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 Q2 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 spring 2023, and learn more about trading penny stocks while you’re at it!
Table of Contents
- 1 What Are Penny Stocks?
- 2 Trading Penny Stocks in 2023
- 3 Advantages of Penny Stocks
- 4 Risks of Penny Stocks
- 5 What Makes a Penny Stock a Good Trading Opportunity?
- 6 The Opportunity of Fast-Growing Penny Stocks
- 7 How to Find Penny Stock Companies on the Rise
- 8 6 Penny Stocks on the Rise for Q2 2023
- 8.1 1. CXApp Inc. (NASDAQ: CXAI) — The AI Penny Stock Supernova
- 8.2 2. Global Tech Industries Group Inc. (OTCQB: GTII) — The Zombie Penny Stock Pump
- 8.3 3. Innovative Eyewear Inc. (NASDAQ: LUCY) — The ChatGPT Catalyst Penny Stock
- 8.4 4. BigBear.ai Holdings Inc. (NYSE: BBAI) — The AI Penny Stock in Consolidation Mode
- 8.5 5. Amesite Inc. (NASDAQ: AMST) — The AI Penny Stock Runner
- 8.6 6. Bitfarms Ltd. (NASDAQ: BITF) — The Low-Priced Crypto Penny Stock
- 9 Why Trade Penny Stocks in 2023
- 10 Making the Right Penny Stock Trade
- 11 Penny Stocks on the Rise Q1 2023 FAQs
What Are Penny Stocks?
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 chopped lower until mid-October…
So far, 2023’s market has chopped higher. It isn’t even close to the run we had from mid-2020 through 2021, but there are opportunities to be had…
Will 2023 continue to rebound? 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
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
Where there’s reward, there’s risk. Before trading penny stocks, it’s a good idea to understand these risks:
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:
Remember this chart well, its the basis for my 7-step framework, @30DayBoot & @completepenny & you must study not to fall prey to greed/ignorance or you'll get wrecked like 90% of traders. It's VITAL to sell into excessive strength/hype, do not just hold & hope like most newbies pic.twitter.com/QsAGHsI6lp
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
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.
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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 Q2 2023
My picks for penny stocks on the rise in the second quarter of 2023 are:
- (NASDAQ: CXAI) — CXApp Inc. — The AI Penny Stock Supernova
- (OTCQB: GTII) — Global Tech Industries Group Inc. — The Zombie Penny Stock Pump
- (NASDAQ: LUCY) — Innovative Eyewear Inc. — The ChatGPT Catalyst Penny Stock
- (NYSE: BBAI) — BigBear.ai Holdings Inc. — The AI Penny Stock in Consolidation Mode
- (NASDAQ: AMST) — Amesite Inc. — The AI Penny Stock Runner
- (NASDAQ: BITF) — Bitfarms Ltd. — The Low-Priced Crypto 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. CXApp Inc. (NASDAQ: CXAI) — The AI Penny Stock Supernova
My first 2023 penny stock pick is CXApp Inc. (NASDAQ: CXAI).
I didn’t predict the emergence of the artificial intelligence sector in 2023.
But I sure know how to recognize a hot sector when I see one.
CXAI is just one stock out of the many on my AI watchlist that have already spiked. But it’s also the one I’m most interested in right now …
Check out my breakdown of CXAI’s supernova move here.
First, the float is tiny. There are only 382,000 shares outstanding. For context, a low float is anything below 10 million shares.
That low supply helps the price spike substantially when the demand increases.
And demand for cheaper AI stocks is at an all-time high.
The technology is reshaping several industries at this very moment. Huge companies like Microsoft Corporation (NASDAQ: MSFT) are sprinting to secure a slice of the pie.
As a catalyst among low-priced stocks, it’s phenomenal. CXAI already managed to spike more than 1,400%.
And right now the chart is consolidating.
I’m waiting to see if it can push off support and climb higher.
2. Global Tech Industries Group Inc. (OTCQB: GTII) — The Zombie Penny Stock Pump
My second 2023 penny stock pick is Global Tech Industries Group Inc. (OTCQB: GTII).
I’m a big fan of GTII.
I’ve been trading it since March 2021.
And in that time I’ve managed to rake in a total of $12,062 (click the link to see individual trades).
Here’s the key … past spikers can spike again.
A past run is an indication the stock is capable of volatile price action. And over the last two decades, I’ve seen the same tickers spike over and over again.
That’s why I still have eyes on GTII.
You never know when a hot press release will cause this thing to move.
3. Innovative Eyewear Inc. (NASDAQ: LUCY) — The ChatGPT Catalyst Penny Stock
My third 2023 penny stock pick is Innovative Eyewear Inc. (NASDAQ: LUCY).
It has a low float.
There are only 2.5 million shares outstanding.
And as far as AI catalysts … LUCY bagged itself a big one.
The eyewear brand announced a new pair of specs enabled with ChatGPT technology.
ChatGPT was the AI tool that started the whole sector frenzy. It’s a huge name in the industry.
LUCY spiked more than 270% as a result of the news. And I think there could be more left in the tank.
Especially if the price keeps consolidating above $3.
4. BigBear.ai Holdings Inc. (NYSE: BBAI) — The AI Penny Stock in Consolidation Mode
My fourth 2023 penny stock pick is BigBear.ai Holdings Inc. (NYSE: BBAI).
It’s an AI veteran with a solid history of spiking. It’s run multiple times since January 2023.
In Q2, prices have been uptrending.
They’re consolidating under recent highs right now. If there’s movement, this might be a great entry …
It all depends on whether the chart fits one of my top trading patterns.
If you’re new to the world of volatile stock trading, watch this video for more information …
I’m not gambling on any of these plays.
I’m taking advantage of predictable setups that I’ve been able to profit from for over two decades.
Penny stock patterns usually repeat.
That’s why I don’t trade until I see the chart set up perfectly.
5. Amesite Inc. (NASDAQ: AMST) — The AI Penny Stock Runner
My fifth 2023 penny stock pick is Amesite Inc. (NASDAQ: AMST).
It’s the last AI stock on this watchlist …
And it has a history of spiking that goes back to 2021.
It recently spiked again due to AI sector momentum.
Over the last month, its share price ran over 120%. And now the stock is consolidating under recent highs.
So far, I managed to profit $835 in total (click the link to see individual trades).
And it only left me hungry for more.
6. Bitfarms Ltd. (NASDAQ: BITF) — The Low-Priced Crypto Penny Stock
My sixth 2023 penny stock pick is Bitfarms Ltd. (NASDAQ: BITF).
Crypto’s been on the comeback trail in 2023.
The price of major tokens like bitcoin (BTC) and ether (ETH) is green on the year.
And that’s led to a resurgence of crypto stocks.
I have students like Matt Monaco that use my patterns to trade the hottest crypto coins.
Crypto isn’t my bread and butter. I’ll stick to what I know.
When the crypto sector is bullish, I’ll be watching tickers like BITF for trade opportunities.
The stock is green on the year and it recently broke out past resistance.
Prices sank back below the breakout level. Technically, that’s a sign the price could continue lower … but we’ll have to wait and see.
At least we’re able to recognize some funky price action when we see it. That’s how pro traders stay safe in this market.
Wait for this play to set up perfectly.
Then trade like a sniper.
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 so far in 2023, 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
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 to make 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 Q2 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.
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.