Bonanza Goldfields Corp. trading under the symbol BONZ is a gold penny stock that appears to be on trader’s radar lately. After trading sideways for a few weeks, the stock seems to be bouncing off strong support and moving back up to previous highs. Penny stock traders may want to take a look an keep it on their trading screens for possible entry should it keep tracking toward previous highs.
Investing In Gold Penny Stocks
All penny stock investors and short term penny stock traders usually have on sector they prefer over others. One of the leading ones is gold penny stocks. However, at the present time gold prices are at a high given the current economic crisis with many investors turning to gold and driving the price up. Higher gold prices are something we will continue to deal with until the global financial environment changes. Nevertheless, there is an option for the savvy penny stock trader. If you have the urge to invest in the gold sector, gold penny stocks offer an alternative to the high price of gold itself.
Hot gold penny stocks abound right now. It’s just a matter of doing your research and locating the ones worth investing in. The beauty of investing in a gold penny stock is that return on investment can be huge. Of course it is speculative but what penny stock is not speculative and inherent to sizable risk? Any time you consider purchase a gold stock or any mining penny stock for that matter, it is important to do your due diligence on the company and the mineral market. If it is gold, research that sector. If it is silver, you would need to research this market. Many mining penny stocks trade below one cent, but even if they don’t have any noteworthy news they can still run hot with other penny stocks if the sector is hot.
Some penny stock traders utilize a sector methodology and will seek out sectors in favor, build a list of penny stocks in that sector and determine which ones have the best possibility of running in tandem with the sector at large. However, it is best have a trading system in place for trading gold penny stocks or mining penny stocks. Only use money you can afford to lose and remember, these stocks are highly speculative and can increase over 1000% in a short period of time. On the other side of the coin, they can tank and you could be left holding worthless paper for extended period of time or indefinitely.