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This week’s top penny stocks list has summer doldrums all over it. Things have slowed down. July was my smallest profit month since February 2020... LOL I didn't even realize it was month-end until so many https://t.co/occ8wKmlgm students started posting their recaps, +$33k for me in July, I think that's my worst month of 2021 & maybe even since the beginning of the pandemic...but screw it, I'm also having a blast in Europe! — Timothy Sykes (@timothysykes) July 30, 2021 Thankfully, we still have press releases and promoters to keep things moving. But A lot of stocks are one-day spikers — which means you have to be ready. And it’s key to NOT hold and hope. The big question: how long will it last? I won’t try to guess. As always, I’ll watch and learn. My goal is to trade only when something fits my patterns to a T. Let’s do this... Top Penny Stocks List: August 2, 2021 As you go through this week’s penny stocks list, remember… Market environment is one of the seven indicators you should look at. Last week there were breakouts with no follow-through. Trading volume was down. That makes for one-day runners and choppy trading. These are the OTCs I’m watching this week... And here are the listed stocks I’m watching... 3 Penny Stocks to Watch This Week These are just a few of the stocks I’m watching this week. Be sure to check out the monthly watchlist, too. Top Penny Stocks List #1: Drone Guarder Inc. (OTCPK: DRNG) Drone Guarder is yet another dark or defunct OTC trying to regain ‘current pink’ status before SEC rule 15c2-11 goes into effect on September 28. On July 14, the company entered a share purchase agreement with Video River Networks Inc. (OTCPK: NIHK). The deal gives Video River Networks a 55% controlling share of Drone Guarder. The company hasn’t submitted any filings to OTCMarkets since 2018. Its last press release was in 2019. Meanwhile, information for investors comes via the Drone Guarder Twitter account. Check out the DRNG one-year chart… DRNG was up 60% on Friday, closing at a 52-week high of $0.108. I’ll watch for potential dip buys into any big panic. And I’ll also watch for any big spike, ideally with volume and news. See details of my DRNG trades here.* Top Penny Stocks List #2: RushNet Inc. (OTCPK: RSHN) RushNet Inc. is a holding company. RSHN spiked 1,815% in June after the company acquired diagnostics lab heliosDX. RSHN started moving again on July 15 after the company announced its first new board member. On July 26, the company announced it will feature in a six-part interview series. The company also appointed a new chief operating officer on July 28. Check out the RSHN one-year chart... RSHN is off its June highs. But it’s still up a lot from where it started and closed up 32% on Friday. I’m watching for potential dip-buys into any big morning panic. I’ll also watch for morning spikes with news and big volume. But I won’t trade it randomly, it needs to fit my patterns. See details of my RSHN trades here.* Top Penny Stocks List #3: NanoVibronix (NASDAQ: NAOV) NanoVibronix develops small, disposable, ultrasound therapy devices. On July 22, the company announced positive results from a study of patients using its UroShield device. The stock spiked 257% the following day. On July 26, the company announced it shipped the first order of PainShield Plus systems. On July 29, the company received registration approval for UroShield from TGA Australia… CEO Brian Murphy said, “Approval in Australia is yet another material milestone towards full commercialization of our products, particularly given the rigorous standards by which our UroShield device was measured by TGA. “We are enthusiastic about partnering with DukeHill HC, an industry leader with significant sales resources and strong distribution capabilities in Australia. DukeHill HC have already placed their initial order validating their confidence in the technology and market potential, which we are on schedule to fulfil in the coming week, which should lay a firm foundation for immediate revenue recognition.” Read the full press release here. Here’s the NAOV one-year chart... As you can see, NAOV is choppy, which isn’t my ideal setup. I’m watching for potential dip buys into any big morning panics. But I’m in no rush to buy randomly or chase it too high. Let’s look at a trade from last week... Trade Review This week’s trade is another example of why I use StocksToTrade Breaking News.** Yes, I’m an investor. Call me biased. But if I wasn’t an investor, I’d still use it. That’s how good it is. I’m proud to be an investor in such a high-quality service. Adhera Therapeutics, Inc. (OTCPK: ATRX) Adhera Therapeutics is a clinical-stage biopharma focused on identifying advanced drug candidates. On July 29, the company announced a licensing agreement for a Parkinson’s Disease candidate. StocksToTrade Breaking News alerted it before the market opened. Check out the chart with my entry and exit comments. (Notice I took two trades. I’ll explain both below.) ATRX chart: July 29, STT Breaking News and first green day plays — courtesy of StocksToTrade.com On the first trade, I only got a partial fill because it was moving so fast. I’d seen the news premarket thanks to STT Breaking News. Even though it was a small position, it was an 80% win for a $990 profit.