This market has shown us some CRAZY runners this year, and a lot of them are stocks under $1. Penny stocks are my preferred way to trade. If you stick to a solid trading plan, they can potentially offer great risk/reward.
I think traders with small accounts can do well with stocks under $1. I even trade stocks at 1 cent … sometimes lower. Trading higher-priced stocks can be overwhelming, especially if you’re a beginner.
So build your knowledge by starting small and practicing the fundamentals.
Keep in mind, this is a WATCH list. There’s no guarantee that these stocks will run or that I’ll trade them. It’s all about understanding the process.
Now let’s look at the stocks under $1 I’m watching now…
Table of Contents
- 1 How to Find Stocks Under $1
- 2 6 Stocks Under $1 to Watch
- 2.1 Stocks Under $1 to Watch #1: Masterbeat Corp (OTCPK: MSTO)
- 2.2 Stocks Under $1 to Watch #2: Labor Smart Inc (OTCPK: LTNC)
- 2.3 Stocks Under $1 to Watch #3: Global Technologies Ltd. (OTCPK: GTLL)
- 2.4 Stocks Under $1 to Watch #4: Atari (OTCPK: PONGF)
- 2.5 Stocks Under $1 to Watch #5: Barrel Energy Inc. (OTCPK: BRLL)
- 2.6 Stocks Under $1 to Watch #6: Marijuana Company of America Inc. (OTCPK: MCOA)
- 3 See the Stocks I’m Watching
- 4 Conclusion
How to Find Stocks Under $1
When it comes to finding stocks under $1, there are a few different approaches.
You have to do some research, right? Just be careful where you look. There are many forums out there, but they can be hard to follow. Every trader has their intentions … which can lead to misinformation.
Another option is a stock scanner. I recommend this tool for all day traders, and especially beginners.
Finding stocks under $1 can be simple. You can use stock scanning software to narrow down what you’re looking for. By setting preferences like price range, top percent gainers, volume, and so on, you can better sift out stocks that don’t fit your trading plan.
Check Out StocksToTrade
Here’s just one reason I think StocksToTrade is such a great platform … I think it offers one of the best stock scanners out there. I invested in this platform because it’s built for the stocks I love to trade. It also has cutting-edge features like its paper trading tool, indicators, and beautiful charts.
(Quick disclaimer: I helped design and develop StocksToTrade and I’m an investor.)
And then there’s StocksToTrade’s broker integration feature. You can link a qualifying brokerage account and trade right from the StocksToTrade platform. Love Level 2? You can add that too.
6 Stocks Under $1 to Watch
Stocks Under $1 to Watch #1: Masterbeat Corp (OTCPK: MSTO)
MSTO is a potential runner in the making, going from sub-penny to 2 cents on March 9.
There’s a ton of OTC stocks under $1, but they haven’t been as hot lately. I’ll approach this setup carefully. I’ll be watching for a strong continuation move.
We’ve seen several potential runners fizzle out these past few weeks. But now the markets look like they could rebound.
Stocks Under $1 to Watch #2: Labor Smart Inc (OTCPK: LTNC)
LTNC was a big recent runner, going from sub-penny to 4.5 cents throughout February. It had a huge panic about a week ago, but it’s been fighting back.
However, one of these days I think the price could fall off a cliff. If this stock has a weak open in the next few days, it could lead to a panic dip buy, one of my favorite patterns. I’ll watch closely but be ready to cut losses quickly if I trade it.
Stocks Under $1 to Watch #3: Global Technologies Ltd. (OTCPK: GTLL)
This stock’s coming off a BIG multi-day breakout. On February 5, it broke out into penny land on over 800 million shares. It ran up to 3.5 cents and has been pulling back since.
This run might not be done … I don’t think this stock has truly bounced yet. It came back to sub-penny but immediately shot back over 1 cent. Maybe it can bounce back to 2 or 3 cents.
I’ll wait for an A+ setup. That means ideally big volume, a morning spike, and hopefully a solid catalyst.
Stocks Under $1 to Watch #4: Atari (OTCPK: PONGF)
This stock is new to me. I didn’t know Atari traded on the OTC … and now it’s a crypto-related play!
I won’t let nostalgia get in the way of staying disciplined. On March 9, I bought this stock on news, but it turned into a rule #1 scenario. I got out for a small loss, but then it made its way to the high of the day.
The relative volume was NUTS. It traded almost 6 million shares, and it’s got a nice daily chart ahead. I think PONGF has the potential to be a multi-day runner.
Make sure you follow your own plan. If this pattern doesn’t fit your trading process, don’t trade it.
Stocks Under $1 to Watch #5: Barrel Energy Inc. (OTCPK: BRLL)
I’m sure traders saw this stock go crazy in February. This was one of the bigger multi-day runners I’ve seen in a while.
Once it hit penny territory, BRLL rocketed to 90 cents and never looked back. After that, it’s offered several dip buy opportunities and appears to have found support near 20 cents.
I think there’s tons of potential range for this bounce play. If it starts to perk up, I think a lot of traders could get interested because of its recent action.
However, it’s still far away from the 1-cent breakout level. If this support doesn’t hold, I don’t want to be involved. I’ll look for big volume and preferably breaking news.
Stocks Under $1 to Watch #6: Marijuana Company of America Inc. (OTCPK: MCOA)
But now in March 2021, we’re hearing rumors of marijuana legalization on a federal level. That’s the best kind of catalyst to reignite the sector.
MCOA was one of my favorite weed stocks during this past run. It always felt like clean price action. So if we do get some further momentum, this will be one of my top watches for the sector.
The daily chart shows a ton of room to bounce. But I won’t get speculative with this one. Without more major news, I don’t think it’s worth it.
See the Stocks I’m Watching
Let me repeat myself: the stocks on my watchlist are not a recommendation to trade. I’m WATCHING these stocks for potential opportunities. Always do your own research and due diligence for every trade. Never blindly follow alerts or picks. Ever.
I love trading penny stocks, especially stocks under $1. These small companies are often complete crap. But if you know what to look for, they can present amazing trading opportunities.
But know what you’re doing. Knowledge should be your top priority.
In my Trading Challenge, my top students and I constantly look for the hottest stocks. And I’ve now had several top traders start in my Challenge, hit big milestones, and now help moderate the chat room and teach beginners.* It’s an amazing environment to learn in.
If you’re ready to join an awesome day trading community, consider applying to my Challenge. But be warned … I only accept the most dedicated students. If you aren’t a hard worker, you probably won’t cut it.
If you’re willing to put in the grueling effort, you might have what it takes to be my next millionaire student.*
(*Trading 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.)
What do you think about trading stocks under $1? Let me know in the comments!