5 of the Cheapest Penny Stocks to Watch and Trade in 2020

cheapest penny stocks

The cheapest penny stocks can draw in a lot of buyers. That’s because of their low prices.

These stocks can be a great way to grow a small account. It’s how I’ve made over $5.9 million in over 20 years of trading.* And in 10+ years of teaching, my students have learned from my favorite patterns to become self-sufficient traders.

You can grow an account by trading the cheapest penny stocks…

But it’s not easy. That’s why I teach. I want to help anyone who’s dedicated become a consistent trader.

I’ve learned how to spot the best penny stocks to buy for my strategy and I want to help you do the same. Don’t think you’ll get rich quick. You have to set goals, commit, and study your butt off until you have the knowledge to accomplish those goals.

There’s no one thing that can help you learn to trade. It’s all about the process. So let’s look at how you can learn to find the cheapest penny volatile later in the day than in the after-hours market. This is when traders and investors close out positions or spot stocks to buy now.

(*Note that these results aren’t typical. My students and I put in the time and dedication and have exceptional skills and knowledge. Most traders lose money. Always remember trading is risky … Never risk more than you can afford.)

What Is Considered a Cheap Penny Stock?

A penny stock is a security that trades for under $5 per share. Now, there isn’t a specific definition of a cheap penny stock … But I consider anything trading under $1 per share a cheap penny stock.

When a stock trades for under $1 per share, it will most likely be on an over-the-counter (OTC) market. They’re not listed on the big exchanges like Nasdaq, NYSE, or AMEX. For a company to list on any of those exchanges, the stock has to maintain a price of over $1 per share.

That brings up a good question…

Is It Risky to Trade the Cheapest Penny Stocks

All trading is risky, no matter the niche. If someone tells you their strategy is 100% successful, they’re lying!

Ask if you can see all of their trades. Traders or ‘gurus’ like that aren’t transparent like me. I show all of my trades on Profit.ly.

And I’m determined to be real in an industry full of fakes. Because of that, I get a lot of haters. I don’t care. Some people only want hot stock picks. But I want you to learn to be self-sufficient. You need to learn to think for yourself.

If you blindly follow alerts and click the buy or sell button when someone says to, you’re not learning anything.

The volatility in the cheapest penny stocks can be insane. Especially in 2020. These stocks can move fast. That’s another reason you can’t rely on alerts alone. I send my students alerts, but that’s to help them learn the process.

This industry with the cheapest penny stocks is full of lies, pumps, and promotions. I want to help you learn to use that to your advantage. Never believe the hype.

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It’s smart to be cynical in this niche.

When you’re cynical, you expect the worst out of every stock. And you’ll never be disappointed when you expect the worst.

Remember, most penny stocks are garbage companies that will fail. It can be risky to trade them, but they can bring so much momentum and opportunity. Be prepared so you can minimize your risk and take advantage of them.

Not sure where to start? This year I launched my 30-Day Bootcamp to help any trader build a solid foundation for the markets. For less than $100, you can start your trading education today. And you can work at your own pace. Get into the 30-Day Bootcamp NOW.

5 Cheapest Penny Stocks to Trade in 2020

2020 has been one of the wildest years in the history of the stock market. Let’s go over some of the cheapest penny stocks to watch and trade this year. Remember, these stocks move fast. Use these stocks as inspiration for your own watchlist.

Top Penny Stocks to Watch Under $1

Alberton Acquisition Corporation (NASDAQ: ALACW)

Alberton Acquisition Corporation is a blank check corporation, aka a special purpose acquisition company (SPAC). The company’s purpose is to acquire companies, engage in a share exchange, share reconstruction, and more. In 2020, blank check corporations are seeing increased momentum and volatility.

Check out the year-to-date chart from October 22…

cheapest penny stocks alacw
Alberton Acquisition Corporation YTD chart ending on October 22, 2020 — courtesy of StocksToTrade.com

This company has seen a few breakouts already this year and could see more. If there’s a catalyst that brings in heavy volume, this stock could see big potential upsides.

Youngevity International, Inc. (NASDAQ: YGYI)

Youngevity International, Inc. makes and distributes health and nutrition-related products. The company has three segments of operation — commercial coffee, commercial hemp, and direct selling.

Take a look at this chart…

cheapest penny stocks ygyi
Youngevity International, Inc. YTD chart ending on October 22, 2020 — courtesy of StocksToTrade.com

This year there have been multiple days with extremely high volume. On October 23, 2020, around 45 million shares were traded for this company. That momentum brought lots of upside.

I always say I’m a glorified history teacher. You have to remember that history often repeats itself. Former runners deserve a spot on your radar … These stocks tend to follow similar patterns as they have in the past.

