Finding the best high-volume penny stocks is important to everyday traders. High volume penny stocks can offer amazing gains when executed. The process of finding the best high-volume penny stocks is very challenging for traders. Sometimes you can assume that a stock is a high-volume penny stock, only to realize it’s not.
Major stock markets are affected by the COVID-19 pandemic. Many stocks are suffering from an overall drop. Investors are becoming more skeptical each day about investing options. But high-volume penny stocks are still experiencing massive volume. Good stocks have high trading volume, which means low liquidity. If a penny stock has a high volume you can identify the market and stock momentum and confirm the trend in the stocks.
High-volume penny stocks indicate upswings in an industry or a particular company, therefore a sustainable move. If a stock has low volume, then it means the stock isn’t experiencing enough trades. Stocks can have 0 trading volume. This means the exchange has stopped accepting nor processing any trading transactions (buy/sell) associated with that particular stock. Increased demand for a stock can be seen from its trading stock volume.
Not all high-volume penny stocks are worth considering. Still, some high volume penny stocks should definitely be avoided. As a trader, if you want to buy high-volume penny stocks, research the stocks before investing.
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Overview: High-Volume Penny Stocks
Penny stocks are stocks issued by small companies and trade below $5. Trading stock volume represents the number of stocks traded on a particular day. This includes stocks in both buy and sell orders. The trading stock volume is different from dollar volume. Dollar volume is the stock share price multiplied by the trading volume. High-volume penny stocks lack a clear definition.
To define a high-volume penny stock, you need to check whether it meets the requirement of a penny stock. After that, you look at the trading stock volume. You can find a high stock volume trading under $0.10. You might think a 1 million trading stock volume is high only to realize the stock doesn’t fit into the category of high-volume penny stock.
Penny stocks are available in different sectors. Each sector experiences different trading volumes in 1 day. As a trader, you need to find a definite way of defining what a high-stock volume is. This can be done using a minimum average benchmark for daily trading. You can use 2 million as the smallest trading daily average when determining the minimum average benchmark for daily trading.
High-volume penny stocks do not come with a certainty of impressive returns on investment. The attractive feature of high-volume penny stocks is that you can sell them when you want to. Low-volume penny stocks are prone to erratic price movements and therefore harder to sell. Most traders use an online stock screener to find their most preferred high-volume penny stocks.
Calculating the daily trading volume is easy. The figures can also be accessed from various exchange platforms. What is most important is understanding the trading volume. Trading volume can predict the sustainability of price trends. It’s one of the critical factors to consider when investing or trading.
Best Online Brokers for High-Volume Penny Stocks
Some traders struggle to find the best penny stocks. This is due to a lack of an effective strategy. The best option is to have someone help select the best high-volume penny stock for you. You can find experienced and reliable online brokers that can locate and assess the best performing high-volume penny stocks. Consider our recommended list of best online brokers.
Commissions
$0
Account Minimum
$0
1 Minute Review
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.
Webull is widely considered one of the best Robinhood alternatives.
Best For
- Active traders
- Intermediate traders
- Advanced traders
Pros
- Commission-free trading in over 5,000 different stocks and ETFs
- No account maintenance fees or software platform fees
- No charges to open and maintain an account
- Leverage of 4:1 on margin trades made the same day and leverage of 2:1 on trades held overnight
- Intuitive trading platform with technical and fundamental analysis tools
Cons
- Does not support trading in mutual funds, bonds or OTC stocks
Commissions
$0
Account Minimum
$0
1 Minute Review
TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.
Best For
- Advanced traders
- Options and futures traders
- Active stock traders
Pros
- Comprehensive trading platform and professional-grade tools
- Wide range of tradable securities
- Fully-operational mobile app
Cons
- Confusing pricing structure to leave new traders with a weak understanding of what they pay
- Cluttered layout to make navigating TradeStation’s platform more difficult than it should be
Commissions
$0
$6.95 for OTC Stocks
Account Minimum
$0
1 Minute Review
This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.
Best For
- Novice investors
- Retirement savers
- Day traders
Pros
- World-class trading platforms
- Detailed research reports and Education Center
- Assets ranging from stocks and ETFs to derivatives like futures and options
Cons
- Thinkorswim can be overwhelming to inexperienced traders
- Derivatives trading more costly than some competitors
- Expensive margin rates
Why You Shouldn’t Miss Investing in High-Volume Penny Stocks
The current stock market volatility can be scary to some traders. There are abundant lucrative opportunities for investors who are not afraid of the risk. One such opportunity is investing in high-volume penny stocks. Although penny stocks are risky, they offer big payoffs. As a trader, a good trading strategy is important when investing in the right high-volume penny stock. The perfect trading strategy involves researching various penny stocks thoroughly before picking your best high-volume stocks.
