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Penny stocks Watch lists

10 of the Best Cheap Stocks to Watch

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Written by Timothy Sykes
Updated 1/17/2023 14 min read

What are the best cheap stocks to watch?

The answer to this question constantly changes. Nothing lasts long with penny stocks. That’s just another reason why traders should always cut losses QUICKLY.

I maintain multiple watchlists. That’s how I’m ready to pounce when I spot my go-to patterns. So let’s look at a few cheap stocks to watch that have been on my radar recently.

Do I think these companies are good? Nope. I expect the worst from this niche so I’m never disappointed. Sometimes I don’t even know what they do when I first trade them. I don’t care.

Just as most traders lose money, most of these penny stock companies FAIL.

That’s OK. you can still trade the momentum. You can find excellent trading setups in these chart patterns. That’s how I’ve made $7.1 million trading penny stocks over the past 20+ years.*

And while I’ll continue to stress the importance of working and STUDYING, today I’ve done a little bit of the DD for you. What can I say … I love to teach.

But enough small talk. Let’s dive into 10 cheap stocks to watch.

Cheapest Stocks to Watch Today

Cheap Stocks to Watch #1: Northwest Biotherapeutics (OTCQB: NWBO)

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NWBO is a development-stage biopharmaceutical company that creates immunotherapies to treat multiple forms of cancer.

The therapies are too complex to fully explain here. In short, they involve removing tumors surgically and then re-injecting the antigens from the tumors back into the patient, under the skin near the lymph nodes.

The stock has rallied 245% in the past year as traders speculate that NWBO’s DCVax treatment could eventually help treat some of the deadliest known forms of cancer.


Cheap Stocks to Watch #2: Drive Shack Inc. (NYSE: DS)

Texas-based “Topgolf” clone Drive Shack offers a hybrid golfing and entertainment experience. Customers can go to one of Drive Shack’s locations and enjoy food and drinks while smashing golf balls into a high-tech driving range. Drive Shack also owns American Golf, which “has operated premier private, resort, and daily fee golf courses … for over four decades.”

Makes sense to compare Drive Shack to Topgolf — an established industry leader with a similar business plan. In May 2021, legendary golf supplies company Callaway purchased a controlling stake in Drive Shack, indicating that the industry at large is bullish on the stop-and-golf sales model. Plus, Reddit loves this stock.


Cheap Stocks to Watch #3: Globalstar, Inc. (NYSE: GSAT)

Satellite solution company Globalstar offers customizable satellite commercial IoT solutions, connectivity for mobile and field personnel, fleet asset tracking, equipment monitoring, and enabling business efficiencies beyond cellular.

As the demand for secure satellite communications grows, Globalstar could potentially capitalize. The emergence of 5G and the interconnectedness of satellites with the electric vehicle industry also provide potential revenue streams for GSAT.

But the most compelling aspect of GSAT is the fact that WallStreetBets loves this stock, with one user seeing a whopping 1,000% upside. With the right catalyst and big volume, GSAT could go on a big run.


3 Cheap Stocks to Watch Under $10

Cheap Stocks to Watch #4: Wish (NASDAQ: WISH)

Peer-to-peer e-commerce platform Wish might be the most popular stock on social media right now. Unlike most online shopping platforms, Wish has no search bar.  Instead, the site relies on browsing technologies that personalize the shopping experience for each user.

But despite massive support from retail traders, the stock is stuck in a downtrend. The shares have lost more than 35% in the past month and 67% over the past six months. With this big of a drop in the share price, WISH could break out at some point soon. Watch accordingly.


Cheap Stocks to Watch #5: Talkspace Inc. (NASDAQ: TALK)

Imagine a mash-up of Zoom Inc. (NASDAQ: ZM) with your psychiatrist’s office and you have teletherapy platform Talkspace Inc. (NASDAQ: TALK).

This relatively recent IPO has gathered an impressive amount of interest on Reddit.

Sure they can talk the talk … but this company seems to be walking the walk, too. Talkspace reported 144% year-over-year revenue growth in Q1, adding that more than two million people have used its services already.

According to CEO and co-founder Oren Frank, “Mental health is increasingly recognized as an essential need, and we believe Talkspace’s unique ability to treat a wide spectrum of acuities is pivotal to address the vast, unmet, and growing demand for behavioral health services in innovative ways.”


Cheap Stocks to Watch #6: Nokia Corporation (NYSE: NOK)

Nostalgic telecommunications company Nokia was part of the initial batch of meme stocks in January. But it has since proven it has more to show for itself than just memes.

Nokia smashed Q1 2020 earnings estimates. Net sales were up 9% and gross margin up 37.8%. NOK also disclosed a net cash position of $4.4 billion and a comparable operating margin of 8.5%.

Nokia recently beat expectations on earnings and raised its full-year guidance. Earnings can be a great catalyst. This could make volume flood in — solid cheap stock to watch right now.


