Keys for Trading Penny Stocks — The Top Penny Stocks Today

Trading Penny Stocks.
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Top Penny Stocks Today

In the type of market we’ve experienced recently, penny stocks are some of the juiciest-looking investments to the right type of buyer. After all, with massive gains across the board and year-over-year consistent stock market growth at a near-historical level, it’s easy to see why the top penny stocks today have so many people interested in their potential. These are the types of stocks that have a low barrier to entry, high volatility, and the potential to yield a massive return on investment.

So what are the best penny stocks to watch today?

While I will highlight a couple of my favorite stocks later on in this piece, I’ll first focus on something that I think is far more important for trading penny stocks than just picking a couple of winners—industries.

When it comes to finding trending penny stocks in the tech sector, there is no substitute for identifying an industry that shows huge potential growth for the future and using that as your first point of reference.

For instance, I could rattle off a quick penny stocks list, but a more effective “how to buy penny stocks” strategy for investments in the top penny stocks today is finding a whole industry full of stocks that has the potential to explode in the near future.

Penny stock undervalued chart

Chart courtesy of StockCharts.com

Ask any early investors in the marijuana stock market—this strategy can pay off big time. The same goes for those lucky few who invested in the cryptocurrency market back in its nascent stage. People who put $10,000 into Bitcoin in 2010 are multi-millionaires now, many times over.

So what are some industries that I think hold a good number of penny stocks today on the cusp of huge growth in the future?

The first one I personally think is ready to explode is the lithium market.

We’ve seen demand in the lithium market increase by 18% per year since 2010. With the auto industry pivoting towards electric vehicles at an impressive clip, this type of growth is likely only to continue. (Source: “Lithium: Global Industry, Markets & Outlook,” Roskill Information Services, last accessed May 15, 2017.)

Which is to say that lithium miners, refiners, and battery producers are all in for a healthy payday should the things continue apace in the energy world.

Lithium batteries encompass 37% of total lithium consumption. While construction and manufacturing have declined and will continue to do so as a result of lithium’s heightened price, that’s not really going to be a problem for lithium mining companies and battery producers. The former will benefit from the higher price, while the latter are producing the product that is the justification for the higher price, making them both pretty solid bets for the future.

Also Read:

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With more and more governments passing legislation regarding electric vehicles and automakers looking to make their fleets more green, lithium is a safe bet for the future for more reasons than just one.

With that in mind, a lot of penny stocks in this industry could see their shares soar in the next few years, so a diligent researcher could turn into a strong investor if they look deeply into the good penny stocks today contained within the lithium industry.

Another industry I’m very big on is the cryptocurrency market. While the bigger ones are far beyond the penny stocks stage, a good number of other cryptocurrencies are sprouting up, many that have witnessed hundreds and sometimes thousands of percentage points of gains in a short period of time.

Unlike the lithium market, however, I will caution that the cryptocurrency market is far more unpredictable compared to lithium, as theft and hacking are still major concerns, not to mention that many of these cryptocurrencies seem a good way short of legitimate.

But if you can stomach some of that increased volatility, then you could be playing in one of the frothiest markets we’ve seen in a long time, coming in right at the time that the trades are heating up. While I would caution against too many long-term holds on most cryptocurrencies (unless you really trust the coin’s value proposition) a great deal of money can be made from this industry.

With my top two industry picks out of the way, let’s move on to a penny stock list.

Penny Stocks to Watch Today Ticker
Critical Elements Corp. CVE:CRE
Ripple XRP
Aphria Inc TSE:APH

Penny Stocks to Watch Today

1: Critical Elements Corp (CVE:CRE)

CRE stock has been a winner for some time now. The company shot up by over 137% since the beginning of the year, and looks poised to continue that run. The company operates lithium mines and has shown itself to be one of the better up-and-coming companies playing in the lithium market right now.

2: Ripple

Ripple is one of the more exciting cryptocurrencies out there as it has a high market share, is trading at high volumes and is, at the moment, priced at a fraction of a penny.

And the growth rate is something worth salivating over. At the beginning of the year, Ripple was worth about $0.006, but now finds itself at $0.17, demonstrating the type of exponential growth you hope to see from a great penny stock.

Of course, as mentioned at the outset, many of these cryptocurrencies are quite speculative, so holding on to one long term is certainly a risk. But, as we saw with Bitcoin investors, that risk could lead to one of the best investments you’ll make all year. And that makes Ripple one of the top penny stocks today.

3. Aphria Inc (TSE:APH)

Aphria is one of the more exciting marijuana stocks available. With its low cost and high growth potential, the company is a fairly standard representation of what makes a top penny stock.

While the marijuana stock market is oversaturated, APH uses greenhouse growing that results in yields significantly easier to predict and less subject to swings. This renders the company more reliable and therefore better suited for the future of the marijuana industry.

Like many marijuana stocks, APH stock has had a rough 2017, but as more states legalize the drug and countries like Canada introduce national legislation, a rebound is very possible for Aphria, making it one of the top penny stocks to watch.