Top Low-Value Stocks 2021 Robinhood: A Comprehensive Guide
Understanding Low-Value Stocks
Low-value stocks are stocks that trade under $5 per share and typically have a small market capitalization. These stocks represent companies with low liquidity and are often less reputable or less known than their larger counterparts. Low-value stocks are usually associated with high volatility and high risk, which can lead to significant gains and losses in short periods.
Why Invest in Low-Value Stocks?
If you’re looking for high returns on investments, low-value stocks can be a good choice. Some low-value stocks have the potential to give 100% or even 1000% returns, but they come with high risk. Investing in low-value stocks can be an excellent option for investors who have a high-risk appetite and can tolerate the associated volatility.
How to Invest in Low-Value Stocks on Robinhood
Robinhood is an online trading platform that allows investors to trade stocks, options, and cryptocurrencies. The platform also provides commission-free trades, which makes it easier for investors to trade low-value stocks. Here’s how you can invest in low-value stocks on Robinhood:
- Open a Robinhood Account: The primary step is to open a Robinhood account. To do this, visit the Robinhood website or download the app and sign up.
- Fund Your Account: Once you have signed up, you need to fund your account. You can do this by linking your bank account to Robinhood and transferring funds.
- Research and Analyze Stocks: Before investing in low-value stocks, you need to research the stocks and analyze them thoroughly. Look for stocks with good fundamentals, strong management, and a solid business plan.
- Place Your Order: Once you have identified the low-value stocks you want to invest in, place your order using Robinhood. You can buy or sell shares in real-time and without paying any commission fees.
Top Low-Value Stocks to Invest in on Robinhood 2021
Here are some of the top low-value stocks you can invest in on Robinhood in 2021:
- Zomedica (ZOM): Zomedica is a biotech company that specializes in developing diagnostic products for pets. The company’s shares have already gained more than 300% this year, and with the increasing demand for pet care products, the price is expected to soar further.
- Sundial Growers (SNDL): Sundial Growers is involved in the production and distribution of cannabis products in Canada. The legalization of cannabis in many states has created a significant opportunity for the company.
- Castor Maritime (CTRM): Castor Maritime is involved in transportation services of dry bulk cargoes. The stock has already gained more than 700% this year, and with the growing demand for transportation services, the stock is expected to go higher.
- Ocugen (OCGN): Ocugen is a biotech company that develops gene therapies for various eye diseases. The company’s shares have already gained more than 300% this year, and with the increasing demand for ocular gene therapies, the price is expected to soar further.
- Cinedigm (CIDM): Cinedigm is involved in digital entertainment services, including streaming platforms. With more people staying at home, the demand for streaming platforms has increased, driving up the company’s stock price.
1. How much money should I invest in low-value stocks?
Ans: The amount of money you should invest in low-value stocks depends on your personal financial situation and risk tolerance. As low-value stocks are often associated with higher volatility and risk, it’s generally recommended to invest only a small portion of your overall investment portfolio.
2. Are low-value stocks a good investment?
Ans: Yes, low-value stocks can be a good investment if you’re looking for high returns on small investments. However, they come with a higher level of risk and volatility than traditional investments.
3. How do I research low-value stocks?
Ans: Before investing in low-value stocks, it’s essential to research the stocks thoroughly. Look for the company’s financial records, press releases, management, and other relevant information to understand the prospects of investing.
4. Can I trade low-value stocks on Robinhood?
Ans: Yes, you can trade low-value stocks on Robinhood. The platform allows investors to buy and sell stocks, options, and cryptocurrencies in real-time.
5. What are the risks associated with investing in low-value stocks?
Ans: Investing in low-value stocks comes with a high level of risk and volatility. These stocks often represent companies with lower liquidity and lower reputation than larger companies, making them more susceptible to market fluctuations and financial distress.
Investing in low-value stocks can be a great way to generate high returns on investment. However, it’s essential to research and analyze the stocks thoroughly before investing. Robinhood is a popular online trading platform that allows investors to invest in low-value stocks quickly and cost-effectively. With this all-inclusive guide, we hope you can identify and invest in the Top Low-Value Stocks in 2021 on Robinhood.