You are reading this post, because you are into the market. So no need to tell how the stock market has turned out to be one of the best investment options. 3 penny stocks to buy in 2021 is in the scope of this article.
What are Penny stocks
Penny stocks are a good option even for beginners as well for the legends of trading. But only if you have gathered enough information about the stock in consideration. Because there could be manipulations in the prices happening behind the screens.
These low price stocks let the beginners do experimentation and come up with their own strategies. (Well, while experimenting try not with huge volumes of stocks.)
In India, penny stocks are traded for an amount of ₹10 or less. And in the long run it can even turn into multibagger stocks. i.e.generate multiple times returns compared to the value at cost.
Well, even if it didn’t become a multibagger stock and if you have purchased a good number of stocks, you may sell it at the next surge and make reasonable profit.
Purchasing penny stocks in a few hundreds can’t raise your profit if it didn’t become a multibagger stock. You have to purchase it in ten thousands or lakhs of volume to make it profitable.
The stocks mentioned below are collected after considering the trend in their price chart and some fundamental factors. But if you are going to invest in any of these stocks, do a proper background check and then take calculated risks as today’s news might not be relevant in tomorrow’s market.
3 penny stocks to buy in 2021
Jaiprakash Power Ventures Ltd
Stock price : 4.20 as 30th Aug 2021
Jaiprakash Power Ventures Limited is engaged in the generation of power, including hydro and thermal; cement grinding; captive coal mining, and transmission of power.
Visagar Polytex Ltd
Stock price : 0.75 as on 30th Aug 2021
Visagar Polytex Limited is engaged in the business of retail, wholesale, trading and manufacturing of textiles and textile-related goods..
Suzlon Energy Ltd
Stock price : 6.20 as on 30th Aug 2021
Suzlon Energy is primarily engaged in the business of manufacturing of wind turbine generators (WTGs) and related components of various capacities.
Be careful while selecting a penny stock
Be careful while selecting a penny stock. Usually they move if there are some stories or news running around the stocks. Even some stock operators create artificial inflation. So don’t get fooled by the fraud news or cooked up surges. (When more trades are happening, these stock operators might withdraw, leaving you in trouble)
Penny stocks are like double edged sword. If anything goes wrong, you can lose money easily. Do your analysis and go with your intuitions after educated choices.
Also ensure that it is an active stock (i.e. fair enough trades are happening in terms of sell and buy). Or else you may not get a buyer when you try to sell it. Well, if you have a plan to hold it for long, anticipating it to become a multibagger stock, take the call by yourself!
Disclaimer: The views and investment tips expressed here are purely based on my intuitions out of the mathematical analysis done. What suits you better is something to be decided by you. Above every recommendations, it’s your logical intuitions that matters the most along with your investment objectives and risk tolerance. After all, it’s your money at stake.
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