Penny stocks can be risky investments, which is why warnings are often given about their potential dangers. The SEC also cautions investors about the risks associated with trading penny stocks, including the possibility of losing their entire investment.
It is important to heed these warnings and never risk more than you can afford to lose when investing in penny stocks. Implementing a protective stop loss strategy can help mitigate potential losses. Additionally, paying attention to insider trading activity can provide valuable insights into the potential success of a penny stock.
One penny stock to consider is Monopar Therapeutics (MNPR), a company involved in medicine research and pharmaceuticals. Another company to watch is Aurora Innovation (NASDAQ:AUR), a self-driving technology company that recently received a significant investment from Uber Technologies (NYSE:UBER). This strategic investment underscores Uber’s commitment to innovation and belief in Aurora’s potential for growth in the tech sector.
Furthermore, Volvo Autonomous Solutions recently unveiled AB Volvo’s first production-ready autonomous truck, which incorporates Aurora Innovation technology. This partnership could lead to increased freight capacity in the United States.
While the stock chart for AUR may not be appealing currently, the company’s relationship with Volvo and significant insider buying could drive its stock price higher in the near future.
It is important to note that InvestorPlace typically does not publish commentary on companies with a market cap of less than $100 million or those that trade less than 100,000 shares daily, as these low-volume stocks can be susceptible to manipulation and fraudulent activities.
Overall, it is crucial to conduct thorough research and exercise caution when investing in penny stocks to minimize risks and maximize potential returns.