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Hot Penny Stock Sectors

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Look at Hot Penny Stock Sectors For Trading Ideas

Penny Stocks

One of the secrets of successfully trading penny stocks is to focus on hot penny stock sectors to find winning penny stock trades.  Penny stock trading is all about momentum and getting into penny stocks that penny stock traders are currently focused on.  The chances of catching a high-flying penny stock with ample momentum to race higher is increased when you focus on hot penny stock sectors, because traders dedicate money to these sectors.  Trading successfully is all about increases your chances of executing a profitable trade.  Figuring out which penny stock sectors are currently hot is a good way of increasing your chances of booking profits while trading penny stocks.

When you examine a list of hot penny stocks, certain penny stock sectors emerge that appear to be hot penny stock sectors that are garnering a lot of attention from traders and producing most of the gains in the world of penny stocks.  Certain themes emerge that can be used to focus penny stock trading efforts on penny stock sectors that are currently in vogue and gaining a lot of trader attention.

An Example of a Hot Penny Stock Sector

While penny stocks go up and down for a variety of reasons, one of the primary drivers of individual penny stock rallies is simply the sector that they are in.  When a penny stock sector is hot, traders often pour money into stocks within the sector bidding up their prices.

Marijuana Penny Stocks

Take, for example, the marijuana penny stock sector.  In early 2014, any penny stock remotely connected to the emerging marijuana industry in the United States rallied hard.  It was not uncommon at all for stocks in the marijuana penny stock sector to gain 100% to over 1,000% in a short period of time.  In fact, there was barely a stock within that sector that did not have a significant rally.

Any trader that purchased stocks in the marijuana penny stock sector prior to the big rally did well, no matter which stocks they were holding.  Even once the rally got started, there were plenty of trading opportunities, as additional companies either joined the marijuana penny stock sector or announced their intentions to join.

Of course, this massive rally ran its course, and by the middle of 2014 many of the stocks in the marijuana penny stock sector had fallen considerably from their early 2014 peaks.  This indicates that timing these sector rallies is very important.  Do not get greedy and do not get caught up in the inevitable hype that builds when a penny stock sector rallies.  If the sector rally is showing signs of maturing, it is best to steer clear and look at other penny stock sectors that may be the next to rally.  Just keep a list of the stocks in the sector that has just experienced a major rally, as they may bottom at some point in the future and provide another profitable trading opportunity from lower price levels.

What Are The Current Hot Penny Stock Sectors

What is important is the future, so you can get into the next hot penny stock sector before the stocks take off.  With this in mind, what are the current hot penny stock sectors?  Many of these sectors have been hot for a number of years and remain hot.

While not the sexist penny stock sectors, it is worth keeping an eye on stocks in the materials and industrial penny stock sectors.  This is due to the strong economic growth expected in coming years.  This sector may produce some nice surprises.

The 3D Printing technology penny stock sector will be a hot sector, as 3D Printing technology is just getting started.  Expect rapid growth in revenues in this sector, which could lead to price spikes for penny stocks in this sector.

While not exactly a new penny stock sector, the solar technology penny stock sector is another one that is likely to produce a few gems over the coming year.  With grid electricity prices increasing each year and solar electricity prices falling, there has been a literal explosion in solar system installations across the United States and much of the world.  Look for solar penny stocks to outperform.

Hot Penny Stock Sectors

While the marijuana penny stock sector has had its ups and downs, it is one to keep an eye on, as the marijuana legalization wave is far from finished and penny stock companies in this emerging sector have years of growth ahead of them.  The marijuana penny stock sector is a good sector to swing trade.  Buy marijuana penny stocks when the sector is out of favor and the stocks are down, and sell them when they come roaring back and hit new peaks.

The medical and biotechnology penny stock sectors will continue to provide profitable trading opportunities.  A lot more money is being dedicated to certain parts of the medical industry these days to automate medical care delivery and make it more efficient.  There is also a great effort ongoing to develop biotechnology based medical treatments and cures.  Recent successes in the biotechnology field have led to a great deal of investor interest in this sector, which has caused many stocks to rally to very lofty levels.  While the sector itself may be overvalued, there still may be some diamonds in the rough within the biotechnology penny stock sector that are worth investigating as potential trading or investment plays.

Finally, the energy penny stock sector has taken a beating.  While this has been bad for investors holding energy stocks on the long side, it does create some potential value plays in the energy penny stock sector.  This is especially true if oil can form a base and rally to higher levels.

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