6 Penny Stocks on the Rise for Q1 2023

By Timothy Sykes

Last updated on December 16, 2022
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Nobody knows where the stock market will go. Following market predictions blindly gives you one strategy that falls apart when the market moves another way.

I stay ready for any kind of market by being prepared. It won’t matter what kind of market 2023 will bring because I’ve studied the past, built up my knowledge account, and most importantly — I never predict, I only react.

If you’re new to trading, this might sound confusing. But when you lose enough “can’t miss” trades, you’ll see the wisdom in my method. Instead of spending all that time and energy trying to figure out what stocks will break out, put your effort into studying charts, reviewing past performance, and attending webinars.

A trader’s job is to react and capitalize on market movements. Watching stocks is the best way to learn how. Read on to see my list of six penny stocks to keep an eye on in early 2023, and learn more about trading penny stocks while you’re at it!

What Are Penny Stocks?

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Penny stocks are cheap stocks, typically traded at less than $5 per share. You can find penny stocks on major exchanges like Nasdaq and the New York Stock Exchange (NYSE), but the vast majority of them are sold through over-the-counter (OTC) transactions.

With their low cost come big risks. Most penny stocks are sketchy and unstable, some are even outright scams. However, the quick moves they make can build your trading account quickly.

Penny stocks don’t behave like regular stocks, so you can’t employ the same strategies. If you’re new to penny stocks, pay close attention…

Trading Penny Stocks in 2023

Before getting to the stock market in 2023, let’s review what happened in 2022.

When preparing for 2022, my top students and I noticed fewer multi-day runners and saw signs that the hot 2021 market was dying down. I saw the possibility of a crash when the market was still hitting record highs — check out this video I made in November 2021:

I didn’t bet on a crash, but I still prepared for the possibility. I got stricter with my rules, cut losses quickly, and took fewer chances.

As it turned out, 2022 was as bearish as I expected. If you check the SPY index, which tracks the market’s most popular stocks, it’s been chopping lower all year.

Embed SPDR S&P 500 ETF Trust (NYSEARCA: SPY) Stockdio chart

Will things recover in 2023? No one knows the answer to that. Anyone who tells you that they can predict it is lying to you. The important thing to do is concentrate on the trade setups that work, keep a close eye on hot sectors, and capitalize on the January effect.

The January effect happens when investors sell their losing positions at the end of the year to claim the losses on their tax returns. Then these beaten-down stocks plunge even further.

Shorts pile into these stocks as they’re on their way down… setting up the possibility of a short squeeze. When these stocks get some good news, they can really run.

Advantages of Penny Stocks

 

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Many traders see penny stocks as sketchy and unpredictable. They’re partly right, but they’re also missing out.

Here are a few great reasons for trading penny stocks:

Faster Trading Account Growth

Just because most penny stocks will never actually hold onto their gains doesn’t mean you can’t make money with them. Penny stocks spike faster than pricier stocks, so your small gains can add up and build your trading account really quickly.

Lower Chance of Wall Street Interference

Wall Street barely pays attention to penny stocks because they’re sketchy, which means hedge funds and investment firms rarely touch them. This is a big plus because penny stock supply and demand are relatively predictable without major investor interference.

With major stocks like Amazon, hedge funds or big investors can unload their shares and affect prices without warning. With penny stocks, there’s a lesser chance of that happening.

Those investment firms are right — penny stocks are sketchy and full of risk. If you want to trade penny stocks, you’d better be prepared for scams and market manipulators.

It’s Easier to Nail Your Entries

Because the market ignores penny stocks, information travels slower. Good catalysts take more time to draw volume in, meaning that big moves can take days to play out.

This is good if you struggle with entries. The multi-day and week runs that some penny stocks go on provide more chances to make profitable trades. You can’t compete with the algorithms trading large-cap stocks…

But you can routinely win trades with chat room sheep and the newbies that really believe in penny stocks.

Risks of Penny Stocks

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Where there’s reward, there’s risk. Before trading penny stocks, it’s a good idea to understand these risks:

High Volatility

Penny stocks often have low liquidity because the market is smaller. This can make for big losses when you can’t unload stocks quickly as share prices plummet.

