Nasdaq is a stock market exchange located in New York City, America. Listed second stock exchange with high market capitalization next to the New York Stock Exchange. It offers traders of different kinds of markets and trade instruments. Nasdaq, Inc owns the Nasdaq exchange. It traded in some of the best penny stocks for small traders such as companies, investors, etc.
Penny stocks have a low value with an illiquid market and low market capitalization. The stocks are unpopular due to their less trade among big companies and investors. The reason behind less trade of penny stocks is less information regarding the business and reliability of the companies.
We’ll dive into the best Nasdaq Penny Stocks offers for its traders with the article. Moreover, traders will get to know what penny stocks are? And what is Nasdaq, and how does it work? So, let’s move ahead with the journey of learning.
What are Penny Stocks?
The significant part of the article is what are penny stocks and how do we trade them to gain profits.
So, penny stocks are less valued stocks of the market traded in the financial markets. These are usually small and insignificant companies that are not mostly in the news, so traders have less knowledge. The penny stocks’ low price and market capitalization make them a good choice for investment and not a good one.
However, it all depends upon the market fluctuations and the investment decision of the trader. These are illiquid, with less trade quantity; they could benefit the trade when they hit high in the market. The factors that affect the value of penny stocks are manipulation or some story about a company that attracted traders.
The companies manipulate Penny stocks to have high participation of investors and traders.
The traders of penny stocks do not give importance to the investments in penny stocks, and when they earn returns from the penny stocks, they exit the trade position as it has high trade when they are in news or stories globally. Therefore, the speculation of penny stocks of a company leads to high trade volumes and prices. However, the news and stories are rarely true to exist. Similarly, the negative news affects it harder, and the price and volume are the lowest.
It is called a penny because we have discussed above; it has less market worth and trade volume, making it about a penny.
Investors of Penny Stocks:
The general investors of penny stocks are the retail investors of the lower class having no market portfolio. Such investors put their hard-earned money in these due to the news in the market or a tip received from a source. Traders of penny stocks invest in lower amounts and buy the stocks in quantity with the thought that they are already low and will not fall that deeper.
Although, this might be false, and traders may face losses from the penny investments.
Tips for Buying Nasdaq Penny Stocks
Penny stock trading is highly risky as the risk of these getting hit by market uncertainties is high. Moreover, as the companies of penny stocks are usually small with less market capitalization and volume, they can shut down at any time and with fewer chances of getting multi-bagger returns. Therefore, traders should invest low in pennies with not more than two to three percent of the trader’s portfolio.
Traders of penny stocks mostly speculate on these, which is good as buying the penny stocks could be a risk. Investors should treat it as a lottery and invest with full information and market analysis. There should be no emotional attachment and less hope from the penny stock investments.
The penny stocks should be traded for a short period without holding them for a long period. Over time, these hardly generate value with no fair reporting system for the shareholders.
An essential tip is that good research is the key to earning from penny stocks. They should go through the company’s profile, the trade and business, and news around the market. However, they should not get manipulated by the operators or brokers. Traders should also consider the tip that Investors should check the spread charged on the penny stocks by the brokers as it may be significantly high in terms of percentage.
What is Nasdaq?
The second-biggest stock exchange in New York City, America, is Nasdaq, with high trade volume and trade services in several financial markets. The stock exchange is owned by Nasdaq, Inc. and was founded in February 1971. It has been 50 years since its inception, and the stock exchange has developed phenomenally.
Adena Friedman is the CEO of the Nasdaq stock exchange and trades in the United States dollar. The official website of Nasdaq is www.nasdaq.com, and it has a market worth of $19.4 trillion as of 2021.
The quotes of Nasdaq are available in three tiers or levels:
- Level 1 represents the highest bid and lowest ask; that is the inside quote.
- Level 2 represents the public quotes of the market makers with all the information of traders who want to buy and sell the stocks with recent execution of orders.
- Level 3 is for the market makers, allowing them to enter the quotes and execute the orders.
Nasdaq stock market works in the Eastern Time Zone with timings and 253 trading days per year. It has stock market sessions mentioned below:
- 7:00 am to 9:30 am (extended hours trading session – pre-market)
- (normal trading session) 9:30 am to 4:00 pm
- (extended hours- post-market) 4:00 pm to 8:00 pm
Nasdaq Market Tiers:
The Nasdaq market has three market tiers:
Capital Market: NASDAQ-CM is the equity market with a small market capitalization.
Global Market: NASDAQ-GM is the medium capital market representing the Nasdaq Global Market. It has 1450 stocks meeting Nasdaq’s financial and liquidity requirements.
