Are Penny Stocks Affected by Cryptocurrency Swings?
Penny stocks have become extremely popular throughout the past few years. The term âpenny stocksâ refers to any stocks trading under $5 per share. Investors often ask themselves, why invest in penny stocks? Well, because they are relatively cheap, they provide an interesting entry point that investors could use to their advantage.
Despite risk being a big factor to consider, the large swings that we see with penny stocks can potentially deliver sizable gains. This, of course, depends on the individual trader and how much time they are spending on research and education. While itâs not common to see a stock go from $100 to $200 in a single day, we do see penny stocks move from $0.10 to $0.20 for example, quite often.Â