In one of the craziest markets ever, there’s one sector that’s stayed strong through it all — technology. And that means opportunities in tech penny stocks.
Think about it. As the U.S. got hit with COVID-19, many states locked down. A lot of people moved to online shopping, food delivery, remote work, and distance learning…
It’s why a lot of tech stocks weren’t hurt too badly by the market crash. Some of the giants even made crazy gains.
But who wants to pay top dollar for a stock that might return 20%–30% in a year? If you have a small account, that either ties up your money or it’s not in your budget.
That’s why I don’t teach my students how to invest in big-name companies. There are ways to potentially make 20%–30% in a single day.*
But to do that, you gotta find the hottest movers, usually in hot sectors … like technology.
So let’s talk about the top tech penny stocks to watch in 2020. I don’t recommend you invest long term in any of these or even trade them…
For the rare penny stock that makes it, countless others fail. Instead, I want you to keep these on a watchlist or use it to start your own watchlist.
With the right news, these could provide some killer spikes to play. Let’s get right into it:
(*Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.)
What Exactly Are Technology Penny Stocks?
This is a two-part question.
Let’s first define what a penny stock is…
(New to penny stocks? Start with my FREE guide here.)
Technically, a “penny stock” is a stock that trades under $5 per share. When most people think of penny stocks, they think of the “Wolf of Wall Street” and OTC stocks…
But there are also penny stocks on the Nasdaq and NYSE … A lot of them, actually.
Now let’s get into what a technology penny stock is…
Tech stocks as a whole refer to any type of stock involved in technology. Yes, I know that sounds self-explanatory. But I say that to tell you how widely varying these companies may be.
For example, some might provide software, while others develop semiconductors.
Now, let’s put two-and-two together: a tech penny stock is a stock under $5 in the technology sector. These are the types of stocks I’ll talk about today.
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Why You Should Consider Trading Tech Penny Stocks in 2020
Why tech penny stocks?
When an entire sector is hot, penny stocks tend to follow the same momentum. Often, all these companies have to do is release a strong press release, then wait for a killer spike.
It’s all about building up the hype. In fact, it’s what I base a lot of my trades off of these days.
I use the Breaking News Chat feature on the StocksToTrade platform to get the hottest news that can move penny stocks. It’s better than any news scanner I’ve ever used.
When a sector’s hot, news catalysts become more important than ever. This is the perfect time to get the Breaking News Chat with StocksToTrade to help you develop your edge.
After I find the news for these tickers, I love to see that it’s in a hot sector — like technology. So long as the overall tech sector stays hot throughout the coming months, you should consider trading tech penny stocks in 2020.
2 Top Tech Penny Stocks to Watch in 2020
I know the title of this article is “5 Top Tech Penny Stocks” … but here’s the thing.
I’m breaking these tech penny stocks down by potential and then price.
Plus, I’m adding some bonus tech stocks to watch in a specific industry. More on that soon. Here are the two top tech penny stocks to watch in 2020…
Vuzix Corporation (NASDAQ: VUZI)
Nope, I won’t tell you that VUZI has amazing financials. Or that it’s bound to go to $1,000 per share…
I can’t tell the future. Clearly, this company is a penny stock for a reason. Its market cap is under $200 million for crying out loud.
But I can tell you one thing about this company — it creates consumer electronics. It’s nothing that important, but it is something to remember in case you’re reading a press release from the company in the future.
What I do know is that VUZI has a history of multi-day runs on strong volume. Pair a strong PR with a hot sector, and VUZI has potential.
Again… Don’t trade these stocks before they make a move. But keep stocks like VUZI on your watchlist in case it does have a run in the near future.
Get my FREE weekly stock watchlist here. Learn how to use my watchlist here.
Datasea Inc. (NASDAQ: DTSS)
Like VUZI, I like that DTSS is a former runner with a history of spikes. What I don’t like as much? Its failure to make multi-day runs…
But that doesn’t mean it’s untradable. Look at the first large run it had back in 2019 … In one day, DTSS went from under $1 to $7.39 per share. And there are so many companies with the potential for these kinds of runs. This is just one example.
And now that there are so many new traders in the market, it’s only a matter of time before these types of former runners try to make their next runs. The volatility is insane.
Like I said, I can’t predict the future. But I’ll keep an eye on DTSS.
How do I trade these stocks? Start with the basics in this post. Then, get “The Complete Penny Stock Course” by my student Jamil. It covers all the basics of how I trade and the core principles of what I teach.
