In this week\u2019s top penny stocks list and update\u2026 \tThe counterintuitive trading lesson many new traders miss. (Read the Top Tested Trading Tip.) \tCan a short squeeze create sector momentum? (Read the Student Q&A.) \tWhy taking risks in life is important. (Check out Monday Motivation.) \tPLUS: a presentation you won\u2019t want to miss. (Keep reading if you LOVE meme stock madness\u2026) First, the watchlist... Top Penny Stocks List: July 26, 2021 These are the top OTC and listed stocks I\u2019m watching this week. Remember, it\u2019s a watchlist and not a buy list. I might not trade a single stock on this list. Without further ado, these are the OTCs I\u2019m watching... And here are the listed stocks I\u2019m watching... 3 Penny Stocks to Watch This Week Two of this week\u2019s top listed penny stocks are OTCs which are still my main focus. Read the Top Tested Trading Tip below to find out why. First, let\u2019s look at the latest round of promoter BS... Top Penny Stocks List #1: Health Discovery Corp. (OTCPK: HDVY) Health Discovery Corporation is an intellectual property development company. It owns the patent for an artificial intelligence algorithm with potential medical applications. The patent is why HDVY is a big multi-day runner. In July 2020, Health Discovery filed an infringement lawsuit against Intel (NASDAQ: INTC). The company updated shareholders on June 4 in this 8-K filing. In simple terms, it says the lawsuit has moved on to the discovery phase. But it\u2019s a different infringement lawsuit against Intel that has Twitter promoters hyping HDVY\u2026 In March, Intel was ordered to pay $2.18 billion to VLSI Technology for patent infringement. Promoters, doing what they do best, are hyping HDVY as the next court loss for Intel. Check out the HDVY one-year chart... As you can see, HDVY had a clean multi-week breakout on June 21. Then it hit a 52-week high of $0.4286 on June 22. I dip-bought the pullback off the morning spike. But I was roughly 15-minutes early and took a small $192 loss. HDVY has proven it can panic and bounce nicely. But remember the reason it\u2019s up in the first place is promoter BS. It dropped roughly 25% on Friday without bouncing. I\u2019m watching for any big intraday panic, ideally in the morning. I\u2019ll also watch for signs of bouncing if promoters keep hyping the lawsuit. Top Penny Stocks List #2: Halberd Corp. (OTCPK: HALB) Halberd Corporation is a research and development stage pharma company. It\u2019s working on potential treatments for MS, Alzheimer\u2019s, cancer, and other diseases. On July 22, the company announced new Alzheimer\u2019s Disease (AD) research by a Youngstown State University team. The research also has potential for the treatment of PTSD. Halberd CEO William A. Hartman said, "If our experimentation proves significant as a PTSD\/CTE treatment, we will contact the Defense Advanced Research Projects Agency (DARPA) with our findings to seek potential joint development of our technology to address the PTSD-related suicide rate, which stands at almost one per hour by active and former military personnel. An effective treatment for PTSD, and\/or CTE, to eliminate suicide ideation has eluded the medical industry to date.\u201d Read the full press release here. Check out the HALB one-year chart\u2026 HALB had a big morning spike on the research news. Then it held its gains well and closed up 126% on the day. I traded HALB twice on Thursday. (See my trade review below.) See details of my HALB trades here.* Top Penny Stocks List #3: Xenetic Biosciences Inc. (NASDAQ: XBIO) Xenetic Biosciences is a biopharma company focused on patient-specific cancer therapies. On July 22, XBIO spiked big after hours on rumors the company plans to expand its manufacturing facility. Short sellers got involved and it turned into a big Friday short squeeze. Check out the XBIO one-year chart\u2026 After the initial spike on Friday, XBIO traded very choppy. It held its gains most of the day. But then it faded hard the last 90 minutes of regular trading. If the company issues a press release confirming the rumors, it\u2019s a potential buy. Also, if it has a big intraday panic it\u2019s a potential dip buy. I\u2019m mostly watching it to learn as it\u2019s so choppy. Trade Review This week\u2019s trade review covers two trades on one stock. The first trade was based on a StocksToTrade Breaking News Chat alert.** The later trade fit my first green day pattern to a T. Halberd Corporation (OTCPK: HALB) STT Breaking News Chat alerted this before the open. I probably should\u2019ve taken it from the open but it wasn\u2019t my priority as I was watching other stocks. When it spiked fast, I didn\u2019t want to chase, so I waited for a dip off the high of day. Here\u2019s the July 22 intraday chart with my entry and exit comments\u2026 HALB chart: July 22 intraday, STT Breaking News Chat, first green day \u2014 courtesy of StocksToTrade.com As you can see, I played it safe when the follow-up bounce started to fail. It wasn\u2019t anything huge, but the $975 win made up for two earlier losses.* Again, the second trade fit my first green day pattern. It was up with news, had its highest volume since last October, and held its gains throughout the day. I wasn\u2019t sure if I\u2019d hold HALB overnight when I bought it. And I still wasn\u2019t sure when I averaged down. In the end, I played it safe and took the 9.22% win and another $1,251 in profits.* Now it\u2019s time for... Monday Motivation Risk is a part of life. If you never take risks, life is boring. \u201cLife is either a daring adventure or nothing at all.\u201d \u2014 Helen Keller Part of life \u2014 and trading \u2014 is experimenting. You have to find what works for you. \u201cDon\u2019t be too timid and squeamish about your actions. All life is an experiment. The more experiments you make the better.