As you’ll see with the top penny stocks to watch for July 2021, OTCs are hot again. All five featured stocks this month are OTCs. It’s great to see multi-day runners with volume and a lot of hype. They helped me finish June up $41,664.*
+$2k on the day for me playing it faaar too safe on $LWLG $WSRC $GDET $MJWL but another solid +$42k profit on the month, literally within $100 of my May trades too. $2k/day keeps the real job away & allows me to build schools, hooray! How’d you do this month? Did you learn a lot?
— Timothy Sykes (@timothysykes) June 30, 2021
OTC runners have been great for dip buys. But pay attention to short squeezes, too. A lot of short sellers are feeling the pain right now. A good example is Marin Software Inc. (NASDAQ: MRIN). And higher-priced OTCs like Lightwave Logic Inc. (OTCQX: LWLG).
Even though I don’t often trade the higher-priced stocks, I still watch. It helps me to understand what’s moving and why.
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 July 2021…
Top 5 Penny Stocks to Watch July 2021
Again OTCs are hot. But some of these stocks are more volatile than others. Remember, if a stock isn’t liquid and volatile you can reduce risk by taking smaller positions. Or don’t trade at all. If a stock moves enough, it has the potential to get other traders’ attention. So be ready.
With that in mind, here are my top penny stocks to watch for July 2021. ALWAYS remember this is a watchlist and NOT a buy list. Let’s do this…
Penny Stocks to Watch #1: National Asset Recovery Corp (OTCPK: REPO)
National Asset Recovery Company is a shell company. Formerly, it specialized in repossessing cars, trucks, and boats. Hence, the ticker symbol REPO
The company profile on the OTC Markets website links to the website for Hughes Tool Company, Inc. and joint CEO Anthony Macaluso. Hughes Tool Company focuses on battery recovery tech designed to increase EV range.
In February, Hughes was awarded a patent for “methods and apparatus for powering a vehicle.”
On June 28, REPO started blowing up Twitter based on the new website and a “potential reverse merger.” StocksToTrade Breaking News** alerted the pump during my all-day live trading webinar.
Check out the REPO one-year chart…
REPO ran 1,057% on June 28 before pulling back to close the day up 689%. It gapped down the next day but ran another 110% and hit a 52-week high of $0.567 before pulling back.
Fair warning, there’s a battle brewing between Twitter pumpers and wannabe investors. Claims of “I spoke with investor relations” get responses of “you’re a friggin’ liar!” As always, I expect the worst from every penny stock company…
So, I’m watching for potential dip-buys into any big intraday panic. But if there’s news and big volume, it could spike again. Whatever happens, this is one to watch and learn. See details of my REPO trades here.*
Penny Stocks to Watch #2: Majic Wheels Corp (OTCPK: MJWL)
MJWL just keeps grinding away…
In May, the company announced plans to acquire the Calfin Global Crypto Exchange for $150 million. In June, the company’s attorney submitted a letter to the OTC markets group. The company then regained current status. On June 30, the company announced completion of the acquisition…
CEO David Chong said, ʺMonths of around the clock work went into preparing Majic for this landmark moment. We are proud to have reached this milestone by becoming current and settling previous liabilities of the Company to the satisfaction of our acquisition candidate. Now that terms have been satisfied and the acquisition is executed, we look forward to the next steps in the Majic journey.”
Read the full press release here.
Trading volume for MJWL has dropped since late May. While I’d like to see more volatility, it’s hard to ignore the continuous uptrend. Check out the MJWL one-year chart…
MJWL hit a 52-week high of $0.2549 on June 30 to close the month strong. I’m watching for potential dip buys into any big intraday panic. I’ll also watch for any big spike with more volume and, ideally, a news catalyst.
MJWL can bounce fast, so be ready. See details of my MJWL trades here.*
Penny Stocks to Watch #3: Basanite Inc. (OTCQB: BASA)
Basanite Inc. manufactures basalt fiber reinforced polymer products used as a replacement for steel.
BASA started trending up after the company announced it will present at the Access to Giving Virtual Investor Conference July 13–15.
