As you study the top penny stocks to watch for April 2021, be aware of the big picture. Every single day can potentially open up new opportunities.
We know some people are putting their stimulus checks into their brokerage account. (I don’t think it’s a good idea.) So we’re seeing some stimulus check funded volatility. This could create more opportunities in penny stocks.
Also, don’t try to compare this market to January and February. It’s different. Again, there IS opportunity, but it’s key to adapt. When in doubt, get out.
Every day, I create a watchlist of five to 15 stocks to watch. Then I do a quick write-up of what I’m looking for and why I’m watching the stock. The watchlist then goes out to my students on Profit.ly.
(Sign up for my NO-COST weekly stock watchlist here.)
Let’s get right to the list of top penny stocks to watch in March 2021…
Top 5 Penny Stocks to Watch April 2021
Hero Technologies Inc. (OTCPK: HENC)
Hero Technologies is a cannabis company focused on vertical integration. That means everything from seeds to final retail sales.
It also owns a majority stake in BlackBox Systems and Technologies LLC. BlackBox designs high-pressure nutrient delivery systems. The aeroponic growing systems provide optimal conditions to cultivate large plants at scale.
HENC spiked after the company released revenue projections for a new production facility.
CEO Gina Serkasavich said, “We have thoroughly analyzed startup costs, ongoing costs, and a wide range of revenue scenarios. Even our most conservative estimates, using the low end of the wholesale price range, put us over $1 billion in revenue by the end of our multi-phase plan.”
Read the full press release here.
Here’s the HENC one-year chart…
HENC went full supernova in January/February 2020. It also has a history of multi-day runs. Look for signs of continuation, ideally with big volume and news. If it has a multi-day run, I’ll get more interested in dip-buying opportunities. See details of my HENC trades here.*
(*Please note: My results are far from typical. Individual results will vary. Most traders lose money. I have the benefit of years of hard work, dedication, and experience. Trading is inherently risky. Do your due diligence and never risk more than you can afford to lose.)
Wah Fu Education Group Limited (NASDAQ: WAFU)
Wah Fu Education Group is a China-based online education company. The company offers education platforms for universities and training institutions. It also offers online exam preparation services directly to students.
WAFU was an earnings winner on March 31. It also spiked in March as a sympathy play to Elite Education Group International (NASDAQ: EEIQ).
Here’s the WAFU one-year chart…
Technically, WAFU isn’t a penny stock at its current price. It’s a little high-priced for my taste and I won’t chase. I’m watching for any giant intraday panics. But I would prefer it to be a multi-day runner first.
Liquid Media Group Ltd. (NASDAQ: YVR)
Liquid Media Group is a media company operating in the video game space. The company recently entered the hot non-fungible token (NFT) space.
YVR rode NFT sector momentum to a 52-week high of $7.50 on March 23. It spiked again on March 31 when the company announced the Liquid Media Token Platform (LMPT). The multi-token IP platform is being created in partnership with CurrencyWorks. (CurrencyWorks is the next penny stock to watch for April 2021.)
Here’s the YVR one-year chart…
I’ve never traded YVR. It’s been on my watchlist several times recently, but it trades very choppy. I won’t chase, but I’ll continue to watch as the right NFT news can spike stocks fast. YVR is a potential dip buy into any big intraday panic.
CurrencyWorks (OTCQB: CWRK)
CurrencyWorks is a fintech that provides blockchain payment infrastructure to existing companies.
Like YVR, CWRK rode the NFT sector momentum. It hit a 52-week high of $3.70 per share on March 22. And CWRK also had a strong first green day on the partnership news with Liquid Metal.
Here’s the CWRK one-year chart…
I traded CWRK on March 31, buying the breaking news with YVR. But it took my attention away from better opportunities. In the end, I was right but impatient with the trade.
I’ll keep watching for potential dip-buy opportunities into any big intraday panic. See details of my CWRK trades here.*
Labor Smart Inc. (OTCPK: LTNC)
Labor Smart is a blue-collar temporary staffing company. It recently acquired Takeover Industries, intending to enter the sports drink market.
