Top Penny Stocks to Watch: Key Takeaways
- Can this crypto play make new highs after a major metaverse land acquisition? See stock #1.
- Stock #2 just acquired Walmart’s largest hearing aid supplier. How high can it go?
- Learn from my trades in two of these tickers and what I’m watching for now…
Here’s the list of top penny stocks to watch in December 2021…
- Tokens.com Corp. (OTCQB: SMURF … read my analysis here)
- Innerscope Hearing Technologies (OTCPK: INND … read my analysis here)
- Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX … read my analysis here)
- Biofrontera Inc. (NASDAQ: BFRI… read my analysis here)
- Zion Oil & Gas, Inc. (OTCQX: ZNOG… read my analysis here)
Top 5 Penny Stocks to Watch December 2021
December’s featured penny stocks are a mix of OTCs and listed stocks. And higher-priced stocks are having some insane moves and short squeezes recently. Here’s what I’m watching…
Tokens.com Corp. (OTCQB: SMURF)
Tokens.com is a Canadian blockchain technology company.
Key points about SMURF…
- SMURF provides digital asset validation and transaction process services.
- On November 23, the company announced it completed “the largest metaverse land acquisition to date” within Decentraland.
- It’s a higher-priced OTC that’s trading near its all-time high.
I’ll watch SMURF for a potential breakout to new highs.
Innerscope Hearing Technologies (OTCPK: INND)
Innerscope Hearing Technologies returns from last month’s watchlist. The company manufactures and distributes hearing aids.
Key points about INND…
- On November 29 INND acquired Hearing Assist — Walmart’s largest hearing aid supplier.
- It had its first green day after the news and I dip bought it for a small gain. See my trade details here.
INND’s a former supernova. But I think it needs more volume to go on another big run. I’m watching it for potential dip buys into any big intraday panic.
Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX)
Cumberland Pharmaceuticals develops prescription drugs.
Key points about CPIX…
- CPIX was up over 130% on November 30 after announcing FDA approval news.
- It’s a higher-priced listed stock with a low float of roughly 8 million shares.
I’ve seen a lot of these low-float runners explode due to overaggressive short sellers. I’m watching to see how far CPIX can run. And for a potential dip buy into any big intraday panic.
Biofrontera Inc. (NASDAQ: BFRI)
Biofrontera Inc. develops dermatological treatments for skin diseases.
Key points about BFRI…
- BFRI’s a volatile low-float stock with roughly three million shares.
- It had a huge move on November 24 after an analyst initiated coverage of the stock with a buy rating and $20 price target. (STT’s Breaking News Chat alerted the news.)
- On November 29, BFRI announced a private placement with an institutional investor.
- The company released third-quarter financials after hours on November 30.
BFRI isn’t truly ideal for me — it’s high priced and choppy. For now, I’m watching it for a reaction to earnings and one of my patterns.
Zion Oil & Gas, Inc. (OTCQX: ZNOG)
Zion explores for oil and gas in Israel.
Key points about ZNOG…
- ZNOG started to run on November 23. That’s when the company completed the drilling phase on one of its wells and teased upcoming tests.
- I bought the multi-day breakout on November 29 and held it overnight. See my trade details here. Of course, it continued higher after I sold…
I’m watching ZNOG for a potential dip buy into any big intraday panic.
How to Use This Penny Stocks 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 trade for $5 or less per share. These are the stocks of micro- and nano-cap companies. Many trade on the OTC markets, but you can find many penny stocks on the big 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 December 2021 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 penny stocks. 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 for December 2021 watchlist? Comment below, I love to hear from all my readers!
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