On June 30, the company announced “it has completed qualification of its completely new, proprietary BasaMax™ Pultrusion Manufacturing System.
“The BasaMax™ system utilizes the same factory floorspace as conventional pultrusion equipment but offers double the manufacturing capacity and operates significantly faster than any available alternative.”
CEO Simon Kay said, “America’s infrastructure is eroding at an exponential rate; much of it is because of failing concrete structures due to spalling rebar. Through our innovation and execution, we seek to provide long-term, sustainable solutions to this critical dilemma.”
Read the full press release here.
BASA spiked 75% on June 30 before a sharp pullback to end the day up 17%. But it’s also a multi-day runner with its highest volume since September 2020. I’ll watch for potential dip buys into any big morning panic. But I’ll be careful as past bounces have been weak. See details of my BASA trades here.*
Penny Stocks to Watch #4: Dark Pulse Inc. (OTCPK: DPLS)
Dark Pulse Inc. is a tech security company focused on the oil & gas industry. Its dark pulse technology is designed to monitor pipelines and other infrastructure.
DPLS started trending up in early June on news it had signed letters of intent to acquire two drone companies. After a big selloff on June 16, DPLS consolidated for several days. On June 30, the company announced another LOI to acquire TerraData Unmanned.
CEO Dennis O’Leary said, “As DarkPulse continues to build best in class technology service offerings to the critical infrastructure/key resources market we look for teams such as TerraData to bring experienced personnel and leading-edge equipment allowing the Company to operate AI assisted inspection services in all mediums including land, sea and air.
“TerraData’s ability to work in difficult marine environments with accuracy, efficiency, and expert results while eliminating risk to humans is a game-changer.”
Read the full press release here.
DPLS hit a 52-week high of $0.0969 on June 16. The news on June 30 gave DPLS a roughly 18% boost with the 52-week high in sight. Then it closed VERY weak, dropping 10% in six minutes going into the close.
When a stock is up a lot over several days and then fades into the close, it can signal a morning panic. So I’ll watch DPLS for potential dip buys into any big morning panic. See details of my DPLS trades here.*
Penny Stocks to Watch #5: Western Sierra Resource Corp (OTCPK: WSRC)
Western Sierra is both a gold/silver mining company and a hemp grower. WSRC made my June 28 weekly watchlist after the company announced talks to acquire a majority stake in Silver State Mining Group (SSMG).
On June 30, the company announced the completion of negotiations. The deal gives Western Sierra a 70% stake in SSMG and its Sage Hen mine. Confirmation of the deal spiked WSRC 70% in 14 minutes.
CEO Roger Johnson said, “These are very exciting times for the Company. We believe the Sage Hen project is a ‘once in a generation opportunity’ for the Company and for our shareholders.
“SSMG’s and WSRC’s management priority is to diligently execute the plan — the most direct strategy to bring this remarkable opportunity into efficient production in the shortest possible time. This means meaningful production by the end of this year, and into 100-ton per day capacity within 12 months. The rest is simply a function of scale.”
Read the full press release here.
WSRC hit a 52-week high of $0.492 on June 30. That’s a 1,654% run since the announcement that negotiations were underway.
I’m watching for potential dip buys into any big intraday panics. WSRC was one of my most profitable tickers in June, earning $11,925 to donate to charity.*
That’s it for the best penny stocks to watch for July 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 trade for $5 or less per share. These are the stocks of micro- and nano-cap companies. Many trade on the OTC markets, but you can find many penny stocks on the big 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 July 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 the July 2021 watchlist? Comment below, I love to hear from all my readers!
Disclaimer:
*Tim’s trading results are not typical and do not reflect the experience of the majority of individuals using the service. This level of successful trading is not typical and does not reflect the experience of the majority of individuals using the services and products offered on this website. From January 1, 2020, to December 31, 2020, typical users of the products and services offered by this website reported earning, on average, an estimated $49.91 in profit.
While Tim Sykes has enjoyed remarkable success trading stocks over the years, his primary income derives from the sale of financial education products and subscription services offered by various businesses and websites in which he has an ownership stake.
**Tim Sykes has a minority ownership stake in StockstoTrade.com.
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