There are thousands of penny stocks out there, and you can’t keep up with all of them. That’s why I created this article — to help you learn which stocks are worth watching and which aren’t.
Before getting into it, I’ll warn you again: you shouldn’t buy anything from my penny stock lists blindly. Do your research, learn the history, and ensure it’s a good trade before committing. Be a smart trader, don’t gamble!
Despite what some analysts might say, penny stocks are not worthless or unimportant. While some newbies treat them like speculative products/investments and then blow up, trading them doesn’t have to equal gambling. They can help you build your account quickly with the right data and research!
Without further ado, read on for my top penny stock recommendations this week!
Table of Contents
- 1 What Is a Penny Stock?
- 2 Why Penny Stocks Are Great for Trading
- 3 How to Find the Best Penny Stocks to Trade
- 4 Top Penny Stocks List: May 19, 2023
- 5 Top 5 Penny Stocks to Watch This Week
- 5.1 1. Wisekey International Holding (NASDAQ: WKEY) — The Breaking News Chat Penny Stock Spiker
- 5.2 2. Fubotv Inc. (NYSE: FUBO) — The Earnings Winner Penny Stock
- 5.3 3. WiSA Technologies Inc. (NASDAQ: WISA) — The Reverse-Split AI Catalyst Penny Stock
- 5.4 4. GSI Technology, Inc. (NASDAQ: GSIT) — The Meme Penny Stock on Short Squeeze Watch
- 5.5 5. VivoPower International PLC (NASDAQ: VVPR) — The EV Penny Stock with News
- 6 Trading Education
- 7 Why You Should Consider Penny Stocks
- 8 How to Choose the Right Penny Stocks to Trade
- 9 Conclusion
What Is a Penny Stock?
A penny stock is a stock trading at less than $5 per share. You can trade penny stocks on major exchanges like the New York Stock Exchange (NYSE) and Nasdaq, but many of the penny stocks I trade are exchanged through over-the-counter (OTC) trades.
You can buy penny stocks on Robinhood, TD Ameritrade, Charles Schwab, and other stock brokerages. All of them allow you to trade penny stocks on major exchanges, but some of them don’t offer OTC trades.
Penny stocks are cheap and often sketchy, but they can build your trading account quickly if you trade well. They’re volatile and unpredictable, so you need a tailor-made strategy for penny stock trading.
Why Penny Stocks Are Great for Trading
Despite their (well-deserved) bad rap for being sketchy and unpredictable, I still primarily trade penny stocks. Why is that? Here are my reasons for trading penny stocks:
Small Accounts Grow Quickly
With penny stocks, you should go for singles instead of home runs. And they’ll add up. Penny stock trades are often faster than trades of listed stocks, so you’ll build your trading account faster than if you were trading pricier stocks.
Less Interference From Big Investors
Wall Street doesn’t like penny stocks because they see them as high-risk and sketchy, which isn’t wrong. However, their loss is our gain because you don’t have to worry about giant investment firms crashing penny stock prices by unloading their shares.
That said, the risk of trading penny stocks is real. You will encounter scams and unscrupulous companies trying to make a buck at your expense, so always research before trading.
Extended Price Moves
Fewer people trade penny stocks due to their sketchy reputation. Because penny stock trading isn’t as popular as other stocks, price moves typically play out over days, not minutes.
This isn’t to say that penny stock prices move slowly. Major price swings can lead to quick profits — or even quicker losses if you aren’t disciplined.
How to Find the Best Penny Stocks to Trade
I skip the fundamental analysis on penny stocks because most companies offering them have bad fundamentals. Instead of learning more about the company, the best way to understand penny stocks is to observe and understand. Learn their patterns and how their prices move to get a good feel of how the stock behaves.
Here are two things I do when looking for penny stocks to trade:
Study the History
Think of stocks like athletes — they won’t deliver the same performance every time, but they have their own styles and a track record you can learn from.
One of the best ways to find which penny stock to trade is to use software like StocksToTrade to create watchlists of past runners. Monitor your watchlist regularly, study their patterns, and spot the stocks that might make big runs in the future.
Understand the Charts
Technical analysis is my preferred method for picking penny stocks because penny stock companies usually don’t have good fundamentals. Technical analysis involves identifying trends and patterns in penny stock movements.
I don’t have any magic tricks for technical analysis aside from practice, practice, and practice. Analyze as many charts as you can, make trades, and learn with every win or loss.
Top Penny Stocks List: May 19, 2023
There are always plays to make in the small-cap market …
But there are times to get aggressive, and times to be cautious.
Right now it’s time to trade more cautiously/conservatively.
There’s a decent amount of fear in the markets.
The recent bank crisis inspired a degree of wariness among investors.
And while my niche doesn’t directly relate to the bank issue, three out of four stocks follow the market.
Which means, if there’s bearish sentiment, there will be fewer spikes in my niche. In addition to that, any potential spike will likely top out earlier than a spike during a bull market.
We’ve got to keep our expectations in check. That’s how pro traders protect their accounts in choppy markets.
I can’t take more than the market is willing to give me.
