What Are The Best Penny Stocks 2022?

If you’re looking to invest in penny stocks, you’ll want to know which ones are the best to buy in order to make the most profit. So which are the best penny stocks of 2022?

Whether you’re a seasoned investor or just starting out, penny stocks are something you’ll have heard of whether it’s from the world of wall street or from genuine investment advice websites.

In this article we’ll educate you on what penny stocks are and the best way to go about investing in them so that you are safe and don’t get burned.

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Table of Contents

What Are Penny Stocks?

The original definition of a penny stock was a share in a company that was valued at less than a UK penny. However, that definition is no longer the most popular one.

The definition of a penny stock nowadays is a bit different and often varies depending on who you ask.

Penny Stock

The most widely accepted definition nowadays of a penny stock is that it is a low-priced security that trades for less than $5 per share or features on the NASDAQ Capital Markets tier as a small-cap company.

These companies are considered to be highly speculative and risky investments, since they are often subject to manipulation and lack the liquidity of larger, more established stocks.

We’ve covered them many times before here. For example, we discussed them in presentations like Dave Forest’s “NASA Gold”, Penny Stock Shocker, and 10 Minute Millionaire Insider, just to mention a few.

Despite the risks, penny stocks can offer investors the potential for huge returns. In fact, some of the most successful investors in history, such as Warren Buffett and Peter Lynch, began their careers investing in penny stocks.

If you’re considering investing in penny stocks, it’s important to do your research and only invest in companies that you believe have sound business models and strong fundamentals.

You should also be aware of the risks involved and use stop-loss orders and other tools to manage your exposure. With the right knowledge and strategy, however, investing in penny stocks could be an excellent opportunity to earn impressive returns.

Should You Invest In Penny Stocks?

Penny stocks are one of the most volatile and risky investments that you can make. They are often low-quality companies with little to no earnings, and their share prices can be highly volatile.

However, penny stocks can also offer huge returns if you pick the right ones. In fact, some of the best-performing stocks in the market today started out as penny stocks.

So, should you invest in penny stocks?

The answer is: it depends.

If you’re a risk-taker and you’re comfortable with the high level of volatility, then investing in penny stocks could be a good move for you. However, if you’re not comfortable with that level of risk, then you may want to avoid penny stocks altogether.

No matter what your decision is, be sure to do your research before investing in any stock, penny or otherwise.

A Closer Look At The Best Penny Stocks To Buy In 2022

Penny stocks are often associated with high risk and low reward. However, there are some penny stocks that have the potential to offer investors substantial returns.

As you look for penny stocks to invest in, bear in mind that many of them are only available over the counter through the OTC Bulletin Board (OTCBB). The problem is that this is not necessarily the best place to trade penny stocks because fraud can be an issue.

You’ll find some of them on stock exchanges, and overall, they are a lot safer. Some of them cost a little more than $5 a share.

GameStop Corp. (GME)

GameStop is a video game and entertainment software retailer. The company has been struggling in recent years, due to competition from digital downloads and streaming services such as Netflix (NFLX) .

GameStop

However, GameStop has managed to stay afloat and could be a good investment for penny stock investors.

AMC Entertainment Holdings, Inc. (AMC)

AMC is the largest movie theater chain in the United States, with over 1,000 theaters across the country.

AMC

AMC was one of the companies that was hardest hit by the pandemic because AMC Theatres lost $4.6 billion in 2020 due to COVID-19 restrictions.

That notwithstanding, the company has seen strong growth in recent years, thanks to investments in innovative technologies and new entertainment formats such as IMAX and Dolby Cinema.

AMC could be a good bet for investors looking to profit from the continued growth of the theater industry.

BlackBerry Ltd (BB)

BlackBerry is a Canadian telecommunications company that produces smartphones and other devices.

Blackberry

The company has been struggling in recent years, due to competition from Apple (AAPL) and Android manufacturers.

However, BlackBerry has turned its fortunes around and is now profitable again. It has witnessed significant growth in recent times. This makes it a good penny stock to invest in for 2022.

Hewlett Packard Enterprise Co (HPE)

Hewlett Packard Enterprise is a technology company that provides enterprise-level services and products.

The company has been through some tough times in recent years, but has managed to stabilize and is now growing again. This makes it a good penny stock to invest in for the long term.

Nokia Oyj (NOK)

Nokia is a Finnish multinational telecommunications company. The company was once the world’s largest manufacturer of mobile phones, but has struggled in recent years due to competition from Apple and Android manufacturers.

Nokia

Nokia is now focusing on the Internet of Things and is a good penny stock to invest in for 2022.

These are just a few of the best penny stocks to invest in for 2022. Penny stocks are high risk, but can offer investors substantial rewards. So, if you’re looking to make some quick profits, these are the stocks you could be watching.

Best Online Brokers To Buy Penny Stocks On

One of the most important aspects of investing in penny stocks is finding an online broker that offers the best resources and tools for your investment strategy. Here are some of the best online brokers for penny stocks in 2020:

Charles Schwab

Charles Schwab offers a variety of resources for penny stock investors, including real-time quotes, market analysis, and research reports. They also offer account protection against fraud and market manipulation.

