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Penny Stocks & 5 Stats To Know If You’re Trading Or Investing In 2021

5 stats to know about trading penny stocks or blue chips in 2021.
The post Penny Stocks & 5 Stats To Know If You’re Trading Or Investing In 2021 appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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Trading Penny Stocks? Make Sure You Know These 5 Things Before Jumping In

If you’re looking for penny stocks to buy right now, you’re not alone. In fact, if you look at some of the brokerage growth stats from 2020, you’ll see what I mean. With the global pandemic shutting down economies everywhere, people sought new ways to make money during the lockdown. The market offered a possible solution. With countless stocks dropping to record lows, the opportunity materialized. Even some of the biggest names in industries like travel and leisure fell victim to the rug pull.

[Read More] 7 Penny Stocks For Your Watch List This Week If You Like Biotech In July

Hertz (OTC:HTZZ), AMC Entertainment (NYSE:AMC), and yes, GameStop (NYSE:GME) all felt the heat. Then you had your vaccine stocks, many of which were already trading below $5, that ultimately rose to the occasion and provided viable candidates to fight back against the pandemic. This is where we saw companies like Novavax (NASDAQ:NVAX) and even other biotech companies unrelated to the virus, like Cassava Sciences (NASDAQ:SAVA), explode. To put it into perspective, both NVAX and SAVA stock were trading under $4 a share before 2020 began.

Do all penny stocks perform this way? In short, no, and if you’re beginning your trading journey, it’s important to understand this. Something else to do is start learning how to trade penny stocks. Once you’ve got the basics down, it’s time to understand the landscape. This article will discuss 5 important stats all traders & investors should know about the market in 2021. Whether you’re looking at penny stocks or higher-priced names like Apple (NASDAQ: AAPLE) or Tesla (NASDAQ: TSLA), this info is good to have in your back pocket.

1. What Are Penny Stocks?

This isn’t really a “stat” per se, but I think this is a good place to start. When it comes to the definition of penny stocks, many traders & investors have their own criteria. However, we’ll go by the standard Securities and Exchange Commission’s definition of penny stocks for this article. This references companies with shares trading below $5. The standard “retail” definition will focus on stocks under $1 trading for pennies. But in this case, we can talk about plenty more companies and still follow “the rules” of the market.

2. Penny Stocks Are Heavily Traded By Retail Investors

I said above that the pandemic created a new pool of traders. How big of a pool are we talking about? Well, in some respects, there hasn’t been as big a surge of market participation like this in quite some time. Robinhood was clearly one of the big winners of the growth in new traders. Thanks to the ease of use and a clear path to buying and selling, zero commissions, and mobile access, it makes sense as to why. Furthermore, according to Bloomberg Intelligence, retail trading accounts for more than even hedge fund trading does. The chart below, which was compiled from Bloomberg data by Financial Times, shows this trend:

retail trading growth 2021

Clearly, the period between mid-2019 and the present shows a dramatic uptick in the level of retail traders in the stock market. Meanwhile, the number of quant hedge funds, traditional hedge funds, and even mutual funds show a slight decline. With this has come an uptick in retail-fueled “Reddit penny stocks” and “meme stocks” as they’re being labeled.

What is a meme stock?

These are companies like AMC, GameStop, Clover Health (NASDAQ:CLOV), BlackBerry (NYSE:BB), and others that all came under pressure from heavy short interest from Wall Street firms. In an effort that I can compare to the movie “The 300,” bands of retail traders took to Reddit to compile data and “fight back” against hedge funds. In many cases, these retail traders have changed the face of how the market trades. It has become less about fundamentals and more about advocacy and momentum.

3. Billions Of Shares Are Traded Per Day…& That’s A Big Deal

A look at the current year-to-date data from Nasdaq reveals some big figures. According to CNBC’s Bob Pisani,* volumes have exploded thanks to the surge in retail. Earlier this year, Pisani released an update highlighting that average daily volumes have more than doubled since 2019. At that time, he said that average figures sat around 7 billion, which sat above 14 billion this past January.

Furthermore, retail activity also showed to be a big outlier among the stats. The average daily volume of the largest e-brokers in December 2020 was 6.6 million shares. This was a record on its own. In January, average trades sat around 8 million.

Steve Sosnick from Interactive Brokers explained more minute details in trading trends as well. “There is a lot of volume in low-priced stocks, $2 or $3 obscure stocks where volumes have exploded. That tells me people are chasing momentum. They move because they start moving. People start talking about them [in chat rooms], and they move.”