You can turn this risk into reward with discipline. This volatility cuts both ways. Smart penny stock traders don’t jump into trades. They take advantage of upside volatility while cutting losses quickly when a trade goes against them.

Increased Chance of Failure

About 99% of all penny stock companies fail, so you’ll probably take some losses in your trading journey. While you might lose money, you’ll walk away with more experience — that’s what makes you into a better trader.

Being honest about your losses is the ONLY way you can become a self-sufficient trader. That’s why my students and I are honest about our losses. They’re part of trading, and good traders build them into their overall strategy.

Bigger Fraud Potential

American financial and securities regulators warn us time and time again about penny stock scams, and they’re right to do so. The penny stock market is filled with scammers and market manipulators looking to make a buck at your expense.

Don’t believe everything you read about the “best penny stocks” — most social media posts and news articles are promotions, attempts to artificially inflate prices. Take all information with a grain of salt, and do your homework before trading any penny stock.

What Makes a Penny Stock a Good Trading Opportunity?

Penny stocks can make for good trading opportunities because they tend to follow predictable patterns — check out my 7-step pennystocking framework for a cheat sheet:

Penny stocks are also really cheap, meaning there’s a much lower barrier to entry.

Take me as an example — I started out with $12,415 of Bar Mitzvah money and became a millionaire while still in college.

Don’t have that much money? Don’t worry! One of my top students, Tim Grittani, turned $1,500 into over $13.5 million, surpassing the $7.4 million I’ve accumulated so far.

If you put in the hours, study hard, and learn from your mistakes, you too can be a successful trader.

The Opportunity of Fast-Growing Penny Stocks

Trading penny stocks isn’t a surefire way to get rich quickly, but there are good reasons why I target them. Many penny stocks are low float, meaning less than 10 million shares are publicly tradeable.

Due to their limited supply, low-float stocks can have large price swings when demand changes. If you’re looking for penny stocks with the potential for quick gains, keep an eye on their float.

How to Find Penny Stock Companies on the Rise

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One of the keys to effective penny stock trading is to ignore the companies they represent — you should only care about the ticker.

I track penny stocks with the potential for trading by building and maintaining several watchlists. This way you can get a sense for their price movements and the way they respond to things like news and increased volume. This will also keep you away from randomly trading stocks, which is a sure way to lose.

What kind of stocks should be on your penny stock list? They should fulfill most, if not all, of the following criteria:

Is a Low-Float Stock

Low-float stocks are stocks that have 10 million or fewer shares that are publicly tradeable. Thanks to their limited supply, low-float stocks often have big price swings you can take advantage of.

Exhibits a Tradeable Chart Pattern

The patterns I teach have worked for the past 10 years I’ve traded them. Guess what — they still work.

A watchlist-worthy stock should have a record of spikes and multi-day runs. That makes it more likely the stock will run again.

Use a pro trading platform like StocksToTrade as one of your main tools. Sign up for a 14-day trial now to experience all of its features — it’s only $7!

Has an Unusual Daily Trading Volume

Stocks with higher daily volume are more liquid and have a higher potential for big price swings. They have more potential to spike. If they start dropping, you can sell them quickly.

Is a Former Runner

Stocks are like athletes in that they perform a certain way, and you can guess future performance based on how they did in the past. Penny stocks that have had multiple runs in the past are much more likely to run again. Check your watchlist picks’ history, and find ones that have a history of running.

Has Frequent News

News and press releases are often catalysts for major stock price swings, both downward and upward. Find a penny stock company that makes news regularly — and has a chart which shows good price action in response.

6 Penny Stocks on the Rise for Q1 2023

My picks for penny stocks on the rise in Q1 of 2023 are:

  • (OTCPK: OWUV) — One World Universe — The Hot Sector Penny Stock Spiker
  • (OTCQB: ABML) —American Battery Technology Co. — The EV Battery Penny Stock Play
  • (OTCQB: GTII) — Global Tech Industries Group Inc. — The Heavily-Promoted Penny Stock Runner
  • (NASDAQ: MULN) — Mullen Automotive Inc. — The EV Meme Penny Stock
  • (OTCQB: HMBL) — HUMBL Inc. — The Too-Quiet Former Runner Penny Stock
  • (NASDAQ: FAZE) — FaZe Holdings Inc. — The E-Gaming Former Runner Penny Stock

This is important: I’m only watching these stocks. I won’t trade them unless they fit my preferred setups.

