(Newswire.net — March 20, 2018) — For day traders and long term holders alike, penny stocks can be an excellent source of profit. With their high volatility and positive projected growth potential, they attract thousands of new investors every month.
Volatility was even higher than normal in February, with projections that the Federal Reserve will raise interest rates several times throughout the rest of the year While several penny stocks saw drops in February, by the beginning of March most of them had fully recovered.
But first, what are penny stocks? Penny stocks are simply stocks that trade for less than $5 a share, with some people defining them as stocks that trade for less than $1. The reason why penny stocks are an attractive investment for many people is because with their low price, you can purchase a large amount of them with a minimal investment.
2018 is looking likely but not certain to be a good year for penny stocks, but it’s still important that you focus on the specific stocks with the greatest potential rather than just buying them at random.
Here are the penny stocks with the biggest potential in 2018:
Gerdau
All the way back in 2008, Gerdau posted all-time highs of $26.22. However, during the economic recession Gerdau also saw a massive collapse down into the $0.79 range. Recovery peaked at $4.3 in the winter of 2016.
Since then, the stock has been breaking more to the upside, and it is expected to continue to grow with the fact that infrastructure spending legislation is likely to be passed and signed into law. If so, it wouldn’t be surprising to visit those all-time highs again.
Safe Bulkers
In the spring of 2014, Safe Bulkers hit an all-time high of $11.48, before dropping to a low of $0.3 in the winter of 2015. Safe Bulkers then saw a recover that stalled out at the $3.5 range. The stock has been continuing to try to break resistance levels to the upside, with an expectation that it will cross and stay above $5.
Telaria
Telaria reached all-time highs of $9.25 in 2013 before declining down to $1.29 in 2015 and then breaking out again in 2017. Support is currently holding steady at the $3.50 range, and a bullish push to the upside is expected in the second quarter of 2018.
Viking Therapeutics
After hitting all-time highs of $10.23 in 2015, Viking Therapeutics tumbled down to an all-time low in 2017 at $0.88. In September of 2017, however, the stock broke out of its resistance levels and is now in a steady uptrend. A price target of $8.00 sometime this year would not be unreasonable.
Penny Stock Trading In 2018
Increased government infrastructure spending, tax reform, and solid economic growth all together make 2018 looking like a very promising year for penny stocks. The specific stocks we have covered will be the best ones to invest your money in.