Penny stocks can be a great way to make money in a recession or during normal economic conditions. When the stock market is down, investors are looking for opportunities to make money, and penny stocks can provide that opportunity.
Despite the risks, penny stocks can be a great way to make money even during a recession. One of the reasons for this is that many tend to move independently from the broader markets. Just look at companies like AMTD Digital Inc. (NYSE: HKD). While the S&P 500 (NYSEARCA: SPY) was chopping around earlier this month, HKD stock was exploding higher to the tune of thousands of percentage points.
But you’ve got to know what you’re looking for. Here are four tips for trading penny stocks…
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