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4 Reasons You’re Not Making Money With Penny Stocks

How to make money with penny stocks.
The post 4 Reasons You’re Not Making Money With Penny Stocks appeared first on Penny Stocks to Buy, Picks, News…

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Have you ever been curious about penny stocks or how to make money with them? If you’ve seen any stock market game or movie about trading, I’m sure the topic has piqued your interest. It seems easy, right? Just load up some cash into some mobile brokerage account, and you can start making money with penny stocks. They’re only cheap stocks, right? How hard could it be?

The rise of meme stocks like AMC Entertainment (NYSE: AMC) and GameStop (NYSE: GME) did something interesting to the stock market; it brought a whole new type of “investor” into the fold. The idea of “buy and hold” was thrown out the window in exchange for capitalizing on short squeezes and breakout stocks. It also put penny stocks at the center of the spotlight. But in this case, it wasn’t about how these cheap stocks could jump in a single day; it was the potential of a much bigger move.

Let’s look at the AMC and GME examples.

GME Stock Explodes 16,967%

The GameStop saga began much earlier than 2021. In fact, GME stock was a frequent mention on PennyStocks.com over the last few years. One of the most significant developments came when “Big Short” investor Michael Burry actually got behind GameStop. Jumping ahead to the meme stock explosion and the sub-$5 GME was now trading at a modest $20. In a movement more akin to the movie, The 300, traders locked down during the pandemic found a common goal: fight against hedge funds that had depressed certain “underdogs” for so long. Ultimately, GME stock would explode to highs of $483 in a move of nearly 17,000% in less than a year.

AMC Stock Surges 3,700%

Thanks to the attention that GME stock received, the new “Ape Army” was on the hunt for the next heavily shorted, all-but-forgotten penny stock to buy. In early 2021, AMC stock was, by all accounts, considered a penny stock. It met the standard sub-$5 definition and was relatively illiquid. The underlying company had also taken its licks in the market. That was due to a floundering business at the time, thanks to COVID restrictions.

But some saw the potential in the company, including our writers. We pointed AMC out in November 2020 as one of the top epicenter penny stocks to watch before the new year. Fast-forward and AMC stock became one of the leading meme stocks at the center of interest. This was for thousands of traders taking their first step into the stock market. Shares of AMC stock surged from under $2 to highs of over $72 in one of the most epic rallies in recent history.

penny stocks to buy sell AMC Entertainment AMC stock chart

4 Reasons Why You’re Not Making Money With Penny Stocks & How To Change That!

So, if AMC stock theoretically turned $1,000 into $37,000 and GME stock took the same $1,000 and made it nearly $170,000, why aren’t you making money with penny stocks?

1. You’re Trying To Find Duplicate

So many new traders started by taking advantage of the moves in AMC and GME stock. It was a global phenomenon that brought in all the appeal, including scandal, money, & a David and Goliath type storyline. When hundreds of thousands or even millions of investors focus on a single issuer, these moves can happen. But it’s a rare occurrence. Sure, you have your groups of traders agreeing on a similar trade idea at times. But what we saw happen with the Ape movement was an outlier.

One of the first reasons that new traders aren’t making money with penny stocks is that they’re trying to find “the next GME” or “the next AMC” instead of learning how to trade. The fact is, there are plenty of penny stocks that explode 50%, 100%, or even over 300% within a matter of days or weeks. But all-too-many new traders see a position up 300% and think, “Well, this is it. THIS is the next GME; I found it,” only to see share prices implode soon after. The vast majority of penny stocks are young companies or ones looking to get on their feet. They are priced lower for various reasons.

The Solution: As a trader, understanding how to set profit targets, stop losses, and manage risk is the first step in removing this issue from your trading strategy. Have a plan, execute the plan, and have backstops in place to protect your capital if things don’t go as planned.

2. Catching The “Whole Move” In Penny Stocks

Like a good piece of fruit you’re trying to juice, you want to get every drop out of it. Rarely does this happen. There’s always some liquid left in the rind. Like fruit juice, catching the entire move in penny stocks tends to result in more failed trades than winning ones. At most, attempting to “top tick” your sale or “bottom tick” your entry will force you to deviate from your original plan.

Sure, technically, the GME and AMC stock moves were between$3,700 and nearly $17,000 from low to high on the charts. But the chances of catching the entire move are low. Another reason why you might not be making money with penny stocks is you hold too long, hoping to see the whole move.

Penny Stocks Get Big Boost From r/WallStreetBets & Reddit Buying Spree

The Solution: Clearly outline your trading game plan ahead of time. Set your price targets for selling shares, set your stop-losses, and, most importantly, STICK TO THE PLAN! Not catching the entire move is fine as long as you remember why you’re trading in the first place: to make money and repeat the process. At the end of the day, if you “sell too early,” as long as the underlying trend is strong, there should be more opportunities to re-enter a trade if you choose.