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.

If you want to see more NO-COST watchlists, you can sign up for my weekly watchlist here.

1. One World Universe (OTCPK: OWUV) — The Hot Sector Penny Stock Spiker

My first 2023 penny stock pick is One World Universe (OTCPK: OWUV). OWUV doesn’t care about the sector it’s making news in, as long as it’s a hot sector.

That’s okay — I don’t care either, as long as its chart looks good. It made some awesome moves starting in December 2021. Altogether, I made $6,730 trading this stock.

I made most of those gains from December 2021 to January 2022. That was when OWUV ran from $0.02 a share to $0.65 — gaining more than 3,000%!

During this time, the PR came hot and heavy, switching from metaverse to NFT projects when the mood suited them.

When their pump reached the top, I started dip buying the panics.

The stock trended down into July, when an earnings call caused OWUV to spike almost 1,000%. (Conveniently, pink sheet stocks like OWUV don’t have to comply with the more thorough financial reporting required by major exchanges.)

I made about $2,000 trading this move… I don’t care that the gains didn’t stick. I traded the momentum and RARELY held this stock overnight.

Now OWUV’s back at its crappy base level. I’m watching to see its next big pump.

2. American Battery Technology Co. (OTCQB: ABML) — The EV Battery Penny Stock Play

My second 2023 penny stock pick is American Battery Technology Co. (OTCQB: ABML).

This stock made a 60% move on the back of the news that $2.8 billion in grants were headed to the EV battery sector. ABML collected $115 million for its under-construction lithium battery plant.

I didn’t trade it then. I was disappointed by the lack of follow-through on the move. The way I racked up most of the $21,474 I’ve made trading this stock is by dip buying its panics, and selling on the bounce.

Even though I haven’t traded ABML since April, it always has a spot on my EV watchlist. I’m waiting for the EV sector to heat up again. And I think it might in 2023.

There are a lot of reasons for this. High gas prices continue to make headlines. EVs are making record sales, as more automakers commit to switching their production over. Government grants are a big part of the changeover too.

The market still wants to see this potential translate into actual revenue, and ABML is a long way from providing much of that. But I want to be prepared when it inevitably changes — when the sector heats up again, experience tells us it will happen FAST.

3. Global Tech Industries Group Inc. (OTCQB: GTII) — The Heavily-Promoted Penny Stock Runner

My third 2023 penny stock pick is Global Tech Industries Group Inc. (OTCQB: GTII).

It spiked 1,200% in September on the back of heavy promotion. I waited until it started coming down, then dip bought it several times. Most of my $4,852 in lifetime GTII trade profits came on the backend of this run.

This stock followed my 7-step framework so well that I even made my first short sale in YEARS.

Other traders saw the trade too. The only way I could find shares was through TradeZero. E-Trade had no shares available for shorting.

Check out TradeZero yourself — I’ll give you a free gift if you sign up!

Shorting is dangerous — especially with penny stock supernovas like GTII. But I’m happy I did it.

Not only did I make $1,081 (starting stake $8,700) while still playing it safe … I also EXPOSED a legion of promoters.

They actually had the nerve to blame GTII’s 50% drop in October on ME! These one-trick ponies will do anything to distract from the fact that GTII’s a crappy stock.

Now that GTII is down 85% from its high, it’s back in play. And the reason for a recent spike — a crazy, performative lawsuit against short sellers — tells me that the stock’s promoters are still running the show.

4. Mullen Automotive Inc. (NASDAQ: MULN) — The EV Meme Penny Stock

My fourth 2023 penny stock pick is Mullen Automotive Inc. (NASDAQ: MULN).

Let’s get this out of the way: I don’t “like” this stock. Even in the hard-hit EV sector, MULN’s 98% collapse over the past 13 months stands out.

In the past 16 months, MULN has increased its float by more than 870 million shares!

Remember how I mentioned scams before? MULN is planning to sell another 2.25 BILLION shares! You can’t make this stuff up.

Why is it on my list? I always keep tabs on meme stock favorites like MULN. October’s out-of-nowhere 150% surge showed it’s still capable of spiking. This stock averages 170 million shares traded.

