An aging population and the ongoing need for healthcare makes the healthcare industry expand market caps and offers big trading opportunities.
The expansion of healthcare includes many healthcare penny stocks that may benefit from increased attention to the industry. New attention means new dollars for research and development and investors are betting on the companies that will turn out new products.
Overview: Healthcare Stocks
The 2 main groups within the healthcare industry are healthcare equipment and services and pharmaceuticals, biotechnology and related life sciences.
Industry leaders such as Pfizer (NYSE: PFE) and Merck and Co. (NYSE: MRK) can hold value during recessions. As the healthcare market hit lows during the coronavirus scare, these blue-chip companies brought hope for a vaccine from Gilead Sciences (NASDAQ: GILD), Inovio Pharmaceuticals (NASDAQ: INO) and others. Smaller stocks piggybacked on the positive attention and attracted investors.
Penny stocks provide some of the best opportunities for short-term gains in the healthcare industry. The coronavirus also created many buying opportunities and depressed the prices of stocks across the board.
Best Online Brokers for Healthcare Stock
The broker you choose will likely affect the success of your trades within the healthcare industry. If you are a short term trader, it’s especially important that you pick an online broker that you can trust. You’ll need a broker with good execution, an intuitive user interface to minimize human error and a timely news service for up-to-the-second reports.
Consider these online brokers as a great match for your investment style. Certain brokers don’t deal in penny stocks, so make sure you pick a broker that does.
Brokers that deal with penny stocks may also charge additional commissions, depending on how difficult the stock is to obtain. Consider these fixed costs in your investments.
Intermediate Traders and Investors
Profit from Healthcare Penny Stocks
Healthcare is an important investment sector to watch. It may become more volatile than normal and provide many trading opportunities.
Don’t let the lure of quick profits distract you from proper research to vet trades. There are plenty of opportunities to make money, but profitability can come at the expense of unprepared investors. Learn how to trade penny stocks and put your healthcare research to work.
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