10 Top Penny Stocks on Nasdaq to Watch in 2020

Looking for penny stocks on Nasdaq to watch?

Since the coronavirus has had most of us cooped up in our homes, there’s a growing interest in the stock market this year. And the Nasdaq has hit a lot of new highs this year despite the March crash.

And that means many newbie traders are looking for a list of penny stocks to buy now. Read on if you’re ready to learn. This is all about your market education.

I’ll share some tips about Nasdaq penny stocks and I’ll give you a list of penny stocks on Nasdaq to watch. Here’s what you need to know about penny stocks on Nasdaq.

Does Nasdaq Have Penny Stocks?

A penny stock doesn’t necessarily mean a stock that trades for pennies. Generally, a penny stock is a stock that trades for under $5 per share.

The Nasdaq has rules and criteria that companies must meet before they can list on the exchange. One of those requirements is that the stock price trades for over $1 per share.

So yes, there are penny stocks on Nasdaq.

You can find Nasdaq penny stocks under $1 … but they won’t stay there for long. The exchange will send the company a letter. In short, the company has a certain amount of time to get its stock price over $1 and remain listed.

This is where you can see some creative pumps from companies. They may put out press releases about products or contracts, paid promotions, and maybe even do a reverse stock split to get the price up.

But if you’re looking for real penny stocks — stocks that trade under $1 — you’ll have to look at the OTC Markets.

The OTC Markets are where OTC stocks and pink sheets trade. These are the most hated of all penny stocks … but they’re my favorite.

I love them because they can offer clean charts, the patterns I trade, and I don’t have to compete against hedge fund traders and algorithms.

90% of traders lose not because it’s so hard, but due to how many fucken liars & so much misinformation there is EVERYWHERE! I’ve been doing this 20+ years & I still lose 1/3 of the time, but I minimize my losses because I’m experienced/disciplined AF…trading is a battlefield!

— Timothy Sykes (@timothysykes) August 26, 2020

What Happens When a Penny Stock Goes to Nasdaq?

If a stock is listed on the OTC Markets and has news that it’s uplisting to the Nasdaq, it usually creates some investor interest. There are a few reasons this can be good news…

First, the larger stock exchanges have more stringent requirements for companies to list. So if an OTC penny stock is uplisting, it can give a company some legitimacy.

Second, institutional investors and hedge funds typically don’t trade OTC stocks because there’s not enough liquidity. So when a stock up lists to the Nasdaq or NYSE, they can trade it.

Last, the larger exchanges are the best place for a company to have access to more investors from around the world.

List of 5 Top Penny Stocks to Watch on Nasdaq

If you’re looking for a list of the top penny stocks on Nasdaq, check out a few of the recent runners below.

If you want to know which indicators I check before taking a trade, learn my Sykes Sliding Scale and watch my “Trader Checklist Part Deux” DVD.

For more top penny stocks to watch, sign up for my no-cost Supernova Alerts and weekly watchlist.

I don’t trade every stock on my watchlist or in my alerts. But I share them to educate traders. Use them to find out what I look for in stocks and learn to become a self-sufficient trader.

Here are some of the recent top penny stocks on Nasdaq …

GEVO, Inc. (NASDAQ: GEVO)

Although this play is from August 20, 2020, Gevo is a good example of the crazy moves, volume, and volatility we’ve seen in the market this year.

The stock went supernova on contract news and traded almost one billion in volume. 

I traded it twice on August 20, once for a profit of $1,875, then I re-entered on a dip and got out of the trade with a profit of $665.*

(*Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.)

GEVO did an offering the next day, but the stock has held up surprisingly well. I always remind my students to keep recent runners on their watchlists. They often provide another opportunity for a trade.

Feeling lost in this volatile market? Sign up for my new 30-Day Bootcamp. In 30 days (or less, if you work your butt off), you can learn the tools that can help you recognize these plays.

VivoPower International PLC (NASDAQ: VVPR)

VivoPower is in a good sector for 2020. Electric car companies, solar energy, and battery companies have been hot this year thanks to Tesla’s crazy run.

VVPR is a solar power service company. It released earnings which resulted in a multi-day breakout above the $4.20s on August 25. That started a huge uptrend.

Then on October 9, the company announced it’s taking a majority stake in a Netherlands battery/electric/off-road vehicle company. The stock made a high of just over $23 per share.

It’s since tanked after announcing an offering. But the right news could trigger a short squeeze.

Aphria Inc. (NASDAQ: APHA)

Aphria Inc. is a marijuana penny stock that trades on Nasdaq. It’s involved with cannabis all the way from production to sales.

The marijuana sector has seen better days. But it could see renewed interest if marijuana is ever fully legalized … maybe after the election. It will need more news to really get it going. APHA is a large company and its market cap is a bit too large for my taste. I prefer to trade smaller companies.

