The same can’t be said for large company stocks like Apple ( NASDAQ: AAPL) or Microsoft ( NASDAQ: MSFT). That subset of stocks in this niche can see a percentage change of 50% or more from just a drop of 50 cents or less. Yesterday we discussed penny stocks under $1. Due to their low prices alone, even the slightest price change can equate to a significant percentage fluctuation. That’s thanks, in part, to the inherent volatility in this niche of stocks. No matter which style of strategy you’re using, it’s essential to understand that risk and reward play an important role when we’re talking about penny stocks or stocks under $5. Are you day trading? Are you swing trading? Has long-term investing in penny stocks become a recent focus? But there’s more to it than just hunting for today’s top movers. Are you searching for some of the best penny stocks to buy now? I’m sure that if you’re reading this article, that’s something at the top of your mind.
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