E Penny Stocks To Buy Now According To Wall Street Analysts

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

When it comes to trading penny stocks, risk can play a major role. But with that risk comes the potential for big rewards. If you're reading this, I'm probably not telling you anything you don't already know. The problem is that newbies have a hard time learning when to buy or sell.  Market timing is somewhat of a holy grail for certain traders. But the sooner you realize that buying at the absolute bottom or selling at the absolute top isn't the only way to make money in the market, the sooner you'll be able to design a successful trading style.

So, where do we go from here? The small-cap space has been riddled with volatility. Last week we saw this come to the forefront in a big way. Not only did broader markets like the S&P 500 and Nasdaq dip, so did small-cap stocks. While not all penny stocks fit this definition, ETFs like the Russell 2000 (IWM) and S&P Small-Cap ETF (IJR) have been used as a gauge to get a temperature of sentiment from smaller companies. Once the closing bell rang on Friday, the verdict was in. Small-cap stocks had fizzled out. The IWM and IJR had declined by as much as 6% during the second week of May. That trend seems to have persisted at the start of this week as well.

Read Between The Lines Right Now

In my opinion, it's important to read between the lines a little bit. What do we know right now? We know that inflation is a real thing, it's happening in real-time, and it has become a nuisance in the market headlines. So why try to avoid it? Many are turning toward value names to hedge their bets against numerous secular downtrends. Meanwhile, others are simply getting frustrated because they refuse to adjust their portfolio to current market conditions. However, if you find yourself in the unique situation of actively managing your own account, trading has been a big winner for many market participants.

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