Top 10 Most Volatile Penny Stocks to Avoid by Beginners!

Most Volatile Penny Stocks

We have all heard about penny stock risks, which can wipe down your entire investor’s portfolio if you invest in the wrong company. Despite this, everyday there are many new investors who decide to buy penny stocks online or through penny stock brokers and make a difference. They believe that they have figured out the magic formula for pin pointing hot penny stocks that can make them invincible against the sharks of the penny stock world. In fact, there are some well-known penny stock gurus like Tim Sykes or Peter Leeds who indeed defied the risks of even the most volatile penny stocks and made millions and now are teaching others how to do the same.

In general, all new investors should avoid penny stocks, especially those that are not traded on major stock exchanges like NYSE or NASDAQ. Companies that are traded via so called Pink Sheets or Over the Counter are considered the most volatile penny stocks that should be avoided at all costs. The truth is Pink Sheet penny stock companies are not required by law to file any financial statements with the SEC and are not by any means obliged to disclose any information, so investing in these stocks means financial suicide.

Another way to avoid most volatile penny stocks is to never be led by spam e-mails or TV infomercials because it could simply be one of the concealed “pump and dump” schemes.

Below you will find a list of the most volatile penny stocks, some with potential insider trader activity that should be avoided at all costs.

1. IsoRay, Inc. (ISR)
Medical and Pharmaceutical companies’ stocks fluctuate depending whether a certain drug or product gets through a trial phase or not and whether it gets an FDA approval. This healthcare company is engaged in the production of isotope based medical equipment to treat malignant diseases in the US.

2. Hemispherx Biopharma, Inc. (HEB)
This biotechnology company is actively involved in developing technologies and drugs to enhance immune system and to address diseases that could result from low immunity. One of the experimental drugs is Ampligen designed to treat a plethora of conditions ranging from chronic fatigue syndrome, Hepititis B and certain forms of cancer.

3. CEL-SCI Corporation (CVM)
The Company is focused on the research and development of novelty drugs and vaccines. Some of their research stage drugs target the following conditions: viral and bacterial conditions, certain forms of cancer, allergies and transplantation rejection.

4. Grand Tierra Energy (GTE)
This Canadian based Company is focused on acquisition, development and production of natural gas and crude oil on the territories of South America including Columbia, Peru and Brazil.

5. Triangle Petroleum Corporation (TPLM)
These are definitely among some of the most volatile penny stocks that should be avoided. This independent energy company deals with all stages of natural gas and oil exploration, development and production primarily in the areas of Bakken/ Three Forks in North Dakota and Montana. Among the additional services that company offers is hydraulic pumping and gas well preparation services to in North Dakota and Montana.

6. Inspiremd, Inc. (NSPR)
This healthcare sector company specializes in developing micro stent technologies to treat vascular and coronary diseases. This stock has a known track record to drop in value up to 15% in one day making it one of the most volatile penny stocks on the market.

7. New Gold Inc. NGD
These gold penny stocks are offered by a company involved in exploration, development and mining of mineral resources including gold, silver and copper metals. Company’s major gold mining projects are located in Canada, California, US and Mexico.

8. Advanced Cannabis Solutions (CANN)
Marijuana penny stocks are once again some of the most volatile penny stocks on the market because the legality of medical marijuana has only been confirmed in some states across the country. This specific business is focused on providing real estate leasing to licensed medical marijuana growers and distributors.

9. Globalstar, Inc. (GSAT)
The Company provides data and voice communication services to remote locations, two-way communication equipment to emergency response units and satellite data modem sites.

10. IBIO, Inc. (IBIO)
This biotechnology company offers some of the most volatile penny stocks on the market simply due to the nature of the business. They work on promoting their innovative technology based on plant based protein extraction used in many drugs and vaccines