Penny stocks refer to stocks which trade at $5 per share or less. That’s the official definition at least. In spirit, these low-priced stocks are volatile and sketchy. They sell hope like other companies sell products. Despite it all, penny stocks are still the best way to build a small account quickly.
The top penny stocks I’m watching in November aren’t your ticket to fame and fortune …
NO, they won’t become the next Tesla or Amazon. And NO, you shouldn’t “set it and forget it.”
The market is full of deluded newbies who want to HODL until they get rich quick … or more likely, blow up their accounts. Frankly, traders like this make our job easier. That’s because they don’t understand the right way to trade these stocks.
EVERY day in the stock market lately is a different kind of trading day and you MUST adapt to the current conditions or else you'll lose like 90% of traders do as they don't prepare, they aren't meticulous, they aren't cautious because they gamble, gunsling & eventually blow up!
The approach I teach my Trading Challenge students relies on reacting to what the market tells us, not predicting. It relies on chart patterns that I’ve been trading for the past two decades — which still work in the dumb world of penny stocks.
Most of all, my approach relies on HARD WORK, not picking the right stocks. I want you paying attention to my process, not my stock picks. That’s how you learn to build your own watchlists.
Let’s get to it!
Top 3 Penny Stocks to Watch for November 2022
My top 3 penny stocks to watch for November 2022 are:
- Global Developments Inc. (OTCPK: GDVM)
- Meta Materials (OTCPK: MMTLP)
- Golden Developing Solutions Inc. (OTCPK: DVLP)
After a September where the market hit lows it hadn’t seen since 2020, October was a breath of fresh air.
Two important rules to follow: rule #1 cut losses quickly & don't let a small mistake turn into a potential disaster and when in doubt, get out/stay out. Neither rule is fun, but they are essential to your success as a trader. Without them, you're just a newbie who holds & hopes!
Believe it or not, this trade paved the way for the smarter trades I made later …
I only traded three stocks in the first half of October — all of them promoted OTC stocks.
GTII was on my October watchlist. I got to know its chart really well.
So well, in fact, that I shorted it. This was my first short sale in YEARS.
Most of the other trades I took in GTII were dip buys off of intraday panics. My goal in these trades was to make 5–10%.
Nothing is guaranteed in the market. If you take big swings, you’ll miss more than you connect.
Don’t fall in love — but these stocks have a chance of moving in November.
Best Penny Stocks for November 2022
These are the top 3 penny stocks to watch in November 2022 …
No, that doesn’t mean that I’ll trade them. Learn the patterns that work best for you — you might see a chance to use them with these stocks!
#1: Global Developments Inc. (OTCPK: GDVM)
My first penny stock pick is Global Developments Inc. (OTCPK: GDVM).
This was my last trade of the month. I’d been tracking this stock for a while, but only traded it going into the weekend of October 28 …
I had a 10–20% goal in mind for the trade, but I stayed safe and exited with a 6% gain for $475 (starting stake $7,516). I tried to give it more time before selling on October 31, but the volume was too low. It didn’t seem to have the same big spike potential I saw going into the trade.
Then a funny thing happened. Volume poured in like it has several times in the past two months, and GDVM banked another green day.
But you know I don’t believe what promoters tell me. The only thing I’m looking at in this stock is its reduced float against heightened volume.
Lately, there have been some nice morning breakouts. And it’s shown it can follow up on its spikes.
#2: Meta Materials (OTCPK: MMTLP)
My second penny stock pick is Meta Materials (OTCPK: MMTLP).
MMTLP is another stock I traded in October … 3 times to be exact.
WOW, despite the truly nasty $DIA $SPY $QQQ my $MMTLP dip buy into the https://t.co/4lKUY5SH24 pattern today was DEAD ON, now a 40% bounce off the lows and I took profits wayyyyyyyyy too soon. Definitely a little rusty, but nice to see such a perfect bounce! Did you catch it too?
The theory behind MMTLP’s rise is a short squeeze. And that’s fine, as long as you keep a tight risk. But promoters have been moving the goalposts on this stock — both by saying that the oil and gas spinoff it will one day represent will be worth MMTLP’s inflated valuation …
Of course, they’re hiding the biggest angle. Meta Materials is hoping that MMTLP’s momentum will enable their Nasdaq ticker (MMAT) to regain listing compliance. It had fallen below $1 per share.
What a week! I'm happy to end green this week with solid https://t.co/46W8tDSDIj examples like $GTII $MMTLP & now $AGFY $DVLP too so next week should be great fun for live trading during the #tisummit whewwwww, I hope you have a great weekend, excited to get some rest/study HARD!