Global Select Market: NASDAQ-GS is the large market capitalization with a weighted index with U.S.-based and international stocks.
Best Nasdaq Penny Stocks
Nasdaq penny stocks have a high market worth as the stock exchange is popular and with high market capitalization. So here we have mentioned the seven best stocks that could be invested in 2021.
EYEG (Eye gate Pharmaceuticals)
Pharmaceuticals have a potential market for penny stocks because of the high growth in the market. The penny stocks of pharmaceuticals need time to develop and regularly go through a stringent process. However, after the tough time, the sales are instant and large in number.
The Nasdaq Eyeg has good potential growth and attracts traders. The company Eyegate Pharmaceuticals primarily works on therapeutics for treating eye disorders. In addition, the company develops medicines and therapies for eye-related issues.
The shares of Eye Pharmaceuticals currently trade at $1.95 and have a stock target price of $10.25.
ENDP (Endo International)
Endo International is also a pharmaceutical company, thus, applying the same rules for trade as Eyegate. However, Endo International is bigger and broader in business than Eyegate. The company has multiple businesses with branded pharmaceuticals, aesthetics, and pharma for the Canadian market. The company has potential returns with the fast growth of the company stock values in 2021; due to the momentum of its trade, the stock prices have increased 20% with the introduction of its first generic version of smoking, Chantix, the cessation drugs.
The second reason for investing in the ENDP penny stocks is its run in the market, which is high this year, with $10 in February 2021. The stock has an average price of $6.57 and is increased as per the penny stocks market values. It has the highest target price of $11, with an upside on the current $3.45 fee in the market.
ENDO stocks are stable and a good choice for penny stock investments. The company has a market value of $714 million.
ECOR (Electro Core)
Electro Core company is in the medical field and focuses on the vagus nerve. The nerve is the longest of 12 cranial nerves affecting the body. It has become a major company in the medical field and has a good market worth. Electro Core developed a non-invasive vagus nerve stimulation device. It also has food security from the U.S. Food and Drug Administration.
The company’s products are a necessity and have healthy growth with $1.3 million of revenue. In addition, it is an attractive penny stock due to the upside it has in the market. The shares of ECOR are purchased at $1 and have a target price of $3.44.
PBTS (PowerBridge Technologies)
PowerBridge Technologies is a Chinese company with good market penny stocks listed with the Nasdaq. The company operates in the sector of mining relating to the trade using blockchain technology. The company has good potential for growth in the future. However, it is not certain that the company will boom.
The company offers software for the services of the SaaS for private and government companies. Trading in the stocks of risk, but as the market is uncertain, may profit the investors.
The company’s factor is on Nasdaq, making it an attractive penny stock as traders trust the Nasdaq exchange and thus will invest in the penny stocks of the companies listed. Therefore, it is a good option for traders to invest in Nasdaq: PBTS penny stocks.
WIMI (WiMi Hologram Cloud)
WiMi Hologram Cloud is another Chinese company with strong business in the market. The company provides holographic augmented reality technology. The stock has a target price of $7 and was trading at $10 earlier this year.
The company’s services are advanced and could be the future of the trade. As the company grows, it may be a good investment for penny stock traders.
Ideanomics is an electric car company and has been booming due to the popularity of cars in recent years. The stocks of Ideanomics are speculative; however, they are not cheap. The company has announced to acquire the stake of Solectrac electric tractor maker company.
The penny stocks trade between $2 to $3 and are good for investment. Moreover, the company has chances of growth with the news of its acquisition and market for electric cars.
The company has a trading volume of 42.34k with a market capitalization of 92.71 million. The stocks of Lipocine range from $1 to $1.6, and traders with small funds can go with the penny stocks. Lipocine is a clinical biopharmaceutical company.
CCNC (Code Chain New Continent)
Code Chain New Continent is a business relating to coal wholesale and the sale of coke, steels, and construction material. Steel scrap and mechanical equipment. In addition, it also manufactures mobile game development and electronic tokens. The most revenue of the company is from the Rong Hai segment of the company.
The company is listed with Nasdaq and is an option for the trade and investment in penny stocks.
The Nasdaq is a known stock exchange globally; traders prefer trading with the exchange because of their years of experience in the financial sector. The penny stocks of Nasdaq are an excellent investment where the trustworthiness and values of the stocks can make them profitable.
The penny stocks have low value and do not require much investment, so traders can easily buy or speculate on the penny stocks. However, they should do it through brokers such as ROInvesting and do good research and analysis before investing.
Investing in penny stocks requires market research, follow-up on the news, and full information about the firm and its operation and products for investing.