* ATRX kept going and more than doubled from my buy alert. I rebought it in the afternoon as it fit my first green day setup. It pulled back but was still holding big gains with a strong news catalyst. But there was one more thing I looked at… On July 28, Halberd Corporation (OTCPK: HALB) had similar price action. It also spiked big with a similar news catalyst, had a pullback with consolidation, and closed strong. So my thesis on the second ATRX trade was based, in part, on watching HALB the day before. The percent gain on the second ATRX trade was smaller at roughly 32%. But a bigger position size led to a $1,365 profit.* Monday Motivation Last week I shared a little insight into why risk-taking is important in life. But I also emphasized that you DO NOT have to take big risks in trading. Nor should you, especially in the beginning. Let’s burn it into your brain this week. You’ll see why when you read the ‘Student Q&A’ section below. First, check this out… One of the most famous poems in the English language is “If” by Rudyard Kipling. It’s about equanimity. But it often gets quoted out of context. Here’s a stanza from the poem as an example… If you can make one heap of all your winnings And risk it on one turn of pitch-and-toss, And lose, and start again at your beginnings And never breathe a word about your loss — from “If” by Rudyard Kipling Pay attention — this is important. In context, that means taking risks is part of life. Most successful people fail, and fail again, before they’re successful. But a word of warning to anyone who quotes it out of context… Out of context, it’s just bad advice — especially in trading! NEVER risk everything going for a home run as a trader. For that matter, never risk even 50% of your account. I don’t know how many times I have to repeat myself, but I’ll do it again… Gain Consistency, THEN Size Up Trade small and focus on the process. Gain consistency with time and practice. Only THEN should you size up. No newbie should size up or risk big. EVER. How do I define a newbie? Anyone who hasn’t been trading for at least two years and doesn’t have hundreds of trades under their belt. You don’t need to make one heap of all your winnings and risk it on one trade. And you shouldn’t hold through 10%, 20%, 30%, or bigger losses. If you do something that stupid… PLEASE tell other newbies about it so they can learn, too. Again, I love the poem. But taken out of context it’s possible to get the wrong idea. Be aware of context and always keep things in perspective. Which leads me to this week’s... Trading Mentor Q&A This week’s question will help if you’ve ever wondered how I define max panic… “I went in 50% of my account on $FERN dip since the panic was max and got screwed big time. How do you trade a bounce like $FERN where it had so many failed bounces?” The simple answer is, you don’t. I tried. But it didn’t bounce so I stopped. See details of my FERN trade here. But this question brings up something important. What my student thought was max panic wasn’t. I don’t see max panic in this chart… FERN chart: July 27 intraday, not max panic — courtesy of StocksToTrade.com That’s a gradual decline. And it’s also exactly what I’m talking about when I call something a chop-fest. It dropped 11% and stuttered. Then 20% with a meaningless bounce. And it just kept doing it. Drop … bounce … drop … bounce … drop. That’s not max panic. It’s choppy, fugly, and frustrating. Now check out the July 12 intraday chart for DarkPulse Inc. (OTCPK: DPLS). This is what max panic looks like... DPLS chart: July 12 intraday, perfect panic pattern — courtesy of StocksToTrade.com Now that’s panic. There were no green candles on the way down. Just because a stock is down 35% doesn’t mean it’s max panic. You have to pay attention to more than just the percentage drop. Look at the price action. Are stop losses getting taken out? Does the sell-off speed up? Study the DPLS chart. The panic is the opposite of a ramp into a parabolic spike. There’s a frenzy … a frothiness. Which leads to... This Week’s Top Tested Trading Tip The student who put 50% of his account into one trade because he thought it was max panic was wrong. He was dead wrong about it being max panic. And he went WAY too big. This is why I teach students to trade small in the beginning. Never size up when you don’t even know the patterns or what price action to look for. Do you see people who can barely swim trying to do Olympic-level dives with five somersaults? NO! If you go too big and win, you learn the wrong lesson. If you go too big and lose, hopefully, you learn the right lesson. So learn... Millionaire Mentor Four years ago, Jack Kellogg had his first green month as a trader. He made total profits of $1,030.* It came after six months of losing … Loss after painful loss. That first green month was a drop in the hat compared to what Jack is doing now. (Check out Jack’s Profit.ly chart here.