The usual hype, sketchy companies, and promotions are moving the top penny stocks to watch this month.
Remember, NEVER trust the promoters. Ride the hype, but don’t believe it. A quick dig into some of these companies exposes the real truth…
They might not even have a real product or business. They change their company models at the drop of a hat. And move into … designer bong water?
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.
Let’s get right to the list of top penny stocks to watch in May 2021…
Top 5 Penny Stocks to Watch May 2021
It’s all OTCs this month. After a slower start to April, OTCs picked up again in the last week of the month. Let’s do this…
Organicell Regenerative Medicine Inc. (OTCPK: BPSR)
Organicelle Regenerative Medicine is a biotech company that develops therapies to treat degenerative diseases.
On April 28 the company announced that its potential COVID-19 treatment showed positive results in the first 10 patients.
“If the results of the expanded trial are similarly positive, Organicell and CWI India, intend to file with the ICMR (Indian Council for Medical Research) for Emergency Use Approval to use Zofin™ in India as a therapeutic for treating COVID-19.”
And check out the BPSR one-year chart here…
I traded BPSR four times since the news on April 28, underestimating it every time. In my first trade, I got a partial fill on a dip buy. My third trade was a dip buy into a beautiful morning panic. Get more trade details in my upcoming Millionaire Mentor Update post. And see all my BPSR trades here.*
I won’t chase it now. I’ll watch for a dip buy opportunity into a big panic only. It’s worth watching for more trading opportunities if it follows my 7-step framework.
Good Vibrations Shoes Inc (OTCPK: GVSI)
Who knows exactly what GVSI’s business is … the company description on OTCmarkets.com says the “Nevada company currently operates a consultancy leveraging its expertise in business logistics.”
Yahoo Finance lists it under the footwear and accessories industry but says it doesn’t have any significant operations. It also notes GVSI previously operated a microbrewery.
GVSI is getting a ton of promotion on social media. Especially after George Sharp applied for custodianship. Now, the biggest Twitter pumpers out there are pushing the stock and bragging about their long positions.
NEVER believe their BS. Stick to trading the patterns that repeat over time.
Here’s the GVSI one-year chart:
We’ll see how long the promoters can hold this one up. I won’t chase it. I’m watching for potential morning panic dip buy opportunities.
Green Globe International Inc (OTCPK: GGII)
GGII is a hemp and CBD company.
On April 27 the company announced new management. In the press release, it hinted there will be updated filings on the OTC markets website in a few weeks.
Here’s the GGII one-year chart:
At the time of writing, there’s no other news on the company. The stock was already up a lot when the news was released. It could be a pump — it’s definitely getting a lot of attention from Twitter promoters. So I won’t chase it. I’ll watch for potential dip buys into any big morning panic.
Priority Aviation Inc. (OTCPK: PJET)
Priority Aviation’s name implies it’s in the business of flying. But its recent business dealings show it’s finding a new way to get high…
The company’s 2020 annual report states, “The Company is working to develop the business model acquired from THC — designer bong waters. It is negotiating with several suppliers to contract for the production and bottling of these waters and drop-ship on behalf of the Company. The Company is also marketing the waters to a variety of wholesale and retail outlets.”
Here’s the PJET one-year chart:
PJET is trading near sub-penny territory now. Sub-pennies aren’t my favorite to trade. It’s on watch for any news catalyst that could create a potential morning spike.
PCT Ltd (OTCPK: PCTL)
PCT Ltd specializes in environmentally safe products for eliminating contamination from water. But in this case, it’s an oil play. Why? Some of its products are used in the oil & gas industry.
On April 30, PCT Ltd announced an oilfield testing update. It was testing one of its products meant to enhance oil well production…
“The purpose of the in-field testing was to gather empirical data relative to whether PCT Catholyte was effective in enhancing oil production in shallow wells, and then to determine the effective enhancement of each well and what process and protocols yielded the best results.”
Check out the PCTL one- year chart here:
I traded it live after the news was released during my Trading Mastery webinar. (Click here to register for a year of Trading Mastery Live. You get 12 live-trading webinars over 12 months for one price. Get it.)
The stock had a huge spike on the news. I missed the initial spike but caught it as it tested day highs. It was an absolutely beautiful continuation. Instead of getting greedy, I took the single for a profit of $3,422.*
It traded massive volume compared to the past so we’ll see how long this one can run. I’ll watch it for more potential dip-buy opportunities, especially if it can put together a multi-day run.
That’s it for the best penny stocks to watch for May 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.
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.)
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 May 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.
… 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 my May 2021 watchlist? Comment below, I love to hear from all my readers!
*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.
All content on this website is intended for educational and informational purposes only.
The material on this website is not to be construed as (i) a recommendation to buy or sell stocks, (ii) investment advice, or (iii) a representation that the investments being discussed are suitable or appropriate for any person. No representation is being made that following our strategies will guarantee a particular outcome or result in profits. The price and value of stocks may fluctuate depending upon various market factors, and, as such, the strategies used by us to adjust for those fluctuations may change without notice.
There are significant risks associated with trading stocks and you must be aware of those risks, and willing to accept them, in order to invest in these markets. Past performance of any trading system or methodology is not indicative of future results. You should always conduct your own analysis before making investments.
You should not trade with money you cannot afford to lose and there is a risk that trading stocks will result in a complete loss of your investment. Trading stocks, particularly penny stocks, is not suitable for everyone and requires hard work, due diligence, capital, and substantial time to monitor the market and timely execute trades.