Top Hot Tech Penny Stock Under $1
The stocks above are generally in the higher-end price range of penny stocks.
But there’s another great tech penny stock that I’m watching this year…
Blonder Tongue Laboratories Inc. (AMEX: BDR)
Here’s the deal with BDR…
I don’t love the price action on this ticker. Clearly, there was some kind of dilution going on based on that massive gap and crap.
Stocks don’t normally make those types of moves without some degree of toxic financing. But the good news is…
Promoters clearly have the ability to pump up BDR’s stock price. That itself is more than half the battle. If it’s a failing company, the insiders and promoters might try to pump the stock up again.
I don’t know if it’ll happen, but I’ll be watching it in case it does. Check out this post for what you must know about promoted stocks.
Are 5G Stocks Considered Tech Stocks?
Let’s go back to what I talked about earlier…
Any stock with a primary business function in the technology field is a tech stock. Since 5G is a type of technology, the companies that work in 5G are also considered tech stocks.
5G is a popular upcoming technology. And I know a lot of traders and investors are looking for the next hottest 5G tech penny stock. When they run, that can mean volume. Also, a lot of the “best” 5G stocks usually aren’t penny stocks, so I found two hot 5G penny stocks to watch in 2020.
5G Penny Stocks to Watch in 2020
Nokia Corporation (NYSE: NOK)
Please tell me you’ve heard of Nokia before … If you were alive in the early to mid-1990s, you probably remember Nokia cell phones.
Like many other cell phone companies and manufacturers, Nokia lost a lot of its business when smartphones took over the market.
Nokia didn’t adapt, and it paid for it. In 2000, NOK traded at a high of $26 per share. Now, the company is technically a penny stock.
However, Nokia has one last chance … at least for penny stock traders.
It’s working on 5G technology. And a lot of traders anticipate 5G to be a hot sector in the coming months or year.
How great will it be? Who knows. But if the hype is there, then stocks will likely run. NOK, though technically a large-cap stock, is one to watch for potential runs in the coming months.
ASE Technology Holding Co. (NYSE: ASX)
Here’s the deal…
ASX isn’t a traditional penny stock like most people view them — neither is NOK. These stocks are penny stocks by definition (under $5 per share). However, they have relatively large market caps, making them slower movers.
These aren’t plays that I usually go for, and I don’t teach my students how to play them either.
That said, if 5G takes off, companies like ASX and NOK could start to really go crazy. Plus, it’s important to keep watching them. If they move, that could spark sympathy plays.
Moves on companies like ASX that work with 5G tech are possible … But they’ll probably be a bit slower than the bigger moves I like to see within a single day.
Frequently Asked Questions About Tech Penny Stocks
What Are the Fastest-Growing Tech Penny Stocks?
I don’t care about long-term growth in penny stocks. My strategy is to trade these stocks for small gains that add up. So I don’t care how fast these companies are growing. I’d rather make 20%–30% within a day on a small penny stock with great news.
Which Tech Penny Stocks Have the Most Momentum?
The penny stocks with the most momentum have a strong catalyst and are usually in a hot sector. Remember, momentum is relative … Most penny stocks make moves for a few days, then die off. That’s why you have to learn how to trade them intelligently.
What’s the #1 Most Promising Tech Stock for 2020?
That depends on your trading strategy. My goal is to find the biggest penny stock movers and capture small, consistent gains. It’s how my top students and I have become millionaires.* I teach my students to be self-sufficient traders who can trade in any market. We know there’s always another hot play around the corner.
Conclusion
Remember, I don’t invest in any of these companies … Instead, I trade penny stocks with a strategy. A lot of newbies want the hottest picks to blindly invest in a company.
But that’s not what I teach. I made this list to help you build your own watchlist. This list is not a recommendation to buy. I never recommend you follow anyone’s alerts. Not even mine. All my alerts and watchlists are to help you learn the process.
Blindly following alerts is a surefire way to blow up your trading account.
But if you made it all the way through this article and took away the key concepts like building a watchlist and looking for sympathy plays, congratulate yourself.
Even if you didn’t take away the key concepts, you made it farther than most. That shows a level of dedication to learning.
Those are the types of students I want in my Trading Challenge — those who are dedicated to learning. I don’t care how much or little you know about stocks…
The only thing I ask is that you’re dedicated, disciplined, and driven. If you’re not, you won’t make it into the Challenge. Think you have what it takes? Consider applying to my Trading Challenge.
Tell me what you think … How hot do you think the 5G market will be? Let me know in the comments below!
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