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Top Penny Stocks to Watch During Election Season (Trump Stocks đź‘€)

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Written by Timothy Sykes
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Penny stocks, defined as shares trading at $5 or less, are known for their volatility and potential for significant short-term gains. While most penny stocks are speculative and carry high risk, they offer opportunities for disciplined traders. This article spotlights three standout penny stocks to watch during the upcoming election, with an overview of their recent moves and potential for future trades.

My top penny stock picks for election season — rated on chart pattern, price action history, and news — include the following:

Stock TickerCompanyPerformance (YTD)
NASDAQ: PHUNPhunware Inc- 71.39%
NASDAQ: DJTTrump Media & Technology Group Corp+ 100.20%
NASDAQ: DRUGBright Minds Biosciences Inc+ 2,534.24%

3 Penny Stocks to Watch in November 2024

My top 3 penny stocks to watch for November are:

  • NASDAQ: PHUN — Phunware Inc — The Donald Trump Pump AI Penny Stock
  • NASDAQ: DJT — Trump Media & Technology Group Corp — The Trump Mid-Cap Stock
  • NASDAQ: DRUG — Bright Minds Biosciences Inc — The Meme Biotech Stock Supernova

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

Sign up for my NO-COST weekly watchlist to get my latest picks!

Phunware Inc (NASDAQ: PHUN) — Riding AI and Election Catalysts

Phunware Inc has become a focal point for traders this month. The tech firm, which specializes in mobile engagement solutions powered by AI, gained attention after announcing the development of a generative AI platform on October 16. While this news was significant, it wasn’t the only catalyst.

It was my Weekend Profits winner…

Here’s why I’m still watching PHUN:

  • Trump Connection: PHUN has historical ties to Donald Trump’s campaigns, making it highly reactive to political events. The stock surged 330%* in late October as the November 5 election approached.
  • AI and Political Play: PHUN’s unique combination of being involved in both AI and political tech positions it as an intriguing, albeit risky, pick.

Trading Insight: Watch for post-election volatility. Whether Trump wins or loses, the stock’s pattern history suggests further price swings. Use technical analysis to identify potential entry points that align with well-known trading frameworks.

Trump Media & Technology Group Corp (NASDAQ: DJT) — The Mid-Cap Trump Stock

This is the OG Trump stock. It represents his social media company Truth Social. And in the lead-up to the election, it continues to capture trader interest due to its history of sharp price movements.

Why Traders Should Watch:

  • Past Performance: The stock spiked 1,600% in October 2021 and saw a 230% gain in January 2024. Most recently, it climbed 260%* in October leading up to the presidential election. Here’s part of the move!
  • Speculative Nature: Although Truth Social faces challenges with growth and revenue, the stock’s track record of sudden rallies makes it a candidate for short-term plays.

Advice for Traders: Be on the lookout for recognizable chart patterns. Always trade with clear exit strategies to avoid getting caught in reversals.

More Breaking News

Bright Minds Biosciences Inc (NASDAQ: DRUG) — The Biotech Short Squeeze

Bright Minds Biosciences has delivered one of the biggest penny stock moves this year. The biotech firm, known for developing treatments in mental health and neurological disorders, triggered a massive short squeeze in October.

Key Details:

Strategic Tip: Use the stock’s price dips to your advantage by seeking follow-up bounce opportunities. This follows patterns #5 and #6 in my 7-Step Pennystocking Framework, the “Dip Buy” and the “Dead Pump Bounce.”

*Past performance does not indicate future results

Best Practices for Trading Penny Stocks

While these stocks present high-reward potential, they come with notable risks. Here’s how to approach them smartly:

  1. Monitor High Volume and Catalysts: Penny stocks often react dramatically to news and sudden volume spikes. Look for consistent volume and news catalysts that can propel prices higher.
  2. Apply Technical Analysis: Familiarize yourself with chart patterns and historical performance to time entries and exits effectively.
  3. Maintain Rigorous Risk Management: Penny stocks can reverse sharply. Always set stop-loss orders and manage your exposure to protect your account.
  4. Avoid the Hype: Verify news independently and stay cautious of promotions. Trading on unsubstantiated hype can lead to sudden losses.
  5. Go for Small Gains… and Cut Losses Quickly! I trade conservatively, aiming for 5–10% profit on most trades. This way you can stay relatively safe while still taking the meat of the move.

Conclusion

Trading penny stocks requires a blend of study, strategy, and discipline. Stocks like PHUN, DJT, and DRUG show the risk and reward of this market segment — all in one chart! Approach these trades with a plan, and react to their charts instead of trying to predict their next moves.

Trading isn’t rocket science. It’s a skill you build and work on like any other.

I built my Trading Challenge to pass on the things I had to learn for myself…

Apply to the Trading Challenge here.

Trading is a battlefield. The more knowledge you have, the better prepared you’ll be.

What’s on your penny stock watchlist? Write “I’ll cut losses quickly” in the comments if you picked up my most important lesson!

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”