There are thousands of stocks that we as traders can trade. To narrow down my focus I like to develop watchlists. Now, just because I put a stock on my watchlist, doesn’t mean I will trade it.
I’m just simply sharing some of the most compelling setups I’ve recently found.
Top 5 Penny Stocks to Watch This Week
Top Penny Stocks List #1: Life Clips Inc (OTCPK: LCLP)
I traded this stock last week. Walked away with 5% … and I got out way too early.
Check out this huge spike up and over $0.01 …
I don’t beat myself up over it though. I still managed to profit. And that’s more than I can say for most traders.
Going into Monday, LCLP is still on my penny stock watchlist for these reasons …
- Past volatility can translate to future volatility. There is always a chance this stock doesn’t keep spiking. But that allows the chance for a panic dip buy.
- Recent news that it paid off $4 million of debt and decreased total share count. This is a great bullish catalyst. Read the specifics here.
- More recent news that its subsidiary is launching an NFT platform. Read the specifics here. Penny stocks use ‘buzzword catalysts’ — like NFT news — to pump their price.
Here’s an updated chart …
Top Penny Stocks List #2: Metal Arts Co., Inc. (OTCPK: MTRT)
This stock is a past runner. It’s had 2 big spikes over the last year. Automatically the first reason why it’s on the watchlist …
- Past runners can run again
Don’t believe me? Here’s a Tweet from one of my students …
Thank you @timothysykes for teaching me to buy FORMER RUNNERS, on a DIP, with high VOLUME …long $CIFS @ 1.16 out at 1.29 …hit 1.45 but i took meat of the move …2 years ago i didn’t know shit bout the market let alone those 3 key factors …happy holidays
— Pete Falcone (@PeteFalcone0101) December 13, 2019
I also like it because it’s a nickel and gold provider.
Nickel is the main component in lithium-ion batteries used by EV manufacturers. And gold is used on circuit boards as an important conductor.
So reason #2 is …
- It’s in a hot sector.
If you’re confused, one of my millionaire students explains sector momentum in this video …
And as of Friday. April 22, 2022, the price is basing nicely above $4. If it falls through that support level I’d forget about a breakout play.
But as long as $4 holds, this thing could go higher.
I like …
- The sideways consolidation.
Here’s an updated chart …
Top Penny Stocks List #3: Orogen Royalties Inc (OTCQX: OGNRF)
Here’s another gold stock I’m watching.
- In a hot sector.
This one is pretty speculative. But that’s not an issue.
I don’t have any shares yet, and I won’t until it starts moving with a press release.
But you never know when these sketchy penny stocks are going to blast off.
And for the last 3-months it’s consolidated above $0.35. That’s a good support line.
- Sideways consolidation above support.
Don’t know what support and resistance levels are? Watch this video …
Here’s an up-to-date chart …
Top Penny Stocks List #4: Sun Pacific Holding Corp (OTCPK: SNPW)
This is a legendary runner from 2021. I’ve gotta show you this chart …
It’s back on the watchlist because last week it had some volatile moves.
- Past runners can run again.
As I’m writing this, the breakout level is at $0.014. Let’s see if it’s got more gas in the tank.
Here’s an updated chart …
Top Penny Stocks List #5: Zion Oil & Gas Inc (OTCQX: ZNOG)
Ever since Russia’s invasion of Ukraine, Oil & Gas stocks have been pretty volatile.
Take a look at this chart of Indonesia Energy Corproration (AMEX: INDO) …
I’ve been searching for the next oil spiker ever since. And ZNOG’s an oil stock that’s got a pretty good history of running.
- In a hot sector.
- Past runners can run again.
As I’m writing this the price is inching towards resistance at $0.2. I’m looking for a strong break out with news.
If you’re serious about becoming a successful trader, keep reading…
This is where your journey begins. If you can change your mindset from making money to learning, there’s hope.
New to penny stocks? Start with my FREE penny stock guide.
Also, get my best-selling book “An American Hedge Fund” here at no cost.
For the basics of my strategies, read “The Complete Penny Stock Course.”
And if you think you have what it takes, maybe the Trading Challenge is for you. Only apply if you’re willing to study hard. It’s not easy, but it’s where all my top students refined their skills.
Trading Challenge students also get access to my daily watchlists. All successful traders make their own watchlists.
If you’re still on the fence about penny stocks…
Why You Should Consider Penny Stocks
You’ve probably heard people say “Penny stocks are scams.” Maybe your financial planner said, “Penny stocks are a very high-risk investment.”
Let me give it to you straight up…
Penny stocks are NOT long-term investments. They’re trading vehicles.
99.9% of penny stock companies fail. Or they do some weird pivot to whatever’s hot (like NFTs) and get a short-term spike. Then they suck again.
That’s what makes penny stocks beautiful. Other people think of penny stocks as investments. In other words, they believe the BS and hype.
