Finding penny stocks to buy with high volume is one of the best strategies that an investor can use. But, it’s worth noting that high volume alone is not enough to consider certain penny stocks as worth it. Before we get into why let’s talk about what makes volume so important.
First and foremost, volume directly equals liquidity, or the ability to buy and sell a stock. For example, if a million shares are traded of a given stock in a trading day, buy orders and sell orders will likely be completed very quickly.
On the other hand, if volume is low (>500,000) shares, it may take some time before any orders go through. This is because there are not enough investors on the other end of the deal to complete a trade. Additionally, when volume is low, we will often see large spikes or drops in value with no indications prior, and no gradual movements.
Aside from the ease of buying or selling penny stocks, volume is directly correlated with how popular a stock is. If volume is high, more people are making transactions with a given stock, and vice versa. So, while low volume is not necessarily a be-all-end-all metric, it is something to keep in mind depending on your investing style. With this in mind, let’s take a look at three hot penny stocks to watch with high volume right now.3 High Volume Penny Stocks to Watch Right Now Dare Bioscience Inc. (NASDAQ: DARE)
Dare Bioscience Inc. is a biotech penny stock that has been showing sizable momentum in many recent trading sessions. In the past month, shares of DARE stock have shot up by almost 15%, which is quite substantial considering the rest of the market’s trajectory during that time.
For some context, Dare Bioscience is a clinical-stage company that creates products for women’s health. This includes therapies for use in contraception, fertility, sexual health, and vaginal health. The company has multiple clinical trials going on at the moment. One of these trials is DARE-BV1, which is a bioadhesive hydrogel to treat bacterial vaginosis.
On July 12th, Dare announced a collaborative research agreement for its pivotal Phase 3 study of Ovaprene. The company has entered into this cooperative research and development agreement with the Eunice Kennedy Shriver National Institutes of Child Health and Human Development. Dare plans to submit an investigational device exemption to the FDA in the fourth quarter of this year, and commence the Ovaprene pivotal study in 2022.
“Grant funding previously provided by NICHD supported the conduct of our pre-pivotal clinical study of Ovaprene. With this CRADA, we have the opportunity to leverage NICHD’s experience in the design and execution of contraceptive studies, as well as continued funding to support the development of Ovaprene.
We look forward to collaborating with NICHD, along with our partner Bayer®, to advance the development of additional non-hormonal contraceptive options for women.”President and CEO of Dare, Sabrina Martucci Johnson
The women’s health market has increased in value substantially during the pandemic. This is a combination of more people being at home, and the higher than average birth rate during the pandemic. Considering this and this exciting trial, DARE stock could be worth keeping an eye on in the coming months.Express Inc. (NYSE: EXPR)
This next penny stock, Express Inc., may be one that you’ve heard of before. If not, EXPR operates an extensive line of retail businesses in the United States. Express sells its clothing in around 570 retail stores across 46 states and Puerto Rico. The company also operates an e-commerce platform which substantially broadens its market reach. If you’ve been to a shopping mall, it’s likely that you’ve come across either an Express store or one of its other wholly-owned brands.
Despite not releasing any news recently, shares of EXPR stock have shot up by over 280% in the past six months. Most if not all retail stocks fell to low lows when the pandemic took hold in 2020. However, as Covid restrictions began to loosen and more people took to retail therapy, Express quickly began to see its sales shoot up. And, if we look at retail trends for the past six months, we also see a staggering rise in the countrywide numbers.
When 2021 started, EXPR stock was valued at under $1 per share. Now, shares of EXPR stock are trading at almost $4.50 as of late July. This exponential growth shows the true potential of what traders are calling “reopening stocks”. Despite the increasing Covid case numbers as a result of the Delta variant, many believe that full reopening could occur soon. And while this could greatly benefit EXPR stock, there is no definitive timeline for when this will happen. So, with this in mind, EXPR stock could be an interesting addition to your watchlist.Castor Maritime Inc. (NASDAQ: CTRM)
Castor Maritime Inc. is another high-volume penny stock that consistently sees momentum in the market. While shares have been on a relative decline for the past few months, this makes sense given both industry trends and the fact that shares of CTRM shot up by over 900% in the span of only a few months in late 2020.
If you’re unfamiliar with CTRM, the company provides shipping services for dry bulk cargo via ocean transportation. Its primary market is in shipping iron ore, coal, steel, grain, sugar, and other dry-bulk goods. It is also worth noting that CTRM stock is frequently mentioned on social media, resulting in major short term spikes, and then quick corrections shortly after.
On June 24th, Castor Maritime announced a new charter agreement and the delivery of the M/T Wonder Formosa. This is an exciting announcement, and to understand why we have to consider the current conditions of the shipping industry. Many similar shipping stocks have shot up in value in the past months as the demand for raw goods is increasing.
In addition, the price per day that shipping companies can make has also increased substantially in the last year. With another ship and the funding from this new charter agreement, it will be interesting to see CTRMs next balance sheet. Considering the shipping industry trends and CTRM wholly, is it worth adding to your list of penny stocks to watch?High Volume Penny Stocks Continue to Attract New Investors
Finding high-volume penny stocks is a great place to start when making a watchlist, but it is by no means the only step in the process. Rather, investors need to do the proper research into every penny stock on their list, to ensure that it is worth investing in.
[Read More] This Is Why Stocks Are Down Today
In 2021, there are quite a lot of external factors impacting the trajectory of the market. And while this is resulting in high volatility, these fluctuations can be used to your advantage if you know how to trade penny stocks. Considering this, it’s no wonder that high-volume penny stocks continue to attract new investors into the market.