Penny Stocks ready to explode in 2020

penny stocks to buy

Penny Stocks

Welcome to our help page on  penny stocks. On this page you will find a list monthly penny stocks to watch. A lot of people broadly define penny stocks as any stocks that are traded under $5. The average person most likely considers a penny stock to be a stock that trades under $1 and is not listed on a major index like the Nasdaq or The Dow. This page is going to be dedicated to trading stocks under $1. Penny Stocks are usually extremely volatile which means you can make a lot of money but also lose a lot of money. The more you educate yourself the higher chance you will have for success.

If you scroll down you will find weekly updates on which penny stocks are on our watch-list.

Every day people are searching for the best micro-cap stocks to buy. There are over 10,000 different penny stocks to invest in. Most people do not have the time to research all of them. What we have done is put together a list of penny stocks to watch for potential breakouts. You still want to make sure you do your research on the companies listed below. This list is just for entertainment purposes and just an opinion. Make sure you make your own buying and selling choices. Penny stocks can be very risky. One of the hottest sectors is marijuana penny stocks. They have had explosive gains over the last 6 years. Make sure you also take a look at our featured pages for our various stock list. We have a page dedicated to Marijuana stocks, Oil stocksSolar Stocks, Gold Stocks, Technology stocks, and Biotech stocks.

Everything is opinion based and for entertainment use only. Please read our disclaimer.

Stocks posted by members of our Elite Facebook group.

Everyone should take advantage of our free text alerts. Text ATEAM to 94253

Our OTC watchlist is just our opinion. We list stocks that we like and most of the stocks we list we will end up buying shares of and selling. So we are biased. We are not a broker. We are not making any buy or sell recommendations. We are not offering financial advice. We may buy and sell shares at any time. This list is not updated in real-time.



Top Penny Stock to Buy this month

Ticker Symbol: CPWY

CPWY is a low float stock we have grabbed some shares of and plan on getting more. This stock ran over 1,000% this time last year. We think it could be in for another run.

Ticker Symbol: AVXL

The Anavex Life Sciences Corp. (AVXL) stock is getting a boost from company news and technical signals on the charts. The company has been granted a new treatment patent for Alzheimer’s disease. This patent is for the long term and could remain valid until 2037. Stock markets love this kind of news of any long-term success. That is why the AVXL stock is also getting much attention from traders and investors. This is another stock that you might like to include in your portfolio and buy it near the technical support levels, when the stock moves up with higher volumes

Ticker Symbol: TGODF The Green Organic Dutchman Holdings Ltd.

This is a stock we are watching to see if it can break through resistance at the 200 day moving average with buying volume. If it fails then we will be looking to buy at the 50 day moving average. TGODF is a marijuana stock that gained a lot of popularity last year. Their were a lot of pre-IPO shares sold at a discount and we believe that has had a negative effect on the company’s share price.

Click on the links below to access the pages

List of penny stocks

Learning how to trade penny stocks

Robinhood Penny Stocks

Discloser: Awesomepennystocks.com and affiliates own  shares of CPWY and is looking to sell those on a swing trade. We currently do not own shares of TGODF but may buy shares if the chart behaves favorably. We reserve the right to buy or sell more shares at any time.  You should do your own due diligence on the stock.


What are penny stocks?

Penny stocks are companies that are not listed on a major exchange like the Nasdaq. Some people consider any stocks under $5 a penny stock while others consider those micro-cap stocks and won’t call a stock a penny stock unless it is trading under $1 a share. Penny stocks are usually companies that fall short of the basic requirements to up-list on a major exchange.

How can you buy penny stocks?

Some brokers actually won’t let you buy penny stocks because they believe the risks are too high and they don’t want to pay the extra fees that brokers have to pay with OTC stocks. We recommend ordering a brokerage account with Etrade. There are a lot of people starting out that like Robinhood because there are no broker fees but you are very limited with the stocks that you can buy with Robinhood. Etrade or Scottrade are much better brokers to use.

What are the best  stocks to buy?

This really comes down to individual trading style. We like low float stocks because they have the potential to move the quickest. We also pay attention to what sectors are hot. A lot of times entire sectors will move at the same time. Look for hints in SEC filings. Remember most penny stocks move based on market awareness and exposure and not necessarily how solid a company is.

Where can you find a list of stocks?

We have several lists of different type of penny stocks listed on this site. You can click on any of the drop-down list above on the menu and find the sector you are looking for. Also, check out our penny stocks of the month page. This will give you some great information on which penny stocks are hot!