**E*Trade**

E*Trade is another popular online broker for penny stocks, with an easy-to-use platform and tools to help you stay on top of your investments.

etrade

They offer a variety of resources, including real-time data, market research reports, and expert analysis from industry experts.

TradeStation

TradeStation is a popular choice among active traders, thanks to its comprehensive trading tools and analytical capabilities. Whether you’re investing in penny stocks or other securities, TradeStation can help you make informed decisions and stay on top of your investments.

If you’re looking for the best online brokers for penny stocks, these are just a few of the many options.

eToro

eToro is a top broker that allows you to browse through the best penny stocks to buy and at zero commission. The broker has tight spreads on certain stocks, as well as zero charges for USD deposits. A good percentage of retail investor accounts trade on the platform.

eToro

eToro features 1145 stocks on the New York Stock Exchange, 854 on the NASDAQ, and 900+ on overseas exchanges as of writing this. They also feature London’s FTSE and Hong Kong’s KEX.

All told, they have over 3,000 stocks to choose from. On top of that, they have 264 ETFs (Exchange-Traded Funds), a selection of commodities, indices and 59 major cryptocurrencies.

Factors To Consider When Trading Penny Stocks

While penny stocks represent a high-risk investment, you can make money off of them by considering these two factors:

Your Risk Profile

Penny stocks are seen as less risky than cryptocurrencies, but more risky than large-cap stocks. Therefore, you can either make or lose a lot of money.

To invest safely, you need a clear risk strategy; if you want high returns in a short time and wouldn’t mind losing all your money, you are a high-risk investor. If you are after long-term stability and wouldn’t mind a smaller return, you are a low-risk investor.

Diversification

Since penny stocks are highly speculative, confine them to only a small part of your portfolio. The most prudent thing to do is diversify across different types of asset to have a balanced risk profile. Invest the majority of your money in lower-risk assets Exchange-Traded Funds and large-cap stocks.

Check the Fundamentals

A Penny stock generally has a low market capitalisation. You need to decide why it has a low market cap.

Does it have it because it is just starting out? Does it have revenues coming through in the next few years that have yet to hit the balance sheet? Is it facing a major scandal that has affected its share price, but is working on bouncing back? Alternatively, is it low because it has a broken business model or bad management?

The bottom line is that you should do your own due diligence before you draw conclusions about a company.

DrawBacks of Penny Stocks

Low Liquidity

One of the biggest challenges that come with the stocks mentioned is low liquidity. This means that few shares of a company are being traded. It implies that you can get stuck with shares when you want to sell them because you can’t find a buyer. A good broker will sell you shares listed on major exchanges that have good liquidity (although there are no guarantees).

High Volatility

Due to their small size, it does not take a lot of trading to affect the price of penny stocks (for example, we saw this in 2019 during the Cannabis stocks boom). This volatility can either be a good thing or a bad thing because you either make a lot of money quickly or lose it equally as fast.

Can You Get Rich Off Penny Stocks?

While penny stocks can be a risky investment, they do have the potential to deliver high returns. With the right strategies and market knowledge, it is possible to turn a small initial investment into a significant profit.

Some key strategies for success when investing in penny stocks include staying informed about market trends and developments, using proven trading strategies, and building a diversified portfolio.

Penny stocks can be a volatile and risky investment, but with the right approach, they can offer the potential for high returns. If you’re interested in penny stocks and want to learn more about how to trade them, consider signing up for a trading course or investing in a good stock market book. With the right knowledge and strategies, you can make a profit from penny stocks.

Are Penny Stocks Traded On The New York Stock Exchange?

While penny stocks are not typically traded on the NYSE (or even on the NASDAQ exchange), there are still a number of different marketplaces where they can be found.

Some popular venues for penny stock trading include online brokers, over-the-counter markets, and the Pink Sheets.

To find the best penny stocks in your area, it is important to research the different options and choose a platform that offers the tools and resources you need to make informed investing decisions.

Whether you are looking for OTC stocks or NYSE penny stocks, there is likely an option that will meet your needs.

Conclusion

Penny stocks, also known as micro-cap or small-cap stocks, can be a risky investment for many investors. However, with the right tools and research, it is possible to find some of the best penny stocks on the market.

The capital markets have been turbulent since the start of 2022, to say the least. Factors like inflation, the war in Ukraine, food insecurity, stock market volatility, the possibility of a recession, and unpredictable energy prices have created a lot of uncertainty for investors. Most of them can’t decide whether to cut their losses and take cover or buy now while some securities are undervalued.

While there are many compelling investments, penny stocks are some of the interesting ones that investors with the right profile should consider.

Before you leave

If you’re tired of scams and want a real solution for making money online check out my no.1 recommendation.

It’s helped me earn over $300,000 in the last 12 months alone:

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David Fortune

David Fortune has been the editor NoBSIMReviews.com since 2019. He is an expert at writing content on stock advisory services, side hustles, reviewing online business opportunities and many more topics. You can learn more about David on our about us page.

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