What Are the Top Penny Stocks of 2017?

Introduction:

Penny stocks are stocks that trade at a low price, typically less than $5 per share. These stocks are often considered high risk, high reward investments that can offer significant returns to investors who are willing to take on the risk. In this article, we will discuss the top penny stocks of 2017 and what makes them attractive to investors.

What Are Penny Stocks?

Before we dive into the top penny stocks of 2017, it's important to understand what penny stocks are and how they differ from traditional stocks. Penny stocks are typically issued by small, relatively unknown companies that trade on over-the-counter markets rather than major exchanges like the NYSE or NASDAQ. These companies often have low liquidity and are subject to high volatility, making them a risky investment.

Top Penny Stocks of 2017:

1. Advanced Micro Devices (AMD)

AMD is a semiconductor company that has seen a significant increase in its stock price over the past year. The company has benefited from the increasing demand for high-performance computer processors and graphics cards. In addition, AMD has been able to capture market share from its main competitor, Intel, which has helped to boost its stock price.

2. Plug Power (PLUG)

Plug Power is a company that specializes in the development of hydrogen fuel cells. The company's stock price has seen a significant increase over the past year due to the growing demand for alternative energy sources. In addition, Plug Power has secured several large contracts with major corporations, which has helped to increase investor confidence in the company.

3. Cara Therapeutics (CARA)

Cara Therapeutics is a biotech company that focuses on the development of novel pain medications. The company's stock price has seen a significant increase over the past year due to positive clinical trial results for its lead drug candidate, CR845. In addition, the company has formed several partnerships with major pharmaceutical companies, which has helped to increase investor confidence in its future prospects.

Why Invest in Penny Stocks?

Investing in penny stocks can be a high-risk, high-reward proposition. These stocks often have low liquidity and are subject to high volatility, which can make them a risky investment. However, for investors who are willing to take on the risk, penny stocks can offer significant returns. In addition, because these stocks are often issued by small, relatively unknown companies, there is the potential for significant growth if the company is able to successfully develop and market its products or services.

Investment Strategies for Penny Stocks:

Investing in penny stocks requires a different approach than investing in traditional stocks. Because these stocks are subject to high volatility, it's important to have a solid investment strategy in place. Some strategies that investors use when investing in penny stocks include:

1. Diversification: Because penny stocks are a high-risk investment, it's important to diversify your portfolio to minimize your risk. This means investing in a variety of different stocks across different sectors.

2. Research: Before investing in any penny stock, it's important to do yourresearch. This includes researching the company's financials, management team, and future prospects.

3. Set Realistic Expectations: It's important to set realistic expectations when investing in penny stocks. These stocks can be highly volatile, so it's important to be prepared for potential losses as well as potential gains.

Conclusion:

Penny stocks can offer significant returns to investors who are willing to take on the risk. However, investing in penny stocks requires a different approach than investing in traditional stocks. It's important to have a solid investment strategy in place and to do your research before investing in any penny stock. By following these tips, investors can potentially reap significant rewards from their penny stock investments.