In this week’s top penny stocks list and update…
- The counterintuitive trading lesson many new traders miss. (Read the Top Tested Trading Tip.)
- Can a short squeeze create sector momentum? (Read the Student Q&A.)
- Why taking risks in life is important. (Check out Monday Motivation.)
- PLUS: a presentation you won’t want to miss. (Keep reading if you LOVE meme stock madness…)
First, the watchlist…
Table of Contents
- 1 Top Penny Stocks List: July 26, 2021
- 2 Trade Review
- 3 Monday Motivation
- 4 Giving Back: Two NEW School Alerts
- 5 Trading Education
- 6 How to Create Your Own Penny Stock List
- 7 How Can You Create Your Own Watchlist?
- 8 Should I Create a Watchlist Every Day?
- 9 Does Tim Sykes Provide a NO-COST Watchlist?
Top Penny Stocks List: July 26, 2021
These are the top OTC and listed stocks I’m watching this week. Remember, it’s a watchlist and not a buy list. I might not trade a single stock on this list.
Without further ado, these are the OTCs I’m watching…
And here are the listed stocks I’m watching…
3 Penny Stocks to Watch This Week
Top Penny Stocks List #1: Health Discovery Corp. (OTCPK: HDVY)
Health Discovery Corporation is an intellectual property development company. It owns the patent for an artificial intelligence algorithm with potential medical applications. The patent is why HDVY is a big multi-day runner.
In July 2020, Health Discovery filed an infringement lawsuit against Intel (NASDAQ: INTC). The company updated shareholders on June 4 in this 8-K filing. In simple terms, it says the lawsuit has moved on to the discovery phase.
But it’s a different infringement lawsuit against Intel that has Twitter promoters hyping HDVY…
In March, Intel was ordered to pay $2.18 billion to VLSI Technology for patent infringement. Promoters, doing what they do best, are hyping HDVY as the next court loss for Intel.
Check out the HDVY one-year chart…
As you can see, HDVY had a clean multi-week breakout on June 21. Then it hit a 52-week high of $0.4286 on June 22. I dip-bought the pullback off the morning spike. But I was roughly 15-minutes early and took a small $192 loss.
HDVY has proven it can panic and bounce nicely. But remember the reason it’s up in the first place is promoter BS. It dropped roughly 25% on Friday without bouncing. I’m watching for any big intraday panic, ideally in the morning. I’ll also watch for signs of bouncing if promoters keep hyping the lawsuit.
Top Penny Stocks List #2: Halberd Corp. (OTCPK: HALB)
Halberd Corporation is a research and development stage pharma company. It’s working on potential treatments for MS, Alzheimer’s, cancer, and other diseases.
On July 22, the company announced new Alzheimer’s Disease (AD) research by a Youngstown State University team. The research also has potential for the treatment of PTSD.
Halberd CEO William A. Hartman said, “If our experimentation proves significant as a PTSD/CTE treatment, we will contact the Defense Advanced Research Projects Agency (DARPA) with our findings to seek potential joint development of our technology to address the PTSD-related suicide rate, which stands at almost one per hour by active and former military personnel. An effective treatment for PTSD, and/or CTE, to eliminate suicide ideation has eluded the medical industry to date.”
Check out the HALB one-year chart…
HALB had a big morning spike on the research news. Then it held its gains well and closed up 126% on the day. I traded HALB twice on Thursday. (See my trade review below.) See details of my HALB trades here.*
Top Penny Stocks List #3: Xenetic Biosciences Inc. (NASDAQ: XBIO)
Xenetic Biosciences is a biopharma company focused on patient-specific cancer therapies.
On July 22, XBIO spiked big after hours on rumors the company plans to expand its manufacturing facility. Short sellers got involved and it turned into a big Friday short squeeze.
Check out the XBIO one-year chart…
After the initial spike on Friday, XBIO traded very choppy. It held its gains most of the day. But then it faded hard the last 90 minutes of regular trading. If the company issues a press release confirming the rumors, it’s a potential buy. Also, if it has a big intraday panic it’s a potential dip buy. I’m mostly watching it to learn as it’s so choppy.
Halberd Corporation (OTCPK: HALB)
STT Breaking News Chat alerted this before the open. I probably should’ve taken it from the open but it wasn’t my priority as I was watching other stocks. When it spiked fast, I didn’t want to chase, so I waited for a dip off the high of day.
Here’s the July 22 intraday chart with my entry and exit comments…
As you can see, I played it safe when the follow-up bounce started to fail. It wasn’t anything huge, but the $975 win made up for two earlier losses.*
Again, the second trade fit my first green day pattern. It was up with news, had its highest volume since last October, and held its gains throughout the day. I wasn’t sure if I’d hold HALB overnight when I bought it. And I still wasn’t sure when I averaged down. In the end, I played it safe and took the 9.22% win and another $1,251 in profits.*
Now it’s time for…
Risk is a part of life. If you never take risks, life is boring.
“Life is either a daring adventure or nothing at all.” — Helen Keller
Part of life — and trading — is experimenting. You have to find what works for you.
“Don’t be too timid and squeamish about your actions. All life is an experiment. The more experiments you make the better.” — Ralph Waldo Emerson
So don’t be afraid to try new things in life. That said, you don’t need to take crazy risks to do big things. And that includes trading.
