I have two balls and neither of them is crystal.
So while it might be fun to debate if the bottom is in…
…or if this is just a bear market rally.
The answer isn’t going to make you money.
What is then?
Staying on top of the news, waiting for the right patterns to present themselves, and managing your trades like someone who likes money (not a gambling degenerate).
I’m not gonna waste your time with any more rants.
The market’s moving and I have five penny stocks that need to be on everyone’s radar…
Check them out below…
Top 5 Penny Stocks to Watch This Week
Top Penny Stocks List #1: ShiftPixy, Inc. (NASDAQ: PIXY)
I traded this stock last Friday. Here’s a screenshot…
A 12% profit in one morning ain’t bad. Especially if you consider the market we’re in right now.
PIXY spiked right out of the gates after releasing news. Shareholders will receive common stock of the SPAC Industrial Human Capital Inc. (NYSE: AXH).
In other words, if you’re a PIXY shareholder, you get some free stock.
You can learn all about SPACs right here.
I keep my eye on stocks that prove to me they can run.
Keep reading to see why I traded the next stock on my watchlist 3 times in the last 2 weeks…
Top Penny Stocks List #2: Sysorex Inc. (OTC: SYSX)
I profited $1,300 from this stock alone. And it took me 3 trades.
In case you don’t remember, SYSX was on my watchlist last week.
That’s why I create a watchlist of stocks. Because former runners tend to come roaring back!
I share all my trades on Profit.ly, check ‘em out.
SYSX put a solid bottom in at 3 cents. I’m waiting to see if it can move back toward the breakout level at 11 cents.
I’m not gonna trade it unless more volume comes in. Learn the importance of stock volume.
SYSX has a nice-looking chart so far. I’m excited to see where it goes.
Top Penny Stocks List #3: Fernhill Corp. (OTC: FERN)
This stock was on my watchlist last week too…
FERN is a semiconductor company that also dabbles in the crypto sector. So there’s a lot of potential for hype around this play.
When it comes to trading stocks, the hype is king.
I even wrote a post teaching traders how to ride the hype without getting sucked in…
It put in lows at 1 cent last week.
As I’m typing this, it’s creeping back towards highs … but I’m waiting for more volume.
Top Penny Stocks List #4: Amyris Inc. (NASDAQ: AMRS)
This one is super speculative.
It just took a nosedive from $4 down to $1.50.
But on the way down, it showed an opportunity for panic dip buys. And that’s my favorite pattern to trade.
Here’s how to spot the pattern…
This stock could make a comeback this week. Or maybe it panics even further.
It doesn’t matter to me either way. I’m interested in volatility.
Top Penny Stocks List #5: Trans Global Group Inc (OTC: TGGI)
This is a legendary former runner.
And if you haven’t caught on yet, a history of spiking is a bullish trading indicator.
Former runners can always run again.
Take a look at the history of the volatility…
Focus on the past few days. It looks like it bounced off support, doesn’t it?
As of now, there’s no news. So I’ll stay away from it until I can identify a catalyst.
Remember people, there needs to be a reason for the move!
These are the top 5 stocks to be watching this week.
But it takes more than a watchlist to achieve consistent profits.
If you’re serious about becoming a successful trader, keep reading…
Trading Education
This is where your journey begins. If you can change your mindset from making money to learning, there’s hope.
New to penny stocks? Start with my FREE penny stock guide.
Also, get my best-selling book “An American Hedge Fund” here at no cost.
For the basics of my strategies, read “The Complete Penny Stock Course.”
And if you think you have what it takes, maybe the Trading Challenge is for you. Only apply if you’re willing to study hard. It’s not easy, but it’s where all my top students refined their skills.
**Apply for the Trading Challenge Today**
Trading Challenge students also get access to my daily watchlists. All successful traders make their own watchlists.
If you’re still on the fence about penny stocks…
Why You Should Consider Penny Stocks
You’ve probably heard people say “Penny stocks are scams.” Maybe your financial planner said, “Penny stocks are a very high-risk investment.”
Let me give it to you straight up…
Penny stocks are NOT long-term investments. They’re trading vehicles.
99.9% of penny stock companies fail. Or they do some weird pivot to whatever’s hot (like NFTs) and get a short-term spike. Then they suck again.
That’s what makes penny stocks beautiful. Other people think of penny stocks as investments. In other words, they believe the BS and hype.
Those are your enemies on the trading battlefield. They create massive volatility and THAT is what allows me and my top students to crush it.
The best part is, there’s a 7-step pennystocking framework you can use to identify common patterns.
Then, it’s a matter of discovering…
How to Choose the Right Penny Stocks to Trade
The world of penny stocks opened up when we created a tool that makes it easy. Heck, we even called it StocksToTrade.
