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How To Trade Penny Stocks: A Beginner’s Guide

How to trade penny stocks for beginners.
The post How To Trade Penny Stocks: A Beginner’s Guide appeared first on Penny Stocks to Buy, Picks, News and…

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Penny stocks can be the “stuff of legend” when they perform well. If you look at the history of cheap stocks, you’ll likely find countless names that produced massive gains for investors. Some companies have even become market leaders competing with the likes of Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA). This was the case with shares of a little-known biotech working on a treatment for influenza at the end of 2019.

The 2020 pandemic shifted its fate, and Novavax (NASDAQ: NVAX) grew to become one of the top penny stocks in the last five years. If you were a reader back then, you would have seen NVAX stock trading under $4 and ultimately ran to highs of $331.68 within a year’s time. It has been 8,100%+ moves like that, which have remained an attractive proposition for traders looking to leverage their money.

What Are Penny Stocks

The definition of penny stocks includes stocks to buy under $5. Popular opinion likens all penny stocks to Over-The-Counter start-ups. However, there are plenty of NYSE and NASDAQ penny stocks to buy. The term “penny stocks” shouldn’t be confused with “small-cap stocks” either. The “cap” in this term refers to the market capitalization of the underlying companies. In the article Are Penny Stocks Good For Beginners? [Answered], we shed some light on this topic.

Generally speaking, market caps or “market capitalizations” are divided into different segments. None of these segments have anything to do with price being the defining factor:

  • Mega-cap stocks: These are companies with market capitalizations above $200 billion. Apple, Amazon (NASDAQ: AMZN), Tesla (NASDAQ: TSLA), etc., fall into this category.
  • Large-cap stocks: Companies with market capitalizations of $10 billion – $200 billion.
  • Mid-cap stocks: Companies with market capitalizations of $2 billion – $10 billion.
  • Small-cap stocks: Companies with market capitalizations of $300 million to $2 billion.
  • Micro-cap stocks: Companies with market capitalizations of $50 million to $300 million.
  • Nano-cap stocks: Companies with market capitalizations below $50 million.

Case in point, Banco Santander (NYSE: SAN) is the “largest” penny stock by market cap at more than $40 billion. It’s a stock that can be bought for less than $3 per share. Meanwhile, you’ve got Village Bank and Trust Financial Corp. (NASDAQ: VBFC), which trades above $50 per share but has a market cap below $80 million. Those are two very different stocks with two very different market capitalizations.

How To Trade Penny Stocks

How do you trade penny stocks and make money? The strategies for trading stocks under $5 vary depending on the type of investor you are. It would serve you well in learning the most commonly used techniques and seeing if they can be applied to your game plan. No matter your experience level, this guide can help you understand the basic trading styles.

Trading penny stocks can be very lucrative, but it takes some know-how to get there. Luckily we have 4 of the most commonly used strategies for you to learn. Trying out new things is always risky – why take that chance? If you are learning how to trade penny stocks or haven’t traded in the past, utilizing a trading simulator is an excellent place to start. Simulators allow you to risk fake or “paper” money instead of your own. While you won’t make big bucks from winning trades, a significant loss won’t negatively impact your real back account either and will allow you to learn from your mistakes.

The first place to begin is learning the different ways to play the market and how numerous trading styles can be used to profit from other moves.

How To Trade Penny Stocks #1: Scalping

Scalping is a typical trading style used by active traders. The basic idea of scalping, as the name suggests, is to execute many trades throughout each day and take profits based on rapid price changes. Think of quick small bites versus trying to invest in one big dish at once. To be successful, though, you need more than just good insight into prices; there’s also timing involved. Making investments quickly before the opportunity is gone or getting out when things get too high risk is critical. Scalping isn’t for everyone and should be conducted by experienced traders.

How To Trade Penny Stocks #2: DayTrading

Whether this is your first foray into the stock market or you’re a pro, you’ve likely heard of day trading penny stocks. Day trading is all about finishing out a trade before that day’s closing bell. Holding a position overnight is not usually part of the game plan.

What’s interesting about day trading penny stocks is that these traders don’t aim to capitalize on any overnight activity. While it is a slower trading style than scalping, it isn’t more or less risky. Day traders usually pay attention to more than just price action. Media headlines and speculation surrounding the stocks they’re watching are also used as tools. Day trading is a very active trading style within a finite amount of time.

