The market and the world are filled with uncertainty … and the top penny stocks to watch in April 2020 will hinge on that.
The global economy is radically shifting due to the COVID-19 pandemic. Entire countries are on lockdown or shelter-in-place orders. Very few people are leaving their homes. So for April 2020, I’m focusing on stocks positioned to prosper in these times of societal isolation.
The first three months of the year I was laser-focused on biotech stocks. The last few months a large portion of my watchlist was dedicated to coronavirus biotech plays.
While I don’t think these plays are over … they’ve become a lot more crowded.
Crowded stocks = choppy stocks … I hate choppy stocks.
One lesson I’ve learned from trading over the last 20 years is to always look ahead. Once the crowd catches up with my thought process, I like to move on to greener pastures.
The COVID-19 pandemic is dramatically changing the world and economy. If you think everything will just go back to normal when this is over, you’re sadly mistaken. Corporate jobs, higher education, entertainment, and restaurants will never be the same. We’re in the middle of a huge economic shift that will last for decades.
I’ve hunted down my favorite penny stocks positioned to outperform in this coronavirus economy.
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.
Before I get to the list of top penny stocks to watch in April 2020…
Table of Contents
- 1 How to Use This List
- 2 Top 5 Penny Stocks to Watch April 2020
- 3 Can You Trade Penny Stocks?
- 4 5 Tips on How to Choose the Best Penny Stocks to Watch
- 5 Frequently Asked Questions About Penny Stocks
- 6 Conclusion — Penny Stocks to Watch (April 2020 Watchlist)
How to Use This 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.
That said, let’s get on with…
Top 5 Penny Stocks to Watch April 2020
Before you read the list of penny stocks to watch in April…
[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 April 2020.
Blue Apron Holdings, Inc. (NYSE: APRN)
Blue Apron Holdings is a direct-to-consumer e-commerce platform that delivers original recipes, and fresh, seasonal ingredients to consumers. The company also sells cooking tools and has a wine delivery service.
APRN got crushed after its June 2017 IPO. The stock started trading around $10 a share but faded quickly to under $1. The company was forced to do a reverse stock split in June 2019 to keep its NYSE listing.
Despite the company’s poor stock performance, its direct-to-consumer model is ideal during a time of national self-isolation.
Starting on March 16, APRN spiked for four straight days on speculation that restaurant closures could greatly benefit food-delivery stocks. Multiple news outlets picked up on the story, including Bloomberg, Zacks, and TechCrunch.
The publicity spiked APRN from a low of $2.25 to a high of $28.84 in just four trading days.
With a significantly reduced float, APRN went full supernova.
For nearly two weeks, APRN has held a large portion of its gains. I’m very interested if the company has a new press release about its operations.
Under no circumstances will I ever buy a stock anticipating news. I want to see the stock spike first. Then I’d look to join during dips.
Waitr Holdings Inc. (NASDAQ: WTRH)
Waitr Holdings is also in the on-demand food-delivery business. The company is based in Louisiana and primarily caters to smaller, underserved U.S. markets. Through its network of restaurants and drivers, Waitr Holdings can deliver food to customers in 250 cities.
WTRH began its run on the same day as APRN … but it had a slightly stronger catalyst. On March 16, Waitr Holdings released its fourth-quarter earnings report. In the report, the company addressed concerns about the coronavirus outbreak and its plans to achieve long-term growth.
The next day, WTRH reaffirmed its commitment to continue to deliver food to local communities.
My plan for WTRH is the same as APRN. These stocks often move together in sympathy. If one starts running on a press release, the other can quickly follow.
Again, it’s not about predicting a press release or catalyst. Let the price action come to you. It’s possible neither company will release news. Nothing is guaranteed in the stock market.
CytoDyn Inc. (OTC: CYDY)
CytoDyn is a late-stage biotech company. It studies humanized monoclonal antibodies to treat human immunodeficiency virus (HIV) infections. The company has pivoted its main drug leronlimab to treat patients with mild to moderate coronavirus symptoms.
CytoDyn began trials of its drug for coronavirus patients on March 16, but the stock didn’t spike on the initial news. The drug showed promise in initial trials leading the FDA to approve of two emergency cases where patients in New York received leronlimab.
By March 23, four patients had received the drug and doctors provided statements on its effectiveness…
But CytoDyn stock didn’t begin to run until March 27 when three more patients joined the trial.
CYDY closed strong on Friday, March 27. Then news spread over the weekend, which led to a huge gap up and morning spike. CYDY opened March 27 at $1.03 and hit a high of $3.50 Monday morning.
I haven’t seen OTC action like this since Tim Grittani nailed Fannie Mae (OTCQB: FNMA) five years ago.
CYDY even made it on Tucker Carlson’s nightly show with Fox News. Watch the full segment here.
My favorite play on OTC stocks is dip buying the morning panic. Level 2 on OTC stocks is much easier to read than listed stocks. If we get any large morning dips (greater than 20%), I may look to buy. It’ll depend on how weak the stock is trading.
Tilray, Inc. (NASDAQ: TLRY)
Tilray is in the research, cultivation, processing, and distribution of medical cannabis. During the 2018 weed boom, TLRY was the sector leader. The company had its IPO around $18 a share and made its way to a high of $300 in a few months.
Since 2018, the cannabis hype subsided … and TLRY faded all the way to a low of $2.43.
The entire weed sector got crushed over the last year — but it could provide a great bounce opportunity.
That doesn’t mean you should blindly buy any stock that’s down 50% or more.
Do your research. Some companies have negative catalysts and are down for good reasons.
TLRY and the weed sector actually had a good catalyst once the COVID-19 pandemic forced a nationwide shelter in place. Many dispensaries reported record sales as people stocked up on cannabis for self-isolation.
Tilray stock hit a high of $10.60 on March 27. The stock had an impressive rebound from $2.43 to $10.60 in only seven trading days. To date, TLRY hasn’t released an official statement about its sales.
Similar to the explosive move biotechs had this year, the weed sector could see a nice recovery. I’m excited to see what these stocks do in April.
IMAC Holdings, Inc. (NASDAQ: IMAC)
IMAC Holdings provides orthopedic therapies through a chain of 14 innovative medical centers in the U.S. The company focuses on sports injuries, back pain, joint pain, ligament and tendon damage, and other soft tissue conditions.
In an effort to assist with the COVID-19 pandemic, IMAC launched a new telehealth option for its active care patients. Many treatment facilities are turning to telehealth to reduce unnecessary travel.
IMAC has been in an ugly downtrend for the last year — but it spiked over 1,000% on the telehealth news.
I wasn’t able to capitalize on IMAC’s day-one run. The stock halted over 30 times which made it difficult to trade. But I kept it on my radar.
Two days after the initial spike, IMAC reported earnings. Since I was familiar with the stock, I jumped on it quickly. Always keep an eye on former runners.
I locked in $2,256 on the trade.* I was prepared and executed according to my plan. (Here’s my verified trade)
IMAC has associated itself with COVID-19. Since the virus isn’t going away … I’ll keep IMAC on my watchlist. If there’s a new catalyst comes, I’ll be ready.
(*Please note: my results are not typical. I’ve spent years developing exceptional skills and knowledge. Always remember trading is risky. Never risk more than you can afford.)
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.
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
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 (April 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 April 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 this April watchlist? Comment below — I love to hear from all my readers.