Hot catalysts and Twitter pumps drive this month’s top penny stocks to watch…
But I’m not chasing any plays or being too aggressive.
Summer is typically the slowest time in the market, so I’m picking only A+ setups. And September and October might not be much better. Historically, that’s when market crashes can happen…
So now’s the time to be disciplined and protect your account. Focus on stocks with catalysts that are working in the current market environment. Right now that’s stocks with OTC ‘pink current’ news and mask plays. Even junk penny stocks entering the crypto space are spiking.
That’s why these stocks made it on my list of top penny stocks to watch in August 2021…
Every day, I create a watchlist of five to 15 stocks to watch. 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.
(Sign up for my FREE weekly stock watchlist here.)
Let’s get to the list…
Top 5 Penny Stocks to Watch August 2021
Catapult Solutions Inc. (OTCPK: CPSL)
CPSL doesn’t have any significant business operations. It’s a former custodianship play.
On July 23, the CEO of the custodianship company resigned and sold the majority of shares to a private Japanese company and Next Meats Holdings, Inc. (OTCPK: NXMH).
Read the SEC report here.
Now the stock’s a huge Twitter pump. It ran for multiple days on the news. The higher it goes the more potential for a big panic.
I’ll watch it for a potential dip buy into any big morning panic or, ideally, a morning spike with news and big volume. It’s choppy, so not my favorite to trade, but I’ll watch it loosely in case it fits one of my patterns.
Net Savings Link Inc. (OTCPK: NSAV)
NSAV is a crypto, blockchain, and digital asset tech company.
On July 26 the company announced its cryptocurrency exchange is on schedule to launch on August 9.
Read the press release here.
The stock broke out to new 52-week highs on July 29 and had an impressive continuation move on July 30. It could go higher and be a ‘buy the rumor, sell the news’ type play. But I won’t chase it. I’ll watch for a potential dip-buy into a big panic.
Cyberlux Corp. (OTCPK: CYBL)
CYBL is a lighting company that previously ran on hype about government contracts that were old news.
Recently it ran on news that it’s working to get pink current status on OTC markets. The company filed its 2019 report on July 29. You can read it here.
This type of news has spiked a lot of OTCs since the SEC implemented the September 28 deadline for companies to file current reports.
It’s also getting pumped on Twitter and in Discord chat rooms.
I’ll watch for a potential dip-buy into any big morning panic. But it’s not the biggest percent gainer like I prefer, so just watching for now.
KYN Capital Group Inc. (OTCPK: KYNC)
KYNC’s another crypto stock. It’s a holding company for crypto, blockchain, and digital payments. Koinfold, its payment gateway, lets businesses accept crypto for online transactions.
The company recently hired ArtistRelations.com as a consultant to promote its Koinfold app in the music and entertainment industry.
I’ll watch this recent spiker for potential dip-buys into any big morning panics.
Allied Healthcare Products, Inc. (NASDAQ: AHPI)
AHPI is a medical device company and the hottest mask stock in the market right now.
The stock was up over 60% on July 30 as part of a giant short squeeze. The gains were also due to new reports that the COVID-19 variant’s as contagious as chickenpox and the CDC’s new mask mandate for public spaces, including vaccinated people.
The stock’s low float of fewer than four million shares means it can have volatile moves. If it gets over $11.60 it could have a massive short squeeze.
That’s it for the best penny stocks to watch for August 2021. Here are some tips on choosing stocks for your watchlist. Also, some answers to frequently asked questions…
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.
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.)
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 August 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.
… 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 in the August 2021 watchlist? Comment below, I love to hear from all my readers!
*Tim’s trading results are not typical and do not reflect the experience of the majority of individuals using the service. This level of successful trading is not typical and does not reflect the experience of the majority of individuals using the services and products offered on this website. From January 1, 2020, to December 31, 2020, typical users of the products and services offered by this website reported earning, on average, an estimated $49.91 in profit.
While Tim Sykes has enjoyed remarkable success trading stocks over the years, his primary income derives from the sale of financial education products and subscription services offered by various businesses and websites in which he has an ownership stake.
**Tim Sykes has a minority ownership stake in StockstoTrade.com.
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