Top Penny Stocks to Watch for October 2020
Welcome to the top penny stocks to watch for October 2020. There are still SO many opportunities in the market right now. If you’re not taking advantage of them, at least use this time to learn or just start with the basic trading terms.
To start October, I’m keeping electric vehicle (EV) and lithium-ion battery plays on my watchlist. Why? Check this out…
On September 28, Piedmont Lithium Ltd. (NASDAQ: PLL) announced a deal to supply lithium to Tesla (NASDAQ: TSLA) for five years. The announcement came less than a week after Tesla’s aptly named Battery Day. In that presentation, CEO Elon Musk spoke of a need to create a domestic supply chain for battery metals.
When you see news of a major company like Tesla signing a five-year deal … look for other sector-related plays. Several lithium stocks spiked in sympathy to PLL. I’ve included three on this month’s watchlist. For more on how to create your own watchlist, keep reading.
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 why I’m watching the stock. The watchlist then goes out to my students on Profit.ly.
(Sign up for my FREE weekly stock watchlist here.)
Let’s get right to the list of top penny stocks to watch in October 2020…
Table of Contents
Top 5 Penny Stocks to Watch October 2020
The first three penny stocks to watch for October 2020 are in the EV and/or lithium-ion battery sector. The last two are solar stocks. Both EV and solar have been hot enough recently to create solid sector momentum.
For example, the Piedmont/Tesla deal set off a series of lithium battery sympathy plays…
American Battery Metals Corp (OTCQB: ABML)
American Battery Metals is a lithium-ion battery tech company headquartered in Nevada. It aims to supply the domestic EV market with lithium and other battery-grade metals. The company also has a closed-loop recycling facility for end-of-life batteries.
The same day Piedmont Lithium announced its deal with Tesla, ABML spiked in sympathy.
Here’s the ABML six-month chart:
As you can see, it was a clean multi-month breakout. Now take a look at the ABML intraday chart from September 28:
I traded ABML three times on September 28. On the first trade, I bought a little dip off the morning high. I sold into strength on the breakout for a $3,892 win. The second trade was a dip buy on the panic but I was a little early and lost $288.*
The third trade was another small win as ABML just kept hitting new highs.*
(*These results are not typical. Individual results will vary. Most traders lose money. My top students 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.)
Special thanks to the StocksToTrade Breaking News Chat team for the initial alert.
(Quick disclaimer: I helped design and develop StocksToTrade.)
I’ll keep watching ABML — it’s a potential dip buy into any big panic. The higher it goes, the more likely I am to take a bigger position size if/when it does panic. Especially if it becomes a multi-day runner.
American Lithium (OTCQB: LIACF)
American Lithium is a Canada-based lithium company with holdings in Nevada. It’s currently developing its own lithium separation technology.
Aside from its OTC listing, the company is listed on the Frankfurt exchange and the Toronto Stock Exchange (TSX). The company recently acquired land within three hours of Tesla’s Gigafactory.
LIACF was uptrending slowly in April and May. Positive test results of a new process to extract lithium from clay spiked the stock in June. Then in July, LIACF had a solid three-day run on news of reduced royalties on the Nevada land acquisition.
Here’s the six-month LIACF chart:
As you can see from the chart, LIACF had a solid first green day in sympathy to the Piedmont Lithium/Tesla deal. (The green daily candle at the far right.) As it was one of the few non-overextended battery plays, I took an overnight position. I sold at the market open for a $1,470 profit.*
I’ll keep watching LIACF. Let’s see if it can run for multiple days.
Flux Power Holdings Inc. (NASDAQ: FLUX)
Flux develops and sells rechargeable lithium-ion batteries for industrial use. Examples are forklifts, stackers, and ground support equipment at airports. The company’s products use its Battery Management System (BMS) for longer life.
FLUX was an earnings winner in after-hours trading on September 28. The stock spiked from the mid $5s to the mid $9s in a matter of minutes before pulling back.
With FLUX, I’m watching to see how high it can go. I’d love to see it turn into a multi-day runner and get overextended for a panic dip buy — maybe early next week.
