While financial advisors will often bristle at the notion that the equities sector is nothing more than glorified gambling, the phrase does stick with penny stocks. Typically, this sector describes publicly-traded companies whose shares are priced around $5 or below. Usually, you should stay away from cheap securities because there’s often a reason (and not a good one) why they became that way.
If you didn’t get the message the first time, let me state it again: you don’t want to participate in this segment with money you can’t afford to lose. And I want to be absolutely clear about the caveat here, even if we’re discussing the so-called “best penny stocks.”
With the warnings out of the way, the intriguing aspect of these highly volatile equities is, in exchange for the risk, you enjoy tremendous reward potential. In other words, for being at the right place at the right time, you might be able to accrue significant profitability from the best penny stocks under $3.
Just be super careful with these ideas.
The post 7 Best Penny Stocks Under $3 to Buy in July originally appeared at InvestorPlace.