Penny Stocks More Popular Than Ever in Third Quarter

Penny stocks are a notoriously risky investment. At the same time, they’re a great option for beginners because if you lose, you aren’t necessarily out a huge investment.

If you win, you could end up substantially multiplying your value, just like Timothy Sykes did with the $12,000 of his bar mitzvah money that he turned into $1.65 million in just a few short years in his teens.

Both of these reasons probably underlie the fact that penny stocks have become such a popular investment choice in 2016. The situation has been looking particularly good for the affordable investments as the second quarter of the year closes and we move into the third.

Despite their rocky reputation, penny stocks have a potential to spell success for both individuals and businesses. You can turn incredible profits on a very small initial investment: the possibilities are too good to pass by.

The Challenges of Going After Penny Stocks

Casual investors are experiencing more success with penny stocks because they’re more well-versed on the challenges that come with the territory. The most glaring challenge is the way stocks can plummet suddenly and significantly.

There are ways to work around the startling volatility of the market, though. Experienced investors recommend that you should allow no single penny stock to compose more than about two percent of your total funds.

That way, if the market falls, it will have an impact on only a small portion of your funds, and you’re likely to have sufficient capital to cover the difference.

Best Penny Stocks for the Second Half of 2016

The other major challenge is to figure out which penny stocks will perform the best at any given time. The professional investment community simply does not monitor many of these ventures, so it’s difficult sometimes to identify the best places to invest.

If you or your firm are looking to try investing in penny stocks, here are some of the best speculations to make:

TetraLogic Pharmaceuticals Corp. This company researches and develops small molecule therapeutics. It’s a rapidly advancing industry with room for growth in investments.

Ekso Bionics Holdings Inc. This firm researches, develops, and sells exoskeletons, which essentially means wearable armor for people with disabilities. It’s a huge market for soldiers, amputees, and others who have been paralyzed. The growth advances are potentially high for this company, particularly since the human augmentation market is expected to reach $1.8 billion in just four years, a 4,000-percent increase.

Novavox Inc. Another biotechnology company, Novavox develops vaccines, including ones to address potential pandemic viruses. The firm has made impressive strides in discovering a vaccine for both Zika and ebola, and its research is expected to encourage company growth as a result.

GigPeak Inc. This communications company is involved in cloud connectivity and high-speed wireless networks. Everyone wants more speed and cloud integration, so it’s no surprise that this penny stock is expected to excel.

Lucas Energy Inc. An independent oil and gas company, Lucas is selling its stocks dirt cheap, even though it’s projected to grow significantly if the current energy trends hold.

Penny stocks can be an intimidating prospect for investment, but if you learn to put your money in the right corner, and take advice from those who have been there, you’ll be that much closer to a successful investment.