Tag: Patterns To Short

Electric vehicle penny stocks have been hot because of the mania in the EV sector. Over the past year, EV stocks wildly outperformed the market. The S&P 500 is up about 80% since its March 2020 low... But check out the SPDR S&P Kensho Smart Mobility ETF (NYSEARCA: HAIL). This ETF tracks EV stocks — and it’s up over 250% since March! And that’s only because it doesn’t include some of the biggest gainers of 2020. Parts of the sector have outdone that figure by nearly 20 times. You’ve heard the saying ‘the trend is your friend’… Well, EV stocks have been a good friend to many traders over the past year. And traders have repaid the favor to some EV penny stocks. When the sector goes crazy, these cheaper stocks can get showered with attention. And some aren’t just penny stocks anymore — they’re real stocks. Under the Radar Electric Vehicle Stocks Everyone’s heard of the big EV stocks. Tesla Inc. (NASDAQ: TSLA) had probably the craziest year in 2020. It’s behaved like a penny stock ... running from its 2020 low in the $70s to a 2021 high in the $800s. It sparked the EV stock trend. Watching how Tesla trades can help you see how the rest of the EV sector will move. Founder Elon Musk has an epic social media following and his tweets can ignite stock moves. https://youtu.be/Uip358Ma9Q0 And it’s not just Tesla that’s had a wild 12 months... EV charging station maker Blink Charging Co. (NASDAQ: BLNK) was in the mid-$1s until July 2020. It rose as high as $60 in the following months. Nio Inc. (NYSE: NIO) is another former EV penny stock that made the leap — from the $2s to the low $60s. If you’re wondering what are the odds of another electric vehicle penny stock going parabolic … I’d say study the past. We’ve seen it before with some of these stocks. And given how hot the market’s been in the past year, many lesser-known EV stocks are primed for action. Gotta love those sympathy plays. The rush of new traders to online brokers like Robinhood and E-Trade does something more to EV penny stocks. Millions of traders just waiting to make the next trade can cause surprising runs. The only thing they’re thinking is, ‘Can I get rich off this penny stock?’ That’s the wrong mindset for trading electric vehicle penny stocks — or any penny stocks. https://twitter.com/timothysykes/status/1273338095597830146 You must be prepared. These stocks can move fast when news hits. Building a watchlist with stocks you’re studying is a smart way to do that. 7 Electric Vehicle Penny Stocks There are still plenty of electric vehicle penny stocks out there. Maybe some will even make the leap out of penny stock territory … but I wouldn’t count on it. I’m not talking about these cheap stocks because they’re good investments. I like them because they can attract a lot of volume. And they’ve got a TON of volatility. Stock analysts say to stay away from volatility. But if you understand the rules of penny stocking, this volatility can help your setups. But never trade with money that you can’t afford to lose. Trading is hard, and most traders lose. Not comfortable trading through volatility? Check out my NO-COST “Volatility Survival Guide.” In four simple videos, I’ll help you understand how you can prep for volatility in any kind of market. I want you to be able to use it, not fear it. Remember, you’re not investing in these stocks. You’re trading them. You don’t buy any of the hype. You’re just riding it as far as it will take you. Now, let’s get to my electric vehicle stocks to watch. Reminder: this is only a list of stocks to watch. This list is in no way a recommendation to trade. Always do your own research and due diligence. Electric Vehicle Penny Stock #1. Ayro, Inc. (NASDAQ: AYRO) Ayro is a U.S. maker of electric vehicles. It’s had a spiky ride from the $2s a year ago up to its current price in the $5s. Technically, that’s slightly out of in penny stock range. But remember these sketchy stocks can fail just as fast as they spike. These spikes have made for a lot of nice trades. This one didn’t work for me, personally... In early July 2020, I bought and sold AYRO in the low $3s.* The next trading day it ran into the $8s. That’s OK. I often sell too soon. Trading isn’t all wins or big gains. And this stock’s choppiness made me uncomfortable. That’s the downside of volatility. So I got out of the trade before it could go against me. If you look at this chart, the volatility’s still there. That makes AYRO worth watching in the future. (*Please note: My results are far from typical. Individual results will vary. Most traders lose money. I have the benefit of years of hard work, dedication, and experience. Trading is inherently risky. Do your due diligence and never risk more than you can afford to lose.) Electric Vehicle Penny Stock #2. CBAK Energy Technology (NASDAQ: CBAT) CBAK Energy Technology is in an EV support sector. This Chinese company makes lithium batteries for all types of electric vehicles. It also makes electric tools, energy storage devices, and power supplies. In September 2020, it traded under $1. Now it’s in the mid-$4s, with some massive swings on the way. This is another stock that has seemingly graduated from penny stock-dom. I think this has to do with all the new Robinhood traders … It seems a lot of them love trading low-priced stocks. I missed out on CBAT when it went supernova … Here’s my video lesson from that day. Don’t feel too bad for me though — I made $24,000 on other EV plays!