4. When It Comes To Penny Stocks, There’s A Lot Of Noise So Do Your Research

One of the popular trends right now has to do with social media. Where hedge fund investors have their private “idea dinners” to attend for new trade ideas, retail has found a different home. This is where the idea of ‘Reddit penny stocks’ has evolved from. In this case, we’ve got millions of retail traders flocking to the platform to discuss new ideas, communicate different trends, & even commiserate on big losses. One of the most popular subreddits is r/WallStreetBets.

According to SubRedditStats, as of today’s date, more than 300 posts are made, with over 15,000 comments posted per day. That’s just from 1 subreddit. Considering that there’s a good chance that not all posts are “valuable,” it’s important to do your research. If you see something interesting online, it’s best to take things a step further and dig into the finer details. This not only helps you confirm the legitimacy of the information but could also lead to additional findings of your own.

5. Millions Of New Traders Are Flocking To The Market; Learn How To Trade Penny Stocks First

Thanks to the new retail flow, there’s a lot of competition in the stock market right now. What I mean by this is that you’re not just competing with Wall Street hedge funds. You’re also competing with other retail traders. This paramount growth in “mom and pop” traders is something that hasn’t been seen in recent time. In fact, according to JMP Securities, more than 10 million new brokerage accounts** are estimated to have been opened in the first half of this year. Putting that into perspective, that’s roughly the total for all of 2020.

Keep this stat in mind the next time you’re thinking about “YOLO-ing” a trade or assuming that there aren’t “a lot of other traders” in a particular trade. With millions of new market participants, volatile trades become more volatile, and low volume days look much different now than in years past.

Are Penny Stocks Worth It?

The ultimate question new traders ask. Of course, there are mixed responses to this depending on your personal experience with penny stocks. In short, if you can trade according to a plan, can handle higher risk, know how to keep losses small, and can take advantage of short-term momentum, penny stocks are a great investment vehicle. The important thing to understand aside from these market stats is that you are ultimately responsible for placing your trades, so do as much as you can to get good at trading, in general.

best penny stocks to buy right now

End Notes:

*https://www.linkedin. com/pulse/retail-trading-hot-stock-volumes-through-roof-bob-pisani/

*https://www.wsj. com/articles/it-isnt-just-amc-retail-traders-increase-pull-on-the-stock-market-11624008602?mod=article_inline

The post Penny Stocks & 5 Stats To Know If You’re Trading Or Investing In 2021 appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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The next pandemic? It’s already here for Earth’s wildlife

Bird flu is decimating species already threatened by climate change and habitat loss.

I am a conservation biologist who studies emerging infectious diseases. When people ask me what I think the next pandemic will be I often say that we are in the midst of one – it’s just afflicting a great many species more than ours.

I am referring to the highly pathogenic strain of avian influenza H5N1 (HPAI H5N1), otherwise known as bird flu, which has killed millions of birds and unknown numbers of mammals, particularly during the past three years.

This is the strain that emerged in domestic geese in China in 1997 and quickly jumped to humans in south-east Asia with a mortality rate of around 40-50%. My research group encountered the virus when it killed a mammal, an endangered Owston’s palm civet, in a captive breeding programme in Cuc Phuong National Park Vietnam in 2005.

How these animals caught bird flu was never confirmed. Their diet is mainly earthworms, so they had not been infected by eating diseased poultry like many captive tigers in the region.

This discovery prompted us to collate all confirmed reports of fatal infection with bird flu to assess just how broad a threat to wildlife this virus might pose.

This is how a newly discovered virus in Chinese poultry came to threaten so much of the world’s biodiversity.

H5N1 originated on a Chinese poultry farm in 1997. ChameleonsEye/Shutterstock

The first signs

Until December 2005, most confirmed infections had been found in a few zoos and rescue centres in Thailand and Cambodia. Our analysis in 2006 showed that nearly half (48%) of all the different groups of birds (known to taxonomists as “orders”) contained a species in which a fatal infection of bird flu had been reported. These 13 orders comprised 84% of all bird species.

We reasoned 20 years ago that the strains of H5N1 circulating were probably highly pathogenic to all bird orders. We also showed that the list of confirmed infected species included those that were globally threatened and that important habitats, such as Vietnam’s Mekong delta, lay close to reported poultry outbreaks.

Mammals known to be susceptible to bird flu during the early 2000s included primates, rodents, pigs and rabbits. Large carnivores such as Bengal tigers and clouded leopards were reported to have been killed, as well as domestic cats.

Our 2006 paper showed the ease with which this virus crossed species barriers and suggested it might one day produce a pandemic-scale threat to global biodiversity.

Unfortunately, our warnings were correct.

A roving sickness

Two decades on, bird flu is killing species from the high Arctic to mainland Antarctica.

In the past couple of years, bird flu has spread rapidly across Europe and infiltrated North and South America, killing millions of poultry and a variety of bird and mammal species. A recent paper found that 26 countries have reported at least 48 mammal species that have died from the virus since 2020, when the latest increase in reported infections started.