My job is to show up, play the patterns as I see them, and protect my brokerage account.
Either way, I’m trading safely.
I’m seeing lots of spikes with no follow-through…
I’m sticking to my rules and you should too. I like trading multi-day runners, which gives me confidence that they will bounce well off of the panics I like to trade.
There are still opportunities in this choppy market. Just make sure to keep your risk tight.
Think like a sniper. A sniper can watch a target for days, weeks even. When the right moment comes, they’re prepared.
Top 5 Penny Stocks to Watch This Week
My top penny stock recommendations to watch this week are:
- (NASDAQ: WKEY) — Wisekey International Holding — The Breaking News Chat Penny Stock Spiker
- (NYSE: FUBO) — Fubotv Inc. — The Earnings Winner Penny Stock
- (NASDAQ: WISA) — WiSA Technologies Inc. — The Reverse-Split AI Catalyst Penny Stock
- (NASDAQ: GSIT) — GSI Technology, Inc. — The Meme Penny Stock on Short Squeeze Watch
- (NASDAQ: VVPR) — VivoPower International PLC — The EV Penny Stock with News
Some of these stocks might give you déjà vu…
My watchlists aren’t rocket science. They’re a product of paying attention to what’s already happened.
The stocks on this list are mostly former runners with recent news. That means I’m not the only one paying attention to them.
Here’s your disclaimer: there are a lot of factors to consider when trading penny stocks. The markets won’t forgive you if you trust in random chance instead of studying price patterns and trading selectively.
The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.
1. Wisekey International Holding (NASDAQ: WKEY) — The Breaking News Chat Penny Stock Spiker
My first penny stock pick is Wisekey International Holding (NASDAQ: WKEY).
And I’ve already used the Breaking News chat to trade this stock.
It’s my favorite tool …
I often say that trading is a lot like going to war. The ones with the best weapons usually win. And the chat is like my nuclear missile.
Get your 14-day trial of Breaking News Chat and StocksToTrade today — only $17!
I’ve made a total of $17,947 trading WKEY since 2020 (click the link for individual trades). And 50% of the trades I couldn’t have made without the speed and accuracy of Breaking News Chat.
Most recently, the price launched over 90% on March 15 as the CEO met with Elon Musk to discuss some space stuff.
I made $1,152 after the news dropped (starting stake $3,120). Now I’m waiting for follow-up moves.
We often see stock volatility last for a few days. Sometimes even weeks.
That’s why I watch former runners like WKEY. You never know when they’re gonna run again.
2. Fubotv Inc. (NYSE: FUBO) — The Earnings Winner Penny Stock
My second penny stock pick is Fubotv Inc. (NYSE: FUBO).
A common catalyst we see in the stock market is bullish earnings.
Listed companies have to report quarterly earnings to update investors on business operations.
Now and then, we see an earnings report cause a stock to spike. It’s what we call an earnings winner.
On May 5, FUBO announced quarterly data that spiked the price by more than 90%.
And right now it’s consolidating under $2.
I’ve managed to make $3,470 in total from this ticker (click the link for individual trades). I’m ready for more volatility.
I’m watching for the next run.
3. WiSA Technologies Inc. (NASDAQ: WISA) — The Reverse-Split AI Catalyst Penny Stock
My third penny stock pick is WiSA Technologies Inc. (NASDAQ: WISA).
This list is full of tickers I’ve already traded …
WiSA was a one-time win for me back in March. But I’m hungry for more …
So far I snagged a cool $570 (starting stake was $10,950). And that was before the most recent spike.
There’s a lot to like about this stock.
The stock’s float is a good size at 14 million shares. That’s after a 1-for-100 reverse split.
However it got there, the float is now small enough for the price to move on hot news like its recent acquisition of an AI audio company.
The AI sector has been hot for a few months now. And this company has the added benefit of operating in the semiconductor business — another hot sector.
So far, WISA managed to spike over 160% in May. I think it can push higher.
4. GSI Technology, Inc. (NASDAQ: GSIT) — The Meme Penny Stock on Short Squeeze Watch
My fourth penny stock pick is GSI Technology, Inc. (NASDAQ: GSIT).
Sometimes find a stock spiking that shouldn’t be.
Or at least, it appears as though there isn’t a catalyst.
Take the legendary GameStop Corporation (NYSE: GME) for example. The company wasn’t posting record revenues or expanding business. And yet, in 2021 the price spiked more than 2,300%.
It was all thanks to a short squeeze.
LOL HILARIOUSSSSSS $GME #wallstreetbets #gamestonk #RedditTrading #GameStop https://t.co/Ur610ME8a2
Overzealous short sellers hung around waiting for GME to go bankrupt. They had a good plan, the stock was pretty much worthless and the business was outdated. But even the best-laid plans of mice and men often go awry …
Eventually, some of the shorts had to buy to cover. And that bullish momentum created a tidal wave of panicked short sellers. They had to buy to get out. All that buying can spike the price incredibly high.
And it’s happened to stocks since GME … GSIT is a recent example.