Why do I like it so much? It’s the safest pattern if you have discipline — especially in a promoted stock.
Promoters want to keep their scam going for as long as they can … so they’ll support a stock that falls off a cliff. Remember, there are no guarantees — but panics will usually lead to bounces.
That’s how I’ve traded MMTLP so far, and that’s what I’m looking for again.
#3: Golden Developing Solutions Inc. (OTCPK: DVLP)
My third penny stock pick is Golden Developing Solutions Inc. (OTCPK: DVLP).
Here’s one more October stock I traded … and another I wouldn’t turn my back on.
The early part of last month was full of press releases. There were press releases announcing future acquisitions, and press releases announcing completed acquisitions. Strangely, these acquisitions went unnamed.
It wasn’t long before the stock lost over 55% of its value.
Heading into November, DVLP is running again — this time on no news. The volume is still there, which is a good sign for our purposes.
I’m sure DVLP realizes it too. I’ll be watching for intraday panics or more press releases.
How to Use This Penny Stocks Watch List
You should use this list as a model for your own watchlists.
Don’t just copy the stocks on this list. Learn my selection process and create your own.
Can You Trade 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?
Penny stocks are only bad if you start to believe the hype. Take BTTX above…
It’s got an awesome story to sell. And — just maybe — they’ll become the maker of a front-line diabetes treatment.
But you know who I’d bet on instead? Eli Lilly and Co. (NYSE: LLY), a $300 billion company that’s one of the leaders in diabetes care.
They’ve got a $7 billion R&D budget. So yes, they’ll probably beat BTTX to any game-changing advancements.
5 Tips on How to Choose the Best Penny Stocks to Watch
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.
Tip #1: Look for Big Percent Gainers
I typically look for 10% gainers. These are the stocks that the rest of the market has their eyes on.
Tip #2: Look for Big 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.
Tip #3: Look for a News Catalyst
A lot of penny stock traders will believe anything — but I won’t. I want to see real news behind a stock move before I trade it.
Tip #4: Look at the Long-Term Chart
I talk about former runners a lot. That’s one reason I’ll look at a stock’s long-term chart…
If I know it has run in the past, I’ll know it can do it again. And looking at its past runs can help me tell the difference between a multi-day runner and a one-and-done spike.
I don’t do anything too complicated with my charting. I’ve been using my 7-step pennystocking framework for the past 10 years…
I still use it because the game hasn’t changed.
Tip #5: Use the Twitter Scanner on StocksToTrade
You have to know if a stock is being pumped before you trade it. Twitter is the first place all the wannabe influencers go to hype up a stock.
You can even customize the feed if you like.
Frequently Asked Questions About Penny Stocks
Trading is the hardest thing you’ll ever learn. There are no dumb questions.
What Are Penny Stocks?
Penny stocks trade for $5 or less per share. Institutional investors usually won’t touch them, and their low cost makes them ripe for speculation and big-time volatility. Some are listed on the major exchanges, others trade on the OTC markets.
Are Penny Stocks Worth It?
I like penny stocks because they give traders with small accounts a way to quickly make 10% or more on a trade. Never believe in these stocks though. Most of these companies are more serious about their stock sales than their actual businesses.
Are Penny Stocks Dangerous?
Penny stocks are only dangerous when you trade without a plan, risk money you can’t afford to lose, and don’t cut your losses quickly. These however are all typical newbie mistakes, and they’re why penny stocks have gotten a bad rap.
How Do You Watch Penny Stocks?
I outline the steps I follow in the section above. I make a new watchlist every day, and keep a roster of other watchlists as well.
If Most Penny Stock Companies Fail, Why Not Just Short Sell?
Shorting is the easiest way to blow up your account. And it’s even more dangerous now that retail traders know the signs of high short interest.
When you buy a stock, you can only lose what you put into the position. When you short sell, you risk all the money in your account.
Of course, you can be successful as a short seller. Many of my top students focus on short selling and I’ve personally made millions from short selling. But the number of messages I get almost daily from short sellers getting caught in short squeezes is … scary.
How Much Money Do I Need to Get Started?
Education is what separates the winners and losers in trading.
Newbie: How fast can I make $1 million?
Veteran trader: How fast can you learn patterns, ideal setups & discipline to be prepared for what the market offers?
Newbie: Give me hot picks so I can get rich ASAP
Veteran trader: Give me education so I can learn to be self-sufficient
I can give you all the “hot picks” you want — that means nothing if you don’t know what to do with them.
But fear not — giving new traders their education is what I was put on this earth to do!
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.
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?