Trading penny stocks is easy. You just find some letters, pull up the order-entry ticket, buy, sell, and profit, right? While the process of actually buying penny stocks is simple, the strategy isn’t quite as easy. Anyone can get lucky trading penny stocks here and there. But to become consistently profitable in the stock market, I’m sure many of you would agree that a sound strategy and gameplan are a must. Understanding how to manage risk while also managing winning trades it a fine balance. Like Kenny Rogers once (or twice) said, “Know when to hold ’em, know when to fold ’em.”
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It sounds naive to think some song lyrics could mold your trading strategy. But if you’re looking for good penny stocks to buy, you should have some rules in place. Maybe you want to only focus on penny stocks under 10 cents. In this case, you can easily set up a scanner to only report back a list of penny stocks under $0.10. Maybe you want to take that a step further and find stocks with high volume. Based on your own definition of high volume, you’d set another parameter on a scanner or screener to give you related results.
Finally, once you’ve found your top penny stocks and put them on your list, you’ll want to start trading. However, when it comes to buying and selling, there are additional strategies you can implement that will allow you to take full advantage of big breakouts while also limiting risk.How To Trade Penny Stocks
One such strategy that we’ve discussed is tiered trading. I won’t get into the full details of it (for more information on tiered trading strategies, click here), but the basics are simple. You essentially buy and sell in pieces while, hopefully, a stock is moving up. Most will break it down by percentages, IE. the first tier is X% of the total you want to buy, tier to is Y%, and so on.
In any event, when you’re looking for good penny stocks to buy, your strategy is key. A sound approach to trading can help with consistency and that’s what most traders seek. With this in mind, here are a few penny stocks to watch in September.Penny Stocks To Watch #1: Onconova Therapeutics Inc.
Onconova Therapeutics Inc. (ONTX Stock Report) was one of the top penny stocks to watch for most of the year. We first saw this in early December and for months ONTX stock saw considerable gains in the market. In fact, since December through mid-Q3, ONTX stock made a move from around $0.20 to highs of $1.56. But as you’ll see by the look of the chart, Onconova gave back all of those gains at the end of August. The penny stock freefell to lows of $0.19 after the company reported topline results from a Phase 3 trial.
As you might imagine, those results missed the mark. Onconova’s IV rigosertib was aimed at treating patients with specific bone marrow failure disorders or “myelodysplastic syndromes (MDS). The trial didn’t meet its primary endpoint of improving survival versus other supportive care. As a result, the company turned its focus on other pipeline treatments.
After reaching those $0.19 lows last week, ONTX stock has slowly crept up this week. ON Thursday, the penny stock reached highs of $0.277 without any news to point to. What is something to reference, however, is the company’s upcoming presentations this and next week. September 10th, 14th, and 16th are days that Onconova presents information on the company’s pipeline treatments.
The presentations include the Marcus Evans Healthcare Investment webinar, H.C. Wainwright’s Annual Global Investment Conference, and the RAS-Targeted Drug Development Conference. Aside from that, there haven’t been any new developments in September so far. In light of this week’s slight pop, is it enough momentum for traders to chew on and add ONTX stock to their watch lists this month?Penny Stocks To Watch #2: Agile Therapeutics Inc.
Agile Therapeutics Inc. (AGRX Stock Report) is another one of the penny stocks we’ve followed for a while. Back in late-October, 2019, AGRX had actually hit some of its lowest trading levels in the history of the stock. This is when we first started to pay a bit more attention to the penny stock. Similar to ONTX, AGRX dropped around the time it was set to reports some new data. However, unlike ONTX, that drop was a speculation-based sell-off and when the company actually came out with information, AGRX stock pulled an about-face in the market. It jumped from $0.35 to over $1.50 overnight, which triggered a rally that didn’t top out until reaching highs of $4.77 in February.
As you’ll notice on the chart, AGRX stock pulled back into March as most other stocks did. Since then, shares have been in a steady uptrend. On Thursday, Agile stock made fresh Q3 highs of $3.75 (so far). One of the biggest drivers of Agile has been the anticipation behind the launch of its product, Twirla. This is the company’s female contraceptive and Agile has worked closely with the FDA to finalize details for the treatment’s potential launch. In fact, the company intends to begin shipping product to wholesalers in the fourth quarter of 2020.
Similar to the companies mentioned in this article already, Agile presents at a few conferences this month. Next week the company attends the H.C. Wainwright Global Investment Conference. The week after, Agile hosts its Investor/Analyst Day. Something to note is that the company presents Twirla’s commercial plan at that Investor/Analyst day. Furthermore, this week, Agile had its Buy rating re-affirmed by Maxim Analysts who also issued an $8 price target ahead of these upcoming events.Penny Stocks To Watch #3: Fortress Biotech Inc.
Fortress Biotech Inc. (FBIO Stock Report) is no stranger to big moves in the market. Since May, FBIO stock has been on the radar as shares have climbed from around $2.30 to highs this month of $4.18 so far. One of the interesting parts about Fortress is the relationships and partnerships cultivated over time. Specifically, Fortress focuses on acquiring and developing pharmaceutical products to take into commercialization.
During the second quarter, for instance, Oncogenuity, Inc., a Fortress partner company, entered into an exclusive worldwide licensing agreement with Columbia University. They plan was to develop oligonucleotides for treating genetically driven cancers.
Fast-forward to this month and FBIO stock continues to move higher. Fortress-founded Mustang Bio Inc. (MBIO Stock Report) turned some heads earlier this month after announcing that the FDA granted Orphan Drug Designation to MB-107. This is Mustang’s lentiviral gene therapy for the treatment of X-linked severe combined immunodeficiency; bubble boy disease.
This week, another Fortress-founded company, Checkpoint Therapeutics, and Fortress announced that they would participate in several upcoming conferences. Many of them are the same upcoming industry conferences as other companies mentioned in this article. In light of all of this progress and potential for additional exposure later this month, will FBIO stock join the names on your September watch list?Penny Stocks To Watch #4: Bionano Genomics Inc.
Bionano Genomics Inc. (BNGO Stock Report) was a high-flying penny stock over the last few quarters. Shares ended up moving from lows of $0.25 to highs of $1.16. The last few weeks haven’t necessarily been that exciting. However, Thursday saw some renewed interest in the penny stock.
This came after Bionano announced a key update. The company’s Saphyr system was adopted by 3 children’s hospitals in Europe. The 3 hospitals aim to assess Saphyr’s potential for use in diagnosing childhood leukemias versus current standards of care.
We believe their use and adoption of Saphyr through reagent-rental agreements is an important validation of our technology and a significant milestone for us as we aim to make Saphyr an essential component of the future of cytogenomic analysis of leukemias and solid tumors,” said Erik Holmlin, PhD, Chief Executive Officer of Bionano. Considering this latest development and the general trend, is BNGO worth adding to the watch list or ignoring in September?