My list of penny stocks to watch for January 2020 could much bigger. There are SO many plays right now — it’s almost getting out of control. Remember to take it one trade at a time and don’t feel bad if you miss one. Go for consistency in 2020 rather than trying to hit home runs.
Newbie and over-aggressive short sellers continue to create big opportunities for longs. Keep in mind that as we get further into January, holiday trading will taper off. So be meticulous. Don’t just chase stocks randomly.
Every day, I create a watchlist of five to 15 stocks to watch. Then I do a quick write up of what I’m looking for and/or why I’m watching the stock. The watchlist then goes out to my students on Profit.ly.
Before I get to the list of penny stocks to watch in January…
… keep in mind that my strategies involve trading some of the fastest moving, most volatile stocks in the entire market. That said, some of the stocks on this list could be completely out of play by the time you read this. (Yes, even after only one day, stocks sometimes leave my list.)
The point is … don’t use this list as a signal to buy any stock. I don’t put stocks on my watchlist based on fundamentals. It’s not that I don’t look at fundamentals. But I’m not gonna lie to you. (Like so many other ‘top penny stocks to watch’ articles.) I won’t tell you to buy and hold a stock because “the market is undervaluing this stock.”
Frankly, that kind of thinking with penny stocks is … total BS. Most penny stocks fail. Just like most traders — roughly 90% — lose. So use this list — and each of my monthly penny stocks to watch lists — as a tool for learning to create your own watchlist.
That said, let’s get on with…
Table of Contents
- 1 Top 5 Penny Stocks to Watch For January 2020
- 2 How Can You Trade Penny Stocks?
- 3 5 Tips on How to Choose the Best Penny Stocks to Watch
- 4 Frequently Asked Questions About Penny Stocks
- 5 Conclusion — Penny Stocks to Watch (January 2020 Watchlist)
Top 5 Penny Stocks to Watch For January 2020
Before you read the list of penny stocks to watch in January…
[Disclosure: Some of the stocks mentioned below have been traded or otherwise discussed by Tim Sykes as part of his daily watchlist provided to Trading Challenge, TimAlerts, Pennystocking Silver, and Millionaire Masters Program subscribers. Tim Sykes may or may not hold open positions on these stocks at any given time. This list is not a recommendation to buy or sell any stock. Do your due diligence. Full earnings claim disclosure here.]
Now for the list of top penny stocks to watch in January 2020.
FuelCell Energy Inc. (NASDAQ: FCEL)
FuelCell Energy recently announced the operational start of a fuel cell project for the city of Tulare, California. The city’s biogas treatment facility will now produce clean/carbon-neutral energy from waste methane.
Take a look at the FCEL six-month chart.
The news was the catalyst for a nice premarket spike on December 27. In what looks like a short-squeeze, the stock continued to run to $2.77 on December 31. (I get asked all the time how I know when there’s a likely short squeeze happening. Use the social media search tool on StocksToTrade. Short sellers love to proclaim their righteous reasons for shorting a stock.)
Here’s the five-day chart for FCEL:
Students reported wins on FCEL both long and short to end the month/year. I won’t chase FCEL, but I’m watching it for a potential dip buy in to a big morning panic.
Oncolytics Biotech Inc. (NASDAQ: ONCY)
Oncoloytics Biotech is developing a cancer treatment called pelareorep. It’s a type of intravenously delivered virus that enhances the body’s natural immune response to cancer cells.
Here’s the ONCY six-month chart:
On December 12, Oncolytics Biotech announced the acceptance of an abstract for a presentation at the 2020 Gastrointestinal Cancers Symposium. It took a few days, but the stock started to move on big volume on December 17. Then, after consolidating for several days, ONCY had a clean breakout on December 26.
Check out the five-day ONCY chart:
ONCY hit a 52-week high of $6.02 on December 31. Even after dropping to $4.76 by the end of the day, the stock finished higher than any time since September 2018. Like FCEL, ONCY is up a lot so I won’t chase it. But I’ll watch it for a potential dip buy into a big morning panic.
OWC Pharmaceutical Research Corp (OTCQB: OWCP)
Based in Israel, OWC Pharmaceutical is a cannabis biopharma research and development company. It focuses on several treatments/products. Its primary areas of focus are skin diseases, pain management, and a treatment for multiple myeloma. (Multiple myeloma is a type of bone marrow cancer.)
