Every month, I make a new list of the top penny stocks to watch…
It’s the secret of my success, as well as that of every winning trader I know.
This list of penny stocks isn’t filled with picks. Heck, one of them isn’t even a penny stock!
They’re the stocks I find most interesting right now. Even if they don’t set up for a trade, they’re still teaching me about the market…
The market is HUGE. You can’t watch every stock. And randomly trading stocks is the surest way to blow up your account that I know.
I want you to get to know these stocks instead. Become an expert in their moves. Then take that knowledge into your own watchlists.
My students know never to predict the market. The smartest way to trade is reacting to what’s happening.
Think like a sniper. Here are three stocks I’m aiming at this month.
Table of Contents
1 Top 3 Penny Stocks to Watch September 20221.1 Bright Minds Biosciences Inc. (NASDAQ: DRUG)1.2 Bed Bath & Beyond Inc. (NASDAQ: BBBY)1.3 Green Globe International Inc. (OTCPK: GGII)2 How to Use This Penny Stocks Watch List3 Can You Trade Penny Stocks?4 5 Tips on How to Choose the Best Penny Stocks to Watch4.1 Tip #1: Look for Big Percent Gainers4.2 Tip #2: Look for Big Volume4.3 Tip #3: Look for a News Catalyst4.4 Tip #4: Look at the Long-Term Chart4.5 Tip #5: Use the Twitter Scanner on StocksToTrade5 Frequently Asked Questions About Penny Stocks6 What Are Penny Stocks?7 Are Penny Stocks Worth It?8 Are Penny Stocks Dangerous?9 How Do You Watch Penny Stocks?10 If Most Penny Stock Companies Fail, Why Not Just Short Sell?11 How Much Money Do I Need to Get Started?12 Conclusion
Top 3 Penny Stocks to Watch September 2022
August is traditionally the slowest month of the year. But when you know what to look for, you can still make profits.
Heading into September, I’ve gotten back to basics. If you don’t follow the rules when things are going well, you won’t be able to deal with unpredictable markets.
Look at my recent trade of Green Globe International Inc. (OTCPK: GGII). I made $1,485 on the trade (starting stake $5,445).
It was a hot sector…
And I traded it safer than most of my students would. Take a look at the trade breakdown here:
I locked in a 10% gain one hour into the trade. It was spiking into the close, but I always aim for singles, not home runs.
It gapped up the next day and I sold it into the open. If I’d waited to sell my whole position then, I would’ve made over 50% profits … nearly double the profits that I actually made.
I don’t take big swings. Nothing is guaranteed in the market. If you take big swings, you’ll miss more than you connect.
That’s my philosophy with these stocks. Even when they fit my patterns, I always make sure to protect myself.
Don’t fall in love — but these stocks have a chance of moving in September.
Bright Minds Biosciences Inc. (NASDAQ: DRUG)
There’s been a lot of buzz about psychedelic stocks lately…
First, psychedelic therapy firm Mind Medicine (MindMed) Inc. (NASDAQ: MNMD) got a bump from the biggest story in stocks this August.
It was an awesome trade in and of itself. Check out the video I made after:
More interesting to traders is the position he’s now in — Freeman announced a 4.5% stake in MNMD on August 18.
That isn’t the psychedelic stock I’m keeping my eyes on though. DRUG has actually kept the gains it made on its mid-August sympathy run.
It lacks the potential for the kind of big-business recreational sector marijuana is developing. And the diseases that psychedelics treat, like depression and PTSD, aren’t as visible as cancer…
Sooner or later, all of these factors are going to give the psychedelic sector a boost. I’ll be watching DRUG when they do.
Bed Bath & Beyond Inc. (NASDAQ: BBBY)
Let’s not bury the lede — meme stocks are back, and BBBY is their new great hope.
I don’t expect a repeat of 2021 — we’ve been seeing a lot of failed breakouts in the past month. And September is traditionally a time of uncertainty.
All the same, I wouldn’t short a stock like BBBY. Remember my warning back in January 2021?
According to the latest short interest data, nearly 40% of BBBY traders are rejecting that advice. They are playing a very risky game.
BBBY isn’t a penny stock anymore, but it still moves like one.
While newbies only see BBBY’s failed mid-August breakout, I see the 75% run it went on after it panicked.
That’s a play straight out of my 7-step pennystocking framework. As long as BBBY keeps trading 100 million shares a day, opportunities will be there for smart traders.
Green Globe International Inc. (OTCPK: GGII)
Let’s go back to GGII. OTC spikers thrived in sympathy with meme stocks in 2021…
Especially when you’re talking about marijuana-adjacent stocks like GGII.
I made the bulk of my $18,222 overall profits on GGII in 2021. Most of these trades were panic dip buys, the kind that was possible with BBBY.
I mostly aimed for 10-20% gains on short trades. If I’d believed in the 3,000% gains it made between April and May 2021, I wouldn’t have made money. It’s since given back 100% of those gains.
I’m rigorous about my rules. I trade safe — way too safe for many of my students. But that’s the way you become a self-sufficient trader, $100 or $1,000 at a time.
How to Use This Penny Stocks Watch List
My watchlists aren’t rocket science. They’re a product of paying attention to what’s already happened.
You should use this list as a model for your own watchlists.
Don’t just copy the stocks on this list. Learn my selection process and create your own.
Can You Trade Penny Stocks?
Penny stocks get a bad rap.
Sure, 99% of them are crap. Most are even outright scams.
But where else can you earn 15-30% profits on a single trade?
