What penny stocks to buy 2021 ? is a question you should not ask anyone and better try to find on your own the good stocks you should invest in. This being said, there is a point in time in every trader’s career when they ask themselves what are .0001 stocks and how to invest in them as they appear to be the most profitable investments. For example an investment in HCMC stock last year would be worth 20 times more today but you can never know how things play out so all you can do is research diligently and be cautious.
The most common question i usually get asked on my social page is what penny stocks to buy and what price target do they have ? Another frequent question i get is, what examples of .0001 stocks do you i know?
There are a lot of shady websites offering subscription at a cost, for sending you the names of some selected .0001 tickers (Trip-Zero Penny Stocks) every day so you can gamble on investing in them just like buying a cheap lottery ticket.
I recommend you stay away from such websites as they should not be your compass in your OTC – Over the counter stock market investing experience.
What is a .0001 stock and Triple-Zero Penny Stocks in general?
A .0001$ stock also known as a triple-zero stock is a penny stock that has the lowest price a retail investor can ever get for buying a stock.
In other words this is the lowest price a stock can go down to and that is 0.0001 US dollars.
But a trip-zero stock can range anywhere from 0.0001$ to 0.0009$ because it still has a triple zero digit after the main zero.
Beyound that price of 0.0009 the stocks has no more triple zeros, and changes their name in “sub-penny stocks”.
What 0.0001 dollars for a share is really about?
Imagine investing 1 dollar into a company and get 10 000 shares. It’s as simple as that. You get 10 000 shares for a dollar at the share price of 0.0001. And if the share price would be 1 dollar you would have to pay 10 000 dollars for the same amount of shares.
Now imagine you own 10 000 shares of a company’s stock that you purchased with only 1 dollar at the price of 0.0001. When latter on in time the share price jumps to:
- 0.0002 dollars, your investment will have doubled the money you had invested.
- 0.001 dollars, your investment will have a profit of 10 dollars, that is 10 times more then you invested.
- 0.01 dollars, your investment will have a profit of 100 dollars, that is 100 times more then you invested.
- 0.1 dollars, your investment will have a profit of 1000 dollars, that is 1000 times more then you invested.
- 1 dollars, your investment will have a profit of 10000 dollars, that is 10000 times more then you invested.
- 10 dollars, your investment will have a profit of 100000 dollars, that is 100000 times more then you invested.
Now think about it and realize that nobody invests 1 dollar as it is too low amount to ever hope for big gains but you might for example choose to invest at least 100 dollars on a 0.0001 stock. This would get you 1 000 000 (million) shares of that company. If the price gets to 1 dollar after a few months or years your investment profit will be around 1 000 000 (million)$.
HCMC – Healthier Choices Management Corp., that was trading at 0.0001 $ few months back in 2020
A recent example i can give you is the stock HCMC – Healthier Choices Management, that was trading at 0.0001 $ in the summer of 2020 and in late autumn 2020 it surged to 0.007 meaning that 100 dollar investment would have gotten you 1000 000 shares and you could have sold them with 7000 dollars. That is 7000 dollars for a 100 dollar investment. Currently HCMC is trading at around 0.002 $ range and climbing steadily.
Most HCMC investors expect it to reach 1 dollar mark by the end of 2021 and decide to hold the shares so they can sell at the highest price they imagine they will get.
Most active investors sell each time they have a substantial gain and take their profits out of the investment. And after the price cools down again they buy back into the company with the same amount of money they profited earlier but getting a lot more shares they initially had, and this is called scalping the price.
You might also ask why does a stock price get to 0.0001$ in the first place
The most common reason a stock price is at .0001 dollars is because the company just listed their business on the OTC (Over The Counter) Market and they generally start at .0001$ before they climb up the latter and get to dollar land and higher.
Another reason is when the company’s stock had a run up of 10times or lets say 100 times more then .0001$ and they need some fast cash. They have the option to dilute the stock float by increasing the outstanding shares number using an investing tool called stock split. Doing stock split they can for example multiply the shares 100 times 1:100 so for every 1 shares they generate 99 more and becomes 100 shares but the market capitalization stays the same. They only will have more outstanding shares tradeable on the open market. It is common that new companies with not so much success in their business, often do stock splits in which case retail investors will have a drop in their investment value.
Be careful if a Reverse Stock Split is announced also
If your invested company decides to do a Reverse Stock Split, then that means they will reduce the number of shares outstanding but in the same time raise the shares price with the same ratio.
So for example if they do a 100:1 Reverse Stock Split and you had a 1000 shares at the price of .0001,
you would be left with ten shares at the price of 0.01$. In other words thee share price goes up, but you are left with fewer shares in your possession.