3 Cheap Stocks to Watch Under $5

Cheap Stocks to Watch #7: CarLotz Inc. (NASDAQ: LOTZ)

Used car e-dealership LOTZ provides an online platform where you can buy, sell, trade, or consign your vehicle. You do all of the paperwork through the CarLotz web platform and the car is soon delivered to your driveway.

What separates CarLotz from its competition is that the company doesn’t buy any cars, it only consigns and sells cars.

Some Reddit users refer to LOTZ as “the next Carvana” while pointing out high short interest in the name. And as we know from recent history, high short interest plus Reddit support can be incredibly bullish in the right market conditions.


Cheap Stocks to Watch #8: Akerna Corporation (NASDAQ: KERN)

Think “enterprise software for the cannabis industry,” and you’re pretty close to KERN’s function.

According to the company’s website, KERN “consolidates cannabis technology companies to connect data points in the global cannabis supply chain.” KERN also claims to be the first “cannabis software company to be listed on a major U.S. exchange.”

This company seems to be making some strategic moves. Over the past 18 months, KERN put together several acquisitions, outright buying solo sciences, Trellis, Ample Organics, Last Call Analytics, and Viridian Sciences.

Meanwhile, the stock is trading in a massive range — with a 52-week high of $10.22 and a 52-week low of $2.17. With KERN trading near the bottom of this range at writing, this could be a promising cheap stock to watch over the coming weeks and months.


Cheap Stocks to Watch #9: Transocean Ltd. (NYSE: RIG)

It’s hard to imagine that the world’s largest offshore drilling contractor trades for under $5, but these are the facts. Meet RIG.

At its peak in May 2009, RIG was trading for over $160. At writing, the stock is trading for just $3.61. That reflects the huge downgrade the broader offshore drilling sector has seen over the past decade as the world moves toward cleaner, greener energy.

But there may be some action behind the scenes at RIG. Certain social media traders have pointed out HUGE insider buying taking place in RIG shares over the past few months. That may indicate that company execs see a reason to load up more stock in the near term.

So what could this insider buying mean? It could be as simple as executives wanting more stock for their portfolios.

That being said, huge insider buys often come before major acquisitions, surprising earnings beats, and material shifts in the company’s outlook. That makes RIG a cheap stock to watch closely over the coming months.


Hot Stock Under $1 to Watch

Cheap Stocks to Watch #10. Jones Soda Co. (OTCQB: JSDA)

OK, I’m fudging a bit here. This stock is trading for just over $1 at writing. But I had to include it because it’s been on an absolute tear over the past few weeks.

Jones is best known for featuring soda flavors not offered by legacy beverage manufacturers. You’ve probably seen these flavors sitting near the bottom shelf in your local supermarket. The company has been around since 1986, surviving off of a small but devoted cult following for its all-natural, cane-sugar fizzy beverages.

But recent price action signals something besides carbon dioxide is bubbling beneath the surface with JSDA. Shares are up 67% in the past five days and more than 120% in the past month.

Why are the shares suddenly surging? Jones recently announced plans to begin marketing CBD and cannabis-infused products, causing a storm of retail trader interest. This is a cheap stock to watch closely. But with momentum this hot … be sure to trade with caution.


Frequently Asked Questions About Cheap Stocks to Watch

Can You Get Rich Off of Stocks?

Yes, it’s possible. But the vast majority of people who try to get rich trading stocks FAIL. You should learn from them as motivation for what not to do. If you want any hope of success, you must build your knowledge account. Even then, there are no guarantees.

What Happens If You Buy $1 of Stock?

Not much other than you own a very small amount of stock in a company. Remember that you can only buy $1 worth of shares on stocks that are trading below $1 without resorting to the use of fractional shares.

Can You Make Money Investing $1 a day?

I suppose it’s possible ... but you wouldn’t make much. You need to be realistic with your goals based on your account size. Just think about it. If you’re aiming for 20% a day and hit your goal, you’re only making 20 cents a day.

The Bottom Line on Cheap Stocks to Watch

Why do I love to trade penny stocks? The main reason is that if you know what to look for in these cheap stocks to watch, the chart patterns repeat over time. Then they repeat again. And again…

This is why if you work hard and STUDY you can develop a consistent trading plan. If you want to understand my approach to trading FAST — check out my Trading Challenge.

​​If you’re accepted as a student you’ll get access to thousands of video lessons, weekly live trading and Q&A webinars, and all my DVDs. Plus, you’ll have access to archived webinars from me and the top traders who help me moderate in the Challenge chat room.

But remember that all of the companies listed above are super risky stocks to trade. And whatever you do, don’t buy and hold. You need to have discipline and avoid FOMO in order to trade these tickers the right way.

If you’re looking to find more cheap stocks to watch, time to do your research. I suggest you use my favorite trading platform StocksToTrade.** I think it has the cleanest charts and best scans for finding new stocks.

Which cheap stocks are you watching now? Let me know in the comments — I LOVE hearing from my readers.


*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.

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.

**Tim Sykes has a minority ownership stake in StockstoTrade.com.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”