Within the September version of Prime Penny Shares to Watch, I discussed a standard drawback: Too many college students try to drive trades. And I all the time warning towards taking trades when there are not any great setups…
Which results in this month’s Penny Shares to Watch October 2019 takeaway: When an amazing setup comes along, you need to be ready. Meaning it’s a must to research the previous. You must know what an incredible setup appears like. Forcing trades can lead to disaster. However not being prepared means you miss a few of the greatest opportunities.
And that’s not OK. You gotta prepare.
I train a really particular niche strategy. And I’ll do something I can that will help you get into your groove. However you typically get one shot with these plays. Apply to the Buying and selling Problem at the moment to study to organize as a lot as potential for when the subsequent massive play comes alongside.
- 1 Easy methods to Create a Watchlist
- 2 The Broader Market
- 3 Recap: September 2019 Prime Penny Stocks to Watch
- 4 Prime Penny Shares to Watch October 2019
Easy methods to Create a Watchlist
I’m gonna hold this easy because I say it again and again. This is what I do day by day utilizing the StocksToTrade scanning software program…
- Give attention to huge % gainers.
- Verify they’re spiking on massive quantity.
- Look for a information catalyst.
- Evaluate the long-term chart for a historical past of spikeability.
It’s such a simple and effective method of creating a watchlist. And you may weed out stocks that don’t match all the standards pretty fast.
How one can Use My Prime Penny Inventory Watchlist
As all the time, this record is that will help you study to create a watchlist. A few of my picks go nowhere. That’s the character of penny stocks. I also underestimate shares recurrently.
Trading conservatively can maintain you in the recreation. Gunslingers may submit screenshots of massive wins for months in a row…
… but once they blow up, you never hear from them once more. Or you get to read their self-reflective submit about how they “shoulda, coulda, woulda…”
- NEVER comply with my alerts to enter or exit a commerce. As an alternative, use them to know my thought course of. Develop the talents to develop into a self-sufficient dealer by becoming a member of the Trading Challenge (and learning your ass off).
- Be prepared to adapt to changing markets. Don’t try and impose your will available on the market. The market doesn’t care about you.
- Neither this — nor another watchlist I produce — is a suggestion to trade. Do your personal research. Understand I don’t commerce a lot of the shares on my watchlist each day. Some days I don’t trade at all because the setup isn’t right.
[Disclosure: Some of the stocks mentioned below have been traded or otherwise discussed by Tim Sykes as part of his daily watchlist provided to Trading Challenge, TIMalerts, PennyStocking Silver, and Millionaire Masters Program subscribers. Tim Sykes may or may not hold open positions on these stocks at any given time. This list is not a recommendation to buy or sell any stock. Do your due diligence. Full earnings claim disclosure here.]
The Broader Market
After the roller coaster journey of August, each the S&P 500 and the Dow bounced to close all-time highs in September. Since then, the general market seems to be in a consolidation part.
Consolidation … However It’s Robust to Predict What’s Next
As I mentioned during my annual convention, there’s no overarching development proper now. It’s essential to acknowledge that.
(Get your copy of the Trader & Investor Summit 2019 DVD here.)
Once more, remember that good setups do come along. But I don’t try to predict something. So despite the fact that I would like one thing to happen to offer an overarching vibe, I take what the market provides me. The perfect you can do is put together now to benefit from future alternatives.
More U.S.-China Trade Conflict Fallout
Wall Road was on edge the final weekend of September on rumors that Chinese language corporations might get banned from itemizing on U.S. exchanges. The thought behind such a transfer can be to limit U.S. investment in China as a kind of punishment for the continued commerce conflict. Markets calmed when a Treasury official introduced there was no plan to comply with by means of.
Trade talks between China and the U.S. are set to resume in Washington, D.C. the second week of October. The newest round of tariffs is about to go into impact on October 15. The tariff implementation was delayed out of respect for the 70th anniversary of the Individuals’s Republic of China.
Uncertainty retains me targeted on buying and selling conservatively.
Recap: September 2019 Prime Penny Stocks to Watch
Right here’s a quick recap of my September stocks to observe and what they did.
- Fuwei Films (Holdings) Co. (NASDAQ: FFHL) spiked massive on earnings back in August. This low float made my watchlist as a potential dip buy into an enormous morning panic. After a fade again to the $2.60s, FFHL seems to be consolidating within the $2.70 to $three.50 range. I’d have to see massive quantity and a news catalyst to danger buying and selling this inventory.
- Arcadia Biosciences, Inc. (NASDAQ: RKDA) hasn’t made my day by day watchlist because the starting of September. News of this at the market providing and this U.S. patent didn’t hold the inventory from fading to the low $5s. It will take an enormous worth/volume spike with information for me to danger my money.
- Workhorse Group Inc. (NASDAQ: WKHS) continues to be on my watchlist however I’m in no hurry to buy. I’ll happily watch and watch for a perfect setup. Whereas it seems to be consolidating in the low to mid $3s, it’s a uneven inventory. The rumored buy of GM’s Lordstown, Ohio plant continues to be in the negotiation stage. Huge news concerning the deal might get this one shifting. Especially with the United Auto Staff’ strike towards GM now in its third week.
- Vivus, Inc. (NASDAQ: VVUS) hasn’t achieved a lot since its temporary run on the end of August. It might take massive volume — ideally with news — to put this stock back on my watchlist.
- Natural Shrimp Included (OTCQB: SHMP) made a 97% run over seven days in early September. Since then it has pale again to mid-range at roughly $zero.16 a share. Nevertheless it’s been on and off my watchlist with a proven document of multi-day runs. I really like buying these low-priced stocks however solely once they have the fitting setup.