Take a look at the OWCP six-month chart:
On December 16, the company announced its Israeli patent for a topical skincare treatment will be allowed as a patent application in the U.S. As you can see, it took a few days for the stock to gain momentum.
Now look at the OWCP 10-day chart:
The stock was trading sub-penny before the announcement. From its open of $0.0075 on December 18, the stock ran 1080% to close the year at $0.089. You gotta love penny stocks! This one is a nice breakout on its highest volume of the year. Keep an eye on it.
CytoDyn Inc (OTCQB: CYDY)
CytoDyn is a clinical-stage biotech company based in the U.S. It focuses on therapies for HIV and cancer. Its primary late-stage product is called Leronmilab PRO 140. It blocks HIV from entering and infecting certain cells.
On December 18, CytoDyn announced a deal to license the U.S. rights to leronmilab for the treatment of HIV. On December 23, the company announced positive clinical results for the same product in the treatment of breast cancer.
Take a look at the six-month CYDY chart:
I traded CYDY — a nice first green day overnight gap up — on December 26/27. The stock hit a 52-week high of $1.18 on December 30. Even though it closed the day under $1 a share, it’s holding most of its gains. It started 2020 in the low $1s.
Take a look at the 10-day CYDY chart:
And now for the last of the penny stocks to watch for January 2020…
Trillium Therapeutics Inc (NASDAQ: TRIL)
Trillium Therapeutics is a clinical-stage biotech that develops cancer therapies. The Canadian based company uses a proprietary chemistry platform. It has a number of products in the pipeline at different stages — from discovery to Phase 2 trials.
Here’s the TRIL one-year chart:
TRIL started gaining momentum on December 11, seemingly with no news. It’s continued trending up, with a nice multi-month breakout to end the year. The stock gapped up into 2020 and looks like another short squeeze.
As you can see from the chart below, TRIL is up over 60% intraday on the first trading day of 2020. Again, big volume and over-aggressive shorts are making the penny stock niche amazing for longs.
Here’s the TRIL five-day chart:
That’s it for the best penny stocks to watch for January 2020. Here are some tips on choosing stocks for your watchlist. Also, some answers to frequently asked questions…
How Can You Trade Penny Stocks?
If you’re brand new to penny stocks a great place to start is with my FREE penny stock guide.
Once you go through the entire guide, I suggest you read “The Complete Penny Stock Course” written by my student Jamil (I wrote the forward). That book answers so many of the most frequently asked questions that it blows my mind more people haven’t read it.
With the internet and online brokers, you can trade penny stocks from anywhere in the world. As far as the basic requirements, you only need a decent laptop, solid Wi-Fi, and a trading account. But don’t be fooled into thinking you’re gonna succeed if you jump right in.
Because 90%+ of traders lose. So be willing to invest in your education — because if you don’t, the market will make you pay a much higher price.
Now for five tips on how to choose the best penny stocks to watch…
5 Tips on How to Choose the Best Penny Stocks to Watch
Tip #1: Look for Big Percent Gainers
My method of choosing which penny stocks to watch always starts here. At the end of every day — and again in premarket — I look for the biggest percent gainers. And that’s what I focus on. I’m not interested in stocks that aren’t on the move.
I use StocksToTrade stock scanning software. With 40+ built-in scans — some created specifically for my strategies — it’s amazing right out of the gate. Yes, you can also create custom scans. (Hint: when you start using the software, there are a bunch of training videos on how to set those up. Take advantage.)
Tip #2: Look for Big Volume
The next thing to look for when choosing the best penny stocks to watch is trading volume. Sometimes stocks gain momentum and spike big even without news. Especially when there’s enough volume.
Our last penny stock to watch for January 2020, TRIL, is a great example. ONCY is another good example as the news took a few days to hit the markets. Once volume picked up, it was off.
So after I find the big percent gainers, I organize them according to trading volume. Be aware of dollar volume traded, too. If you have a true penny stock trading at 2 cents a share, and it trades one million shares, that’s still only $20K. You have to be meticulous.