One of the main downsides that new traders face is when they allow emotion to play a role. The idea of “what if it goes higher” or “what if this is the bottom” can cause more pain than anything. That’s why, no matter the type of trade you’re making, having a plan and determining things like profit targets and stop losses is key to becoming consistently profitable.

How To Trade Penny Stocks #3: Swing Trading

Swing trading penny stocks refers to a style of trading used by traders trying to make gains over a more extended period. This is usually longer than that of a day trader or a scalper. Naturally, there are two types of swing trading: short-term and long-term.

Short-term swing trading focuses on anywhere between one to two days. Like day trading, short-term swing traders use very little fundamental analysis. Compared to day traders, short-term swing traders must be wary of overnight price action. Gap ups or gap downs can make their trades far riskier.

For instance, if you’re a swing trader and found a penny stock that has consistently risen over the last week, you might take a position. Outside of your control or foresight, late in the evening, the company announces a financing that was done at a steep discount to the market. There is a gap down the next day, essentially wiping out any gains and may even eat into your principle, presenting a more significant loss. This is a risk that swing traders take on, which day traders or scalpers don’t usually encounter.

Long-term swing trading focuses on price movements over several weeks or months. Many refer to this style of trading as “the long game.” Like short-term, long-term swing trading is susceptible to gap ups and gap downs. But the difference is that long-term swing traders will typically ride out these movements in hopes of more sustainable growth over time.

How To Trade Penny Stocks #4: Investing

Investing in penny stocks is an entirely different ball game than trading. Long-term investors will prepare to hold positions for several months to several years. Those investing in penny stocks tend to rely more heavily on company fundamentals or broad market events compared to price action or speculation.

While penny stocks aren’t typical investment choices, that doesn’t mean they aren’t worth it. If you want to invest in penny stocks, understand that pricing risk can play a significant role. For any investment type, it’s best to consult a professional before making any investment decisions.

Final Thoughts On Penny Stocks

Now that you’ve got some of the basics of how to trade penny stocks, it’s time to learn what to look for next. What I mean by this is your journey is just beginning. Identifying your trader identity is critical in finding penny stocks to buy that fit your approach to making money in the stock market. If you are new, check out some of our articles on penny stock basics:

The post How To Trade Penny Stocks: A Beginner’s Guide appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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Type-I interferon stops immune system ‘going rogue’ during viral infections

Hamilton, ON (May 17, 2022) – McMaster University researchers have found not only how some viral infections cause severe tissue damage, but also how…

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Hamilton, ON (May 17, 2022) – McMaster University researchers have found not only how some viral infections cause severe tissue damage, but also how to reduce that damage.

Credit: Georgia Kirkos/McMaster University

Hamilton, ON (May 17, 2022) – McMaster University researchers have found not only how some viral infections cause severe tissue damage, but also how to reduce that damage.

 

They have discovered how Type I interferon (IFN) stops the immune system ‘going rogue’ and attacking the body’s own tissues when fighting viral infections, including COVID-19.

 

Their paper was published in the journal PLOS Pathogens today.

  

Senior author Ali Ashkar said IFN is a well-known anti-viral signalling molecule released by the body’s cells that can trigger a powerful immune response against harmful viruses.

 

“What we have found is that it is also critical to stop white blood cells from releasing protease enzymes, which can damage organ tissue. It has this unique dual function to kick start an immune response against a viral infection on the one hand, as well as restrain that same response to prevent significant bystander tissue damage on the other,” he said.

 

The research team investigated IFN’s ability to regulate a potentially dangerous immune response by testing it on both flu and the HSV-2 virus, a highly prevalent sexually transmitted pathogen, using mice. Data from COVID-19 patients in Germany, including post-mortem lung samples, was also used in the study.

 

“For many viral infections, it is not actually the virus that causes most of the tissue damage, it is our heightened immune activation towards the virus,” said Ashkar, a professor of medicine at McMaster.

  

First co-author of the study and PhD student Emily Feng said: “Our body’s immune response is trying to fight off the virus infection, but there’s a risk of damaging innocent healthy tissue in the process. IFNs regulates the immune response to only target tissues that are infected.

 

“By discovering the mechanisms the immune system uses that can inadvertently cause tissue damage, we can intervene during infection to prevent this damage and not necessarily have to wait until vaccines are developed to develop life-saving treatments,” she added.