Thanks to the Piedmont Lithium/Tesla deal, battery and lithium stocks are in play. So outside of groundbreaking news in another sector, this is my focus.
Now, to round out our top penny stocks to watch in October 2020, two solar energy stocks…
The Peck Company Holdings Inc (NASDAQ: PECK)
Staying with the green energy theme is Peck Company Holdings. The company has three main verticals in solar, electric, and data infrastructure/support. Its primary business is the design and construction of multi-megawatt solar systems.
PECK ran in sympathy to Sunworks, Inc. (see the next stock) and SPI Energy (NASDAQ: SPI) on September 24. PECK had several volatility halts that day. See the PECK chart from September 24 in this recent edition of the Millionaire Mentor Update.
Now take a look at the PECK six-month chart:
I traded PECK twice on September 24 and once again on September 28. The best was an $8,395 win on September 24.* See ALL my trades here. PECK is a potential dip buy into any big panic.
Now for the last of the top penny stocks to watch for October 2020…
Sunworks Inc. (NASDAQ: SUNW)
Sunworks is a solar installation company in the agricultural, industrial, and residential markets.
SUNW ran in sympathy to SPI on September 23 and 24. Then it pulled back sharply after announcing a delisting notice from the Nasdaq.
Take a look at the SUNW six-month chart:
As you can see, the stock was highly volatile for several days at the end of September. (Watch my no-cost “Volatility Survival Guide” to see why I love volatility and you should, too.)
Now take a look at the five-day SUNW chart showing the crazy price swings…
Over the years I’ve traded this one a few times — including a relatively big loss nearly twenty years ago. My recent trades are this $4,320 win on September 23. And this $3,546 win on September 28.*
SUNW is a very choppy stock. I don’t chase choppy stocks, but I don’t mind buying the dip. With that in mind, I’ll keep watching SUNW for any big panic to buy into.
That’s it for the best penny stocks to watch for October 2020. Here are some tips on choosing stocks for your watchlist. Also, some answers to frequently asked questions…
How to Use This Penny Stocks to 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 October 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. 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 October 2020 watchlist? Comment below, I love to hear from all my readers!
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Hey Everyone,
As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!
Which is why I've launched my Trading Challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.
So when you get a chance make sure you check it out.
PS: Don’t forget to check out my 30 Day Bootcamp, it will teach you everything you need to know about trading.
creative ( like you ) minds have always been know to survive any good or ……. (market).in every living day
As you stated, the stockmarket is a battlefield and you have to understand the psychology and price action of your foe and shoot (entry) precisely. The battle is right before your eyes in the candlestick, The price action, catalyst, and volume set the tone. Was it not the Japanese who first developed the candlesticks based on a battle field mentality.
Glad I saw this Tim. I purchased the $178 black Friday deal and I’m so glad I’m following you and making my way through all the information provided. I already love you approach and although I have 6k to invest I just made a buy for $9. I have learning disabilities so it will take me a while to get through all the videos but I am already very excited because the things you say make sense. Thanks for showing us your methods and your passion!
It’s my pleasure. Keep studying!
Tim I’m working hard everyday and almost have the funds saved to become a student and start the challenge my name is leslie and I’m from canada and I study every night since Nov 20 when I officially talked to James and secured my spot … I’m taking my education seriously Nd look so forward to all .
Yes! Stay dedicated and remember it’s a marathon and not a sprint.
Thanks for the list and the breakdowns. Informative . Thanks Tim
awesome thank you
Awesome! Because I watch every video and read every blog you write, I had three of those stocks on my watchlist already. I’m slowly gaining on my TINY (not even small) account. Learning the fundamentals! Thanks Tim!
YES!
It is You world , and everybody can have it!!
