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5 Hot Penny Stocks to Consider Now

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Written by Timothy Sykes
Updated 1/24/2023 13 min read

This past year has given a whole new meaning to hot penny stocks.

I think I’ve seen more opportunities in the 2020–2021 market than I’ve seen in a while. Maybe ever. But that doesn’t mean it’s easy trading.

There’s a common theme with newbie traders. Many don’t want to put the work in to find a real strategy … They’d rather chase hot picks or hold and hope on a losing trade. Some newbie traders might have what it takes, but maybe they don’t know how to find hot penny stocks to buy.

If that applies to you, you’re in the right place.

There’s a TON of potential for hot penny stocks in 2021, and I want to share my watchlist with you. The markets usually take a break this time of year, but as of now, they’re still chugging along.

So let’s look at some hot penny stocks today and how you can learn to build your own hot penny stock watchlist.

How to Find Penny Stocks to Buy

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Say a friend tells you about some hot penny stocks. They tell you these stocks have major growth potential and now’s the best time to get in.

Does that sound like the best way to find penny stocks?

I hope not. But I’ve seen SO many newbie traders blindly follow others to find the ‘hottest’ stocks.

Most of the time, when you hear about a stock from someone else, it’s already too late. So buying would mean you’re breaking a key rule by chasing.

Don’t be that trader.

Be prepared so you can find stocks that fit your strategy. This is why I HIGHLY recommend using a stock scanner, one that’s user-friendly.

StocksToTrade is my all-time favorite scanner. Not only does it scan for penny stocks, but it also has features like Breaking News Chat and Small Cap Rockets. These services alert news and stocks with a ton of momentum.

I use StocksToTrade every day. And I credit its Breaking News feature for a BIG portion of my 2020–2021 trading profits*. The trading pros who run it alert critical news catalysts FAST.

Full disclosure: I’m an investor in STT and helped develop it for the penny stocks I love to trade.

Want to see how it can help you trade each and every day? Check it out for yourself. A 14-day trial of StocksToTrade + Breaking News Chat is just $17.

Or you can get just StocksToTrade for 14 days for just $7. But consider all the hot news alerts you could miss … Now, let’s get to that watchlist.

5 Hot Penny Stocks to Consider in 2021

Before we go on, I gotta throw out a reminder…

Only trade a stock if it fits your plan perfectly. None of the stocks on this list are guaranteed to run. Anything can happen in trading … I’m simply watching these for potential future setups.

Trade with your head and always do your due diligence.

See what I’m watching every week — sign up for my no-cost weekly watchlist here.

Let’s see what made my list…

Hot Penny Stocks to Consider in 2021 #1: Asia Broadband Inc (OTCPK: AABB)

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You might’ve caught wind of this OTC runner when it went from 2 cents to almost 70 cents. If not, maybe you saw it bounce back from 10 cents to 60 cents.

Didn’t catch AABB on either of those moves? Don’t stress. I think it could have the potential to find support and possibly break out to new highs in the future.

It will be tough, but the price action on this stock has been impressive so far. Even with the overhead resistance, it went green for a week straight.

I’ll watch for major news or maybe another big first green day.


Hot Penny Stocks to Consider in 2021 #2: Tautachrome Inc (OTCPK: TTCM)

TTCM is an awesome former runner from 2019. I love former runners. They can show you key areas of support and resistance on the chart.

Also, traders might think “it ran before … maybe it can again.” This mindset can create a self-fulfilling prophecy with some stocks.

This stock is holding up well over a penny, and the daily chart looks like it could be a potential breakout setup.

But I won’t be speculative … I’ll only take the trade if the setup is there. With TTCM, I’ll watch for a big morning spike with high volume and preferably a news catalyst.


Hot Penny Stocks to Consider in 2021 #3: Cinedigm Corp (NASDAQ: CIDM)

Back in 2020, this stock had a huge gap up but went red on the day. Ever since then it’s been consolidating, figuring out which direction it wants to go. But after finding support at 50 cents, and then $1, it could be ready to make a move.

As of this writing, CIDM’s approaching a breakout near the $2.33 high from February 2021.

After a few slow weeks, it’s starting to get volume again. Who knows where it could go next.

But if you don’t have a solid trading plan, don’t trade. I want to see it hold up as it approaches the breakout. A big green day with breaking news could be a great signal to trade.


