Back in the day, when I first started trading penny stocks, I loved the idea that I didn’t need a lot of capital to get started.
That’s because when I’m trading stocks priced at $1 or even sub $1, It doesn’t take a lot of BP to purchase a meaningful position.
Combine that with the volatility and liquidity that penny stocks might experience, and I was hooked!
It might be challenging to catch a 10% or more significant move in a large-cap stock.
However, it’s not that rare in penny stocks.
Let me show you precisely what I am talking about.
Earlier this month, I traded IGEX, a $0.006 stock trading on the OTC market.
On the two days I was involved, the stock traded 89 million shares and 105 million shares.
Ok, but what return could I have possibly made on such a low-priced stock?
I sold my long position for a 15.36% return.
Here’s the breakdown:
Low-priced penny stocks might not be as sexy as large-cap stocks, like FB or NFLX.
Still, they offer unique opportunities and benefits such as potential outlier percentage moves and the ability to enter a position with a small amount of capital.
I’m always on the lookout for penny stocks that present favorable setups and opportunities because that’s what I do, and since day one, that’s what I have been all about!
