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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 most often issued by small companies and trade below $5 per share. Trading volume represents the number of stocks traded on a particular day, including both buy and sell orders. While trading 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.
Which Penny Stocks Are Most Profitable?
Penny stocks are available in different sectors, and each sector experiences different trading volumes in 1 day. As a trader, you need method 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.
The top 10 penny stocks cannot guarantee you a profit, but they show you where investors are most “invested” right now. You might also search for things like:
- High volume penny stocks today
- High volume penny stocks under $1
- High volume penny stocks under 10 cents
- Best biotech penny stocks
- Best cyber security penny stocks
- Best retail penny stocks, etc.
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.
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.
- Active traders
- Intermediate traders
- Advanced traders
- No account maintenance fees or software platform fees
- No charges to open and maintain an account
- Intuitive trading platform with technical and fundamental analysis tools
- Does not support trading in mutual funds, bonds or OTC stocks
SoFi’s mission is simple: to help reach clients like you reach their financial independence and realize their ambitions. SoFi knows that this independence comes from making decisions that help your money start to work for you in the long run. The brand helps individuals make these decisions through personal financial products such as personal loans, student loans and automated and active investing.
The brand additionally provides in-person experiences such as educational and networking events, personalized guidance from experienced financial planners and one-on-one advising with professional career coaches. SoFi’s services have been highlighted in outlets such as Forbes, Medium, and CNBC’s Make It.
- IPO Investing
- Mobile Investing
- U.S.-based customer service
- Highly-rated mobile app for iPhone and Android
- Only available in the U.S.
Moomoo is a commission-free mobile trading app available on Apple, Google and Windows devices. A subsidiary of Futu Holdings Ltd., it’s backed by venture capital affiliates of Matrix, Sequoia, and Tencent (NASDAQ: FUTU). Securities offered by Futu Inc., regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Moomoo is another great alternative for Robinhood. This is an outstanding trading platform if you want to dive deep into smart trading. It offers impressive trading tools and opportunities for both new and advanced traders, including advanced charting, pre and post-market trading, international trading, research and analysis tools, and most popular of all, free Level 2 quotes.
Get started right away by downloading Moomoo to your phone, tablet or another mobile device.
- Cost-conscious traders
- Active and Advanced traders
- Over 8,000 different stocks that can be sold short
- Access trading and quotes in pre-market (4 a.m. to 9:30 a.m. ET) and post-market hours (4 p.m. to 8 p.m. ET)
- No minimum deposit to open an account.
- No chat support
This latest groundbreaking technology is IBKR GlobalAnalyst, a new trading tool that helps investors compare the rate of PEG or price-earnings growth valuations and provide more immediate and comprehensive financial metrics of stocks, globally.
Recognizing that stock selection can be challenging for investors to compare the valuations of domestic and international stocks, Interactive Brokers created GlobalAnalyst to offer investors a simple, yet powerful tool to easily evaluate investment opportunities around the world.
Using GlobalAnalyst, investors can search for stocks by region, country, industry, market capitalization and currency to uncover undervalued stocks worldwide. The resulting table displays the current market and financial metrics, including the PEG Ratio. The PEG Ratio is the PE ratio divided by the three-year compound earnings growth rate, and smaller PEG Ratios typically indicate undervalued companies.
- Price earnings growth valuations
- Easily evaluate investment opportunities
eToro is a broker that offers access to over 25 of the world’s most popular cryptocurrencies, forex and over 1600 stocks. They have a few unique education and useability tools. Traders can begin buying and selling in as little as 10 minutes.
eToro’s unique CopyTrader feature allows new investors to “copy” the buy and sell orders of professional investors, while the company’s eToro Club feature provides investors with a range of additional education tools and resources.
- Traders looking for an easy-to-use platform
- Traders who want to practice their trades using a virtual account before entering the market
- Simple platform that is easy to master
- CopyTrader feature that allows new traders to copy the same strategies used by professionals
- Virtual dummy account that gives you $100,000 to practice trades
- High non-trading fees
E*TRADE is an online discount trading house that offers brokerage and banking services to individuals and businesses. One of the first brokers to embrace online trading, E*TRADE not only survived both the dot-com bubble and Recession — it thrived. You can choose from two different platforms (one basic, one advanced). E*TRADE is a suitable broker for traders of most skill levels, whether you want to buy mutual funds and hold them for decades or dabble in options swing trading. E*TRADE offers a library of research and education materials to help you out.
- Active traders
- Derivatives traders
- Retirement savers
- Sophisticated trading platforms
- Wide range of tradable assets
- Exceptional customer service
- Limited currency trading
- Higher margin rates than competitors
- No paper trading on its standard platform
Are Penny Stocks Worth Buying in 2021?
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.
Are there penny stocks on your watchlist? It’s worth considering once you understand how they work and how they differ from higher-priced stocks.