Penny stocks are only bad if you start to believe the hype. Take BTTX above…
It’s got an awesome story to sell. And — just maybe — they’ll become the maker of a front-line diabetes treatment.
But you know who I’d bet on instead? Eli Lilly and Co. (NYSE: LLY), a $300 billion company that’s one of the leaders in diabetes care.
They’ve got a $7 billion R&D budget. So yes, they’ll probably beat BTTX to any game-changing advancements.
If you buy a penny stock thinking it will become the next Amazon, you’re basically buying a lottery ticket. That can be fun, but it’s no way to build your trading account.
The right way to go about it requires discipline and a good trading plan.
5 Tips on How to Choose the Best Penny Stocks to Watch
I want my students to become self-sufficient. Like I said before, my watchlists aren’t rocket science. I build them by sticking to these eight steps.
Tip #1: Look for Big Percent Gainers
How do you find hot stocks? The first step is learning to use a stock screener.
I use StocksToTrade — a powerful trading platform with more than 40 built-in scans. It doesn’t hurt that some of them were tailored around my strategies.
I scan in premarket to know what’s moving. Penny stocks that know the game often put out PR in premarket. This gives traders the whole day to send their stock prices up before they dilute.
I typically look for 10% gainers. These are the stocks that the rest of the market has their eyes on.
Tip #2: Look for Big Volume
Volume is the proof of demand. If a stock has enough volume — on a small enough float — that’s a good sign that the price will continue to move.
Tip #3: Look for a News Catalyst
The ‘product’ of most penny stocks is their own stock. They want to pump it up, then insider trade/dilute into this built-up demand.
A lot of penny stock traders will believe anything — but I won’t. I want to see real news behind a stock move before I trade it.
Tip #4: Look at the Long-Term Chart
I talk about former runners a lot. That’s one reason I’ll look at a stock’s long-term chart…
If I know it has run in the past, I’ll know it can do it again. And looking at its past runs can help me tell the difference between a multi-day runner and a one-and-done spike.
I don’t do anything too complicated with my charting. I’ve been using my 7-step pennystocking framework for the past 10 years…
I still use it because the game hasn’t changed.
Tip #5: Use the Twitter Scanner on StocksToTrade
You have to know if a stock is being pumped before you trade it. Twitter is the first place all the wannabe influencers go to hype up a stock.
If you’re wary about getting sucked into the Twitter hellscape, StocksToTrade is way ahead of you. Using the built-in Twitter scanner, you’ll get a running feed of stock tweets.
You can even customize the feed if you like.
Frequently Asked Questions About Penny Stocks
Trading is the hardest thing you’ll ever learn. There are no dumb questions.
What Are Penny Stocks?
Penny stocks trade for $5 or less per share. Institutional investors usually won’t touch them, and their low cost makes them ripe for speculation and big-time volatility. Some are listed on the major exchanges, others trade on the OTC markets.
Are Penny Stocks Worth It?
I like penny stocks because they give traders with small accounts a way to quickly make 10% or more on a trade. Never believe in these stocks though. Most of these companies are more serious about their stock sales than their actual businesses.
Are Penny Stocks Dangerous?
Penny stocks are only dangerous when you trade without a plan, risk money you can’t afford to lose, and don’t cut your losses quickly. These however are all typical newbie mistakes, and they’re why penny stocks have gotten a bad rap.
How Do You Watch Penny Stocks?
I outline the steps I follow in the section above. I make a new watchlist every day, and keep a roster of other watchlists as well.
If Most Penny Stock Companies Fail, Why Not Just Short Sell?
Shorting is the easiest way to blow up your account. And it’s even more dangerous now that retail traders know the signs of high short interest.
Since GameStop, they’ve been out for blood.
When you buy a stock, you can only lose what you put into the position. When you short sell, you risk all the money in your account.
Of course, you can be successful as a short seller. Many of my top students focus on short selling and I’ve personally made millions from short selling. But the number of messages I get almost daily from short sellers getting caught in short squeezes is … scary.
How Much Money Do I Need to Get Started?
Many brokers have done away with minimums for cash accounts. But that isn’t the cost you should be worried about. The market will take your money if you’re unprepared.
Education is what separates the winners and losers in trading.
I can give you all the “hot picks” you want — that means nothing if you don’t know what to do with them.
But fear not — giving new traders their education is what I was put on this earth to do!
I’ve been trading for more than 20 years. During that time, I’ve made over $7.4 million.
That isn’t what I’m most proud of. I’m prouder that I’ve turned more than 20 of my Trading Challenge students into millionaire traders.
I didn’t do this by giving them hot stock picks. I did it by being relentlessly honest about my successes and failures, and teaching them to be that way too.
You don’t become a millionaire trader by trying to impress your Twitter followers, like so many other ‘gurus’ do. You get there by being honest with them, and yourself. That’s why I’m always honest with my students — ESPECIALLY about my failures.
Because they’re not real failures if I’m following my rules, and cutting my losses quickly. When I lose, I want to show my students the right way to trade. That’s the secret to becoming a self-sufficient trader — knowing how to manage your losses.
Are you ready for this level of real talk? Apply for my Trading Challenge and show me what you’ve got.
We don’t accept everyone. We like to limit our community to people who are humble, people who work hard.
Think you’ve got what it takes? Apply to my Trading Challenge today!
Penny stocks can be a blessing or a curse — it’s all in how you trade them.
If you’re new to this, start paying attention. Study the patterns I teach.
That’s the only way to survive in this penny stock game.
Do you have your own penny stock watchlist? How many of the stocks on this list are on yours?