These days, it seems everyone’s a day trader and after hot penny stocks.
I can’t say I blame them. Since the coronavirus hit earlier this year, SO many people have a lot of free time.
And what better way to spend it than learning how to trade penny stocks, right?
The issue is, most newbies don’t put in the proper amount of work it takes to find consistency in this niche. Heck, some newbies don’t even know where to go to find hot penny stocks.
Too many newbies find one penny stock that they believe has a ton of potential…
But let me tell you … virtually none of them do. Almost all penny stocks fail. That’s why I trade them instead of investing in them.
But none of that matters if you don’t know how to find the hot penny stocks to buy.
New to penny stocks? Get my FREE online guide here.
So let’s look at some hot penny stocks of 2020 and how you can find them on your own.
Table of Contents
- 1 How to Find Penny Stocks to Buy
- 2 3 Hot Penny Stocks to Consider in 2020
- 3 Hot Penny Stock Under $1
- 4 Frequently Asked Questions About Hot Penny Stocks
- 5 Conclusion – Penny Stocks to Consider Now
How to Find Penny Stocks to Buy
Let me paint you a picture…
You’re on your phone and your friend texts you about some hot penny stock. They tell you it’s got SERIOUS potential for growth 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 know SO many newbie traders who rely on the word of others to find the hottest stocks.
Here’s the thing … By the time they tell you about it, it’s almost always too late.
You need an easy tool that shows you the hottest stocks as they’re gaining momentum.
Let me tell you … I’ve been in this game long enough to know how dangerous it is to chase a hot stock.
You’ll usually end up buying at the top right before it falls — hard.
That’s why I recommend using a stock scanner — one that’s really beginner friendly.
Stock scanners search for the hottest stocks of the day and display them on your screen. Then, you can do further research and see if it’s something you wanna trade.
One of my favorite scanners ever is StocksToTrade. I use it every day. Not only does it scan for hot 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.
In fact, I attribute over a third of my 2020 profits to the Breaking News Chat feature. It’s helped me find a huge edge in my trading this year.
Sounds awesome, right? Don’t just take my word for it … Check it out for yourself.
(Please note: I’m an investor in StocksToTrade and I proudly helped develop it.)
3 Hot Penny Stocks to Consider in 2020
Westwater Resources Inc. (NASDAQ: WWR)
WWR is an example of a multi-day runner. Back in the early months of 2020, there were tons of charts that looked like this.
Now, penny stocks don’t go on as many crazy runs as they used to. When I see a chart like this, I get excited for its future potential.
But let me make this clear — don’t invest in these companies. I actually don’t care if it goes to $50 or if it goes to $0. I trade these stocks based on intraday action.
Most of the time, these stocks end up falling back down to where they came from. WWR might do the same.
And if it does … so be it. All I know is that it went from $1.5 per share to over $5 per share in about a week.
That tells me there could be some potential for a future move. And that’s exactly how you gotta treat these types of stocks.
Keep WWR on watch over the next few weeks. If it holds up, it might present some other great opportunities.
CTI BioPharma Corp. (NASDAQ: CTIC)
Here’s another example of a multi-day runner — something that hasn’t shown up as much in the past month.
Most stocks that gap up like this end up failing pretty quick…
CTIC is holding up. This stock is a biotech company, which is a red flag.
See, a lot of penny stocks engage in toxic financing. Since most penny stocks don’t make money, they dilute the stock price so insiders can cash out.
But biotechs can be even worse. Why? Because almost all biotech companies — even some larger companies — don’t profit. So when a penny stock biotech company runs, it’s almost always to engage in toxic financing.
Here’s the thing, though…
I don’t care what their plans are. All I care about is riding the hype. If this stock holds up for a while and keeps making good moves, that’s all that matters to me.
It’s all about having the right mindset. Never invest in these scammy companies — trade them instead. If you can see through the BS news, you’re already a step ahead.
Ready to build your trading foundation? Start with my 30-Day Bootcamp. You get video lessons, worksheets, and quizzes to guide you through the core lessons I’ve learned in over 20 years of trading penny stocks. Get into the Bootcamp here!