 

“This applies not just to COVID-19, but also other highly infectious viruses such as flu and Ebola, which can cause tremendous and often life-threatening damage to the body’s organs,” said first study co-author Amanda Lee, a family medicine resident. 

 

Ashkar said the release of harmful proteases is the result of a ‘cytokine storm’, which is life-threatening inflammation sometimes triggered by viral infections. It has been a common cause of death in patients with COVID-19, but treatment has been developed to prevent and suppress the cytokine storm.

 

Ashkar said that steroids like dexamethasone are already used to rein in an extreme immune response to viral infections. The authors used doxycycline in their study, an antibiotic used for bacterial infections and as an anti-inflammatory agent, inhibits the function of proteases causing the bystander tissue damage.

 

Lee added: “This has the potential in the future to be used to alleviate virus-induced life-threatening inflammation and warrants further research.” 

 

The study was funded by the Canadian Institutes of Health Research.

 

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Editors:

Pictures of Ali Ashkar and Emily Feng may be found at https://bit.ly/3wmSw0D

  

 

 


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mRNA vaccines like Pfizer and Moderna fare better against COVID-19 variants of concern

A comparison of four COVID-19 vaccinations shows that messenger RNA (mRNA) vaccines — Pfizer-BioNTech and Moderna — perform better against the World…

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A comparison of four COVID-19 vaccinations shows that messenger RNA (mRNA) vaccines — Pfizer-BioNTech and Moderna — perform better against the World Health Organization’s variants of concern (VOCs) than viral vector vaccines — AstraZeneca and J&J/Janssen. Although they all effectively prevent severe disease by VOCs, the research, publishing May 17th in the open access journal PLOS Medicine, suggests that people receiving a viral vector vaccine are more vulnerable to infection by new variants.

Credit: Carlos Reusser Monsalvez, Flickr (CC0, https://creativecommons.org/publicdomain/zero/1.0/)

A comparison of four COVID-19 vaccinations shows that messenger RNA (mRNA) vaccines — Pfizer-BioNTech and Moderna — perform better against the World Health Organization’s variants of concern (VOCs) than viral vector vaccines — AstraZeneca and J&J/Janssen. Although they all effectively prevent severe disease by VOCs, the research, publishing May 17th in the open access journal PLOS Medicine, suggests that people receiving a viral vector vaccine are more vulnerable to infection by new variants.

By March 2022, COVID-19 had caused over 450 million confirmed infections and six million reported deaths. The first vaccines approved in the US and Europe that protect against serious infection are Pfizer-BioNTech and Moderna, which deliver genetic code, known as mRNA, to the bodies’ cells, whereas Oxford/AstraZeneca and J&J/Janssen are viral vector vaccines that use a modified version of a different virus — a vector — to deliver instructions to our cells. Three vaccines are delivered as two separate injections a few weeks apart, and J&J/Janssen as a single dose.

Marit J. van Gils at the University of Amsterdam, Netherlands, and colleagues, took blood samples from 165 healthcare workers, three and four weeks after first and second vaccination respectively, and for J&J/Janssen at four to five and eight weeks after vaccination. Samples were collected before, and four weeks after a Pfizer-BioNTech booster.

Four weeks after the initial two doses, antibody responses to the original SARS-CoV-2 viral strain were highest in recipients of Moderna, followed closely by Pfizer-BioNTech, and were substantially lower in those who received viral vector vaccines. Tested against the VOCs – Alpha, Beta, Gamma, Delta and Omicron – neutralizing antibodies were higher in the mRNA vaccine recipients compared to those who had viral vector vaccines. The ability to neutralize VOCs was reduced in all vaccine groups, with the greatest reduction against Omicron. The Pfizer-BioNTech booster increased antibody responses in all groups with substantial improvement against VOCs, including Omicron.

The researchers caution that their AstraZeneca group was significantly older, because of safety concerns for the vaccine in younger age groups. As immune responses tend to weaken with age, this could affect the results. This group was also smaller because the Dutch government halted use for a period.

van Gils concludes, “Four COVID-19 vaccines induce substantially different antibody responses.”

