Penny stocks refer to stocks which trade at $5 per share or less. Their market cap is usually micro — under $300 million in total stock equity.

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 this month 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!

— Timothy Sykes (@timothysykes) September 3, 2020

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 September 2023

My top 3 penny stocks to watch for September are:

• NASDAQ: HOLO — MicroCloud Hologram Inc. — The Top Pick on My AI Penny Stock Watchlist
• NASDAQ: EBET — Ebet Inc — The Former Runner Penny Stock with Panic Potential
• NASDAQ: VFS — VinFast Auto Ltd — The High-Priced Stock That’s Following My 7-Step Pennystocking Framework

These are just some of the top stocks I’m watching 2023 — get the full list here! 

Has someone ever told you, “Penny stocks are a scam. You might as well throw your money down the toilet” ?

From my perspective, that sounds like someone who lost money in a sketchy stock once and swore to never trade again.

I don’t blame them for feeling jaded.

There are a lot of sketchy aspects of my niche.

But here’s the catch …

If you know where the traps are, you can avoid them.

I know these are sketchy stocks. And I’m able to trade them for a profit — $7.4 million and counting — because of that knowledge.

Yes, people have also encouraged me to trade more trusted stocks.

But the blue chips don’t spike hundreds of percentage points in a single day … 

And that volatility is kind of hard to ignore.

Here’s what’s at the top of my scan right now …

Best Penny Stocks for September 2023

These are the top 3 penny stocks I’m watching in September 2023 …

No, that doesn’t mean that I’ll trade them. Learn the patterns that work best for you — you might have a chance to use them with these stocks!

#1: MicroCloud Hologram Inc. (NASDAQ: HOLO) — The Top Pick on My AI Penny Stock Watchlist

My first penny stock pick is MicroCloud Hologram Inc. (NASDAQ: HOLO).

There was a major spike in January. Prices launched over 650%.

Past spikers can spike again …

In February it announced its own GPT AI system.

ChatGPT started this AI momentum at the beginning of the year. The ‘GPT’ stands for Generative Pre-trained Transformers … It’s a specific model of neural network.

Thanks to ChatGPT, the name draws a lot of attention. And that hype is what we’re most interested in.

Plus, the float is ultra-low.

There are only 9.5 million shares outstanding.

That meets the definition of low float: 10 million shares or fewer. A low share supply helps the price spike higher when demand increases.

It’s basic supply and demand.

Remember what I said about past spikers …

Sure enough, HOLO started ripping in August. It managed to spike over 350% within the month.

But these spikes don’t last forever …

Luckily, there’s a way to navigate the risky roads of stock trading. I’ve done it for more than two decades. And along the way, I’ve shown others …

I have over 30 millionaire students. They all come from my Trading Challenge.

If you’re interested in this niche, there’s no better place to grow …

>> Apply for the Trading Challenge today <<

Most of my millionaire students probably have HOLO on their watchlists.

It’s one of the most recent AI penny stocks to pop off. That means the volatility is still ripe.

And the best part is this: whether it pushes higher or falls back down, we can trade the volatility on both sides.

#2: Ebet Inc (NASDAQ: EBET) — The Former Runner Penny Stock with Panic Potential

My second penny stock is Ebet Inc (NASDAQ: EBET).

It’s good at running, but so far it’s terrible at holding gains.

That’s OK with me because my favorite pattern is panic dip-buying.

Watch the video below for a tutorial …

I’ve already traded this stock twice for a total profit of $85 (click the link for individual trades).

One was a loss. One was a gain.

I came out on top because I control my losses. Every trader loses now and then, but professionals keep their losses smaller than their gains.

Before I hear any flack about the size of the profits, understand this …

Small gains add up. And I’m a small account trader. The key is consistency and discipline.

That’s how I’ve traded for the last two decades. I have $7.4 million in profits to show for it.

It’s not a pissing contest. I’m just trying to show you what it’s really like out here. We’re not making $100,000 profits every day. Far from it.

Manage your expectations and trading will come more easily.

The next time EBET spikes, I hope you’re ready.

#3: VinFast Auto Ltd (NASDAQ: VFS) — The High-Priced Stock That’s Following My 7-Step Pennystocking Framework

My third penny stock is VinFast Auto Ltd (NASDAQ: VFS).

VinFast is a Vietnamese EV manufacturer.

On August 15 it IPO’d and started trading at $22 per share.

It spiked on Day 1 and then faded. I wrote it off as another failed IPO and hoped it would enter penny stock territory.

But starting August 21 it spiked more than 500%. That’s usually a move we see from penny stocks …

And it’s probably because of the float.

There are only 1.3 million shares outstanding. That’s way below 10 million shares.

Here’s what I’m watching …

VinFast is still out of my comfort zone when it comes to share price.

I’m a small-account trader, I like low-priced stocks so I can load up on shares.