Not even the ocean is safe. Since 2020, 13 species of aquatic mammal have succumbed, including American sea lions, porpoises and dolphins, often dying in their thousands in South America. A wide range of scavenging and predatory mammals that live on land are now also confirmed to be susceptible, including mountain lions, lynx, brown, black and polar bears.

The UK alone has lost over 75% of its great skuas and seen a 25% decline in northern gannets. Recent declines in sandwich terns (35%) and common terns (42%) were also largely driven by the virus.

Scientists haven’t managed to completely sequence the virus in all affected species. Research and continuous surveillance could tell us how adaptable it ultimately becomes, and whether it can jump to even more species. We know it can already infect humans – one or more genetic mutations may make it more infectious.

At the crossroads

Between January 1 2003 and December 21 2023, 882 cases of human infection with the H5N1 virus were reported from 23 countries, of which 461 (52%) were fatal.

Of these fatal cases, more than half were in Vietnam, China, Cambodia and Laos. Poultry-to-human infections were first recorded in Cambodia in December 2003. Intermittent cases were reported until 2014, followed by a gap until 2023, yielding 41 deaths from 64 cases. The subtype of H5N1 virus responsible has been detected in poultry in Cambodia since 2014. In the early 2000s, the H5N1 virus circulating had a high human mortality rate, so it is worrying that we are now starting to see people dying after contact with poultry again.

It’s not just H5 subtypes of bird flu that concern humans. The H10N1 virus was originally isolated from wild birds in South Korea, but has also been reported in samples from China and Mongolia.

Recent research found that these particular virus subtypes may be able to jump to humans after they were found to be pathogenic in laboratory mice and ferrets. The first person who was confirmed to be infected with H10N5 died in China on January 27 2024, but this patient was also suffering from seasonal flu (H3N2). They had been exposed to live poultry which also tested positive for H10N5.

Species already threatened with extinction are among those which have died due to bird flu in the past three years. The first deaths from the virus in mainland Antarctica have just been confirmed in skuas, highlighting a looming threat to penguin colonies whose eggs and chicks skuas prey on. Humboldt penguins have already been killed by the virus in Chile.

A colony of king penguins.
Remote penguin colonies are already threatened by climate change. AndreAnita/Shutterstock

How can we stem this tsunami of H5N1 and other avian influenzas? Completely overhaul poultry production on a global scale. Make farms self-sufficient in rearing eggs and chicks instead of exporting them internationally. The trend towards megafarms containing over a million birds must be stopped in its tracks.

To prevent the worst outcomes for this virus, we must revisit its primary source: the incubator of intensive poultry farms.

Diana Bell does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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A major cruise line is testing a monthly subscription service

The Cruise Scarlet Summer Season Pass was designed with remote workers in mind.

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While going on a cruise once meant disconnecting from the world when between ports because any WiFi available aboard was glitchy and expensive, advances in technology over the last decade have enabled millions to not only stay in touch with home but even work remotely.

With such remote workers and digital nomads in mind, Virgin Voyages has designed a monthly pass that gives those who want to work from the seas a WFH setup on its Scarlet Lady ship — while the latter acronym usually means "work from home," the cruise line is advertising as "work from the helm.”

Related: Royal Caribbean shares a warning with passengers

"Inspired by Richard Branson's belief and track record that brilliant work is best paired with a hearty dose of fun, we're welcoming Sailors on board Scarlet Lady for a full month to help them achieve that perfect work-life balance," Virgin Voyages said in announcing its new promotion. "Take a vacation away from your monotonous work-from-home set up (sorry, but…not sorry) and start taking calls from your private balcony overlooking the Mediterranean sea."

A man looks through his phone while sitting in a hot tub on a cruise ship.

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This is how much it'll cost you to work from a cruise ship for a month

While the single most important feature for successful work at sea — WiFi — is already available for free on Virgin cruises, the new Scarlet Summer Season Pass includes a faster connection, a $10 daily coffee credit, access to a private rooftop, and other member-only areas as well as wash and fold laundry service that Virgin advertises as a perk that will allow one to concentrate on work

More Travel:

The pass starts at $9,990 for a two-guest cabin and is available for four monthlong cruises departing in June, July, August, and September — each departs from ports such as Barcelona, Marseille, and Palma de Mallorca and spends four weeks touring around the Mediterranean.

Longer cruises are becoming more common, here's why

The new pass is essentially a version of an upgraded cruise package with additional perks but is specifically tailored to those who plan on working from the ship as an opportunity to market to them.

"Stay connected to your work with the fastest at-sea internet in the biz when you want and log-off to let the exquisite landscape of the Mediterranean inspire you when you need," reads the promotional material for the pass.