Penny Stock investing is sometimes considered one of the trickiest ventures and if a person is not careful they could end up Losing a lot of money. Some people view penny stock investing as a way of diversifying their investments. It is a very risky investment that does not require a lot of money to do.

How to start buying penny stocks

When  getting started in buying penny stocks the first thing I would recommend doing if you haven’t already is making sure you are in the right mindset. Jump on YouTube. Listen to motivational speakers like Tony Robbins, Will Smith, and others. You want to be in the right mindset to attract success. Once you are in the correct mindset define what success is for you. Get out a piece of paper and Detail exactly what your goals are. Attach emotion to those goals. Put those goals in a place where you can see them daily. Start every day with Positive Affirmations. You need to believe you are worthy of your goals.

Once you have defined and committed yourself to your goals and that trading penny stocks is a set to help you accomplish those goals you are ready to begin the next steps.

Setting up a brokerage account.

You will need this to need this to be able to trade stocks. There are different brokerage accounts that work better for different purposes. If you are looking to trade penny stocks the best brokerage accounts are Etrade and TD Ameritrade(they allow you to trade more penny stocks). If you have limited funds and an account under $300 you can consider Robinhood. Robinhood doesn’t charge broker commission so that will save you $7-10 a trade but the downside is that they don’t allow you to trade OTC stocks as the other brokerages.

Choosing the right brokerage firm for investing

First and foremost, do a thorough research to ascertain that whoever you are dealing with is a legit firm. There are so many fraudsters out there targeting rookies and new investors and no one wish to begin on a wrong footing.

Take time to find a brokerage firm with a proven track record in sorting out its finances and taking care of its revenues. Transparency is paramount especially in this form of investment and if a company is not willing to be clear with information then certainly something fishy is going on. The same company must be open with its finances to make it clear for potential investors and at least to win their confidence. No one wishes to lose their hard-earned money easily.

For the sake of saving time, enquire from friends who perhaps might have had successful spells with their brokerage firms. A friend will always be handy to provide clear information without being bias. Penny stock investing can be quite appealing especially when some companies have been mentioned but the history of the company should be put under the microscope. Companies come and go and when they do, they disappear with investors money and there is nothing to be done.

Beware of hidden broker charges that may pop up later after signing all the paperwork. Your chosen broker must put everything on the table and if possible an attorney must be present to oversee any transaction or as a signatory whenever there is doubt.

Here are some websites and resources that will help when getting started.

OTCmarkets.com this is a website that provides information about each company. Everything from charts, Share Structure, to SEC filings and press releases. This site is one of the most helpful and important you can use.

Stockcharts.com This site provides free charts to use. It allows you to look at a bunch of different technical signals which can help you get an idea of what the stock price will do next.

https://www.sec.gov/edgar/searchedgar/companysearch.html This is the URL where you can search and find all the SEC filings for a company. SEC filings will be used to find out what the stock is really doing.  What type of revenue as well as red flags a stock may have.

Ihub– This is a message board/ forum website that a lot of investors use. We will show how you can use this site later to expose pumpers.

Twitter/Instagram/facebook These social sites are good to join and keep connected as well. They help you keep up to date with what is going on and which traders/pumpers are hot.

You will also want to find access to level 2. Level 2 is very important when it comes to trading stocks. Some people also use different scanners to find stocks that are ready to break out. There are many YouTube videos on how to use these scanners. Personally, I have always networked with traders and investors who already were great at reading scanners. Networking allows you to work as efficiently as possible.

Make sure you sign up for our penny stocks watch list. We not only send out alerts of stocks ready to break out from time to time but we also send out weekly watch list for stocks that either have rumors of future news, look great chart wise, or our scanners have picked them out as the potential break out stocks.

Once you receive the penny stocks on our watch list it is import to check them out for yourself. I am going to jump right into using OTCmarkets. If you run across any terms you are not familiar with please go visit our stock market terms page. There are several ways to approach investigating a stock. Some may choose to check out Facebook or Twitter first to see if people are already pumping it. Others will jump on IHUB. Some people they will look immediately at the chart. For these steps, we will be going to OTCmarkets first with the assumption that the chart already looks promising.

Using Otcmarkets.com

Otc Markets search

Once you have logged in select a stock that you want to search. Type the name or ticker symbol into the top left. We will be using the example of MJNA. Click on the company profile page.

Highlighted and circled in red on the image are some important things we will want to quickly locate. 

