High volatility means there are a lot of penny stocks to watch in December 2019.
This list is tiny when you consider the number of big movers we’ve seen recently. Especially with all the moron newbie short-sellers getting squeezed to annihilation.
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 December…
… 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 going to 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 December 2019
- 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 (December 2019 Watchlist)
Top 5 Penny Stocks to Watch For December 2019
First, I have to make my lawyers happy…
[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 December. This month’s list could almost be called a pharmaceutical penny stocks to watch list. That’s because so many biotechs and pharma stocks are in play right now.
Proteostasis Therapeutics Inc (NASDAQ: PTI)
Proteostasis Therapeutics is a U.S. biotech with several treatments in the pipeline. Their focus is primarily on cystic fibrosis and neurodegenerative diseases.
The stock made solid gains in the last 10 days of November. After a nice spike on November 26, PTI consolidated for several days. I bought the late day breakout on December 3 and held overnight. I ended up selling premarket on December 4 for a solid $1,050 gain.**
Take a look at the six-month PTI chart:
Proteostasis presented at the Piper Jaffray Healthcare Conference on December 5. It’s important to note here that the market might not like what the company said in its presentation. Which is one reason I think you should watch the stock. Was it a buy-the-rumor, sell-the-news situation? Or is PTI set for another leg up?
Here’s the five-day PTI chart:
Be wary of being in the stock during a presentation like this. Better to wait and react to price action. That said, it was a solid play for me and could be again. But I won’t be in a stock like this as the presentation happens. Instead, I watch to see how the market reacts. There’s a good lesson in that.
Rivex Technology Corp (CVEM: RIVX)
Rivex Technology Corporation develops mobile games for Apple and Android operating systems.
RIVX’s steady climb during November looks like a classic pump. Which leads to a perfect setup for a morning panic dip buy when it eventually tanks. On December 2, the stock finally dropped before bouncing nearly 100% late morning. I traded it for a nice single. And even though I missed the initial dip, I got a little bounce.
Take a look at the RIVX chart from December 2 when it tanked at the open:
Big caveat: RIVX is illiquid. And it’s too bad RIVX has such low volume because the pattern is perfect. But with an average of only roughly 20K shares traded per day, you have to be extra careful with position sizes. Stocks trading with this low volume are dangerous as you could get stuck.
So why is RIVX on this list of penny stocks to watch?
Because it’s such a great example of this classic pattern. Was RIVX a pump? Who knows? The important thing is to study the chart so you know what to look for with this pattern. You can’t ignore a chart that looks like this…
One more thing … notice how RIVX is still trading right near its highs. Even after the big morning panic on December 2 … and another panic on December 3 … the stock climbed back to the $6.90s. And even into the $7s in premarket trading on December 5. Maybe the pump is still on…
iBio Inc. (AMEX: IBIO)
iBio is in the healthcare sector. Their products include vaccines, enzyme replacements, and treatments for fibrotic diseases.
On December 3, iBio announced it was joining a Manufacturing USA initiative. The federal government is providing $80 million in funding. And there’s also $200 million in private funding. It brings together over 100 partner organizations to work together for the Department of Defense. Their end goal is to develop tissue and organ manufacturing capabilities.
The stock has run from roughly 11 cents to 33 cents a share since. It has a terrible long-term chart so again, for me, I need to see the right price action and a lot of volume. As I write on December 5, the stock is off its premarket highs and is now red for the day. But the stock is still trading mid-range.
Here’s the IBIO five-day chart:
Remember, these stocks move fast and my strategies don’t include hold and hope. If the market gives you a play, take the play it gives you. But don’t buy and sit like a deer in the headlights if the stock tanks.
Clovis Oncology Inc. (NASDAQ: CLVS)
Clovis Oncology is a biopharma company focused on anti-cancer treatments. The company has one ovarian cancer product approved for use in the United States. They also have several products in the pipeline for other types of cancer. These products are in various stages of development from preclinical to phase III clinical trials.
CLVS is not a true penny stock as it’s trading in the mid $9s as I type. But it was a penny stock — trading under $5 a share — as recently as last month. And the chart is beautiful as an example of a multi-day runner.
Here’s the three-month CLVS chart:
As I type, the stock is following my Pennystocking Framework patterns pretty closely. So watch this stock over the coming days and weeks and see what it does.
CLVS was on my daily watchlist for the past few days. (Get my daily watchlist as a Trading Challenge, , or student.) If you’ve been following me for a while, you know my favorite pattern right now is the morning panic dip buy.
Check out the CLVS chart from December 4 and 5. Notice the big morning panic and then bounce on December 5:
CVLS was a potential dip buy for me on December 5, but I was distracted with another trade when the dip happened. Sometimes that happens. I’m OK with that as I did well on the other trade. [It was Duluth Holdings (NASDAQ: DLTH) which also had a morning spike and dip-buy opportunity.]
The last of our penny stocks to watch in December is Anavex Life Sciences. Anavex is a clinical-stage biopharma company. The company focuses on treatments for Alzheimer’s disease and other central nervous system diseases such as Parkinson’s.
AVXL spiked on December 4 when the company presented clinical trial results for one of its treatments at the Clinical Trials on Alzheimer’s Disease 2019 conference.
AVXL held most of its gains in after-hours trading on December 4. It held as I wrote premarket on December 5. I said in my daily watchlist, this stock could spike more with the current short-squeeze landscape. I also said I wouldn’t chase because it’s already up a lot. When a stock is up this much I need to see the right price action and a lot of volume.
As it turns out, the warning about not chasing was correct … because the stock turned out to be a better morning panic opportunity. Here’s the chart …
AVXL chart: 5-day, 5-minute candle — courtesy of StocksToTrade.com
That’s it for the best penny stocks to watch for December, 2019. Now I want to share a few tips about choosing stocks for your watchlist and also answer some 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’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…
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 (December 2019 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 December 2019 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 December 2019 watchlist? Comment below, I love to hear from all my readers!