Ignite International Brands(OTCQX: BILZF)
Ignite is a new inventory to the U.S. markets — having started trading close to the top of August. I have an upcoming submit specifically about BILZF — the setup for my September 23 commerce was good.
In a nutshell, Ignite is Dan Bilzerian’s hashish firm. They produce and sell CBD oil-based merchandise. And in markets like Canada and U.S. states with legalized marijuana, they sell THC merchandise like pre-rolls and cannabis flower.
The stock didn’t present a lot quantity the primary few weeks of buying and selling. Finally, on September 23 it received an enormous quantity increase. This can be a nice instance of informational inefficiency — something I encourage each scholar to review.
BILZF chart: 1-month, 5-minute candlesticks — courtesy of StocksToTrade.com
I traded BILZF 3 times between September 23 and 25. My in a single day commerce on September 23 was an ideal first green day setup. I additionally coated that commerce on this version of the millionaire mentor update.
Numerous students talked about they assume I’m paying an excessive amount of attention to BILZF. But based mostly on the right setup and Bilzerian’s robust potential to construct a business, frankly, they’re mistaken. BILZF is one thing I’ll look ahead to potential dip buys — ideally into an enormous morning panic. Or an enormous morning spike with volume and a news catalyst.
Guardion Well being Sciences, Inc. (NASDAQ: GHSI)
Guardion is a health science firm specializing in medical food dietary supplements, or nutriceuticals. The primary focus of the company is eye illnesses like age-related macular degeneration (AMD).
After an enormous hole down in August following a dilutive providing, GHSI traded flat till mid-September. The stock greater than tripled between September 13 and 25. Information of the acquisition of NutriGuard on September 23 helped the multi-day run. The inventory now seems to be consolidating within the $0.70s.
GHSI chart: 2-month, 15-minute candlesticks — courtesy of StocksToTrade.com
I traded this stock back on September 19 — a basic dip-buy into an enormous morning panic. Now I’m watching GHSI for a attainable massive morning spike aided by volume and a information catalyst.
United Power Corp. (OTCPK: UNRG)
United Power will get the purple cease sign and Darkish or Defunct designation on OTCMarkets. “Warning! This firm is probably not making material info publicly out there.” That’s not an excellent sign … especially for buy-and-hold buyers.
So why is it on my listing? As a result of after years of buying and selling sub-penny, the stock has all of the sudden come back to life. It’s now a proven current OTC multi-day runner with the power to hole up overnight on a robust first green day.
Check out the UNRG chart:
UNRG chart: 1-month, 5-minute candlesticks — courtesy of StocksToTrade.com
I traded the inventory on September 25–26, profiting from the large % achieve. The stock finished robust into the close, and there was a morning hole up. UNRG almost doubled from my buy — going all the best way to $zero.27 per share on September 26.
I’ll continue to observe this for giant morning spikes with volume and/or information. Caution: there hasn’t been any news or financials on this stock for a long time. Which makes me assume some cokehead promoter is doing a superb job. Keep up the great work, promoters.
Clancy Techniques Worldwide Inc. (OTCPK: CLSI)
Clancy Techniques has an Android app for issuing parking tickets. Based on the website, the ticketing officer solely must take an image. Then the app goes to work filling within the essential details. Then the officer confirms the knowledge, selects the violation, and points the quotation. (I’m glad I bought all my automobiles — one less factor to worry about.)
CLSI is a current multi-day runner from August. The current catalyst appears to be the company’s willingness to be clear about financials. Like UNRG above, CLSI has the Darkish or Defunct designation on the OTCMarkets web site.
But on September 25, the corporate launched 10-Okay annual reviews for the final two years. Again, this is an instance of informational inefficiency. And one more reason to love penny shares.
Right here’s the CLSI chart:
CLSI chart: 2-month, 15-minute candlesticks — courtesy of StocksToTrade.com
I traded this inventory 3 times on September 30 because it was a multi-week breakout with massive quantity. It was robust to get executed, so I took small dollar positions. It’s robust to dip purchase shares buying and selling this low. So despite the fact that that might be my most popular setup on a replenish this much, I’ll search for huge morning spikes. Or a breakout to new highs with massive quantity and, ideally, information.
Rainmaker Worldwide Inc (OTCPK: RAKR)
Rainmaker manufactures an air-to-water system and a water-to-water purification system. The know-how can use wind and solar energy — leaving virtually zero carbon footprint. The corporate web site says…
“Rainmaker’s function is to supply protected consuming water for communities in want so they can thrive and by no means go thirsty.”
RAKR trended up from lower than $zero.01 to $0.24 during September. On September 30, the corporate introduced they gained the EU Horizon 2020 Venture award. Additionally they acquired a $2.5 million grant to develop a water answer within the Canary Islands. The inventory went from $0.2299 to $0.2740. That’s solely 19%. However when you consider how long it takes costliest shares to make an identical transfer, it’s impressive.
Here’s the RAKR chart:
RAKR chart: 2-month, 15-minute candlesticks — courtesy of StocksToTrade.com
I’d wish to see much more quantity earlier than taking a commerce on RAKR. That stated, quantity during the last three weeks of September is the very best for years. So I’ll control this one to see what it does.
The right way to Use Prime Penny Stocks to Watch October 2019 Replace
As all the time, my objective is so that you can grow to be a self-sufficient dealer. To try this, it’s essential get good at creating watchlists. It’s one of the crucial basic items you ought to be doing. So use this listing as a guide. Watch the stocks, but don’t assume they’re gonna be the subsequent Microsoft. They’re not.
What stocks are on your watchlist? New to buying and selling? Remark under with “I’ll give attention to huge % gainers.” I really like to listen to from all my readers, so comment under!