3. Letting Emotions Dictate Your Strategy

We’re talking about penny stocks here. You can buy them for as little as $0.0001 per share or as much as $5 if you stick to the definition of penny stocks. In all cases, small moves in price equate to much more substantial percentage changes than higher-priced stocks. So it’s not hard to imagine that if you’re up 30% on a penny stock, “just a few more pennies” could put you up 40% or 50%. When emotions dictate your strategy and force you to deviate from your original plan, that’s when things can go south. Holding out for another 10%, in this example, could end up costing you much more based on how volatile stocks are. Look at a recent example of how volatility can quickly turn a winning trade into a break-even or losing trade.

In late-2021, shares of Remark Holdings (NASDAQ: MARK) exploded from under $1 to over $6 within a 2-day timeframe. But, by day #3, MARK stock was already back at $2. Letting emotions take over, thinking “this is the next GME,” likely caused more losses than gains. The traders who made the most money from MARK stock traded according to their original plan. Was the trend strong? Ultimately, the answer to that question is “no,” but those holding out, thinking $6.70 wasn’t “the top yet,” more than likely found out exactly why emotion has no place in trading.

penny stocks to buy sell Remark Holding MARK stock chart

You even had former penny stocks like Novavax (NASDAQ: NVAX) and FuelCell Energy (NASDAQ: FCEL) go on epic rallies but ultimately plummet from their record highs.

The Solution: STICK TO YOUR PLAN! Most of the time, a clear, defined strategy will yield more consistent results than “a gut feeling.” Will there be outliers? Definitely, and you’ve got to be alright knowing that you might catch the entire move in a penny stock. Again, if a trend is truly strong, it will give multiple opportunities to profit.

4. You Don’t Know How To Trade Penny Stocks (or other stocks)

Let’s face it if you saw the moves that AMC stock and GME stock made, your outlook on trading is much different from those who’ve been in the market for years. These massive breakouts brought a different mentality to the market that was more about “betting” on winning trades than identifying them. If that sounds like you, that’s ok (for now). The market doesn’t have to be one big bet; you can become consistently profitable and don’t need to have an AMC-type move to do it.

The Solution: Learn the basics, understand technical analysis, learn how different types of news impacts the market, and know what various SEC filings mean and how to use them. There are many ways to make money with penny stocks, just like there are plenty of ways to do other professions. But the first step is learning how to do so the right way.

Take a step back and learn. Believe it or not, trading can be a full-time profession and is one for thousands of market participants. Like any profession, learning basic and advanced techniques is key to making it to the top of your game. Getting lucky is one thing but becoming consistent in your trading is another; luck doesn’t have a place.

Should You Trade Penny Stocks?

That depends on your goals and your risk tolerance. Penny stocks are not suitable for everyone, but they can be a great way to make money if you’re willing to take on the risks. Do your research and understand the risks before you trade penny stocks. And never invest more than you can afford to lose. Penny stocks are risky, but they can be a great way to make money if you know what you’re doing.

If you are interested in learning more about penny stocks and the stock market as a whole, then you need to check out True Trading Group, the fastest growing & highest-rated online premium educational platform available today.

True Trading Group offers a 7-day Trial of its platform for a 1-time, non-auto renew payment of just $3! To Learn More Click Here.

The post 4 Reasons You’re Not Making Money With Penny Stocks appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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Walmart joins Costco in sharing key pricing news

The massive retailers have both shared information that some retailers keep very close to the vest.

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As we head toward a presidential election, the presumed candidates for both parties will look for issues that rally undecided voters. 

The economy will be a key issue, with Democrats pointing to job creation and lowering prices while Republicans will cite the layoffs at Big Tech companies, high housing prices, and of course, sticky inflation.

The covid pandemic created a perfect storm for inflation and higher prices. It became harder to get many items because people getting sick slowed down, or even stopped, production at some factories.

Related: Popular mall retailer shuts down abruptly after bankruptcy filing

It was also a period where demand increased while shipping, trucking and delivery systems were all strained or thrown out of whack. The combination led to product shortages and higher prices.

You might have gone to the grocery store and not been able to buy your favorite paper towel brand or find toilet paper at all. That happened partly because of the supply chain and partly due to increased demand, but at the end of the day, it led to higher prices, which some consumers blamed on President Joe Biden's administration.

Biden, of course, was blamed for the price increases, but as inflation has dropped and grocery prices have fallen, few companies have been up front about it. That's probably not a political choice in most cases. Instead, some companies have chosen to lower prices more slowly than they raised them.

However, two major retailers, Walmart (WMT) and Costco, have been very honest about inflation. Walmart Chief Executive Doug McMillon's most recent comments validate what Biden's administration has been saying about the state of the economy. And they contrast with the economic picture being painted by Republicans who support their presumptive nominee, Donald Trump.

Walmart has seen inflation drop in many key areas.

Image source: Joe Raedle/Getty Images

Walmart sees lower prices

McMillon does not talk about lower prices to make a political statement. He's communicating with customers and potential customers through the analysts who cover the company's quarterly-earnings calls.

During Walmart's fiscal-fourth-quarter-earnings call, McMillon was clear that prices are going down.

