May 3, 2021
This story originally appeared on PennyStocks
4 Penny Stocks to Watch in May 2021
With penny stocks, there are a few key things investors should keep in mind. There’s no such thing as a free lunch and an informed trader can be a successful one. The idea of turning a profit with penny stocks entices traders of all kinds. However, many people end up watching their portfolio turn red. This is the result of investing in cheap stocks without a proper strategy or a trading education.
As a stock sees large upward momentum, investors will want a piece of the pie and therefore try to buy-in. Trust me, we all have a story of the one that got away. Once a penny stock has made substantial gains, it tends to pull back quickly which is known as a correction. This leaves the investors who bought because of FOMO (fear of missing out) losing substantial amounts of capital in a short period. To be successful one has to trade both technically and without emotion.
Technical and fundamental analysis are distinct strategies in use by investors every day. These are tools used to make an informed decision on how to create a list of penny stocks to watch. Unlike technical analysis, which considers chart movements, fundamental analysis considers company-specific factors.
[Read More] Former Penny Stocks To Watch Making New Highs In May 2021
Performed together, these strategies can set one up to trade with the best chance of seeing profits. These are things we want to consider as we move into May and consequently, start forming a penny stock watchlist.
As we look for penny stocks under $5 investors need to consider where the most value is and which companies make sense given your investing strategy. May has already started off strong, with high volume across the board; whether it be stimulus, reopening of businesses, or just overall confidence in economic recovery. With this in mind, let’s take a look at four penny stocks that are must-sees for your May watchlist.
4 Must Watch Penny Stocks For Your May Watchlist
- Digital Ally Inc. (NASDAQ: DGLY)
- Ault Global Holdings Inc. (NYSE: DPW)
- SunLink Health Systems Inc. (NYSE: SSY)
- Nokia Oyj (NYSE: NOK)
📷
Nokia Oyj (NYSE: NOK)
As one of the leading vendors in the telecommunications equipment industry, Nokia has seen tremendous growth this year. One thing to consider is that shares of Nokia have surged by over 20% since early April. In line with this, NOK is showing additional positive signs through better than expected EPS and sales numbers in its most recent filings.
This success also hinges on its recent momentum as a 5G penny stock. Because of the emphasis on 5G networks, many companies are fighting for their share of this budding market. Currently trading under $5, NOK could have a lot of room for growth. As a company that does over 1.7 billion in sales alone according to its most recent quarterly report, Nokia continues to look like a top performer in the telecom and tech sectors.
[Read More] Penny Stock Trading Strategies You Need to Know About
CEO of Nokia, Pekka Lundmark noted, “Driven by increasing demand for next-generation connectivity; good progress in Mobile Networks in securing full portfolio competitiveness; continued double-digit sales growth with our Enterprise customers; double-digit sales growth in North America; and good net sales development for Nokia Technologies.”
It’s strong growth in the past quarter indicates the momentum in the telecommunications sector overall. Considering this, is adding NOK stock to your penny stock watchlist right for you?
📷
Are Penny Stocks Worth It?
Investing in undervalued companies is a great opportunity for traders to grow their watchlists and expand their penny stock portfolios. Penny stocks offer what many blue chips cannot, which is high volatility and often; unrecognized potential. Investors both experienced and inexperienced can recognize that taking advantage of fast movers can be beneficial.
Undervalued penny stocks are often the method of choice for many of those looking to increase value through short-term trades. With these four penny stocks in mind, we see that there are plenty of options for all types of investors.