SPI Energy Co. Ltd. (NASDAQ: SPI)
This seriously might be one of the craziest runners of 2020.
Sure, there have been stocks that made great multi-day moves…
But nothing quite like SPI. Before its gap up, SPI traded at under a dollar per share. Within a single day, SPI ripped over 5,000%, squeezing out shorts BIG time.
This happens almost once a year. After a month or two of a slow market — especially after a hot market — something comes along and rips off the faces of newbie shorts.
I honestly don’t know if SPI will ever make that same move again…
But it’s still up over 500% from its previous lows. Regardless of how beaten down this chart looks, I think it’s still got potential for another run.
In fact, this could be setting up for a variation of the first green day pattern. After such a crazy move and then a beat down, these stocks usually tend to give another bounce.
How big will it bounce or how long could it run? No one can know for sure. But SPI is certainly a hot penny stock you need to keep on watch.
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Hot Penny Stock Under $1
NaturalShrimp Inc (OTCQB: SHMP)
SHMP was one of the hottest OTC runners last year. Now, it looks to be setting up for another potential run.
In fact, this is a stock that many of my top students reported fat trades on at the beginning of 2019.
After trading at under 3 cents per share, the stock ran up to almost $1 per share within a few weeks.
Now, the stock’s doing the same thing once again. After trading for under 3 cents per share this year, the stock spiked up to almost 20 cents per share in a matter of weeks.
Once again, SHMP is consolidating well above its lows.
I’d love to see this former runner give us another run to trade. It’s not worth getting in early — as is the case with any hot penny stock — but if it sets up a pattern, it’ll be a top watch.
But always remember…
There’s a story behind every run. There are almost no “good” penny stocks and OTC stocks. These runs are usually a way for promoters to take advantage of newbie traders who think they’ve found the next big thing.
Don’t fall for it. Ride the hype when it happens and don’t overstay your welcome. But at the very least, keep these stocks on your watchlist.
Frequently Asked Questions About Hot Penny Stocks
Which Hot Penny Stocks Have Potential to Skyrocket?
All hot penny stocks have the potential to skyrocket. But you need to learn to find which ones have the most hype and know how to ride the momentum. Keep a watchlist and use smart tools that can help you find the best penny stocks for your strategy.
Can Penny Stocks Make You Rich?
Yep! I’ve made almost $6 million trading penny stocks over my career with these sketchy stocks.* I even have a student who’s now made over $12 million.* It all comes down to your dedication to learning and knowing which hot penny stocks to look for.
What Is the Hottest Tech Stock to Consider for 2020?
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 penny 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 you never want to buy one just because it’s cheap. You need a plan and a strategy. I trade stocks from under a penny to over $10 per share. And I use the same patterns I’ve learned from 20+ years in the market. It all depends on which types of hot penny stocks are right for your strategy.
Conclusion – Penny Stocks to Consider Now
There’s always gonna be a new hot penny stock to buy — it’s your job to find them.
You need to make sure you’ve got the right tools set in place to scan for them, though. Remember, you don’t need some fancy machine to find these things — just easy-to-use software.
But more importantly, never believe the hype. Almost all penny stock companies are around for one purpose…
To use toxic financing to raise money. It’s a scammy way of hurting investors while benefiting insiders of the company.
You don’t want to be on the wrong side of this. Learn how to ride the hype of the hot penny stocks while keeping yourself safe from the inevitable dump. It all comes through hours, weeks, months, and years of studying.
Wanna learn how to ride the hype? Consider applying for my Trading Challenge. It’s where you can access over 6,000 video lessons, countless hours of DVDs, webinars, and so much more. It’s where all my top students found their stride.*
But be warned — I only accept the most dedicated of students to my Challenge. I don’t have time for lazy people who want to get rich quick.
I want to hear from you …What hot penny stocks have you’ve seen and traded in 2020? Let me know in the comments below!
*Please note: My results, along with the results of my top students, are far from typical. Individual results will vary. Most traders lose money. My top students 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.