Tip #3: Look for a News Catalyst
The next thing I look for when choosing penny stocks to watch is what’s making it move? Is there a press release announcing a new contract? What about positive earnings?
In biotech and pharma penny stocks you might see news of test results. CYDY is an example of that kind of catalyst for this month’s top penny stocks to watch list. Read this post to learn more about catalysts.
(Also read chapter II.7 Understanding Catalysts in “The Complete Penny Stock Course.” If you already have the book … it starts on page 183. If you don’t have it … get it now.)
Tip #4: Look at the Long-Term Chart
When you’re trying to find the best penny stocks to watch, it’s easy to get fooled by one-day or one-time spikers. So look at long-term charts to see if the stock has a history of multi-day runs or has gone supernova in the past.
Which long-term charts? As many as you have time for, really. But at the very least, look at the one-year chart. I like to look back a couple of years depending on the stock and the news. If the stock trades a certain way when the company announces a big contract, I want to know.
Tip #5: Use the Twitter Scanner on StocksToTrade
I already mentioned this in the FCEL section above. And it might sound a little strange if you’re new to penny stocks. But if you want to understand which penny stocks to watch, one of the best ways is to see what others are watching. Or, more accurately, hyping.
Yes, Twitter has become a vehicle for influence with stock traders. Want to know which penny stocks are being heavily shorted because they’re up 50%? Check out Twitter. Use StocksToTrade because the scanner is built-in. All you have to do is open the Twitter scanner and, voila, you get a running feed of stock tweets. And you can customize the feed if you like.
Frequently Asked Questions About Penny Stocks
I get a lot of questions from students. Thing is, my students already accept that penny stocks provide a massive opportunity. And they’re studying to learn the strategies and rules.
But there are a lot of misconceptions about penny stocks. And I want to address a few of those now…
Are Penny Stocks Dangerous?
For the uneducated — and stubbornly refusing to get educated — penny stocks can be dangerous. Which is exactly why you have to learn my patterns, rules, and strategies. I trade conservatively with a small account to focus on teaching.
If you’re willing to follow the rules and strategies I teach…
… and you’re willing to trade conservatively with small positions as you learn…
… then penny stocks don’t have to be dangerous. That doesn’t mean you’ll never lose. I lose roughly 25% of the time and my winning percentage is exceptional. But you can be successful with a lower winning percentage. So a better question than whether penny stocks are dangerous is…
… are you willing to put in the time and effort to learn what you need to learn? If so, apply for my Trading Challenge today.
If Most Penny Stock Companies Fail, Why Not Just Short Sell?
Because it’s a very dangerous, overcrowded game right now. The level of risk so many moron newbie short sellers take these days is unconscionable. It’s completely crazy.
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?
I’m going to say, again, invest in your education first. It doesn’t take a huge amount of money to get started trading. Different brokers have different account minimum requirements. (I use these brokers and avoid offshore brokers altogether.)
But the market will make you pay more if you aren’t prepared. Preparation is key. The stock market is a battlefield, so arm yourself accordingly. Keep in mind that my top students all studied hard over time to get consistently profitable. Tim Grittani — arguably the best penny stock trader in the world — didn’t make anything for nine months.
So before you fund a trading account, fund your knowledge account. If you’re not quite ready for the Trading Challenge, try Pennystocking Silver. It gives you access to more than 6,000 video lessons. (You also get access as a Trading Challenge student, of course.)
Conclusion — Penny Stocks to Watch (January 2020 Watchlist)
Your goal as a trader is to become self-sufficient. And my goal is to be the mentor to you that I never had. So I hope you’ll take this list of the best penny stocks to watch in January 2020 and use it as a learning tool.
👉🏼SUBSCRIBE to my FREE weekly stock watchlist here.
Focus on the process. The best way to learn which penny stocks to watch is to make a daily watchlist yourself. Follow the five tips above. It doesn’t matter if every stock on your list is not perfect. Or doesn’t play out the way you thought. You get better by making your daily watchlist and then seeing what happened during the trading day.
… this list of penny stocks to watch is NOT a recommendation to buy. Also, my results are not typical and I’ve developed exceptional skills over two decades of trading.
What do you think of the top penny stocks to watch in January 2020 watchlist? Comment below, I love to hear from all my readers!