#####

In your coverage, please use this URL to provide access to the freely available paper in PLOS Medicine:

http://journals.plos.org/plosmedicine/article?id=10.1371/journal.pmed.1003991

Citation: van Gils MJ, Lavell A, van der Straten K, Appelman B, Bontjer I, Poniman M, et al. (2022) Antibody responses against SARS-CoV-2 variants induced by four different SARS-CoV-2 vaccines in health care workers in the Netherlands: A prospective cohort study. PLoS Med 19(5): e1003991. https://doi.org/10.1371/journal.pmed.1003991

 

Author Countries: The Netherlands, United States

 

Funding: This work was supported by the Netherlands Organization for Scientific Research (NWO) ZonMw (Vici grant no. 91818627 to R.W.S., S3 study, grant agreement no. 10430022010023 to M.K.B.; RECoVERED, grant agreement no. 10150062010002 to M.D.d.J.), by the Bill & Melinda Gates Foundation (grant no. INV002022 and INV008818 to R.W.S. and INV-024617 to M.J.v.G.), by Amsterdam UMC through the AMC Fellowship (to M.J.v.G.) and the Corona Research Fund (to M.K.B.), and by the European Union’s Horizon 2020 program (RECoVER, grant no. 101003589 to M.D.d.J). The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.


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Pfizer Jab In Young People Only 20% Effective After 60 Days, 0% After 5 Months

Pfizer Jab In Young People Only 20% Effective After 60 Days, 0% After 5 Months

Authored by Zachary Stieber via The Epoch Times,

The Pfizer…

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Pfizer Jab In Young People Only 20% Effective After 60 Days, 0% After 5 Months

Authored by Zachary Stieber via The Epoch Times,

The Pfizer COVID-19 vaccine turned negatively effective after five months, according to a new study.

A health care worker fills a syringe with Pfizer's COVID-19 vaccine in a file image. (Robyn Beck/AFP via Getty Images)

Researchers with the U.S. Centers for Disease Control and Prevention (CDC) analyzed test results from sites across the United States and determined that the vaccine was 60 percent effective two to four weeks after 12- to 15-year-olds got the second of the two-dose primary regimen.

But the effectiveness, measured against symptomatic illness, quickly plummeted, hitting 20 percent around month two and zero around month five.

After that, recipients in the age group were more likely to be infected by COVID-19.

Vaccine effectiveness “was no longer significantly different from 0 during month 3 after the second dose,” the researchers wrote in the study, which was published by the Journal of the American Medical Association.

Pfizer, its partner BioNTech, and the CDC didn’t respond to requests for comment.

The analyzed tests were performed between Dec. 26, 2021, and Feb. 21, 2022. Some 47,700 tests among 12- to 15-year-olds were included, with about half being unvaccinated. The testing data was on the Increasing Community Access to Testing, a program funded by the U.S. Department of Health and Human Services that contracts with pharmacy chains to perform drive-through testing. The testing data was supplemented by information in questionnaires filled out by adults with the adolescents.

Limitations of the study included vaccination being self-reported.

The study was funded by the U.S. government.

The study also found that vaccine effectiveness against symptomatic infection plunged quickly for those 5 to 11 years old, starting at 60 percent but hitting 23 percent just one month later.

One way to combat the negative effectiveness, researchers said, was to get a booster dose.

Of the 906 12- to 15-year-olds who got a third, or booster, dose, the effectiveness was measured at 71 percent two to six weeks after receipt.

Other studies, though, show that the protection from a booster, like that from the primary regimen, quickly wanes.

“Given the well-established pattern of waning mRNA VE after 2 doses and early evidence of waning of booster dose protection in adults, monitoring the duration of protection from booster doses in adolescents will be important,” researchers said.

Both the Pfizer and Moderna vaccines are built on messenger RNA (mRNA) technology. VE refers to vaccine effectiveness.

In another study published by the same journal on May 13, New York researchers reported the gap of infection and hospitalization risk between unvaccinated and vaccinated youth narrowing over time, with vaccinated 5- to 11-year-olds being infected at a rate of 62 per 100,000 and unvaccinated being infected at a rate of 70 per 100,000.

That was an incidence rate ratio of 1.1; the rate ratio for 12- to 17-year-olds was 2.

The protection also waned considerably against hospitalization over time, researchers found.

They said that the findings support “efforts to increase vaccination coverage in children and adolescents.

Tyler Durden Tue, 05/17/2022 - 13:36

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