LTNC also made my weekly list for the week starting March 29. It’s the best multi-day runner in the market right now. The promoters even have their own hashtag on Twitter — #LTNCArmy. In this market, that’s tough to ignore. (Good job, promoters!)
On March 17, Takeover Industries signed a memorandum of understanding (MOU) for a joint venture with H2ForLife. H2ForLife manufactures and distributes hydrogen water products. The deal gives Takeover Industries exclusive marketing and sales rights of H2ForLife. The deal lasts for a period of two years.
LTNC has come from sub-penny to hitting a 52-week high of 8.62 cents per share since the middle of February. Check out the one-year chart…
I last traded LTNC on March 31. After several green days in a row, it was on my daily watchlist for a potential morning panic dip buy. It did panic, and I bought it. But I underestimated the bounce. I’ll be watching for more morning panic dip buy opportunities. See details of my LTNC trades here.*
That’s it for the best penny stocks to watch for April 2021. Here are some tips on choosing stocks for your watchlist. Also, some answers to frequently asked questions…
How to Use This Penny Stocks Watch List
Keep in mind that my strategies involve trading some of the fastest moving, most volatile stocks in the entire market. That said, some of the stocks on this list could be completely out of play by the time you read this. (Yes, even after only one day, stocks sometimes leave my list.)
The point is … don’t use this list as a signal to buy any stock. I don’t put stocks on my watchlist based on fundamentals. It’s not that I don’t look at fundamentals. But I’m not gonna lie to you. (Like so many other ‘top penny stocks to watch’ articles.) I won’t tell you to buy and hold a stock because “the market is undervaluing this stock.”
Frankly, that kind of thinking with penny stocks is … total BS. Most penny stocks fail. Just like most traders — roughly 90% — lose. So use this list — and each of my monthly penny stocks to watch lists — as a tool for learning to create your own watchlist.
Can You Trade Penny Stocks?
If you’re brand new to penny stocks a great place to start is with my FREE penny stock guide.
Once you go through the entire guide, I suggest you read “The Complete Penny Stock Course” written by my student Jamil (I wrote the forward). That book answers so many of the most frequently asked questions that it blows my mind more people haven’t read it.
With the internet and online brokers, you can trade penny stocks from anywhere in the world. As far as the basic requirements, you only need a decent laptop, solid Wi-Fi, and a trading account. But don’t be fooled into thinking you’re gonna succeed if you jump right in.
Why?
Because 90%+ of traders lose. So be willing to invest in your education — because if you don’t, the market will make you pay a much higher price
Now for five tips on how to choose the best penny stocks to watch…
5 Tips on How to Choose the Best Penny Stocks to Watch
Tip #1: Look for Big Percent Gainers
My method of choosing which penny stocks to watch always starts here. At the end of every day — and again in premarket — I look for the biggest percent gainers. And that’s what I focus on. I’m not interested in stocks that aren’t on the move.
I use StocksToTrade stock scanning software. With 40+ built-in scans — some created specifically for my strategies — it’s amazing right out of the gate. Yes, you can also create custom scans. (Hint: when you start using the software there’s a bunch of training videos on how to set those up. Take advantage.)
Tip #2: Look for Big Volume
The next thing to look for when choosing the best penny stocks to watch is trading volume. Sometimes a stock makes a big percent gain, but the trading volume is so low it doesn’t make sense to trade it. One of the top penny stocks to watch this month, Rivex Technology, is tough to trade because the volume is so low.
So after I find the big percent gainers, I organize them according to trading volume. Be aware of dollar volume traded, too. If you have a true penny stock trading at 2 cents a share, and it trades one million shares, that’s still only $20K. You have to be meticulous.
Tip #3: Look for a News Catalyst
The next thing I look for when choosing penny stocks to watch is what’s making it move? Is there a press release announcing a new contract? What about positive earnings? In biotech and pharma penny stocks you might see news of test results. Read this post to learn more about catalysts.