I have studied your process very intimately for several weeks. I employed them with FCEL and I invested the 1k I had in E-Trade because of the News that came out that morning. I validated it was a legitimate company and inserted it into my personally developed confidence equation, which resulted in an 87.5% confidence level. I am investing 1k as it is only a learning account – as a result however, I gained $80 plus dollars. I pulled out a little early but learned valuable lessons as I observed how the graph trended over the day. I have utilized your methodology on several occasions over the course of 6 weeks and have more than a 87.25 winning streak. I highly recommend your advice and mentoring – I highly value and recommend your advice in doing your homework and educating yourself before making moves to invest with your own money. Thanks Tim for sharing what you have learned so that others may benefit – there is great rewards in teaching and mentoring. The amount of education you share without buying your DVDs and Challenge is tremendous and valuable – it is a testament to your legitimacy. Nothing compares to you!!! — (Sinéad O’Connor).
Thanks Tim you give out so much free information on stock trading and you are a good person most people are not trueful they really are in for only one reason I read everything you put out thanks good health to you always.
amazing! woW! They say that 2020 is the year of the stocks, i guess it’s that well big, not the small one. won’t explain.(never mind) is the challenge the same thing as profit.ly?
So far I’m paying for my education but I’m getting fairly good at cutting losses. I am only up to 4 HTMM on the videos and I just grabbed “stockstotrade”. I really appreciate your passion and information Tim. I WILL learn to capitalize on market volatility and I love what I have learned so far. So glad I ran across you Tim. Happy New Year!
TRIL was correct, huge jump today up over 100%
🙂
I wouldn’t want to guess which stocks to watch. I will be researching with scan on STT, Trying to find fundamental information, Chat rooms to see how my ideas fare and what others are finding. As a newbie I’m getting my feet wet and have a lot to learn about finding the Previous Runners, earnings winners, short squeezes (the new Supernova promoters). I keep studying, looking at charts (till my eyes bleed), and paper trading to get used to the trading platform so when I do trade I won’t be making all these mistakes in my excitement to do well (scared). It’s amazing how many things can go wrong or not on time when you are following and trying to trade stocks! Thank you Timothy Sykes for all you do to keep us on the right track.
I absolutely love reading and watching all of your lessons. My first goal I have set for myself is to make enough to be one of your Millionaire Students. I look at it as a college degree and look how much people are willing to pay for those! Until then thank you for all the information you have shared, it is greatly appreciated!
🙂
I would love to learn more
Read The Complete Penny Stock Course – it’s solid!
My goal is to become self sufficient, so I appreciate all you do for us that really want to be a part of the 10 percent. I will continue to study my ass off as learn more and more everyday…. Thank you for guiding me to financial freedom and looking forward to the day I can thank you in person.
tim ive been wonting you 2 send me your books please sir
get The Complete Penny Stock Course here and American Hedge Fund here.
With time and effort, I can do better.
Great content Tim. What is the longest you’ll hold a penny stock, and more importantly, why?
Read The Complete Penny Stock Course – it answers all the basic questions.
Well, Tim, I’m starting over again. I’ve returned to the first videos and watching all on this shelter-in-place days. I’ll tell you later in my opinion. Tks.
🙂 GOOD!
Thanks Tim – I have already done very well with most of these picks (as of 4/2020), Always nice to see I am on the same page as you! Curious why there are comments from 12/19 all the way to 3/20 from this – guessing you kept the template of this page from an earlier post – and then edited it for 4/2020??… No matter – Great post!!! Great picks!!! …Stay Healthy…
Yes, used to write a new post every month. Now I update the stocks only because my schedule is so crazy. Thanks for reading and keep reading this post every month.
Hello to all
In this difficult span, I proclivity you all
Prize your family and friends
Hi Tim,
I have been gobbling up as much info as possible over the last 6 weeks! Would you recommend putting more than 1% of your portfolio on trades if your account is under $10,000?
With ~$14 of commissions/trade you would need to win upwards of 70-75%* of trades just to break even if your trade with 1% of a ~$10,000 account ($100) Suggestions?
*(with average of 10-15% gains & assuming 3-5% loss on losses)
Thanks!
Read The Complete Penny Stock Course. See Chapter II.4, page 133 for risk management strategies.