That said, people often ask how to choose stocks. It would take you days to sift through a list of all penny stocks. Even a list of the 100 best penny stocks wouldn’t get you very far. You need to drill down.
Here’s where to start…
Look for Big Percent Gainers
This is my number-one criterion and always has been. I’m not interested in boring — especially to grow a small account. If you reach $9.7 million in trading profits like Jack Kellogg, you’ll earn the right to trade boring stocks.
StocksToTrade has several big percent gainer scans built in. Use it.
Look at the Exchange
This is important, especially in the beginning…
OTCs don’t trade premarket or after hours. That’s a good thing for beginners. Also, with OTCs, Level 2 data is more relevant. Once you start trading high-volume listed stocks, it’s more of a challenge to use Level 2.
Finally, some OTCs have a Pink Limited designation. Some even get the dreaded skull-and-crossbones Caveat Emptor label. Be wary of these stocks. I’m not saying to never trade them, just take extra caution. If you’re new, avoid Caveat Emptor stocks altogether.
Investigate the Company History
After a while you probably won’t need to do this. Why? Because you’ll understand why penny stocks are called “Wall Street’s gutter.”
Take off the rose-tinted glasses…
Some penny stock companies change names or sectors as often as we change presidents. At least understand that before you start trading. Where can you find the dirt? Find the ticker on the OTC markets website or SEC Edgar. Then start going through filings.
(Top tip: StocksToTrade has links to all SEC and OTC markets filings. Use it.)
For more on how to read SEC filings, see my DVD guide called “How to Read SEC Filings.”
You’ll get blown away when you start digging. Most of these companies have more skeletons in their closet than a haunted house.
Always Verify Their Claims
The next step is to look for a catalyst. Most big percent gainers move based on news.
This is key…
Don’t take a press release or company tweet at face value. Try to verify the company’s claims.
Again, most of these companies fail. Half the time they have no product and no revenue. Rest assured, they’ll still issue press releases about their “world-changing tech.” Or some big contract. Or a new gold mine, oil well, or metaverse property.
Most of it is absolute BS. Which is why you should NEVER believe the hype.
Instead…
Be Skeptical
That applies no matter what promoters tweet or what you heard in a Discord chat. THOSE are the biggest scams in this industry.
That’s why it’s so important to use StocksToTrade and get the Breaking News Chat add-on.
The Breaking News Chat guys are on top of promotions, chat pumps, and sketchy press releases. They alert it all in chat. That saves you hours of research sifting through so-called due diligence.
I would NEVER trade without StocksToTrade Breaking News. Get it today.
Rinse and Repeat to Add Penny Stocks to Your List
It’s as simple as that. Add more stocks to your watchlist by repeating the process. I keep roughly 20–30 stocks on my big watchlist.
Each day cull your list. Take one or two off or add them to a secondary list. Then add the day’s top percent gainers with a catalyst and volume.
Frequently Asked Questions About Penny Stock Lists
Studying my watchlist is a good start, but you need to learn…
How to Create Your Own Penny Stocks List
Whether you call it a penny stocks list or a watchlist, the process is the same. It’s not difficult but you might find it time consuming in the beginning. Go through the process described below. Like everything else in life, with practice and experience it will get easier.
How Can You Create Your Own Watchlist?
Start by looking for big percent gainers. For two decades, big percent gains have been my #1 criteria. After that, look at trading volume. Focus on high-volume stocks. Finally, try to find the catalyst or reason behind the price action.
Should I Create a Watchlist Every Day?
All serious traders create a daily watchlist. If you’re serious about trading penny stocks, a daily watchlist is essential. No excuses.
Does Tim Sykes Provide a NO-COST Watchlist?
Yes. Subscribe to my weekly penny stock watchlists below.
For more information and a detailed guide on how to create a watchlist, read “Stock Watchlist Guide: Tips & Examples to Develop Your Own.”
How to Use the Top Penny Stocks List Weekly Update
When you read the weekly penny stock list (and the monthly watchlist), don’t think of them as hot picks. Frankly, sometimes they’ll be duds. That’s why it’s called a watchlist. Welcome to penny stocks.
👉🏼 SUBSCRIBE to my NO-COST weekly stock watchlist here.
It all starts with looking for big percent gainers. Try to figure out why I’ve put the stocks on my list. Study so you can help yourself become a self-sufficient trader. Only fools chase hot picks.
Conclusion
Bookmark this post and keep coming back. Every Monday (unless the market’s closed), I update this with my top penny stocks to watch for the week.
Start making your top penny stocks list today. It’s like exercise — at first it’s a little uncomfortable. But the more you do it, the easier it becomes. Review the steps to create your own watchlist above
What do you think about this penny stocks list? Comment below, I love to hear from all my readers!
The post Top Penny Stocks List: May 16, 2022 appeared first on Timothy Sykes.