Hot Penny Stocks to Consider in 2021 #4: Halberd Corp (OTCPK: HALB)

HALB has been in serious consolidation since its multi-day run in October 2020. Now, it’s finally broken out to new highs.

I think this could have the potential to be a multi-day runner. There’s some resistance on the chart, but it’s from years back and pretty small. As of now, it looks like the sky could be the limit.

But I won’t just chase it up … That’s not a strategy for these stocks. I want to see the stock hold up above the breakout and shout “I want to go further” at me.

With enough interest and a solid dip-buying opportunity, I might take the trade. But I’ll keep tight risk and cut losses quickly.


Hot Penny Stocks to Consider in 2021 #5: Atari SA (OTCPK: PONGF)

PONGF is like a blast from the past. When I first saw Atari was trading on the OTC markets, I was shocked. Then it had an impressive breakout and I was even more shocked!

It’s gone from roughly 40 cents to over $1 this year … And I don’t think it’s quite done. Atari is a big name for the OTC markets. The brand alone could attract buyers because of familiarity.

After it settles and finds support, I think it could potentially have another breakout.

This ticker brings out my nostalgic side … I remember Atari from my childhood. But at this point in my journey, I’m too experienced to chase. I’ve developed a strict mindset.

I’ll watch it going forward. First, I want to see a new major support level form. After that, we’ll have to wait and see what happens. But no matter what, I’ll only take the trade if I have an edge.


Frequently Asked Questions About Hot Penny Stocks

Which Hot Penny Stocks Have Potential to Skyrocket?

All penny stocks have the potential to skyrocket. But you need to learn to find which penny stocks to watch — those that have the most hype. And you must know how to ride the momentum. Keep a watchlist every day and use smart tools that can help you find the best penny stocks for your strategy.

Can Penny Stocks Make You Rich?

Lots of people ask, “Has anyone ever got rich off penny stocks?” Yep! But it's NOT easy. I’ve made nearly $7 million trading penny stocks with these sketchy stocks.* One of my Trading Challenge students has gone on to make over $13.5 million.* Now he helps newbies in my Challenge chat room and webinars. It all comes down to your dedication to learning and knowing which stocks to watch and trade.

What Is the Hottest Tech Stock to Consider for 2021?

Penny stocks rarely stay relevant for long. The hottest penny stocks are usually the top percent gainers in the morning. Every day there can be a new hot stock with trade potential. It’s your job to use smart tools and a solid trading plan to find and trade them.

What Is the Cheapest Penny Stock to Buy Right Now?

There are so many cheap penny stocks. But never buy one just because it’s cheap. You need a plan and a strategy. I trade a wide range of penny stocks using the same patterns I’ve learned from 20+ years in the market. You have to find the stocks that are right for your strategy.

*Please note: My results, along with the results of top traders, are far from typical. Individual results will vary. See all my trades here. And see top trader Tim Grittani’s profit chart here. Remember, most traders lose money. These top traders and I have the benefit of many years of hard work and dedication. Trading is inherently risky. Do your due diligence and never risk more than you can afford to lose.

The Bottom Line on Hot Penny Stocks

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Penny stocks can offer some of the best risk/reward opportunities out there. Yes, many are crap. That’s why I don’t invest in them. I stick with day trading.

The goal is to find these penny stocks before they potentially run. Want to try sifting through a thousand charts on your own? Be my guest.

If not, use a stock screener to narrow down your search. StocksToTrade can help you find the stocks that fit your setups.

Most importantly, never fall in love with these stocks. They come and go. And many serve just one purpose … Using toxic financing to raise money. It may be immoral, but it’s legal. And if you aren’t careful, you could take a bad trade.

You don’t want to be on the wrong side of a junk stock.

Wanna learn how to ride the hype? Apply for my Trading Challenge. It’s where you can access thousands of video lessons, countless hours of DVDs, webinars, and so much more. It’s where several top traders found their stride and now give back to the community.*

But be warned — I only accept the most dedicated traders to my Challenge. If you’re just looking to chase wild runners, this isn’t the right place for you.

I want to hear from you … What hot penny stocks are you watching and trading in 2021? Let me know in the comments below!

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Author card Timothy Sykes picture

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”