That’s why I’m mainly focused on sympathy plays.

Whenever there’s a big runner in the market like VFS, there are often sympathy plays.

If you don’t know what that means, watch my video below …

VinFast is an EV IPO with a low float.

So I’m looking for stocks that …

• Are in the EV sector
• Are a recent IPO
• Have a low float

A combination of those factors makes my trade conviction stronger.

And luckily, VFS is following my exact penny stock framework. That bodes well for any sympathy plays that start to spike.

The apple doesn’t fall far from the tree, so to speak.

To understand my full penny stock framework click here.

I mapped it out over two decades ago … and it still works today.

How to Use This Penny Stocks Watch List

My watchlists aren’t rocket science. They’re a product of paying attention to what’s already happened.

The stocks on this list are former runners with recent news. That means I’m not the only one paying attention to them.

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.

Sign up here and I’ll send you a new NO-COST watchlist every week.

Can You Trade Penny Stocks?

Penny stocks get a bad rap, especially from Wall Street types.

Sure, 99% of them are crap. Some are even outright scams aiming to take money from their stock customers.

But where else can you earn 15-30% profits on a single day trade?

Penny stocks are only bad if you start to believe the hype. Take Ocean Biomedical (NASDAQ: OCEA), a biotech penny stock that’s had some early 2023 spikes on positive news for its cancer treatment candidate.

It’s got an awesome story to sell. And — just maybe — they’ll become the maker of a front-line cancer treatment.

But you know who I’d bet on instead? Eli Lilly and Co. (NYSE: LLY), a $300-billion company with several FDA-approved cancer treatments already on the market.

They’ve got a $7 billion R&D budget. So yes, they’ll probably beat OCEA to any game-changing advancements.

If you buy a penny stock thinking it will become the next Amazon, you’re basically buying a lottery ticket. That can be fun, but it’s no way to build your trading account.

The right way to go about it requires discipline and a good trading plan.

What Are the Advantages of Investing in Penny Stocks?

Slow down — there are zero advantages to investing in penny stocks.

Here’s the disclaimer: penny stock investments fail 99.9% of the time. Sure, there are some penny stock ETFs that post decent gains…

But that isn’t one of the purposes of why I’m writing this article. And it shouldn’t be what you’re reading for…

Day trading is what penny stocks are good for.

Here’s why!

You Can Buy Many Shares at a Low Price

Let’s table the fact that these companies have cheap stocks because their goods and services aren’t in demand…

We’re playing a different game here. It isn’t about underlying value. It’s about rampant speculation, which you can trade on.

If you want to read my take on value stocks, I’ve got a watchlist here!

You Can Start Trading with a Small Account

If you’re a small account trader, you can’t be content with the 10% gains that larger accounts target. Your needs are different. Thankfully, penny stocks can give you that opportunity.

These volatile stocks have a much greater range than pricier, established stocks. You can grab the conservative 5–10% gains I target in a single trade.

I go for singles, not home runs. The $7.4 million I’ve earned in my career is proof that small gains add up.

Easy to See Gains

Take a look at this $1,152 trade I made in minutes on Wisekey International Holding (NASDAQ: WKEY) — starting stake $3,120.

That’s an almost 37% gain on some feel-good news about a meeting with Elon Musk.

No sales came out of this meeting. Within a couple hours, the share price fell to lower than where I entered the trade.

I realized these gains because I didn’t get greedy. Everybody sees the gains that penny stocks are capable of — but they tend to ignore the collapses.

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

— Timothy Sykes (@timothysykes) February 28, 2021

Competition is Low

The reviews are in: most penny stocks are scams. That’s why “smart” traders stay away — they’re liable to collapse at any minute.

You’re within your rights to stay away from these dangerous stocks. But agile traders can ride the waves of speculation to gains — as long as they cut their losses quickly.

Possible Price Growth

Not every penny stock collapses like WKEY. Some show days, weeks, or months of growth… before collapsing.

Penny stock growth can be tricky even if you’re looking at their charts. For example, look at the chart of EV stock Arrival (NASDAQ: ARVL).

The chart says that it ran up past $1,500 in 2020… but that’s accounting for the 1-for-50 reverse split ARVL conducted to get back to Nasdaq’s $1 share minimum.

Potential Risks of Investing in Penny Stocks

You mean, besides for blowing up your account? Let’s run it down…

High Volatility

Traders like me like volatility. Investors don’t.

Your job as a trader is to profit from volatility, do NOT fall in love with any trade or asset as a trade is not profitable until you lock in your profits & getting emotional can muddy the waters. Similarly, it's difficult to cut losses fast if you become too emotionally involved

— Timothy Sykes (@timothysykes) December 7, 2021

When you trade, you can profit off these moves. When you “hold and hope,” you go wherever the penny stock takes you — usually straight down.

Low Liquidity

Win or lose, you need liquidity to exit a trade. Many penny stocks trade at such a low volume that you can’t exit when you need to.