OTC markets company profile

A. The company website. I always start by making sure the company has a website and that they keep it updated. If they forget to renew their domains or they let their website go it can be a huge warning sign

B. Make sure the company is current. There are several different types of stocks depending on how transparent they are willing to be with the company fillings. Companies should always be able to keep a status. Companies that are Pink limited, Pink no information, or grey market are a lot more risky and a lot of times hiding that information so they can take advantage of people.

C. This is the share structure of a company. First thing I look at is the market cap. This is the total market value of the company’s outstanding shares. In penny stocks, most of these companies are extremely overpriced. If a company has a market cap of hundreds of millions but only have a net income of $20,000 that should raise some red flags. Keep in mind most these companies are set up just to get people excited so they will buy shares. Most of these companies have zero chance of ever becoming strong legitimate companies. That doesn’t mean you can make money trading them is you understand the psychology behind how they work. The next important thing to pay attention to is authorized shares. Companies with a huge number of Authorized shares can at any time start printing more stock with will dilute the shareholder value and make the stock go down. It is always good to check and make sure the company’s outstanding shares haven’t gone up a ton in the past couple of years. If they have this is a huge red flag as well.

D. This is a link to the Transfer Agent. You will want to call the TA and verify all the information you are seeing. Some company’s gag their Transfer Agencies. That should raise red flags if they do.

E. This is a section where you can find out about the company’s history when it comes to reverse splits. When a company does a share decrease it is known as a reverse split. If a penny stocks company only applies the share decrease to the Outstanding shares and doesn’t apply an equal increase to the Authorized shares this is a huge negative thing. It means the company plans on diluting more shareholder value and the stock most likely will come down a long way. Reverse Split and Authorized share increase are very bad news for penny stocks. If the company has a history of Reverse Splits (Share decreases) you may want to avoid that stock altogether.

The next thing we want to look at is Filings and Disclosures. You can click on the left side tab. Demonstrated in this photo here. 

SEC filings locator

The most important things to locate first are the earning statements and well as read any possible important updates.

A.  8-k these are good to read through quickly to see if the company has recently filed to have a reserve split or an Authorized share increase. Be very cautious if you find out the company has recently had a Reverse Split of an Authorized Share Increase.

B. This is the last reported quarterly report for the company. Double check this is updated and accurate on the SEC filings site mentioned above. Some companies choose to file with OTC and not with the SEC. I am always a little bit cautious of those companies.

The next step from here will be looking at the SEC Fillings. On our SEC filings page, we will be explaining briefly some important things to look for. Check our our SEC filings page here.

Key points to keep in mind when learning how to invest

Narrow down the trade list

You need to understand where the penny stocks need to be traded. You can use the stock screening tools and check out the stocks under $1 pricing. It will be easy to pick up the right stocks from the list of penny stocks.

Open an account

There are many things included in the trading account, including the transferring of funds, fee and customer service. Take your time to shop around and choose the broker meeting all the requirements in the right way. Investors need to check out the fee structure of the commissions on a per-share basis. This is quite suitable for long-term investors looking for the purchase of a low number of shares. For day traders, there are other options available which could be lucrative for the investors who trade on penny stocks.

Understand the risks

It is very important to understand the risks involved in penny stocks. The associated companies having penny stocks have lower liquidity levels and are highly volatile. Hence, it is important for the traders to make enough research before making an investment.

Understand the risk of investing in penny stocks

Investing in penny stocks can bring substantial rewards, and the risk is low enough for anyone to become a stock trader. These tips will help investors become more successful in trading penny stocks.

Look for Companies that can Make a Profit

If the company has made a profit or is making a profit now, that’s a good sign. Startup companies often operate at a loss but don’t assume that will change. Look at the causes of the losses. Why is this company losing money? Will they be able to recover on their own? If they have to seek additional financing, that will dilute your shares, and a joint partnership may give control or financial advantage to the other company. Avoid situations where the company does not look poised to become profitable. These are definitely not awesome penny stocks.

Be Realistic

Understand that these are penny stocks, and there’s a reason for that. Don’t expect to discover the next Coca-Cola or Wal-Mart. Know what penny stocks are and what is reasonable to expect. Awesome penny stocks can be a good investment, but it’s important to keep their nature in mind.

Look at Liquidity

You want to see a consistently high volume in trading. The average may not be very enlightening because a large volume Monday but no trading for six days could still yield a deceptively large weekly average trading volume. Also, make sure that the trades are not all from one insider. You don’t want to end up dead money that you’ll have to dump at the bid for a lower selling price. You want awesome penny stocks with great volume and returns.

Have a Plan and Follow that Plan

Most penny stocks are not stable. They move quickly in either direction and if you’re not careful with your investments, you can quickly end up running out of money when a stock drops quickly. Remember, if a stock costs $0.10, a decline of only $0.02 is a 20% loss. Move on when you get stopped out. Don’t be tempted.

