What to know about trading Penny Stocks on Monday, May 9

Buy Penny Stocks on May 9? Here’s what you need to know

If you’re looking for penny stocks to buy, there are hundreds of options to choose from. And after last week’s highly volatile trading, many investors aren’t thrilled with the state of the stock market right now. So how can we find penny stocks worth buying? Well, there are several ways to answer this question. First, we need to consider our individual trading strategy.

[Read More] Are these hot penny stocks on your watch list right now?

Some traders look for stocks that have the potential to double or triple their price, while others are content with stocks that will simply provide consistent growth. There are many factors to consider when trying to find the best penny stocks to buy. With that in mind, let’s take a look at a quick recap of the stock market from the past week.

Market summary, week of May 2, 2022

During the week of May 2, we recorded some of the largest losses we have seen since 2020. Right now, investors are digesting the news about high inflation and tightening interest rates. Despite this, profits across the board seem to be climbing. Now, with all this news, we see that there is a lot of volatility to take advantage of. And alternatively, there is also a lot of volatility that investors should be wary of.

Last week, the Fed announced the first of several rate hikes, the latest at 0.5%. So with all of this news in mind, we’re starting to see how crucial it is to diversify your investments. And, having a trading strategy that can adapt and change over time is also a crucial step in making money with penny stocks. Considering that, let’s take a look at what you need to know about small cap trading this week.

What to know about trading this week

Last week we saw a hype around biotech penny stocks, mining penny stocks and technology penny stocks. Although it is difficult to say if this trend will continue for sure, there is no doubt that it is an upward trend. So keep this and all the upcoming economic data in mind for the week ahead. Also, understand that the stock market is likely to remain highly volatile in the near future. So if you are risk averse, it may be worth avoiding for now.

3 Penny Stocks to Add to Your Watchlist This Week

  1. Mereo BioPharma Group (NASDAQ: MREO)
  2. Imperial Petroleum Inc. (NASDAQ: IMPP)
  3. Allena Pharmaceuticals Inc. (NASDAQ: ALNA)

Mereo BioPharma Group (NASDAQ: MREO)

Even with the falling Dow Jones and falling Nasdaq, there are still several low-priced stocks on the move, early. Mereo BioPharma is hoping to lead the charge after breaking news last Friday helped spark an after-hours trading frenzy. The clinical-stage biotech company announced that it will host a conference call today at 10:30 a.m. ET to review key data from its Phase 2 ASTRAEUS study. Emphasis is placed on its alvelestat in emphysema associated with alpha-1 antitrypsin deficiency.

Meanwhile, the company kicked off on Monday with information confirming positive efficacy and safety data from the ASTRAEUS trial. Dr. Denise Scots-Knight, President and CEO of Mereo, expanded on this topic and said, “Alvelestat has the potential to be the first oral neutrophil elastase inhibitor for the treatment of AATD-LD. We look forward to analyzing additional data on secondary and exploratory endpoints and engaging with regulators on the design of a pivotal study.

With Monday’s call still scheduled for mid-morning, the early momentum has already started to build. MREO stock jumped above $0.60 at press time. It will be interesting to see how the market reacts once the company goes online to discuss the results on its morning call.

Imperial Petroleum Inc. (NASDAQ: IMPP)

Imperial Petroleum is, as its name suggests, an energy penny stock. While its fall of more than 65% since the start of the year is nothing out of the ordinary, the company has started to see some small signs of bullish momentum over the past few weeks.

[Read More] Best Penny Stocks to watch on Friday, May 6, 2022

In March 2022, we saw IMPP shares soar over 1,400% in less than a month. And since then, IMPP has fallen back to a realistic valuation. So, although the IMPP stock is highly volatile, it presents an opportunity for those looking to capitalize on large moves.


Allena Pharmaceuticals Inc. (NASDAQ: ALNA)

On Friday, May 6, ALNA shares managed to rise more than 3% during trade and after hours. This means that there is some decent momentum behind the company despite a month-on-month decline of over 50%. A few days ago, the company announced a registered direct offer of $2.8 million.

[Read More] Will Virgin Galactic (SPCE) be on your list of Penny Stocks in 2022?

The company states that the net proceeds of this offering will be used for capital purposes as well as the repayment of certain debts. If you’re unfamiliar, Allen is a biotech penny stock working on oral biologic therapies that treat rare and serious kidney metabolic disorders. Considering all this, do you think ALNA stocks are worth adding to your buy list or not?


Are Penny Stocks Worth Buying?

Are penny stocks worth buying or not? This is a question that many investors ask themselves, and the answer is entirely up to you and your trading strategy. While buying penny stocks can be profitable for many, for others it can be a complete disaster. As stated several times in this article, it is essential to understand your own risk tolerance and investment profile. This will allow you to make the best investment decisions for yourself.

Because penny stocks are very volatile, their price tends to fluctuate rapidly. For many investors, this is part of the appeal, as penny stocks have the potential to generate large profits. For others, it can mean big losses. So with all of that considered, do you think penny stocks are worth buying or not?

If you enjoyed this article and want to learn how to trade so that you have the best chance of making a profit consistently, you need to check out this YouTube channel.

Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | [email protected]

Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | [email protected]

Garland K. Long