*) But it was an important month in his journey. It showed him what’s possible… This is EXACTLY why I love teachings much! I want more dedicated students like @Jackaroo_Trades and more https://t.co/occ8wKmlgm student millionaires!!! WHO'S NEXT?!?!? WHO WANTS IT BAD ENOUGH AND IS WILLING TO STUDY HARDER/PUSH THEMSELVES FURTHER THAN THEY EVER THOUGHT POSSIBLE! https://t.co/DVTVo1kVXs — Timothy Sykes (@timothysykes) July 28, 2021 To so many new traders, Jack is a living legend. But he’d be the first to tell you that it’s all about hard work, preparation, and risk management. Keep in mind that Jack pushed himself hard. Maybe more than any previous student. He’s an outlier. He truly is a living legend. But the key is that he started small and focused on the process. Over a decade of teaching, I’ve seen that your early losses and gains don’t matter. They’re irrelevant. What can you learn? What rules, strategies, and patterns can you implement into your own process? Can you refine your process over time? And… How much are you willing to grind when it seems like you’re going nowhere? At the end of 2019, when Jack had made roughly $160,000 after 18 months of grinding, he wondered if it was really worth it.* He decided to stick with it. Mindset Mastery © Millionaire Media, LLC In the book “Mastery,” George Leonard devotes an entire chapter to ‘loving the plateau.’ “If our life is a good one, a life of mastery, most of it will be spent on the plateau. If not, a large part of it may well be spent in restless, distracted, ultimately self-destructive attempts to escape the plateau.” Restless, distracted, self-destructive attempts to escape the plateau… That’s an almost perfect description of degenerate gunslingers… Traders who can’t walk away and never learn. They swing for the fences, learning the wrong lessons when they win. Everything worthwhile in life, anything you see people do at a high level, takes time. But what most people don’t understand is that there are always periods where it seems like there’s no progress. That’s the plateau. And it’s during the plateau that what you do becomes more than habit. It becomes who you are... Making a watchlist becomes more than something you do — it’s who you are. Journaling your trades becomes more than something you do. Again, it’s who you are. Focusing on the process instead of profits … becomes more than something you do. Trading becomes who you are. That’s what makes traders like Jack, Kyle, Matt, Tim Grittani, Bryce, Mariana, and other top students special. They learned to embrace the plateau, to love it, and to prepare for the next surge of learning. It shows on their profit charts. We CAN Do Better We live on an amazing planet in amazing times. Sadly, too many people have zero respect for innocent animals… View this post on Instagram A post shared by Timothy Sykes (@timothysykes) We must teach our children that animals deserve respect. This is the 21st century … not the dark ages. Please share and tag that video. To help Karmagawa support amazing charities, check out our charity apparel here. Karmagawa donates the profits to these organizations. One donation, one school, one animal at a time… We CAN change the world. Trading Education One thing I say over and over is that you have to find what works best for you. It’s why we offer so many different courses and styles of trading through Profit.ly. And it’s why you might want to check this out… On Wednesday my long-time friend Paul Scolardi is giving a presentation on meme stocks. If you’ve enjoyed watching the crazy action on stocks like GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC), this is a must-watch presentation. I’ll be watching, too. Join the free training below. (Yes, you have to submit your email address.) The Next $1 Million Meme Stock Summit Also, use these resources to further your trading education... New to penny stocks? Start with my FREE penny stock guide. Get my best-selling book “An American Hedge Fund” here. (It won’t cost you a penny.) For the basics of my strategies, read “The Complete Penny Stock Course.” Every trader NEEDS this book! If you’re ready to immerse yourself, the Trading Challenge is for you. But only apply if you’re willing to study hard. All my top students refined their skills as members of the Trading Challenge. **Apply for the Trading Challenge Today** Trading Challenge students also get access to my daily watchlists. All successful traders make their own watchlists. Studying mine (and those of other successful traders) is a good start, but you need to learn... How to Create Your Own Penny Stock List Answers to watchlist FAQs... © Millionaire Media, LLC 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. What do you think about this penny stocks list and weekly update? Comment below, I love to hear from all my readers! Disclaimer *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. The level of successful trading depicted in this article 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. This figure is taken from tracking user accounts on Profit.ly, a trading community platform. Timothy Sykes has a minority shareholder interest in the platform. I’ve also hired Jack Kellogg, Tim Grittani, Matt Monaco, Mariana, Bryce, and Kyle to help in my education business. **Tim has a minority ownership stake in StocksToTrade.com.