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!

Jeff Williams

Jeff Williams is a full-time day trader with over 15 years experience. Thousands of entry-level and experienced traders alike – day-traders and swing-trade small cap stock traders – credit Jeff with guiding them to turning small accounts into big accounts.

Jeff’s "Small Account Challenge" shows people how to transform accounts from a few thousand dollars into $25k, $50k or even $100k.

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