Welcome to the top penny stocks to watch for September 2020.
If September’s anything like August, we’re in for a wild ride. Let’s put things in perspective…
This is one of the best times EVER to learn to trade. We’re seeing tons of hot trends and hot stocks. People are still looking for income sources. Robinhood keeps signing up record numbers of new accounts.
All this is creating massive opportunities. I can’t keep up with all the plays. August was a $118,000 month for me.* That puts me over $700,000 for the year.* I’m on track for my best year ever. (I donate 100% of my trading profits to charity so I can focus on teaching.)
(*These results are not typical. Individual results will vary. Most traders lose money. My top students have the benefit of many years of hard work and dedication. Trading is inherently risky. Always do your due diligence and never risk more than you can afford to lose.)
The great news is that new traders have access to better technology. Tools like StocksToTrade Breaking News make it easier to identify potential trades. We’re developing better educational materials like my new 30-Day Bootcamp.
If you’re not yet trading (or paper trading), I’ve never experienced a better time to learn. The classic patterns play out regularly. Make a daily watchlist — even if you’re not trading you can learn from it.
Every day, I create a watchlist of five to 15 stocks. 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 September 2020…
Top 5 Penny Stocks to Watch September 2020
Aside from watching penny stocks, keep an eye on big companies moving the markets. For example, Tesla (NASDAQ: TSLA) and Apple (NASDAQ: APPL) just did stock splits. Both companies continue to drive the Nasdaq to all-time highs. Potential sympathy plays are big right now.
So it’s no surprise that September’s top penny stocks to watch includes three solar and EV plays.
Alternet Systems Inc. (OTCPK: ALYI)
Alternet Systems Inc. is in the electric vehicle (EV) sector. Its main business is lithium-ion batteries used for EVs and military applications. The recent big catalyst is news about the company’s ReVolt Electric Motorcycle. It expects the ReVolt to go into production later this year.
On August 27, the company announced it expects orders for the ReVolt to double next month. The following day, it announced fundraising efforts could exceed its $100-million target. The company also announced it will present an update on September 2.
Check out the ALYI five-day chart from August 25–31:
I traded ALYI on August 27 after the first of the two press releases mentioned above. It was my Supernova Alerts pick on Friday after the second press release. It tripled from my buy alert. (I didn’t trade it that day.) On August 31, I traded it twice more on dips. ALYI is a potential re-buy into any big morning panic.
BioRestorative Therapies Inc. (OTCPK: BRTXQ)
BioRestorative Therapies is a U.S.–based biotech with a focus on stem cell therapeutics. The ‘Q’ at the end of a ticker designates a company going through bankruptcy proceedings…
BRTXQ doesn’t have recent news but promoters keep linking old news on Twitter. It’s getting pumped in chat rooms, too. (Hint: Use the StocksToTrade social media search tool to see when a stock is getting pumped. Use the Breaking News tool to get news on social and chat pumps in real time.)
Take a look at the BRTXQ three-month chart:
BRTXQ is setting up beautifully for a morning panic dip buy. It’s very overextended for a stock with no news. Let’s see how high the pumpers can get it before it tanks. I’m watching closely as the panic could happen any day.
Exxe Group Inc (OTCPK: AXXA)
Exxe Group is a U.S.–based company in the real estate sector. It also invests in technology, media, and financial services companies. Its main strategy is to gain a controlling interest in companies with room for growth.
On August 12, Exxe Group announced the formation of AXXAInvest financial services. Then AXXA spiked on positive earnings news on August 27. After a one-day pullback, the stock ran again on August 31 and managed to hold most of its gains.
Take a look at the AXXA three-month chart:
I traded AXXA on August 31. But it was trading choppy and it was midday, so I played it safe. It’s a potential dip buy on a big panic or a morning spike, preferably with news and big volume.
VivoPower International PLC (NASDAQ: VVPR)
VivoPower is a British solar power company. Revenue comes from the design, supply, and installation of power and control systems.
VVPR started moving in the second half of August. On August 20, the company announced a new contract through an Australian subsidiary. On August 24, the company announced a pivot into the EV sector in its full-year earnings presentation. The stock has run from the low $2s to a new 52-week high of $11.34 on August 31.
Take a look at the VVPR three-month chart:
VVPR is a higher-priced stock and I won’t chase it. It’s a potential dip buy for me into any big morning panic.
Now for the last of our top penny stocks to watch in September 2020. This list only scratches the surface of all the plays right now. Read on after the next stock to see how you can use this list to learn my process.
Worksport Ltd (OTCQB: WKSP)
Worksport manufactures covers for pickup truck beds. Its new TerraVis cover is a solar-panel cover that produces onboard power for pickups.
WKSP started a slow ramping on August 11 when the company announced the TerraVis launch. The stock kept moving after the announcement of a new website on August 13. WKSP consolidated after hitting a multi-month high of 19 cents per share on August 17.
Check out the WKSP three-month chart:
An August 25 announcement of a pending deal with an unnamed electric truck company didn’t move the stock. But as you can see on the chart above, it spiked big on August 31. It’s another example of informational inefficiency so often seen in OTCs.
Here’s the WKSP intraday chart from August 31:
I traded the stock in the afternoon. My plan was to hold overnight … But it met my goals and more, so I sold into the close. I’ll keep watching to see what WKSP does in the coming days.
That’s it for the top penny stocks to watch for September 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.
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.)
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 September 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. 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 September 2020? Comment below, I love to hear from all my readers!