Pump-and-Dump Scams

Pumps are the religion of penny stock land.

The penny stock trenches are full of scammers, spammers, and deluded newbies…

Their religion is that their asset of choice is “going to the moon.” Even if they end up selling at a loss, they’ll be back on the train as soon as the next pump starts.

Lack of Information

This is why Wall Street stays away from penny stocks — they can usually make any claims they want because their books are cooked.

Some of my favorite penny stocks to trade are OTC pink sheet stocks. These are unlisted stocks that don’t publish sufficient financial information to meet exchange requirements. That means you don’t know if they’re lying about any of their outrageous claims.

I have a simple solution for this. Assume that every tweet out of a penny stock promoter is a lie, and trade as safely as you can!

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 five steps.

Tip #1: Look for Big Percent Gainers

How do you find hot stocks? The first step is learning to use the right stock screener tools.

I use StocksToTrade — a powerful trading platform with more than 40 built-in scans. It doesn’t hurt that some of them were tailored around my strategies.

I scan in premarket to know what’s moving. Penny stocks that know the game often put out PR in premarket. This gives traders the whole day to send their stock prices up before they dilute.

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 amount of shares — that’s a good sign that the price will continue to move.

Plus, big daily trading volume usually signifies liquidity. Even if you lose money on these stocks, you can always unload them quickly.

Tip #3: Look for a Penny Stock News Catalyst

The ‘product’ of most penny stocks is their own stock. They want to pump it up, then the stock’s insiders can trade into this built-up demand.

A lot of penny stock traders will believe anything, but I won’t. I want to see real news and events behind a stock move before I trade it. News catalysts can come from anywhere — Instagram, newsletters, actual news outlets …

News catalysts usually come from companies that are frequently in the public eye. Find penny stock companies for your watchlist with a strong media presence and you’ll be prepared for future catalysts.

You can look on the internet for news — or better yet, check out my favorite news alert service, Breaking News Chat!

EVERYONE needs to use the @StocksToTrade social media search tool & breaking news tool, they’ll open your eyes to what’s happening these days across so many chat rooms/websites/“communities”, pretty amazing to see the pumping of stocks like $FWP $GNUS $FRSX $CREX

— Timothy Sykes (@timothysykes) May 13, 2020

Breaking News Chat is my secret weapon — and the key to a good number of my recent trades.

Add Breaking News to your arsenal for the next 2 weeks — it’s $17 to try out!

Tip #4: Look at the Long-Term Charts

I talk about former runners a lot. That’s one reason I’ll research 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 performance data can help me tell the difference between a multi-day runner and a one-and-done spike.

My usual advice still stands — react, don’t predict. Don’t research past data trying to predict when the stock’s going to run. Research it to understand the effect that unusual volume and news has on the stock, so you can react faster.

I don’t do anything too complicated with my charting and analysis. I’ve been using my 7-step pennystocking framework for the past 10 years…

I still use it because the game hasn’t changed.

Check out my 7-step framework here.

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.

If you’re wary about getting sucked into the Twitter hellscape, StocksToTrade is way ahead of you. Using the built-in Twitter scanner, you’ll have access to a running feed of stock tweets.

You can even customize the feed if you like.

Get your 14-day StocksToTrade trial HERE — only $7.

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.

Since GameStop squeezed on short interest close to 120%, they’ve been out for blood.

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 hit your targets as a short seller. Many of my top students focus on short selling, the same way I did a decade ago. But the number of messages and comments I get almost daily from short sellers getting caught in short squeezes is … scary.

How Much Money Do I Need to Get Started?

Many brokers have done away with minimums for cash accounts. But that isn’t the cost you should be worried about. The market will take your money if you’re unprepared.

Education is what separates the winners and losers in trading.

Trading gurus can point you to all the “trading opportunities” you ask for. All the market information, resources, and updates in the world mean nothing if you don’t understand the basis for a good trade.

But fear not — giving new traders their education is what I was put on this earth to do!

I’ve been trading for more than 20 years. During that time, I’ve made over $7.4 million in career earnings.

That isn’t what I’m most proud of. It’s that more than 30 of my Trading Challenge students have developed into millionaire traders.

This didn’t happen because they got hot stock picks. I was relentlessly honest about my successes and failures and taught them to be that way too.

How Do You Become a Millionaire Trader?

You don’t become a millionaire trader by trying to impress your Twitter followers with results, 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. I’ve even written articles about failures and how to recover from them.

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.

Join My Trading Challenge Today

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.

Think you’ve got what it takes? Apply to my Trading Challenge today!

Conclusion

Penny stocks can be a blessing or a curse — it’s all in your trading strategy.

If you’re new to this, start paying attention. Study the things I teach.

Working hard is the only way to survive in penny stock land.

What’s on your penny stock watchlist? Let me know in the comments!