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4 Cheap Penny Stocks To Buy On Robinhood For Under $1 Right Now

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Penny stocks are well-known for their high risk and high reward potential. In the stock market today there are hundreds of companies that fall under this definition of stocks under $5 but it also begs the question: is the risk worth it? In many cases, companies trade at these lower levels for a reason. It usually doesn’t involve them being “the next Apple” in the near term. However, that isn’t to say these smaller companies can’t grow into market leaders down the road.

Needless to say, for a majority of traders right now, the future potential of companies has taken a backseat to the current potential of their share prices. What sparks momentum in these cheap stocks? It can be a mix of different things. Technical catalysts, fundamental catalysts, or a blend of both can play a part. It’s also not a bad idea to take a look at different sectors and trends in the market. Is the biotech sector hot? Are energy stocks losing their charge? Have investors become captivated by cryptocurrency mining companies because Bitcoin prices are rising? These are also things that can act as underlying catalysts for broader moves in related companies.

Today, we’re going to take a look at some of the cheapest stocks in the market. These are ones that even a 5 or ten-cent move can equate to a percentage change of 40% or more. Keep in mind, though that this change can happen in either direction. So if you’re looking for cheap penny stocks to buy, make sure to weigh your risk and reward with a clear strategy in mind even before taking a full position.

The interesting thing about penny stocks on Robinhood is that they’re limited to NASDAQ & NYSE-listed companies. So you really don’t see stocks under $1 on the platform due to the requirements of these exchanges. There’s a requirement that companies maintain a minimum bid price of $1. If they trade below that threshold for too long, there’s a risk that the companies will be delisted from these exchanges. However, that doesn’t mean there aren’t a........

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