Tengasco, Inc. (AMEX: TGC)

Tengasco, Inc. is a company that works with the exploration and production of oil and natural gas. The company operates in Kansas.

Here’s the two-month chart…

cheapest penny stocks tgc
Tengasco, Inc. 2-month chart ending on October 22, 2020 — courtesy of StocksToTrade.com

Oil plays have been hot lately even though the sector is slowly dying. I had several students report banking on this play already this year.* If there are continued news catalysts, this stock could have another breakout.

Top Penny Stocks to Watch Under 10 Cents

Galaxy Next Generation, Inc. (OTCQB: GAXY)

Galaxy Next Generation, Inc. is a holding company. The company’s purpose is to provide exit plans for owners of small profitable businesses.

Check out the six-month chart…

cheapest penny stocks gaxy
Galaxy Next Generation, Inc. 6-month chart, October 22, 2020 — courtesy of StocksToTrade.com

Over the past few months, this stock has had some crazy volatile days. On multiple days it traded hundreds of millions of shares. On August 10, 2020, this stock traded 1.6 billion shares!

That’s exactly what my students and I look for in this niche. And I can teach you how to trade high-volume cheap penny stocks…

That’s why my student Matthew Monaco and I worked together on an awesome new program for traders. We took all of my top lessons from over the past 20+ years of trading and put it into the 30-Day Bootcamp.

If you want a shot at being a consistent trader, start with the 30-Day Bootcamp. Watch my free YouTube videos. Read my free book “An American Hedge Fund” to understand my trading journey and passion for teaching.

There’s so much you can learn about trading even the cheapest penny stocks for free or no cost. Then when you’re ready, apply for my Trading Challenge. But only if you’re truly dedicated.

I make all these resources available to you because I want you to succeed. You can’t be lazy like all the losers. You have to put in the time and study if you want to accomplish your goals.

Cerebain Biotech Corp. (OTCQB: CBBT)

Cerebain Biotech Corp. is a biomedical company that focuses on the development of a minimally invasive implantable device. The device is used for the treatment of Alzheimer’s disease.

Check out the three-month chart for Cerebain Biotech Corp…

cheapest penny stocks cbbt
Cerebain Biotech Corp. 3-month chart, October 22, 2020 — courtesy of StocksToTrade.com

Study this chart! This is a classic breakout pattern. My students and I look for these types of plays every day.

This stock went from about $0.0007 per share to more than 2 cents a share. Ever since this stock broke out, it hasn’t looked back. Put this on your penny stock watchlist and keep an eye out for more big moves…

What Is the Cheapest Penny Stock?

You can find penny stocks all the way down to almost $0. Some stocks list for as little as $0.0001.

Any stock with three zeros after the decimal point is known as a ‘trip-zero’ penny stock. Until they’re worth at least 1 cent, they’re known as sub-penny stocks.

Sub-penny stocks are one reason why people love to hate penny stocks. But they just don’t understand the rules they need to trade in this niche. If you know how to ride the momentum, even sketchy stocks can make for good trades.

Never buy a sub-penny stock without a plan. Otherwise, you’re just setting yourself up for failure. When you fail to plan, you’re planning to fail.

What Are the Best Brokers to Trade the Cheapest Penny Stocks?

Picking which broker to use for trading the cheapest penny stocks is important. For example, if you went with Robinhood, you’d soon be disappointed with your decision. Robinhood doesn’t allow you to trade OTC stocks.

When picking your broker, you need to do your research and ask yourself a lot of questions…

Are you a long- or short-biased trader? Do you trade volatile momentum stocks or slow-moving stocks? Are you looking for commission-free trading? How much money do you have to start trading?

All of those questions can help you hone in on the right broker for you. I go with the brokers that suck the least. Read more about the brokers I use and why here.

Conclusion: Should You Trade the Cheapest Penny Stocks?

The cheapest penny stocks can offer trading opportunities. But you have to put in the time and dedication so you understand how to play the patterns.

You need a well-rounded strategy to find the best penny stocks to buy now.

Penny stocks are risky, just like all other stock trading niches. Studying your butt off can help minimize that risk. I became a teacher to help traders learn to trade safely and manage their risk.

But you also need experience. That takes time. So be ready to do the work when you apply for my Trading Challenge.

I have so many resources available to help traders better understand the market. And I’m dedicated to being fully transparent as a trader and teacher in an industry full of fakes. I love being real!

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There have been so many opportunities in 2020 for prepared traders. It’s also a great time for traders to learn and get ready for the next hot market and the best penny stock trades. The market repeats itself. Study the present and the past to better prepare for the future.

Some of the cheapest penny stocks can have insane volatility and spike big. Study up and prepare your watchlist now.

What do you think about trading the cheapest penny stocks? Leave a comment below!

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