Those are your enemies on the trading battlefield. They create massive volatility and THAT is what allows me and my top students to crush it.
The best part is, there’s a 7-step pennystocking framework you can use to identify common patterns.
Then, it’s a matter of discovering…
How to Choose the Right Penny Stocks to Trade
The world of penny stocks opened up when we created a tool that makes it easy. Heck, we even called it StocksToTrade.
That said, people often ask how to choose stocks. It would take you days to sift through a list of all penny stocks. Even a list of the 100 best penny stocks wouldn’t get you very far. You need to drill down.
Here’s where to start…
Look for Big Percent Gainers
This is my number-one criterion and always has been. I’m not interested in boring — especially to grow a small account. If you reach $9.7 million in trading profits like Jack Kellogg, you’ll earn the right to trade boring stocks.
StocksToTrade has several big percent gainer scans built in. Use it.
Look at the Exchange
This is important, especially in the beginning…
OTCs don’t trade premarket or after hours. That’s a good thing for beginners. Also, with OTCs, Level 2 data is more relevant. Once you start trading high-volume listed stocks, it’s more of a challenge to use Level 2.
Finally, some OTCs have a Pink Limited designation. Some even get the dreaded skull-and-crossbones Caveat Emptor label. Be wary of these stocks. I’m not saying to never trade them, just take extra caution. If you’re new, avoid Caveat Emptor stocks altogether.
Investigate the Company History
After a while you probably won’t need to do this. Why? Because you’ll understand why penny stocks are called “Wall Street’s gutter.”
Take off the rose-tinted glasses…
Some penny stock companies change names or sectors as often as we change presidents. At least understand that before you start trading. Where can you find the dirt? Find the ticker on the OTC markets website or SEC Edgar. Then start going through filings.
(Top tip: StocksToTrade has links to all SEC and OTC markets filings. Use it.)
You’ll get blown away when you start digging. Most of these companies have more skeletons in their closet than a haunted house.
Always Verify Their Claims
The next step is to look for a catalyst. Most big percent gainers move based on news.
This is key…
Don’t take a press release or company tweet at face value. Try to verify the company’s claims.
Again, most of these companies fail. Half the time they have no product and no revenue. Rest assured, they’ll still issue press releases about their “world-changing tech.” Or some big contract. Or a new gold mine, oil well, or metaverse property.
Most of it is absolute BS. Which is why you should NEVER believe the hype.
That applies no matter what promoters tweet or what you heard in a Discord chat. THOSE are the biggest scams in this industry.
That’s why it’s so important to use StocksToTrade and get the Breaking News Chat add-on.
The Breaking News Chat guys are on top of promotions, chat pumps, and sketchy press releases. They alert it all in chat. That saves you hours of research sifting through so-called due diligence.
I would NEVER trade without StocksToTrade Breaking News. Get it today.
Rinse and Repeat to Add Penny Stocks to Your List
It’s as simple as that. Add more stocks to your watchlist by repeating the process. I keep roughly 20–30 stocks on my big watchlist.
Each day cull your list. Take one or two off or add them to a secondary list. Then add the day’s top percent gainers with a catalyst and volume.
Frequently Asked Questions About Penny Stock Lists
Studying my watchlist is a good start, but you need to learn…
How to Create Your Own Penny Stocks List
Whether you call it a penny stocks list or a watchlist, the process is the same. It’s not difficult but you might find it time consuming in the beginning. Go through the process described below. Like everything else in life, with practice and experience it will get easier.
How Can You Create Your Own Watchlist?
Start by looking for big percent gainers. For two decades, big percent gains have been my #1 criteria. After that, look at trading volume. Focus on high-volume stocks. Finally, try to find the catalyst or reason behind the price action.
Should I Create a Watchlist Every Day?
All serious traders create a daily watchlist. If you’re serious about trading penny stocks, a daily watchlist is essential. No excuses.
Does Tim Sykes Provide a NO-COST Watchlist?
Yes. Subscribe to my weekly penny stock watchlists below.
For more information and a detailed guide on how to create a watchlist, read “Stock Watchlist Guide: Tips & Examples to Develop Your Own.”
How to Use the Top Penny Stocks List Weekly Update
When you read the weekly penny stock list (and the monthly watchlist), don’t think of them as hot picks. Frankly, sometimes they’ll be duds. That’s why it’s called a watchlist. Welcome to penny stocks.
It all starts with looking for big percent gainers. Try to figure out why I’ve put the stocks on my list. Study so you can help yourself become a self-sufficient trader. Only fools chase hot picks.
Bookmark this post and keep coming back. Every Monday (unless the market’s closed), I update this with my top penny stocks to watch for the week.
Start making your top penny stocks list today. It’s like exercise — at first it’s a little uncomfortable. But the more you do it, the easier it becomes. Review the steps to create your own watchlist above
What do you think about this penny stocks list? Comment below, I love to hear from all my readers!