One of the things we’ve discussed when it comes to penny stocks is price. Obviously, we’re talking about stocks under $5 overall. But the lower the price, typically, the higher the volatility and quicker the price movements. While not all penny stocks are as volatile as others, this is a good rule of thumb to stick with. One of the hardest things to master as a new trader is when to enter and when to exit.
Obviously, if you’re looking at stocks moving quickly in price, this can be a difficult task for a novice. So it’s going to take some skill on your part to choose your stocks wisely. Sometimes, the best trade to make is no trade at all. If you catch yourself getting emotional about a certain stock, it might be important to step back. The best traders in the stock market today are the ones who can separate emotion from trading.Trading Penny Stocks
Learn this and you’ll have an easier time finding good trades instead of trying to seek out “the next Apple”. Technical analysis can help. While fundamentals should be referenced, if you’re looking to capitalize on quick price movements, you may not be in a trade long enough to see that fundamental catalyst even come to fruition. Needless to say, a sound strategy is needed especially if you’re looking to buy penny stocks. Some traders will use different tactics like tier trading, for example, to stay in winning trades longer and cut out of losing trades more quickly.
Traders will also look to use the best tools possible. Your broker, believe it or not, is one of these tools and no, not all brokers are the same. While many will opt against it, millions of new traders in 2020 chose Robinhood as their broker of choice. The ease of set-up and simplistic means of buying and selling were the main features attracting users. The one issue is that the platform restricts access to OTC penny stocks. Regardless there are still thousands of companies that are accessible. They’re just trading on the NASDAQ and NYSE.Penny Stocks On Robinhood
- Avinger Inc. (AVGR Stock Report)
- Arbutus Biopharma Corp. (ABUS Stock Report)
- Artelo Biosciences Inc. (ARTL Stock Report)
In light of this, here are a few penny stocks on Robinhood gaining momentum this week. Will they be the best to buy or avoid? Here’s what analysts think.Hot Robinhood Penny Stocks To Buy [or avoid] #1: Avinger Inc.
Price Target: $1
AVGR Forecast (Based On Analyst Target): 52%
Avinger has been a company we’ve discussed for weeks now. At the beginning of the year, we discussed the company as it has seen a big uptick in trading activity recently. The company received FDA clearance for its image-guided, catheter-based system called Tigereye™ and expects to expand the commercial availability of the product for U.S. national launch in the near term. Avinger also obtained a European Patent titled ‘Otc imaging catheter with lag correction‘.
One of the catalysts for this latest move was the company’s push for its shareholders to approve a reverse stock split. “We believe a Nasdaq listing is critical for our stockholders. While we understand that a potential reverse stock split is a difficult matter, we believe it is in our shareholders’ best interest to have all options available to maintain our listing. Avinger has a well-funded balance sheet, with capital to cover our 2021 growth plans, a critical difference from our prior circumstances,” said Jeff Soinski, Avinger’s President and CEO in a press release last year.
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As far as analysts are concerned, Aegis is the most recent to weigh in on the company. Despite having lowered its target to $1, the firm still has a Buy rating on the company. Regardless, the target places Aegis’ AVGR stock price forecast over 50% higher than the current trading levels.Hot Robinhood Penny Stocks To Buy [or avoid] #2: Arbutus Biopharma Corp.
Analyst: H.C. Wainwright
Price Target: $10
ABUS Forecast (Based On Analyst Target): 150%
There’s no denying that Arbutus has been in a strong, bullish trend for the last 8 months. In fact, since May 1st, ABUS stock has climbed over 285% to date. Let me also direct you to the daily trend on the chart as well; it hasn’t been a “boring” traded either. During the course of the last 8 months, ABUS stock has certainly made a strong move overall. However, it also came with even bigger 1-day rallies along the way. At some points, the penny stock ran as high as $9.02. For those of you who look at technicals, the basic focus here is likely on the 50-day moving average. No matter how big the stock jumps, this tradeline has acted as a constant level of support.
Similar to the other names on this list, ABUS is another familiar face on PennyStocks.com. The last few weeks have seen the company report significant progress on its pipeline treatments. Namely, AB-729-001 has an ongoing Phase 1a/1b clinical trial going on. Last month, Arbutus announced strong data supporting AB-729 for treating chronic hepatitis B. The company also began a drug discovery and development initiative for treating coronaviruses including COVID-19.
Since its treatment platform is based on principles of RNA interference, it could be something to keep track of, considering other COVID treatments hitting the market. Next week the company presents at the H.C. Wainwright BioConnect conference. In light of this, it’s also worth mentioning that the firm is also covering ABUS stock. H.C. has a Buy rating along with a $10 price target. That puts the ABUS stock price forecast at 150% higher than current levels.Hot Robinhood Penny Stocks To Buy [or avoid] #3: Artelo Biosciences Inc.
Analyst: Maxim Group
Price Target: $3
ARTL Forecast (Based On Analyst Target): 200%
Shares of Artelo have been in a strong uptrend for the better part of the last few weeks. Ever since Christmas week, ARTL stock has climbed. What’s more, is that the recent uptrend was a continuation of a more shallow move that the stock made following its drip to 52-week lows in November. Since then, the penny stock has climbed from around 45 cents to highs this week of $1.10 so far. What’s driving the recent spike?
One of the focuses of the company is on its supportive care cancer therapy, ART27.13. Specifically, this is being developed for cancer patients suffering from anorexia and weight loss. Late last year, Artelo received Clinical Trial Authorization in the UK to initiate its Cancer Appetite Recovery Study (CAReS) of ART27.13. It was said to have been on track to initiate enrollment in its CAReS study before the end of the year. Obviously, an update hasn’t surfaced yet as to the status of this. However, it hasn’t prevented analysts from weighing in.
This week, Maxin Group upgraded Artelo from Hold to Buy. It also set a $3 target for the penny stock. That puts Maxim’s ARTL stock price forecast nearly 200% higher than current trading levels.