The price spiked over 340% in mid-May. And right now prices are creeping back toward the breakout level.
I’m excited to add to the $6,857 in profits I already grabbed from this former runner (click the link for individual trades) …
5. VivoPower International PLC (NASDAQ: VVPR) — The EV Penny Stock with News
My fifth penny stock pick is VivoPower International PLC (NASDAQ: VVPR).
We’ve seen some big EV runners in years past.
Tesla Inc. (NASDAQ: TSLA) was the sector leader for all that momentum.
But now the industry is starting to shift.
TSLA is losing market share to companies like General Motors Corporation (NYSE: GM).
As the sector grows, there will be more opportunities to profit from small-cap EV runners.
That’s where a stock like VVPR comes in. The price launched by more than 140% in early May as it announced a distribution agreement for EV fleet charging solutions.
This sector isn’t done yet, and I don’t think this stock is either. VVPR’s last spike took it even higher.
Education is what separates the winners and losers in trading.
I can give you all the “hot picks” you want — but that means nothing if you don’t know what to do with them.
Becoming a self-sufficient trader isn’t a game of getting the right picks before anyone else…
The market is based on supply and demand. For a stock to move, other traders have to know about it.
If you spend just five minutes with a powerful trading platform like StocksToTrade, it will be obvious what stocks are hot on any given day.
Guess what? Other traders know that too.
Trading is a battlefield. If you don’t read the instructions, you just get the location — no weapon.
But fear not — giving new traders their education is what I was put on this earth to do!
**Apply for the Trading Challenge Today**
I’ve been trading for more than 20 years. During that time, I’ve made over $7.4 million.
That isn’t what I’m most proud of. I’m prouder that I’ve turned more than 20 of my Trading Challenge students into millionaire traders.
I didn’t do this by giving them hot stock picks. I did it by being relentlessly honest about my successes and failures and teaching them to be that way, too.
You don’t become a millionaire trader by trying to impress your Twitter followers, like so many other ‘gurus’ do. You get there by being honest with them, and yourself. That’s why I’m always honest with my students — ESPECIALLY about my failures.
Because they’re not real failures if I’m following my rules, and cutting my losses quickly. When I lose, I want to show my students the right way to trade. That’s the secret to becoming a self-sufficient trader — knowing how to manage your losses.
Are you ready for this level of real talk? Apply for my Trading Challenge and show me what you’ve got.
We don’t accept everyone. We like to limit our community to people who are humble, people who work hard.
Think you’ve got what it takes? Apply to my Trading Challenge today!
Why You Should Consider Penny Stocks
Penny stocks get a bad rap.
Sure, 99% of them are crap. Most are even outright scams.
But where else can you earn 15-30% profits on a single trade?
If you buy a penny stock thinking it will become the next Amazon, you’re basically buying a lottery ticket. That can be fun, but it’s no way to build your trading account.
The right way to go about it requires discipline and a good trading plan.
How to Choose the Right Penny Stocks to Trade
I want my students to become self-sufficient. Like I said before, my watchlists aren’t rocket science. I build them by sticking to these eight steps.
Look for Big Percent Gainers
How do you find hot stocks? The first step is learning to use a stock screener.
I scan in the premarket to know what’s moving. Penny stocks that know the game often put out PR in the premarket. This gives traders the whole day to send their stock prices up before they dilute.
I typically look for 10% gainers. These are the stocks that the rest of the market has their eyes on.
Does it Have News?
We’re in the world of penny stocks, so this is a fair question to ask.
The ‘product’ of most penny stocks is their own stock. They want to pump it up, then insider trade/dilute into this built-up demand.
A lot of penny stock traders will believe anything — but I won’t. I want to see more than a celebrity tweet of a stock before I trade it.
How’s the Volume?
Volume is the proof of demand. If a stock has enough volume — on a small enough float — that’s a good sign that the price will continue to move.
Look at the Exchange
OTC exchanges aren’t for everyone.
Figure out whether your strategy works with OTC stocks. If you’re not willing to pay the fees and deal with low volume, you might want to stick to listed stocks.
Investigate the Company History
This is another good way of seeing whether the news will hold up.
Is this a real company? Is their stock a former runner?
You know the saying ‘fool me once, shame on you, fool me twice, shame on me?’ Smart traders don’t get fooled twice.
Always Verify Their Claims
Sketchy penny stock companies will say anything to pump their stocks.
Luckily, you have the internet at your disposal. Always check up on their claims.
Expect the stock you’re watching to tank. Nine out of 10 will — the percentage goes higher if you watch them long enough.
Rinse and Repeat to Add Penny Stocks to Your List
That’s it! Keep an eye on stocks that are moving, and wait for their next move. Never trade them before they fit your preferred setup.
Penny stocks can be a blessing or a curse — it’s all in how you trade them.
If you’re new to this, start paying attention. Study the patterns I teach.
That’s the only way to survive in this penny stock game.
Do you have your own penny stock watchlist? How many of the stocks on this list are on yours?
As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!
Which is why I've launched my Trading Challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.
So when you get a chance make sure you check it out.
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