The issue for you in this case is that you no longer situate yourself on the lower possible price for your shares and you could get a drop in price of 100 x times until the price would reach 0.0001 once again and you would have just 10 shares of this price. That would mean your investment value dropped to 100 x times lower.
Usually people sell right away when a reverse stock split is announced and buy back in when the price of the stocks settles and starts climbing steadily again.
Why would anyone want to buy a .0001 stock?
The only 2 reasons are that the price bottom is missing as you bought in at the lowest bottom and your investment feels more secure as it cannot drop more then 0.0001$ but this is not entirely true because in order to sell the stock even at 0.0001 you need a person to buy that stock amount you are selling to complete the trade. And the second reason is that you any movement the stock makes can only be up starting from X2 (doubling ) or more therefore increasing your investment value is more likely then reducing the value.
How to maximize your chances for profit trading triple zero stocks?
Don’t just buy a .0001 stock with no bid that makes no movement and has zero volume in trades per day. This is true if you don’t plan to keep your shares for a long period of time as a inert lottery ticket.
Select a stock that has positive public interest and trading volume or that you know will be in the headlines sometimes soon.
Always check the news for such marbles and maybe you are lucky to get into triple zero stocks before they start climbing.
Don’t buy on the hype.
If a stock has been sitting on the ask price of .0005 for a long time and suddenly it jumps to 0.0006 or 0.0007, don’t just buy it thinking you will catch the train. instead set a market order good till cancel on the price of 0.0005 as it will surely drop back down to that level or even lower before the next spike up.
Set you order to sell right after your buy order gets executed. A triple zero stock that has volume and therefore price movement becomes very volatile and you should open the door for profits estimating 1 or 2 even 3 ticks up for your sell order. So if you bought in at 0.0001 and you set the sell order at 0.0003 you would have tripled your invested money already and can set your buy again at the initial price and wait for another scalping opportunity.
Most of the times the price will get back down in the same trading day as there are many unexperienced traders selling and buying at market price and not utilizing the right kind of orders to minimize their loss. This way you can turn 100 dollars into a few thousand just by buying and waiting for 1 or 2 ticks up and buying back always at the lowest point just to wait for the next scalping chance. This is what i call price hunting.
You cannot lose if you always take your profits and move on
If you managed and got in a triple zero stock and sold for profits and noticed you could have waited a bit more to sell for more, just don’t be sad about it.
You should be happy with your positive trades and move on to new trades and don’t look back. You can never know in which direction the stock price might go but if you secured a win then you should consider it a successful mission accomplished. There are so many other stocks to play with and you already made more money then you have so you can diversify your investment by investing in more tickers in the same time.
Always use a direct access broker to get your trades executed as fast as possible
My advice, if you wish to trade penny stocks, is to use a direct access broker and trade the stocks on the ECN market makers. This will help you pay less commission per trade and take advantage of lower spreads.
Never trade more than you can afford to lose.
Never invest more then 50% of your money on a single trade.
Many .0001 to 0.0009 stocks can easily go out of business or reverse split on you which will most of the time wipe out your investment value, Another danger is that they can get halted or suspended or just dissolve and you will never see your money ever again. As the old investor’s saying goes, ” don’t have all of you eggs in the same basket”, always diversify your portfolio.
Do your own dully diligence trading research on the stocks you are after, and study their trading patterns, read all the investing forums articles and investor comments so that you will be up to date with the latest rumors before buying a single share.
Here is a list of .0001 Stocks To Watch 2021 that you might want to check out just for a quick research and comparison experiment:
|Stock Ticker||52 Week Price Range||Outstanding Shares (Millions)|
Here are a few more tickers of .0001 Stocks we have selected with the price in the range of .0001 to .0.0009 at the time of writing of this article:
Our favorite penny stock is HCMC – Healthier Choices Management Corp. Stock and the price of closing for today was 0.001800$ per share. We don’t recommend you invest in any penny stocks but HCMC stock is a good example of a growing OTC stock with good company fundamentals and great chances for a bright future.
IMPORTANT DISCLAIMER FOR OUR READERS!!!
Trading opinions discussed on this website are not intended as investing advice and as an investor you should do your own research and take your own decisions regarding your trading activities. If you are losing money in the market, it is your sole responsibility and fault. No one else but you is responsible for your gains or your losses in trading. Most of the stocks mentioned on this website are of high risk and should be treated as such. There is the danger that you might lose all your money invested when trading on the .0001 stocks. they are a lot more risky then regular stocks.
FinancesParty Team wishes you good luck and we invite you to visit our SOCIAL PAGE for more insights in trading .0001 stocks.