* And I haven’t stopped watching CBAT. Take a look at those recent swings. Electric Vehicle Penny Stock #3. Ault Global Holdings, Inc. (AMEX: DPW) DPW has been on my radar for a long time. Ault Global Holdings builds power systems for the military, medical, and telecommunication industries. It’s an EV stock, but it’s also in the defense sector … another sector that’s exploded in 2020. This combination earns it a spot on my EV penny stock watchlist. (I’m ignoring the run-up to $4,000 at the end of 2017… Back then it was trying to ride the bitcoin wave.) Look at this chart. There’s a good amount of volatility to go with a steady uptrend. Electric Vehicle Penny Stock #4. ElectraMeccanica (NASDAQ: SOLO) If you’re into EV plays, you likely know SOLO. ElectraMeccanica is a Canadian company working on a few EV lines. You may have seen its funky one-seat three-wheeler. SOLO’s another stock that’s been trading above $5 … And now it’s on a downtrend. I caught it at the start of its post-March recovery. Again I was conservative and went for a small gain.* https://www.youtube.com/watch?vyUqDAsriiN8 It was a sympathy play as Nikola Corporation (NASDAQ: NKLA) was spiking. And it’s had some big gains since then. Electric Vehicle Penny Stock #5. Ideanomics (NASDAQ: IDEX) Ideanomics is another EV support company, specializing in fintech. It provides financial technologies and services to help with EV adoption. It had its worst year yet in 2019. It was already trending down when the March bear market descended. Then it had its coming-out party in June, as the rest of the EV sector exploded. It climbed almost $3 in the month before settling down in the following months. https://twitter.com/timothysykes/status/1273330141691875329 Now it’s hanging around in the $2s and $3s. Electric Vehicle Penny Stock #6. Kandi Technologies Group (NASDAQ: KNDI) This Chinese EV company makes EV products and parts. It also makes off-road vehicles like go-karts and all-terrain vehicles. It’s had a ton of volatility throughout its history. So no big surprise that it ran on the 2020 EV excitement. At the end of July 2020, it went supernova. News about its entry into the U.S. market caused it to spike from the high $3s to almost $15 in a single day! I missed my entry after its first halt. Then it got halted again. Too volatile for me… It’s now graduated from the penny stock ranks and hasn’t been below $5 since … It’s been chopping around in the $6s and $7s. Electric Vehicle Penny Stock #7. Medigus (NASDAQ: MDGS) Medigus is a medical device company before anything else. It signed an agreement with privately-held EV company EMuze in November … and now it’s part of the EV sector. Its new venture into EV ‘micro-mobility’ vehicles is pretty specialized. But it still benefits from EV sympathy plays. It was also carrying a fair bit of volatility before this November 2020 announcement. Look at that set of green days in late April 2020. MDGS was one of the plays I ended up with instead of KNDI in July. https://twitter.com/timothysykes/status/1288567044569432065 It’s been trending down for the last month. But we know it can run on news. Remember, former runners can run again. I’ll watch to see what happens the next time news hits. See the Stocks on My Radar In a hot market, there are so many plays. You won’t catch them all. That’s OK. But you won’t catch any if you aren’t prepared... The more you watch these stocks, the more you’ll understand how they behave. A good stock screener like StocksToTrade can help you spot plays and see the action play out on the chart. It even has a paper trading function so you can try new setups without using real money. You can get a 14-day trial for only $7. Or get STT plus the game-changing Breaking News Chat for $17. (Quick disclaimer: I proudly helped design and develop StocksToTrade and I’m an investor in it.) Smart preparation starts with your watchlists. I maintain several watchlists every day... Sign up for my no-cost weekly watchlist here. Get my top penny stocks to watch here. Find out which higher-priced stocks I’m watching and why here. Love sectors? Check out the top biotech penny stocks on my list. Never follow my picks. Use these lists to make your own watchlists. There’s a lot you can learn about the process. Conclusion This watchlist should give you some ideas on what I look for in electric vehicle penny stocks. I want to see stocks with a history of running on news. All these stocks have run for one, two, three days when a real news catalyst comes in. And since they’re in a hot sector, they don’t always need news to run. Sometimes EV stocks will run when Tesla is running. Sometimes they run for no reason at all. In my Trading Challenge, I teach my students to think for themselves so they can react to the market, not try to predict it. We study how the market’s moving, along with the charts and so much more. And we do it every day. I share my trades and watchlists to help traders like you learn the process. The Challenge isn’t about ‘hot’ stock picks. I never recommend anyone follows alerts — mine or anyone else’s. Ready to learn to find your own trades and think for yourself in the markets? Apply for the Challenge here. But be ready to work. What do you think about electric vehicle penny stocks? Which EV stocks are on your watchlist? Let me know in the comments — I love hearing from my readers!