'Pennies: Going In Raw' Podcast Recap: NFTs, Finding Stocks And More

NFT Mania: A few months ago, few people knew what an NFT was. Now, non-fungible token has become a household name for traders and sports fans alike. The rise of these blockchain-backed art pieces and sports cards has led to the emergence of a whole new market.

“It’s really cool when you see a sector come out of nowhere, kind of like when coronavirus came around and we had corona stocks, same thing,” Hugh Henne said on the latest "Pennies: Going In Raw" podcast. “When a new sector forms outside of the ‘core 10’ that’s when anything with it runs hot. I don’t think we are done with NFTs.”

In the past, many smaller companies used hot, emerging markets to garner more attention to their stocks.

“Where we could see some huge runners are those companies that we know are kind of shady and they release press releases on NFTs," Henne said. "I think any stock that emerges as an NFT stock going forward is going to run nuts because it’s the shiny thing right now."

Where To Find Stocks? Many newer traders struggle with the same question: “Where is the best place to find good stocks to buy?” Throughout the last year, more and more retail traders have found their trade ideas on social media sites like Reddit, Twitter and Discord.

These platforms have allowed traders to ditch more archaic trade-idea services (paid newsletters, television, etc.) by offering free information curated by users. Some trading Discord groups charge a fee, but for the most part, the myriad of trade ideas on social sites are free to access.

The advantages offered by this rise of trading ideas on social sites come with drawbacks as well. A lot of bigger financial Twitter accounts are run anonymously, making it hard to find those accounts credible. One source Henne relies on is pretty simple: news.

“For instance, if I see that a marijuana bill is coming to the floor this week, and I see someone saying holy hell Tilray is parabolic then I will start looking for sympathy plays," he said.

What’s important here is Henne isn’t buying straight off the news headlines; he is seeing how the leader in the sector reacts to the news, and then has a good idea of how other companies in the same industry might follow suit.

Benzinga is a sponsor of the "Pennies: Going In Raw" podcast.