Trading penny stocks can be stressful, this is true. But what’s the main stressor that you usually encounter? This can be different for different traders. Some have a tough time knowing when to take a profit. Others have trouble trying to identify entry points. Meanwhile, others tend to find it difficult to identify actual penny stocks to buy. No matter the case, a trading strategy is important to have especially during times like these. I’m talking about higher volatility scenarios, and what goes hand-in-hand with these are cheap stocks.
The lower the price, the higher the volatility, traditionally. This means, for example, if you’ve got stocks under 10 cents versus stocks trading around $4, small 1 center or 2 cent moves in price equate to a much larger shift when it comes to percentage change. Understanding out to navigate this type of movement is important especially when it comes to trading penny stocks. Now, where does Robinhood come into play? If you’ve followed the brokerage growth statistics in 2020, Robinhood is one of the apps gaining the most new accounts this year. With some 5 million new users in the first 9 months of the year*, it’s worth noting which penny stocks on Robinhood are accessible to these traders.
This isn’t to say that all penny stocks on Robinhood are solely part of that app alone. The fact of the matter is that all penny stocks on Robinhood are also on other platforms like TD and ETrade. The difference is that, for the most part, OTC penny stocks aren’t typically accessible by Robinhood traders. But NYSE and NASDAQ stocks under $5 are. This makes for a unique scenario when it comes time to find certain trending names.Robinhood Penny Stocks
- Obalon Therapeutics Inc. (OBLN Stock Report)
- Marin Software Incorporated (MRIN Stock Report)
- Amplify Energy Corp. (AMPY Stock Report)
Marijuana stocks, for instance, are a bit more limited due to the fact that so many are traded on the OTC. While there are some on the app, for the most part, it’s a very limited number to say the least. Heading into this week, we’re taking a look at a few Robinhood penny stocks to buy under $3 right now. Will they be worth the higher risk?Robinhood Penny Stocks To Buy Under $3: Obalon Therapeutics Inc.
Obalon Therapeutics is a very thinly traded penny stock. What this means is that it doesn’t consistently trade with a relatively high level of average volume per day. However, over the last 3 days, OBLN stock has begun waking up a bit. Last Wednesday the penny stock jumped to highs of more than $1.60 on its highest trading volume day of 2020. Friday, this trend continued as OBLN stock continued sustaining levels around $1.10 for the 3rd consecutive day.
So what’s behind the recent excitement in Obalon? It’s actually relatively harder to say. There haven’t been many headlines from the company recently. Furthermore, the last filing was an amended 13G showing Armistice Capital, LLC had a 14.2% stake in the company. Whether or not the latest bout of momentum has to do with institutional activity is still up in the air. But what we can say is that after the market closed on Friday, OBLN stock surged higher.
Shares reached a high pf $2.22 marking a 136% jump, quarter to date. OBLN stock is on the radar right now, not only for the recent momentum it’s experienced but also for that aftermarket surge seen on Friday. Will that continue into the Monday morning session and will we find an underlying catalyst to the recent activity?Robinhood Penny Stocks To Buy Under $3: Marin Software Incorporated
Marin Software has been wrapped up in the tech niche of the market. The company itself provides digital marketing software for performance-driven advertisers and agencies. The company’s most recent earnings and operations outlook seems to have sparked some intrigue with traders recently. What’s more is that even after the closing bell on Friday, MRIN stock traded much higher, reaching $2.74 and extending its Q4 uptrend to 101%, quarter to date.
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In its Q3 earnings report, CEO Chris Lien, said, “the increase in online commerce that has been generally observed since the beginning of the Covid-19 pandemic combined with the upcoming Q4 retail season both highlight the importance of Amazon as part of a digital marketing strategy. Marin’s integration with Amazon Attribution unlocks what is currently a black box for many advertisers and helps them better understand the full value of their Google and Facebook investment.”
On its earnings call, management explained that this quarter, Marin expects revenues to be in the range of $6.3 million to $6.8 million. As far as non-GAAP operating loss, Marin expects it to be in the range of $2.4 million to $1.9 million. But what could explain the most recent jump in price last week? We’ll have to see how Monday’s opening session unfolds. Will it be on your list of penny stocks to watch?Robinhood Penny Stocks To Buy Under $3: Amplify Energy Corp.
While Friday was a big day for these two other stocks, it was an extension move for Amplify Energy. Not only did shares reach highs of $1.45 after-hours, this further extends the quarter-to-date move to 93%. Similar to the other names on this list of penny stocks, Amplify didn’t report any updates either, which would coincide with Friday’s move.
However, it is in a sector that has experienced a great deal of positive momentum recently. Amplify focuses on producing oil and natural gas and developing properties to do so. What’s more, is that institutions like Fir Tree Capital Management have taken sizeable stakes in the company. Right now Fir Tree has a 23.7% interest in the company.
With oil futures pushing higher Sunday night, will AMPY stock remain one to watch on Monday morning? As of right now, analysts appear to remain undecided on the stock. Earlier this year, both Roth Capital and Northland Securities downgraded Amplify to Neutral and Hold respectively. Does this mean AMPY is one of the penny stocks to avoid? Or will the recent uptick in oil and gas stocks help “fuel” momentum even more?