As you study the top penny stocks to watch for February 2021, be grateful for the amazing market so far this year. But also understand that there are rules to this game.
The drama we saw with WallStreetBets and GameStop (NYSE: GME) should be a lesson to every trader. By all means, ride the hype — but don’t overstay your welcome.
Also, know what you’re good at. With that in mind, it shouldn’t be a surprise that every stock on this month’s watch list is an OTC. They’ve been hot. Check it 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 February 2021…
Top 5 Penny Stocks to Watch February 2021
Greene Concepts Inc. (OTCPK: INKW)
Greene Concepts produces beverages including bottled artesian water and athletic drinks. It also has a hemp-infused beverage called Happy Mellow and a new product called Be Water.
INKW started moving on January 25 when the company announced Be Water would be sold on Amazon. It then had a clean breakout on February 1 when the company announced Be Water sold out on its first day.
Here’s the INKW one-year chart:
As you can see, INKW was a sub-penny stock until recently. I bought INKW heading into the close on February 1. The news about selling out on Amazon created a classic OTC first green day pattern. The stock had news, volume, and was closing at its highs. Learn this pattern!
See how my trade played out 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.)
Cytodyn Inc. (OTCQB: CYDY)
Cytodyn is a clinical-stage biotech company focused on treatments for HIV. One of its products, Vyrologix™, recently completed Phase 2 clinical trials for use in the treatment of COVID-19.
On January 29, the company announced Vyrologix™ is under review by the Philippines FDA. Cytodyn is working with Chiral Pharma to get licensed under a Compassionate Special Permit. Cytodyn is also the target of an ongoing investigation on behalf of investors. That’s not unusual for penny stocks, but it’s good to know.
As you can see on the chart, CYDY had a multi-week breakout on February 1.
So $CYDY turned out to be one of the best long plays today even without #WallStreet or #wallstreetbets support, a PERFECT https://t.co/bzjI5mhQlG pattern now, congrats to all longs! RIP to all short sellers, but they like peon so they’re happy in a truly messed up way LOL https://t.co/4NMlC6hijB
— Timothy Sykes (@timothysykes) February 2, 2021
CYDY has shown it can spike in the morning with news and big volume. But I’m mostly watching for any big morning panic to dip buy. [Update: CYDY had a perfect morning panic on February 2, but I missed it. I’ll keep watching.]
Alternet Systems Inc. (OTCPK: ALYI)
Alternet Systems is an EV company focused on retro-fitting motorcycles with electric motors.
ALYI started ramping mid-January on news its ReVolt Electric Motorcycle pre-orders sold out. On January 29, Alternet announced finalizing plans for rideshare motorcycles.
“ALYI has an order to deliver 2000 electric motorcycles in Kenya to be deployed into the motorcycle taxi (boda) market.”
Read the full press release here.
Check out the ALYI 100-day chart:
I’m watching ALYI for any big morning panic or morning spike with news and volume. I’ve traded ALYI several times in the past. See details of my ALYI trades here.*
Blue Diamond Ventures, Inc. (OTCPK: BLDV)
Blue Diamond Ventures offers consulting services to businesses in the medical cannabis industry.
BLDV had a solid multi-week breakout on January 27. The catalyst was the announcement of a shareholder call set for February 5. On February 1, BLDV spiked on news the company acquired goPronto™ transport service.
CEO Josh Alper said, “We have decided to integrate the goPronto™ solution into the Trademark & Licensing package that is being sold to lab operators by H360 Labs.”
Read the full press release here.
Here’s the BLDV one-year chart:
BLDV has come a long way since January 26. I’m watching for any big morning panic to buy into. With the right news and enough volume, I might consider buying a morning spike. But I wouldn’t overstay my welcome.
Here’s the last of my penny stocks to watch for February 2021…
Barrel Energy Inc (OTCPK: BRLL)
Barrel Energy is one of those companies you just have to wonder about. The company was engaged in the oil and gas sector. Then it was/is involved in the hemp industry. And now it’s getting into lithium-ion batteries. The CEO is also the founder of American Battery Metals Corporation (OTCQB: ABML).
BRLL spiked on January 28 when the company announced it would provide tech space for lithium-ion battery recycling. It also mentioned three other companies in the mining and lithium battery industries.
- American Battery Metals Corporation
- Altair International Corp. (OTCPK: ATAO)
- St. Georges Eco Mining Corp. (GREY: SXOOF)
Read the full press release here.
Here’s the BRLL one-year chart:
As I write, BRLL is still up over 900% from its January 25 opening price. I’d love to see a giant panic to buy into. For now, I’ll keep watching.
That’s it for the top penny stocks to watch for February 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 January 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 February 2021 watchlist? Comment below, I love to hear from all my readers!
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