Top Penny Stocks to Watch for January 2021

This might sound crazy … There were at least 20 possible top penny stocks to watch for January. This market is insane. Almost every day there’s a HUGE number of solid plays. I hope you appreciate a market where if you miss a play there’s another one right around the corner.

Wherever you are in your trading journey, NOW is the time to study. NOW is the time to learn. And NOW is the time to take advantage of this market madness.

Every day I create a watchlist for my students. Then I do a quick write-up of what I’m looking for and why I’m watching the stock. Usually, it’s five to 15 stocks. But the last time I had fewer than 14 stocks on my list was December 11. That’s how crazy this market is.

If you want my daily watchlist, sign up on Profit.ly.

(Sign up for my no-cost weekly stock watchlist here.)

Let’s get right to the list of top penny stocks to watch in January 2021…

Top 5 Penny Stocks to Watch for January 2021

President-elect Joe Biden has Wall Street optimistic about alternative energy stocks. Solar stocks were already having a good year before the election. Now the sector is finishing the year strong. So it’s fitting that our first top penny stock to watch in January 2021 is a solar stock…

Ascent Solar Technologies, Inc. (OTCPK: ASTI)

Ascent Solar Technologies develops and manufactures flexible solar panels. The tech makes it possible to directly integrate solar cells into existing products. It also manufactures solar generators and power banks.

On December 28, ASTI spiked after this SEC filing. The company raised cash through a private placement. It also issued shares to consolidate outstanding promissory notes.

Here’s the ASTI one-year chart:

I’ve traded ASTI twice recently, once for a small loss, and once for a small win.* I’ll keep watching because solar stocks are in play. Ideally, it will run for several days and set up for a solid dip buy next week. But so far it’s having trouble getting past 1 cent a share.

Alpine 4 Technologies, Ltd. (OTCQB: ALPP)

Alpine 4 Technologies also made my weekly penny stocks list. The company has several subsidiaries in different sectors, including automotive, software, and electronics. But most of the recent moves are because of the company’s growing presence in the drone sector.

First, Alpine 4 acquired drone maker Impossible Aerospace. Then, it used Twitter to tease uplisting to the Nasdaq. Finally, on December 28, it announced a binding LOI to acquire drone manufacturer Vayu.

Here’s the ALPP one-year chart:

I’ve had solid wins with ALPP, almost entirely on dip buys.* When something works consistently, stick with it. I’d love to see max panic and bounce. I’ll keep watching for more dip buying opportunities.

(*These results are not typical. Individual results will vary. Most traders lose money. My top students and I have the benefit of many years of hard work and dedication. Trading is inherently risky. Always do your due diligence and never risk more than you can afford to lose.)

Artificial Intelligence Technology Solutions Inc. (OTCPK: AITX)

AI Technology Solutions is a robotics and artificial intelligence company. It develops robotic hardware and software for security and remote monitoring. The ROAMEO outdoor security robot even interacts with people along its route. The future is now, right?

AITX started ramping on news of an order for its Robotic Assistance Devices (RAD). The press release made it a favorite of the Twitter promoters.

Here’s the AITX one-year chart:

AITX is one of my top potential dip buys. So the higher it goes, the better. I traded AITX on December 30, but I underestimated it. I’d love to see a big morning panic to buy into.

Bionano Genomics, Inc. (NASDAQ: BNGO)

Bionano Genomics Inc. is in the medical diagnostics and research sector. The company develops and markets a genome analysis system called Saphyr.

BNGO started running on December 23 after two press releases in two days. The first announced a software update for the Saphyr system. The second announced better results in a side-by-side genome sequencing comparison. On December 30, BNGO spiked premarket. Then it had a big short squeeze, hitting a 52-week high of $2.97 during regular market hours.

Here’s the BNGO one-year chart:

BNGO didn’t hold all its gains on December 30. But it still closed up over 60% on massive volume. I won’t chase it. I’ll watch for any big panic, ideally near the open.

Guardion Health Sciences Inc. (NASDAQ: GHSI)

Guardion Health Sciences develops nutraceuticals — food products for medical use. The company’s main focus is in the ocular health marketplace.

On December 16, the company announced a new vision support drink called EPIQ-V. Then the company announced a new president/CEO. That news got picked up by several financial websites.

Here’s the GHSI one-year chart:

GHSI has a recent history of running after-hours. But then it flames out when the regular market opens and serious volume comes in. But on December 30, GHSI ran during regular hours and closed up over 50%.

I’ll keep watching, but I’d prefer it run for multiple days to set up for a big panic before buying.

That’s it for the best penny stocks to watch for January 2021. Here are some tips on choosing stocks for your watchlist. Also, some answers to frequently asked questions…

How to Use This Penny Stocks Watch List

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.

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.

Why?

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’s 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 a stock makes a big percent gain, but the trading volume is so low it doesn’t make sense to trade it. One of the top penny stocks to watch this month, Rivex Technology, is tough to trade because the volume is so low.

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. 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

This 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…

What Are Penny Stocks?

Penny stocks are micro- and nano-cap company stocks that trade for less than $5 per share. Many trade via OTCMarkets, but penny stocks can also be found on large exchanges like the NYSE and Nasdaq.

Are Penny Stocks Worth it?

Penny stocks are suitable as trading vehicles but not long-term investments. Most penny stock companies eventually fail.

Are Penny Stocks Dangerous?

All trading involves risk. If you are willing to learn appropriate patterns, rules, and strategies, penny stocks are no more dangerous than other trading instruments.

How to Watch Penny Stocks?

1.) Focus on big percent gainers. 2.) Look for high volume 3.) Search for a news catalyst 4.) Look for a history of spikeability on the long term chart. 5. Use a scanner like StocksToTrade. (StocksToTrade was designed for penny stocks.)

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

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 2021 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.

Remember…

… this list of penny stocks to watch is NOT a recommendation to buy penny stocks. 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 2021? Comment below, I love to hear from all my readers!