Trading is inherently risky and 90% of traders lose. But most traders lose because they’re not prepared. They haven’t studied enough, don’t know the patterns, and don’t manage risk properly.
What a lot of people can’t seem to grasp is that you don’t need to take big risks…
People mistakenly think you have to take big risks in order to make it big in the stock market, but I'm actually leaning off the ledge here in Greece with a 1,000 foot drop to show you what NOT to do. Trade small/safe/cowardly, take singles not home runs & CUT LOSSES QUICKLY!!!! pic.twitter.com/TstZHn9YIH
— Timothy Sykes (@timothysykes) July 22, 2021
The key is to step back and focus on the entire process. Trade with small position sizes or paper trade. You do NOT need to swing for home runs. Over time, with experience, after you’ve grown your small account…
THEN you can size up. Until then, it’s not only unnecessary, it’s crazy.
This Week’s Top Tested Trading Tip
This week’s top tested trading tip is…
Know Your Opponent’s Mindset
People ask, “Tim, you talk so bad about these companies, why are you trading them?”
But there’s a caveat…
I won’t tolerate the promoters’ BS and lies. If you ever somehow fall for these promoters and think “This is a good company…”
Utilize them for their volatility and predictable patterns. But expect the worst and you’ll never be disappointed.
What does this have to do with the top tested trading tip?
Pay attention, this is important…
I haven’t short sold anything for nearly two years. But that’s NOT because I don’t think these companies aren’t shady. It’s because short selling is scary right now. We’ve seen huge short squeezes that have blown up overaggressive shorts.
But I still have the mindset of a short seller because I’ve seen so much BS. And that mindset helps me with my long trades. In other words, I know my opponent’s mindset. Inside out.
Trading Mentor Q&A
This week’s question is from my live trading webinar on July 21. Before I answer the question…
Here’s the NeuroMetrix Inc. (NASDAQ: NURO) July 21 intraday chart…
Here’s the question…
“With $NURO price action today, do you think it may open us up to some sector momentum?”
NURO was trading in the mid-$11s during premarket trading on July 21. What you don’t see on this chart is that it was already up from $3.02 on July 19. Short sellers were chomping at the bit.
What the chart does show is a giant short squeeze. It topped out at $38.67 on the day. Short sellers got squeezed more when it hit a premarket high of $40.83 on July 22. A lot of shorts got crushed.
Sector momentum usually doesn’t come from short squeezes. An exception might be when the stock is a sector leader, like Tesla (NASDAQ: TSLA).
Giving Back: Two NEW School Alerts
I’m so excited to announce two more Karmagawa school projects open this week. Also, some of Karmagawa’s recent donation to Bali Children’s Project will help feed 250 families.
View this post on Instagram
Every donation — great and small — helps. If you’re not able to donate, then please like, share, and comment on the Instagram post. Together we can make the world a better place.
One thing I say over and over is that you have to find what works best for you. It’s why we offer so many different courses and styles of trading through Profit.ly.
And it’s why you might want to check this out…
On Wednesday my long-time friend Paul Scolardi is giving a presentation on meme stocks. If you’ve enjoyed watching the crazy action on stocks like GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC), this is a must-watch presentation. I’ll be watching, too.
Join the free training below. (Yes, you have to submit your email address.)
Also, use these resources to further your trading education…
New to penny stocks? Start with my FREE penny stock guide.
Get my best-selling book “An American Hedge Fund” here. (It won’t cost you a penny.)
For the basics of my strategies, read “The Complete Penny Stock Course.” Every trader NEEDS this book!
If you’re ready to immerse yourself, the Trading Challenge is for you. But only apply if you’re willing to study hard. All my top students refined their skills as members of the Trading Challenge.
Trading Challenge students also get access to my daily watchlists. All successful traders make their own watchlists. Studying mine (and those of other successful traders) is a good start, but you need to learn…
How to Create Your Own Penny Stock List
Answers to watchlist FAQs…
How Can You Create Your Own Watchlist?
To start, look for big percent gainers. For two decades, big percent gains have been my #1 criteria. After that, I look at trading volume and a catalyst or reason behind the price action. Read “Stock Watchlist Guide: Tips & Examples to Develop Your Own” for details about the entire process.
Should I Create a Watchlist Every Day?
All serious traders create a daily watchlist. If you’re serious about trading penny stocks, making a daily watchlist is essential.
Does Tim Sykes Provide a NO-COST Watchlist?
Yes. Subscribe to my weekly penny stock watchlists below.
How to Use the Top Penny Stocks List Weekly Update
When you read the weekly penny stock list (and the monthly watchlist), don’t think of them as hot picks. Frankly, sometimes they’ll be duds. That’s why it’s called a watchlist. Welcome to penny stocks.
It all starts with looking for big percent gainers. Try to figure out why I’ve put the stocks on my list. Study so you can help yourself become a self-sufficient trader. Only fools chase hot picks.
What do you think about this penny stocks list and weekly update? Comment below, I love to hear from all 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.
The level of successful trading discussed in this article 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 has a minority ownership stake in StockstoTrade.com.