Amid the rise of remote work post-pandemic, cruise lines have been seeing growing interest in longer journeys in which many of the passengers not just vacation in the traditional sense but work from a mobile office.

In 2023, Turkish cruise line operator Miray even started selling cabins on a three-year tour around the world but the endeavor hit the rocks after one of the engineers declared the MV Gemini ship the company planned to use for the journey "unseaworthy" and the cruise ship line dealt with a PR scandal that ultimately sank the project before it could take off.

While three years at sea would have set a record as the longest cruise journey on the market, companies such as Royal Caribbean  (RCL) (both with its namesake brand and its Celebrity Cruises line) have been offering increasingly long cruises that serve as many people’s temporary homes and cross through multiple continents.

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International

As the pandemic turns four, here’s what we need to do for a healthier future

On the fourth anniversary of the pandemic, a public health researcher offers four principles for a healthier future.

John Gomez/Shutterstock

Anniversaries are usually festive occasions, marked by celebration and joy. But there’ll be no popping of corks for this one.

March 11 2024 marks four years since the World Health Organization (WHO) declared COVID-19 a pandemic.

Although no longer officially a public health emergency of international concern, the pandemic is still with us, and the virus is still causing serious harm.

Here are three priorities – three Cs – for a healthier future.

Clear guidance

Over the past four years, one of the biggest challenges people faced when trying to follow COVID rules was understanding them.

From a behavioural science perspective, one of the major themes of the last four years has been whether guidance was clear enough or whether people were receiving too many different and confusing messages – something colleagues and I called “alert fatigue”.

With colleagues, I conducted an evidence review of communication during COVID and found that the lack of clarity, as well as a lack of trust in those setting rules, were key barriers to adherence to measures like social distancing.

In future, whether it’s another COVID wave, or another virus or public health emergency, clear communication by trustworthy messengers is going to be key.

Combat complacency

As Maria van Kerkove, COVID technical lead for WHO, puts it there is no acceptable level of death from COVID. COVID complacency is setting in as we have moved out of the emergency phase of the pandemic. But is still much work to be done.

First, we still need to understand this virus better. Four years is not a long time to understand the longer-term effects of COVID. For example, evidence on how the virus affects the brain and cognitive functioning is in its infancy.

The extent, severity and possible treatment of long COVID is another priority that must not be forgotten – not least because it is still causing a lot of long-term sickness and absence.

Culture change

During the pandemic’s first few years, there was a question over how many of our new habits, from elbow bumping (remember that?) to remote working, were here to stay.

Turns out old habits die hard – and in most cases that’s not a bad thing – after all handshaking and hugging can be good for our health.

But there is some pandemic behaviour we could have kept, under certain conditions. I’m pretty sure most people don’t wear masks when they have respiratory symptoms, even though some health authorities, such as the NHS, recommend it.

Masks could still be thought of like umbrellas: we keep one handy for when we need it, for example, when visiting vulnerable people, especially during times when there’s a spike in COVID.

If masks hadn’t been so politicised as a symbol of conformity and oppression so early in the pandemic, then we might arguably have seen people in more countries adopting the behaviour in parts of east Asia, where people continue to wear masks or face coverings when they are sick to avoid spreading it to others.

Although the pandemic led to the growth of remote or hybrid working, presenteeism – going to work when sick – is still a major issue.

Encouraging parents to send children to school when they are unwell is unlikely to help public health, or attendance for that matter. For instance, although one child might recover quickly from a given virus, other children who might catch it from them might be ill for days.

Similarly, a culture of presenteeism that pressures workers to come in when ill is likely to backfire later on, helping infectious disease spread in workplaces.

At the most fundamental level, we need to do more to create a culture of equality. Some groups, especially the most economically deprived, fared much worse than others during the pandemic. Health inequalities have widened as a result. With ongoing pandemic impacts, for example, long COVID rates, also disproportionately affecting those from disadvantaged groups, health inequalities are likely to persist without significant action to address them.

Vaccine inequity is still a problem globally. At a national level, in some wealthier countries like the UK, those from more deprived backgrounds are going to be less able to afford private vaccines.

We may be out of the emergency phase of COVID, but the pandemic is not yet over. As we reflect on the past four years, working to provide clearer public health communication, avoiding COVID complacency and reducing health inequalities are all things that can help prepare for any future waves or, indeed, pandemics.

Simon Nicholas Williams has received funding from Senedd Cymru, Public Health Wales and the Wales Covid Evidence Centre for research on COVID-19, and has consulted for the World Health Organization. However, this article reflects the views of the author only, in his academic capacity at Swansea University, and no funding or organizational bodies were involved in the writing or content of this article.

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