Hi Tim! I want to start off with a huge thank you. You’ve given me the out I’ve been looking for, meaning the 9 to 5. I’ve been studying since June 1st 2018 and I’m finally making smarter trades. I continuously study and finally figured out how to control my emotions which took quite some time. I appreciate all of your webinars along with the video lessons. I promise to stay focused and trade like a sniper…… Thanks again for everything.
Thank you Tim, you have given more than what we paid for in our subscription, I’ve learned a lot about trading after reading and watching all your videos, I also admire how you tell the truth early in your teaching that most traders loss especially when you are new and did not study hard. Thank you for heads up. i would love to be in your Tim Challenge when my finances will allow it.
YES!
Thank you for all you do and teach Tim. You are the Penny Stock Pimp!!!! I’ve learned much from you but still much more to learn. I ran with $UAVS at .84 and got out before the news at 5.00. First Big Gain!!!
GOOD!
I learned a lot.
Don’t know what happened half my message isn’t there.. I use Think or Swim as a platform. Created a scanner with this criteria. Current Price 30% and Volume >500,000. Would like our opinion on my thoughts? Still learning so using these findings for paper trading. Any fedback would be great.
Get in my http://tim.ly/sykesmc program for Q&A!
Excellent Blog post on your Top Watch List of Penny Stocks, and the 5 tips on selecting which ones to watch. After recently finding you online during the lockdown and watching 60 hours of video lessons! One could learn enough to be better than the average trader. I’ll be the test… once I have saved enough based on your free lessons, I’ll be your next millionaire trader! And, keep it, tag it, save it, I’ll give 1/2 of all trading profits to your charity. It’s not about the money… it about the challenge!
I have paper trades several of the stocks you have presented in this update. Still working on my watchlists and I always look at biggest %gainers, high volume, high volatility, catalysts if there is one, and I still have to work on twitter feed. Thank you.
Add to your reading list, includes 3 videos as well, and compliments this blog post.
In short, Big Percent Gainers, Big Volume, News Catalyst, Chart Breakouts, Confirm by reviewing long term charts. Be nimble, and remember the watchlist is NOT static, it is fluid. So, what is hot today, may not be tomorrow. Thanks for the info TIm!
https://www.timothysykes.com/blog/watchlist/
thanks, Tim. Appreciate your educational approach. I’m in The Challenge and studying to improve my trading. Got in on CYDY dip but out way too early.
Hello how can I get the daily watchlist before market open. I received it in The afternoon at 2:00 pm
Use the watchlists to understand my thought process. Then make your own for trading. NEVER follow alerts from me or anyone else. Ever!
Knowledge supports growth & development.
Going thru you 30 Day Bootcamp and it is really great. I followed the study and was prepared for the $WKSP play in @0.023 and out@ 0.045…The study and prepreation will see you thru. Thanks for the video with Roland Wolf….good insight!!
YES!
Knowledge Account Increased!
Hey Tim Steve here I’ve been now off and on with the stock market for over a year now. Yesterday was actually my biggest win yet. Canopy Growth. I bought 1 share for $15.50 on Thursday and sold it on Friday and I was shocked to even make $255. I go for well whatever my best options may be. If I don’t see the stock I bought moving anywhere barely usually I sell it right away just to make a few bucks. Now the Motley Fool is trying to say Aurora Cannabis is the best stock to buy in these weed stocks. Errrr not true I’ve been watching Canopy Growth for some time now and gave it a try and bam I made $255. I was very satisfied cause as I read your emails I know what to look for a little bit. Just that 1 trade there boosted my confidence back up and I would highly recommend everyone to give Canopy Growth a try. Why? Cause you gotta think Snoop Dogg and Martha Stewart run the show. 2 very well known ppl to start a company that is booming right now. I will have to check the stocks you were talking about I never heard of them. But have a good day everyone and be safe. And thank you Tim for the emails.
Ummmm… don’t promote stocks here. If you want to talk about a trade, that’s fine. But no pumping allowed. NONE of these companies are long-term investments. They’re trading vehicles.