NASDAQ if its stock trades below $1 for 30 consecutive days. Some companies may reverse split their stock so that their stock price stays above the $1, these are the stocks to avoid.
From time to time, there are good companies that do trade in the $1-$2 range and eventually made a comeback as AMD does. However, the probability of jump in on one of these stocks before their rise is against the average investor. Most people are just not savvy enough to buy and hold this kind of stock.
Although I wouldn't invest my money in NASDAQ penny stocks for the long term, I do trade these types of stocks on a daily basis.
How To Trade NASDAQ Stocks Under $1?
Trading as opposed to investing is a completely different game.
When you are investing in a stock, you are betting on the company's fundamentals. You hope the company will do well in the next 5 to 10 years, so you can quadruple your initial investment.
Trading, on the other hand, doesn't care about company fundamentals. Traders bet on the short term price action of stocks and utilizing tools like technical analysis to find profitable trades. They buy and sell a stock in a matter of minutes to a few weeks. The goal is to profit from price fluctuations instead of company fundamentals.
Trading may seem easy, but it is actually very hard. In fact, most traders lose money. Many beginners get into trading hoping to get rich quickly which is the absolutely wrong mindset. Trading takes consistent practice and learning just like any other skill.
It takes about 10,000 hours for someone to become an expert in any field, trading is no different. If you are not willing to put in this kind of hours into learning, you should not be trading in the first place.
With that being said, here are a few articles to get you started in penny stock trading.
Penny Stocks Guide for 2021
Top 10 Penny Stock Trading Mistakes
Top 5 Penny Stock Patterns
1 Simple Options Strategy - 738% ROI
Hottest Technology Stocks
Top 10 NASDAQ Stocks Under $1
Following are the top 10 NASDAQ stocks under $1 to watch today.
- Iterum Therapeutics Plc (NASDAQ:ITRM)
- Meten Edtechx Education Group Ltd (NASDAQ:METX)
- Allena Pharmaceuticals Inc (NASDAQ:ALNA)
- AEterna Zentaris Inc (NASDAQ:AEZS)
- Toughbuilt Industries Inc (NASDAQ:TBLT)
- Electrocore Inc (NASDAQ:ECOR)
- Tonix Pharm Hld (NASDAQ:TNXP)
- PowerShares Dyn (NASDAQ:PTE)
- Pyxis Tankers (NASDAQ:PXS)
- Borqs Technologies Inc (NASDAQ:BRQS)
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