Welcome to penny stocks to watch for November 2020. The overall market is starting to show troubling signs.
Given how far it bounced off the March lows and having the best 100 days ever, the pattern doesn’t look good. That’s not to say it will crack. But, as always, prepare for anything. And whatever you do, don’t go down with the ship.
My students and I have adapted. When the market changes like it has, you have to trade like a sniper and protect your gains. Be meticulous. Trade smaller and go for singles.
Heading into November, don’t try to predict the market. With the election and the pandemic, everyone wants to make predictions. Instead, react.
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 weekly stock watchlist here at cost to you.)
Let’s get right to the list of top penny stocks to watch in November 2020…
Top 5 Penny Stocks to Watch November 2020
Digital Ally Inc. (NASDAQ: DGLY)
Digital Ally produces video imaging and storage products used for law enforcement and security. One of its core products is an in-car video/audio recorder built into the rear-view mirror. The company also recently entered the thermal imaging space.
DGLY is a former supernova with a history of spiking when there are protests or civil unrest. It spiked on October 27 after the shooting death of Walter Wallace, Jr. in Philadelphia.
Take a look at the DGLY six-month chart:
In the past, DGLY spiked for multiple days. But as you can see on the chart, it also has a history of one-day spikes. I’ll keep watching it based on the potential for continued civil unrest or protests.
To buy, I’d need to see the right price action (one of my patterns) with volume and preferably news.
miRagen Therapeutics Inc. (NASDAQ: MGEN)
miRagen Therapeutics is a clinical-stage biopharma company. It specializes in RNA-based therapies. Its most advanced is a clinical-stage antibody treatment for thyroid eye disease.
MGEN spiked in premarket trading on October 28. The catalyst was news the company acquired privately held Viridian Therapeutics, Inc. The stock is a former runner as you can see on the one-year chart below.
MGEN was impressive in an ugly overall market. Check out the huge volume candle on the right side of the chart.
Now take a look at the MGEN intraday chart from October 28:
As you can see, MGEN managed to hold most of its gains trading on huge volume. I’ll watch it for now to see how far it can run. But I won’t chase even though it could squeeze over-aggressive short sellers. It’s a potential dip buy into any big morning panic.
Universal Security Instruments Inc. (AMEX: UUU)
Universal Security Instruments manufactures smoke/fire alarms, carbon monoxide detectors, and multi-gas alarms. I don’t like three-letter tickers. That said, UUU spiked 80%+ in after-hours trading on October 28.
UUU is a low float, former runner. The catalyst for the after-hours spike was this SEC filing. The filing refutes mismanagement claims made by the company’s biggest shareholder. And it hints of a possible merger in the works.
First, take a look at the UUU six-month chart:
And here’s the October 28 intraday chart showing the big spike after hours…
Again, I don’t like three-letter tickers and most of the time this is a low-volume stock. So I’ll watch to see if it can hold onto or extend its spike. It’s a potential dip buy into any big morning panic.
Bantec Inc. (OTCPK: BANT)
Bantec is a product and services company in the industrial sector. It has multiple subsidiaries in the drone, distribution, and construction industries.
BANT spiked when the company announced a new hand sanitizer manufacturing package. The industrial mixer can be used to manufacture products such as cosmetics, perfumes, and other chemical compounds.
Check out the BANT three-month chart:
As you can see, BANT spiked back in August when the company demonstrated a robotic cleaning system for use in schools.
Now look at the BANT intraday chart from October 28:
I traded BANT twice on October 28 — one win and a very small loss. It’s an ultra-low-priced stock and the overall market was ugly so I traded safely. If BANT can run for a few days, it would likely set up for a dip buy on a morning panic.
FindIt Inc. (OTCPK: FDIT)
FindIt is a social network platform where users can post, and search engines can see their content. The idea is that’s good for brand awareness and marketing. The company also owns several other websites.
FDIT is a blatant promotion. It’s getting promoted by email, on Twitter, and by well-known Goldman Small Cap Research. The stock trades low volume but is trending up after a research update from Goldman on October 27. On October 28, the company announced it was in final-stage testing for its iOS and Android apps.
Here’s the FDIT three-month chart:
FDIT trades such low volume it’s hard for me to get excited about it. I’d love to see it run for multiple days with increasing volume and more news and press releases. The higher it goes, the more interested I’ll be for a dip buy into a big morning panic.
That’s it for the best penny stocks to watch for November 2020. Here are some tips on choosing stocks for your watchlist. Also, some answers to frequently asked questions…
How to Use This Penny Stocks to 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 November 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. 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 November 2020 watchlist? Comment below, I love to hear from all my readers!
The post Top Penny Stocks to Watch for November 2020 appeared first on Timothy Sykes.