Remember how Hertz spiked 680% after it filed for bankruptcy? Anything can happen.

5. HUMBL Inc. (OTCQB: HMBL) — The Too-Quiet Former Runner Penny Stock

My fifth 2023 penny stock pick is HUMBL Inc. (OTCQB: HMBL).

You might remember HMBL from its pre-merger days, when one of its pre-merger tickers became the most successful OTC penny stock of February 2021’s meme mania.

I sure do. I made $134k trading that ticker, TSNP. TSNP was a “startup” crypto stock that came along at the right time — crypto was on fire, its CEO (and promoters) talked a good game, and rabid newbies bid it up to $7 billion…

TSNP had already merged with HMBL back in November 2020, but the newbies didn’t seem to mind… Until their “investment” completely collapsed.

Post-merge, HMBL buried their supercompany under a mountain of diluted shares. That helped send their 2 billion shares to the depths of penny stock land, where it remains today.

HMBL’s promoters haven’t stopped their antics. The same NFT news that once launched HMBL into the stratosphere is still being released on a weekly basis. And HMBL’s CEO has now retired 770 million of his own shares in the company, in an effort to restore value to the stock.

HMBL is on the last step of my pennystocking framework — “the long kiss goodnight.” You know what comes after that? The cycle starts over again.

6. FaZe Holdings Inc. (NASDAQ: FAZE) —  The E-Gaming Former Runner Penny Stock

My sixth 2023 penny stock pick is FaZe Holdings Inc. (NASDAQ: FAZE).

FAZE was one of my top watches in the summer. I made more than $8,000 trading this stock as it kept trying to break out through July and August.

It was part of 2023’s hottest sector — SPACs and IPOs. We witnessed a GameStop-like short squeeze in AMTD Digital Inc. (NYSE: HKD) spiking more than 30,000%. Other SPACs and IPOs — like FAZE — benefitted from this incredible momentum.

FAZE ultimately failed to become one of these supernovas, but the support in the stock made for some nice dip buys. Now it’s trended down to penny stock territory, but there’s reason to think it might run in 2023.

It ran on hype, and fell on reality. The reality is that this e-gaming company is a long way from making money.

FAZE is still one of the most intriguing stocks in the sectors of metaverse, e-gaming, and even food delivery (yup, it’s a penny stock). That means it can catch fire again at any time.

Why Trade Penny Stocks in 2023

Penny stocks are viable trading options in any market environment — they don’t get caught up in macro trends as much as pricier stocks. Now that more of the extremely online breed of trader has caught onto OTC trading, these stocks can really run!

I’ll always adjust my trading approach to fit recent results. Penny stocks have been making big runs in the last months of 2022, with demand that’s held up over weeks. When penny stocks show this type of momentum, I pay attention.

Want to learn how to make good trading calls in 2023? Apply for my Trading Challenge today!

Making the Right Penny Stock Trade

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There’s no “magic trick” that makes all your trades right, and you won’t win big by copying my penny stock picks, either. The best way of making money trading penny stocks is to learn and be a self-sufficient trader.

Learning to be a smart trader is all about understanding what works and what doesn’t, improving your discipline, and preserving your account. It’s not about winning or losing — it’s about how you play the game.

Behind every win or loss, there’s something to be learned. Internalize every lesson, and work to be better next trade.

Do you have any stocks on your watchlist for Q1 2023? Let me know in the comments!

Penny Stocks on the Rise Q1 2023 FAQs

Can you get rich trading penny stocks?

You can definitely get rich by trading penny stocks — just ask my top students. But if you trade penny stocks to get rich quick, you’ll definitely lose. Keep learning with every trade, and you’ll improve your results.

Which stocks will double in 2023?

I don’t predict which stocks will double in 2023 — only frauds predict. Instead of wasting your time predicting what the market might look like, react to what the market gives you.

Which penny stock will grow in 2023?

Many penny stocks will grow in 2023. They will fall too. Be prepared to take advantage of their gains and mitigate the losses.

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Comments (1)
Author imageTimothy Sykes
Hey Everyone,

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.

PS: Don’t forget to check out my 30 Day Bootcamp, it will teach you everything you need to know about trading.

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