Whether they’re labeled promising penny stocks or not, this speculative class of investment is not for the faint of heart. Low-priced, low-volume securities tend to move wildly. Even when catching a big wave northward, it’s impossible to know exactly when the floor will collapse.
Of course, there are myriad other concerns to factor in as well. One area to watch is the wide bid-ask spread. Basically, that means your trades need to be really profitable before you can net a positive return. As well, the low volume levels may mean that you might not be able to offload your shares quickly enough.
That’s just the tip of the iceberg. If you’re still okay with the extreme risk profile, then consider these promising penny stocks.
This post originally appeared at InvestorPlace.