\u201d \u2014 Ralph Waldo Emerson So don\u2019t be afraid to try new things in life. That said, you don\u2019t need to take crazy risks to do big things. And that includes trading. Trading is inherently risky and 90% of traders lose. But most traders lose because they\u2019re not prepared. They haven\u2019t studied enough, don\u2019t know the patterns, and don\u2019t manage risk properly. What a lot of people can\u2019t seem to grasp is that you don\u2019t need to take big risks\u2026 https:\/\/twitter.com\/timothysykes\/status\/1418224365846482954 The key is to step back and focus on the entire process. Trade with small position sizes or paper trade. You do NOT need to swing for home runs. Over time, with experience, after you\u2019ve grown your small account\u2026 THEN you can size up. Until then, it\u2019s not only unnecessary, it\u2019s crazy. This Week\u2019s Top Tested Trading Tip \u00a9 Millionaire Media, LLC This week\u2019s top tested trading tip is\u2026 Know Your Opponent\u2019s Mindset People ask, \u201cTim, you talk so bad about these companies, why are you trading them?\u201d The simple answer is because it\u2019s easier. I\u2019m grateful to the promoters. (Big hint: Try to find the promoted stocks because they have more predictable patterns.) But there\u2019s a caveat\u2026 I won\u2019t tolerate the promoters\u2019 BS and lies. If you ever somehow fall for these promoters and think \u201cThis is a good company\u2026\u201d It\u2019s not. Utilize them for their volatility and predictable patterns. But expect the worst and you\u2019ll never be disappointed. What does this have to do with the top tested trading tip? Pay attention, this is important\u2026 I haven\u2019t short sold anything for nearly two years. But that\u2019s NOT because I don\u2019t think these companies aren\u2019t shady. It\u2019s because short selling is scary right now. We\u2019ve seen huge short squeezes that have blown up overaggressive shorts. But I still have the mindset of a short seller because I\u2019ve seen so much BS. And that mindset helps me with my long trades. In other words, I know my opponent\u2019s mindset. Inside out. Trading Mentor Q&A This week\u2019s question is from my live trading webinar on July 21. Before I answer the question\u2026 Here\u2019s the NeuroMetrix Inc. (NASDAQ: NURO) July 21 intraday chart\u2026 NURO chart: July 21 intraday, short squeeze with volatility halts \u2014 courtesy of StocksToTrade.com Here\u2019s the question... \u201cWith $NURO price action today, do you think it may open us up to some sector momentum?\u201d NURO was trading in the mid-$11s during premarket trading on July 21. What you don\u2019t see on this chart is that it was already up from $3.02 on July 19. Short sellers were chomping at the bit. What the chart does show is a giant short squeeze. It topped out at $38.67 on the day. Short sellers got squeezed more when it hit a premarket high of $40.83 on July 22. A lot of shorts got crushed. It\u2019s tough to say something like this will create sector momentum. You have to keep the past chart in perspective, too. Is it a breakout to new highs? Is it bumping up against resistance? Sector momentum usually doesn\u2019t come from short squeezes. An exception might be when the stock is a sector leader, like Tesla (NASDAQ: TSLA). Giving Back: Two NEW School Alerts I\u2019m so excited to announce two more Karmagawa school projects open this week. Also, some of Karmagawa\u2019s recent donation to Bali Children\u2019s Project will help feed 250 families. View this post on Instagram A post shared by Timothy Sykes (@timothysykes) Every donation \u2014 great and small \u2014 helps. If you\u2019re not able to donate, then please like, share, and comment on the Instagram post. Together we can make the world a better place.\u00a0 Trading Education One thing I say over and over is that you have to find what works best for you. It\u2019s why we offer so many different courses and styles of trading through Profit.ly. And it\u2019s why you might want to check this out\u2026 On Wednesday my long-time friend Paul Scolardi is giving a presentation on meme stocks. If you\u2019ve enjoyed watching the crazy action on stocks like GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC), this is a must-watch presentation. I\u2019ll be watching, too. Join the free training below. (Yes, you have to submit your email address.) The Next $1 Million Meme Stock Summit Also, use these resources to further your trading education... New to penny stocks? Start with my FREE penny stock guide. Get my best-selling book \u201cAn American Hedge Fund\u201d here. (It won\u2019t cost you a penny.) For the basics of my strategies, read \u201cThe Complete Penny Stock Course.\u201d Every trader NEEDS this book! If you\u2019re ready to immerse yourself, the Trading Challenge is for you. But only apply if you\u2019re willing to study hard. All my top students refined their skills as members of the Trading Challenge. **Apply for the Trading Challenge Today** Trading Challenge students also get access to my daily watchlists. All successful traders make their own watchlists. Studying mine (and those of other successful traders) is a good start, but you need to learn... How to Create Your Own Penny Stock List Answers to watchlist FAQs... \u00a9 Millionaire Media, LLC How to Use the Top Penny Stocks List Weekly Update When you read the weekly penny stock list (and the monthly watchlist), don\u2019t think of them as hot picks. Frankly, sometimes they\u2019ll be duds. That\u2019s why it\u2019s called a watchlist. Welcome to penny stocks. \ud83d\udc49\ud83c\udffc SUBSCRIBE to my NO-COST weekly stock watchlist here. It all starts with looking for big percent gainers. Try to figure out why I\u2019ve put the stocks on my list. Study so you can help yourself become a self-sufficient trader. Only fools chase hot picks. What do you think about this penny stocks list and weekly update? Comment below, I love to hear from all my readers!\u00a0 Disclaimer *While Tim Sykes has enjoyed remarkable success trading stocks over the years, his primary income derives from the sale of financial education products and subscription services offered by various businesses and websites in which he has an ownership stake. The level of successful trading discussed in this article is not typical and does not reflect the experience of the majority of individuals using the services and products offered on this website.\u00a0 From January 1, 2020, to December 31, 2020, typical users of the products and services offered by this website reported earning, on average, an estimated $49.91 in profit.\u00a0 **Tim has a minority ownership stake in StockstoTrade.com.