Swing Trading Penny Stocks
Swing trading penny stocks refers to the practice of trying to profit from market swings of a minimum of one day and as long as several weeks. In contrast to swing traders, day traders usually are in and out of the market in one day and trend traders often hold positions for several months. So, in terms of length of holding a trade, swing traders are in-between day traders and trend traders.
Each type of trading has its advantages and disadvantages. The appeal of swing trading is that it provides plenty of opportunities to trade; the dollar risk per trade is lower than with trend trading because of closer stops; it provides greater profit opportunity per trade than day trading; quick rewards provide emotional satisfaction. The downside of swing trading is that you must work hard all the time to manage trades; you are quite likely to miss major moves where huge profits can be made; frequent trading results in higher commission costs.
A good argument can be made that beginning traders would be well-served to start with swing trading as it allows enough trading action to gain experience; losses can be kept to acceptable levels with proper stop loss techniques, and it provides a good perspective to learn about both the short-term and long-term movements of markets.
Make sure to create a watchlist. These are simply stocks that have a fundamental catalyst and a shot at being a good trade. Some swing traders like to keep a dry-erase board next to their trading stations with a categorized list of opportunities, entry prices, target prices, and stop-loss prices.
Best Penny Stocks to Trade is a group whose objective is to help traders find the best swing trades for success.
Our alerts/signals come from an algorithmic system that we created for penny stock/ OTC swinging.
Before we release our system to the public, we’re going to spend the next 6 months posting alerts. You will be able to look back at these alerts to see how successful they are.
Penny Stock Swing Trade Alert for 3.18.2020 —> CRON
What Is a Penny Stock: A penny stock refers to a small company’s stock that typically trades for less than $5 per share. Although some penny stocks trade on large exchanges such as the New York Stock Exchange (NYSE), most penny stocks trade via over the counter (OTC) transactions. Transactions take place through the electronic OTC Bulletin Board (OTCBB) or through the privately-owned Pink Sheets. There is no trading floor for OTC transactions, and the quotations are also all done electronically.
Cronos Group (CRON) is the best-capitalized cannabis company at this time. It has 140 months of cash remaining based on the last 12 months of free cash flow. Luckily for Cronos, it snagged its cash before investors decided to close their wallets. It has $2 billion in cash, thanks in part to a 2018 investment from Altria Group (MO). It is one of the smaller cannabis companies with a market cap of $1.8 billion. Azer wrote, “Cronos has purposefully passed on joining Canada’s fight for capacity, leveraging its asset-light model to be able to purchase third-party supply as an ingredient and focus on branding.”
Altria’s involvement will help Cronos in other ways like the rollout of Cronos’ CBD line. Cronos is conducting tests on its new CD product called Peace + CBD tinctures at the convenience store level. Cronos will have the option of using Altria’s retail network for expansion. Cronos, though, will be delayed in reporting its earnings so while the cash levels are bold. The company said the delay is due to a review by the Audit Committee of several bulk resin purchases and sales of products through the wholesale channel and the appropriateness of the recognition of revenue from those transactions. It would be best to wait until after the earnings report.
Cronos Group Inc., formerly known as PharmaCan Capital Corp., is a principal investment firm. The firm seeks to invest in companies either licensed or actively seeking a license, to produce medical marijuana pursuant to Canada’s Marihuana for Medical Purposes Regulations (MMPR). The firm typically invests in companies based in Canada. The firm is primarily an equity investor, may also advance debt as appropriate. It seeks to make minority investments with appropriate governance and shareholder rights. The firm seeks board representation consistent with the size of the investment but does not need control.
Cronos Group Inc. was incorporated in January 2013 and is based in Toronto, Canada with an additional office in Toronto, Canada.