"I'm excited about the omnichannel net promoter score trends the team is driving. Across countries, we continue to see a customer that's resilient but looking for value. As always, we're working hard to deliver that for them, including through our rollbacks on food pricing in Walmart U.S. Those were up significantly in Q4 versus last year, following a big increase in Q3," he said.

He was specific about where the chain has seen prices go down.

"Our general merchandise prices are lower than a year ago and even two years ago in some categories, which means our customers are finding value in areas like apparel and hard lines," he said. "In food, prices are lower than a year ago in places like eggs, apples, and deli snacks, but higher in other places like asparagus and blackberries."

McMillon said that in other areas prices were still up but have been falling.

"Dry grocery and consumables categories like paper goods and cleaning supplies are up mid-single digits versus last year and high teens versus two years ago. Private-brand penetration is up in many of the countries where we operate, including the United States," he said.

Costco sees almost no inflation impact

McMillon avoided the word inflation in his comments. Costco  (COST)  Chief Financial Officer Richard Galanti, who steps down on March 15, has been very transparent on the topic.

The CFO commented on inflation during his company's fiscal-first-quarter-earnings call.

"Most recently, in the last fourth-quarter discussion, we had estimated that year-over-year inflation was in the 1% to 2% range. Our estimate for the quarter just ended, that inflation was in the 0% to 1% range," he said.

Galanti made clear that inflation (and even deflation) varied by category.

"A bigger deflation in some big and bulky items like furniture sets due to lower freight costs year over year, as well as on things like domestics, bulky lower-priced items, again, where the freight cost is significant. Some deflationary items were as much as 20% to 30% and, again, mostly freight-related," he added.

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Walmart has really good news for shoppers (and Joe Biden)

The giant retailer joins Costco in making a statement that has political overtones, even if that’s not the intent.

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As we head toward a presidential election, the presumed candidates for both parties will look for issues that rally undecided voters. 

The economy will be a key issue, with Democrats pointing to job creation and lowering prices while Republicans will cite the layoffs at Big Tech companies, high housing prices, and of course, sticky inflation.

The covid pandemic created a perfect storm for inflation and higher prices. It became harder to get many items because people getting sick slowed down, or even stopped, production at some factories.

Related: Popular mall retailer shuts down abruptly after bankruptcy filing

It was also a period where demand increased while shipping, trucking and delivery systems were all strained or thrown out of whack. The combination led to product shortages and higher prices.

You might have gone to the grocery store and not been able to buy your favorite paper towel brand or find toilet paper at all. That happened partly because of the supply chain and partly due to increased demand, but at the end of the day, it led to higher prices, which some consumers blamed on President Joe Biden's administration.

Biden, of course, was blamed for the price increases, but as inflation has dropped and grocery prices have fallen, few companies have been up front about it. That's probably not a political choice in most cases. Instead, some companies have chosen to lower prices more slowly than they raised them.

However, two major retailers, Walmart (WMT) and Costco, have been very honest about inflation. Walmart Chief Executive Doug McMillon's most recent comments validate what Biden's administration has been saying about the state of the economy. And they contrast with the economic picture being painted by Republicans who support their presumptive nominee, Donald Trump.

Walmart has seen inflation drop in many key areas.

Image source: Joe Raedle/Getty Images

Walmart sees lower prices

McMillon does not talk about lower prices to make a political statement. He's communicating with customers and potential customers through the analysts who cover the company's quarterly-earnings calls.

During Walmart's fiscal-fourth-quarter-earnings call, McMillon was clear that prices are going down.

"I'm excited about the omnichannel net promoter score trends the team is driving. Across countries, we continue to see a customer that's resilient but looking for value. As always, we're working hard to deliver that for them, including through our rollbacks on food pricing in Walmart U.S. Those were up significantly in Q4 versus last year, following a big increase in Q3," he said.

He was specific about where the chain has seen prices go down.

"Our general merchandise prices are lower than a year ago and even two years ago in some categories, which means our customers are finding value in areas like apparel and hard lines," he said. "In food, prices are lower than a year ago in places like eggs, apples, and deli snacks, but higher in other places like asparagus and blackberries."

McMillon said that in other areas prices were still up but have been falling.

"Dry grocery and consumables categories like paper goods and cleaning supplies are up mid-single digits versus last year and high teens versus two years ago. Private-brand penetration is up in many of the countries where we operate, including the United States," he said.

Costco sees almost no inflation impact

McMillon avoided the word inflation in his comments. Costco  (COST)  Chief Financial Officer Richard Galanti, who steps down on March 15, has been very transparent on the topic.

The CFO commented on inflation during his company's fiscal-first-quarter-earnings call.

"Most recently, in the last fourth-quarter discussion, we had estimated that year-over-year inflation was in the 1% to 2% range. Our estimate for the quarter just ended, that inflation was in the 0% to 1% range," he said.

Galanti made clear that inflation (and even deflation) varied by category.

"A bigger deflation in some big and bulky items like furniture sets due to lower freight costs year over year, as well as on things like domestics, bulky lower-priced items, again, where the freight cost is significant. Some deflationary items were as much as 20% to 30% and, again, mostly freight-related," he added.

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