Here’s the APHA chart:

FuelCell Energy, Inc. (NASDAQ: FCEL)

FuelCell Energy is another energy stock involved in all aspects of stationary power plants for power generation.

In 2019, the stock was trading in the 50-cent range for most of the year. But then around November, there was increased interest in the stock. Volume came in and the stock broke out above $1 in December. Since then, it’s been trading in a channel between $1 and $3.50.

It could set up for a nice breakout if it can get over the $3.50 area.

Sunworks, Inc. (NASDAQ: SUNW)

As I said earlier, the alternative energy and electric car sector have been hot this year. Sunworks designs and installs solar power solutions for residential customers and larger projects within the U.S.

On September 23 and 24, the stock went supernova. Right now it’s consolidating, but it’s always good to keep an eye on stocks in hot sectors.

Now let’s look at some hot penny stocks on Nasdaq for under $1…

5 Hot Nasdaq Penny Stocks Under $1 to Consider

If you want Nasdaq penny stocks under $1, consider using these stocks for your watchlist inspiration. But remember, these stocks won’t last long on the Nasdaq at this price.

Ocugen, Inc. (NASDAQ: OCGN)

Ocugen, Inc. (Nasdaq: OCGN) is a biopharmaceutical company that focuses on developing therapies for rare eye diseases.

The stock had a big run in July and August. It’s retraced back to where the run started and bounced off the 25-cent area on November 2. It could set up for a bounce.

Since it was a multi-day runner with high volume, it’s a penny stock to watch.

Centennial Resource Development, Inc. (NASDAQ: CDEV)

Back in May and June this year, this stock had a big multi-day run and topped out over $2 a share.

It released its third-quarter earnings on November 2. Since it’s a former runner, it could be worth watching to see if high volume comes in and spikes another big move.

Bionano Genomics, Inc (NASDAQ: BNGO)

BNGO is another former runner. In October 2019, it went from the $1s to $4.70 in one day. In July and August, it had high volume and volatility. That always interests me.

It seems to be holding the 50 cent range well. But there’s no play without a news catalyst or other technical indicator. Don’t be a degenerate gambler. Only trade stocks that have a catalyst, pattern, and volume.

Titan Pharmaceuticals, Inc. (NASDAQ: TTNP)

October 28 I bought this stock on a dip from the morning highs. It was spiking on news of

I bought 45,000 shares at 21 cents and sold them at around 23 cents for a profit of $796.* I sold too soon, as usual. The stock went to a high of 25 cents, but the overall market was ugly so I played it safe.

Sundial Growers Inc. (NASDAQ: SNDL)

Sundial Growers Inc. (NASDAQ: SNDL) is a Canadian company involved with the production, distribution, and sales of Cannabis.

The marijuana stock sector has seen some movement recently. That may have been due to vice-presidential candidate Kamala Harris mentioning marijuana legalization on the campaign trail.

The company’s also due to report its third-quarter earnings on November 11. Since the stock has been beaten down over the last few months, some positive news could trigger a massive short squeeze.

Remember, most of these Nasdaq penny stocks under $1 will eventually have to get their stock price back over $1 or risk being delisted.

And before there’s any play, I want to see a press release, news on a contract or product, or even a reverse split — some kind of catalyst.

Frequently Asked Questions About Penny Stocks on Nasdaq

Here I’ll answer some of the most frequently asked questions about penny stocks on Nasdaq.

You want to ignore my rules, pretend like loss cutting doesn’t matter, believe the promoters, well in May/June you could’ve made a lot of $ & it was fine, but remember my warning: this bubble market will NOT last & if you practice the wrong habits, you will be decimated later on!

— Timothy Sykes (@timothysykes) August 26, 2020

Conclusion

If you want to trade penny stocks on Nasdaq there are a few things to remember. Nasdaq stocks trade a bit more choppy than OTC stocks. You can also have more competition from other professional traders, hedge fund traders, and algorithms.

I use StocksToTrade every day to find the biggest percent gainers and the stocks trading the most volume. Its new Breaking News Chat add-on feature has helped me find so many plays this year. It could help you spot breaking news for penny stocks on Nasdaq or the OTC exchanges.

If you want to know more about how I trade penny stocks, apply for my Trading Challenge. You’ll get access to weekly live trading and Q&A webinars with me and my top students too.

You’ll also have access to all my DVDs, video lessons, archived webinars, and arguably the best chat room ever.

The Trading Challenge is your opportunity to commit to your trading education and prepare for any market.

Learn to trade safely, follow the rules, and only trade the best setups. Take singles and cut losses quickly. It’s how I’ve grown my account to $6 million.*

Do you trade Nasdaq penny stocks? Let me know in the comments … I love to hear from you!