Know Your Source

Many penny stock investors get their stock information from email newsletters. This is not necessarily a bad thing. There are great newsletters out there. However, others are nothing but pump and dump schemes. Before trusting any source, subscribe to the newsletter and track the investments it recommends. After a short time, you’ll be able to tell whether the newsletter is giving good information about Awesome penny stocks with a legitimate opportunity to make money.

Penny stocks are a good investment when done right, and investing in awesome penny stocks is enjoyable. The volatility of the stocks adds to the fun of trading. An investor armed with these tips for doing well in penny stocks will be much more successful. As a byproduct, penny stock trading will be more fun, because success is always more enjoyable than the alternative.

Don’t be fooled into becoming a cult penny stock follower

The Kenny Rogers song “The Gambler” is extremely accurate when it comes to penny stocks and the OTC market.  If you are going to learn to play the game you better learn to play it right.

Almost all of the Otc market and penny stocks move on hype. Market awareness and promotion influence whether these stocks move up or down. If you look at the five year charts most penny stocks they have moved down big time. Penny Stocks are like playing slot machines some win big but if you stay at the machine too long you will lose all of your money.

We are all going to get rich!

Penny Stocks hold a lot of the same psychology as Ponzi Schemes as well as multi-level marketing. You will see a bunch of people spreading the word and pumping stocks that they own shares of trying to influence others to buy. The companies are almost always overpriced and most of the people pumping the stocks are simply regurgitating information that was pumped and passed on to them. This creates a rippling effect especially if the stock has forward momentum.

Shun the Unbeliever!

Penny Stock pumps fulfill some basic humans psychological needs. Ordinary people get to feel important and part of a group. Most people end up losing sight of why they first got involved in penny stocks, which was to make money. They trade that goal in, for a sense of community and team. People convince themselves that they actually believe in these junk companies. They tell their friends and family about them too. These beliefs are solidified when someone oppose them. Opposition is quickly labeled Bashing or Shorting. Almost all belief structures are strengthen when there is a perceived bad guy or enemy.  Religious people have the devil, Americans have Isis, and Penny Stock Believers have Shorters and Bashers.

There will be winners and losers in every stock

In every penny stock there will be winners and losers. There are two type of winners, Those who got lucky, and those that have learned from their losses and mistakes. If you are new to stocks and you have been making money consider yourself to be lucky. Too many times new investors will get lucky and develop a huge ego. They will think they developed some secret system for picking the correct penny stocks. Their luck is almost always short lived. They will get crushed in the market. My first year investing in the OTC market I turned 9k into 180k in 4 months. Then I received a huge blessing in disguise. I invested in a stock and let my ego get the best of me and lost 100k in three months.  At the time this sucked but it was a great learning lesson. It is important to have the mindset that every time you lose on a stock that you can learn from it. Failures make up the build blocks to success.

View Every Penny Stock as a potential scam

One of the best tips I can give beginners is to look at every penny stock as a scam. Put yourself in the shoes of the scammer. If you had tons of shares to sell how would you keep people excited? If you had an unlimited number of shares and the only way to make money was to keep people buying; What stories would you tell? What chart patterns would you intentionally setup? What news would you sell on? How would you get people excited? If you look at penny stocks this way you will start to see that they become a lot more predictable.

K.I.S.S.

In closing I want to leave you with some very simple tips.

  • You won’t go broke taking profits
  • Focus on making money and let others foolishly believe in these companies
  • Buy Low and Sell High
  • Cut losses early if a trade is not going your way
  • Be patient when choosing where to enter a stock and don’t chase
  • Avoid trading on emotion while understanding the emotions of others
  • Don’t get too greedy
  • Learn to read Level 2 and SEC filings or you will lose money

Conclusion

The investment in penny stocks requires cautiousness. In most of the cases, these small-cap stocks are susceptible to becoming highly volatile. If you are sure that you’ve understood the risks associated with these stocks, it will be easy to proceed. Stock screeners can help in getting the narrowed listing of the stocks which meets your trading pattern, niche choice and the tolerance of risk. There is a different answer for every stock trader for investing in penny stocks. Make sure that you understand the stocks before investing and choose the right stocks by making the appropriate moves. It is essential to get the penny stocks screening before making the right choice for your investments.

About Travis 417 Articles
Started investing in 2013 with $8,500 I turned that into 180k within a few months. Every year since I have increased the amount of money made from micro cap stocks and stock options.