What Investors Are Watching Penny Stocks As Russia Enters Ukraine
Trading penny stocks over the past few weeks has been complicated to say the least. Whereas before the market was focused on raising interest rates, now it is entirely dependent on what happens with Ukraine.
It was only recently that Russia decided to enter Ukraine, and since then sanctions have been imposed on the first with major economic implications for the world, wreaking havoc on the stock market. For this reason, we have had some major ups and downs with penny stocks and blue chips, and it doesn’t look like that volatility is going anytime soon. Because our world is changing so rapidly, news continues to come out daily with updates on the situation.
And whenever it does, we often see a positive or negative market reaction. As you may know, penny stocks are very volatile and extremely reactive. This means that paying attention to the news is more important than with any other investment. So with all of that in mind, let’s look at three strategies and tips that investors are currently using to make money with penny stocks.
3 Strategies to Make Money With Penny Stocks Right Now
- Understanding How News Affects Penny Stocks
- What Industries Do Penny Stocks Traders Watch?
- How to Make Money with Penny Stocks in 2022
Understanding How News Affects Penny Stocks
Understanding how news affects penny stocks is a crucial step in investing. Although it may be difficult at first, investors will quickly discover that news is the primary driver of price movement in the stock market. While penny stocks are more prone to news volatility, the stock market as a whole is incredibly responsive. And for this reason, using the news as a basis for finding penny stocks to buy can be an effective way to make money with small caps.
Right now the main news, as we all know, is about Russia and Ukraine. And over the past two weeks, it has continued to drive up the price of all stocks, not just penny stocks. These two knew how to take advantage of this event, which brought a lot of profits, however, those who did not, quickly saw the losses pile up. When it comes to understanding the news, there are obvious ways to make money with events, and less obvious ones.
Take for example the Ukrainian conflict. In the beginning, we saw many defensive stocks go up dramatically in a short time. This makes a lot of sense as defense is an obvious industry that could see growth. However, we have also seen the price of energy penny stocks rise significantly. This is obvious, however, not as obvious as the first. So. Taking all of this into consideration is crucial when trying to make money with penny stocks in 2022.
What Industries Do Penny Stocks Traders Watch?
Currently, there are several industries that investors of all types are watching. The first and most important, as mentioned above, is energy. Over the past few weeks, the price of oil has skyrocketed. We recently saw WTI hit over $116 a barrel. This is an important decision which highlights the effects of the Russian invasion of Ukraine.
In the future, we also see a great emphasis on renewable energy energy penny stocks and blue chips. It has to do with the same reason why fossil fuel stocks are increasing. But, as we see our dependence on fossil fuels driving prices up, many investors see the future in alternative energy. This includes nuclear energy, solar energy and other renewable energy sources.
Finally, we see an increased emphasis on mining stocks and gold stocks in particular. During any period of geopolitical conflict, investors will look to gold stocks as a way to hedge against conflict. And that is exactly what is happening right now. Although gold stocks can still be volatile, the underlying resource does not tend to move in large quantities daily. But, over the past few weeks, we have seen the price of gold climb significantly. So with all of that in mind, what industries are you watching right now?
How to Make Money with Penny Stocks in 2022
Make money with penny stocks in 2022 is similar to many years before. However, right now we have several extreme factors at play. This includes the conflict in Ukraine, rising interest rates and inflation. Because all of this is happening simultaneously, it can be difficult to keep up. But, understanding exactly what is going on in the stock market and how to profit from it is crucial.
Additionally, traders must have a well-thought-out trading strategy that can stay current over time. This means knowing your risk tolerance and using it daily. And, traders must also have a thorough understanding of their long-term goals. This will help solidify which penny stocks are worth buying and which are not. Considering this, which penny stocks are going to be on your list this year?
3 Penny Stocks to Watch Right Now
Are Penny Stocks Worth Buying in 2022?
The short answer to this question is that it’s up to you. Although it can be difficult to choose the best penny stocks to buy, it is easier than expected to understand what the trends are and use them as an advantage. Now, if we consider what is happening in the stock market, we can start thinking outside the box to find ways to make a profit.
One thing to keep in mind is your risk tolerance. With such a degree of volatility in the stock market right now, prices continue to rise and fall dramatically, on a daily basis. So with all of that in mind, do you think penny stocks are worth buying in 2022?