(Also read chapter II.7 Understanding Catalysts in “The Complete Penny Stock Course.” If you already have the book … it starts on page 183. If you don’t have it … get it now.)
Tip #4: Look at the Long-Term Chart
When you’re trying to find the best penny stocks to watch, it’s easy to get fooled by one-day or one-time spikers. So look at long-term charts to see if the stock has a history of multi-day runs or has gone supernova in the past.
Which long-term charts? As many as you have time for, really. But at the very least, look at the one-year chart. I like to look back a couple of years depending on the stock and the news. If the stock trades a certain way when the company announces a big contract, I want to know.
Tip #5: Use the Twitter Scanner on StocksToTrade
This might sound a little strange if you’re new to penny stocks. But if you want to understand which penny stocks to watch, one of the best ways is to see what others are watching. Or, more accurately, hyping.
Yes, Twitter has become a vehicle for influence with stock traders. Want to know which penny stocks are being heavily shorted because they’re up 50%? Check out Twitter. Use StocksToTrade because the scanner is built-in. All you have to do is open the Twitter scanner and, voila, you get a running feed of stock tweets. And you can customize the feed if you like.
Frequently Asked Questions About Penny Stocks
I get a lot of questions from students. Thing is, my students already accept that penny stocks provide a massive opportunity. And they’re studying to learn the strategies and rules.
But there are a lot of misconceptions about penny stocks. And I want to address a few of those now…
What Are Penny Stocks?
Penny stocks are micro- and nano-cap company stocks that trade for less than $5 per share. Many trade via OTCMarkets, but penny stocks can also be found on large exchanges like the NYSE and Nasdaq.
Are Penny Stocks Worth it?
Penny stocks are suitable as trading vehicles but not long-term investments. Most penny stock companies eventually fail.
Are Penny Stocks Dangerous?
All trading involves risk. If you are willing to learn appropriate patterns, rules, and strategies, penny stocks are no more dangerous than other trading instruments.
How to Watch Penny Stocks?
1.) Focus on big percent gainers. 2.) Look for high volume 3.) Search for a news catalyst 4.) Look for a history of spikeability on the long term chart. 5. Use a scanner like StocksToTrade. (StocksToTrade was designed for penny stocks.)
If Most Penny Stock Companies Fail, Why Not Just Short Sell?
Because it’s a very dangerous, overcrowded game right now. The level of risk so many moron newbie short sellers take these days is unconscionable. It’s completely crazy.
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?
I’m going to say, again, invest in your education first. It doesn’t take a huge amount of money to get started trading. Different brokers have different account minimum requirements. (I use these brokers and avoid offshore brokers altogether.)
But the market will make you pay more if you aren’t prepared. Preparation is key. The stock market is a battlefield, so arm yourself accordingly. Keep in mind that my top students all studied hard over time to get consistently profitable. Tim Grittani — arguably the best penny stock trader in the world — didn’t make anything for nine months.
So before you fund a trading account, fund your knowledge account. If you’re not quite ready for the Trading Challenge, try Pennystocking Silver. It gives you access to more than 6,000 video lessons. (You also get access as a Trading Challenge student, of course.)
Conclusion
Your goal as a trader is to become self-sufficient. And my goal is to be the mentor to you that I never had. So I hope you’ll take this list of the best penny stocks to watch in March 2021 and use it as a learning tool.
👉🏼SUBSCRIBE to my FREE weekly stock watchlist here.
Focus on the process. The best way to learn which penny stocks to watch is to make a daily watchlist yourself. Follow the five tips above. It doesn’t matter if every stock on your list is not perfect. Or doesn’t play out the way you thought. You get better by making your daily watchlist and then seeing what happened during the trading day.
Remember…
… this list of penny stocks to watch is NOT a recommendation to buy penny stocks. Also, my results are not typical and I’ve developed exceptional skills over two decades of trading.
What do you think of the top penny stocks to watch in April 2021 watchlist? Comment below, I love to hear from all my readers!
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