This might sound crazy \u2026 There were at least 20 possible top penny stocks to watch for January. This market is insane. Almost every day there\u2019s a HUGE number of solid plays. I hope you appreciate a market where if you miss a play there\u2019s another one right around the corner. Wherever you are in your trading journey, NOW is the time to study. NOW is the time to learn. And NOW is the time to take advantage of this market madness. Every day I create a watchlist for my students. Then I do a quick write-up of what I\u2019m looking for and why I\u2019m watching the stock. Usually, it\u2019s five to 15 stocks. But the last time I had fewer than 14 stocks on my list was December 11. That\u2019s how crazy this market is. If you want my daily watchlist, sign up on Profit.ly. (Sign up for my no-cost weekly stock watchlist here.) Let\u2019s get right to the list of top penny stocks to watch in January 2021... Top 5 Penny Stocks to Watch for January 2021 President-elect Joe Biden has Wall Street optimistic about alternative energy stocks. Solar stocks were already having a good year before the election. Now the sector is finishing the year strong. So it\u2019s fitting that our first top penny stock to watch in January 2021 is a solar stock\u2026 Ascent Solar Technologies, Inc. (OTCPK: ASTI) Ascent Solar Technologies develops and manufactures flexible solar panels. The tech makes it possible to directly integrate solar cells into existing products. It also manufactures solar generators and power banks. On December 28, ASTI spiked after this SEC filing. The company raised cash through a private placement. It also issued shares to consolidate outstanding promissory notes. Here\u2019s the ASTI one-year chart: I\u2019ve traded ASTI twice recently, once for a small loss, and once for a small win.* I\u2019ll keep watching because solar stocks are in play. Ideally, it will run for several days and set up for a solid dip buy next week. But so far it\u2019s having trouble getting past 1 cent a share. Alpine 4 Technologies, Ltd. (OTCQB: ALPP) Alpine 4 Technologies also made my weekly penny stocks list. The company has several subsidiaries in different sectors, including automotive, software, and electronics. But most of the recent moves are because of the company\u2019s growing presence in the drone sector. First, Alpine 4 acquired drone maker Impossible Aerospace. Then, it used Twitter to tease uplisting to the Nasdaq. Finally, on December 28, it announced a binding LOI to acquire drone manufacturer Vayu. Here\u2019s the ALPP one-year chart: I\u2019ve had solid wins with ALPP, almost entirely on dip buys.* When something works consistently, stick with it. I\u2019d love to see max panic and bounce. I\u2019ll keep watching for more dip buying opportunities. (*These 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.) Artificial Intelligence Technology Solutions Inc. (OTCPK: AITX) AI Technology Solutions is a robotics and artificial intelligence company. It develops robotic hardware and software for security and remote monitoring. The ROAMEO outdoor security robot even interacts with people along its route. The future is now, right? AITX started ramping on news of an order for its Robotic Assistance Devices (RAD). The press release made it a favorite of the Twitter promoters. Here\u2019s the AITX one-year chart: AITX is one of my top potential dip buys. So the higher it goes, the better. I traded AITX on December 30, but I underestimated it. I\u2019d love to see a big morning panic to buy into. Bionano Genomics, Inc. (NASDAQ: BNGO) Bionano Genomics Inc. is in the medical diagnostics and research sector. The company develops and markets a genome analysis system called Saphyr. BNGO started running on December 23 after two press releases in two days. The first announced a software update for the Saphyr system. The second announced better results in a side-by-side genome sequencing comparison. On December 30, BNGO spiked premarket. Then it had a big short squeeze, hitting a 52-week high of $2.97 during regular market hours. Here\u2019s the BNGO one-year chart: BNGO didn\u2019t hold all its gains on December 30. But it still closed up over 60% on massive volume. I won\u2019t chase it. I\u2019ll watch for any big panic, ideally near the open. Guardion Health Sciences Inc. (NASDAQ: GHSI) Guardion Health Sciences develops nutraceuticals \u2014 food products for medical use. The company\u2019s main focus is in the ocular health marketplace. On December 16, the company announced a new vision support drink called EPIQ-V. Then the company announced a new president\/CEO. That news got picked up by several financial websites. Here\u2019s the GHSI one-year chart: GHSI has a recent history of running after-hours. But then it flames out when the regular market opens and serious volume comes in. But on December 30, GHSI ran during regular hours and closed up over 50%. I\u2019ll keep watching, but I\u2019d prefer it run for multiple days to set up for a big panic before buying. That\u2019s it for the best penny stocks to watch for January 2021. Here are some tips on choosing stocks for your watchlist. Also, some answers to frequently asked questions... How to Use This Penny Stocks Watch 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 \u2026 don\u2019t use this list as a signal to buy any stock. I don\u2019t put stocks on my watchlist based on fundamentals. It\u2019s not that I don\u2019t look at fundamentals. But I\u2019m not gonna lie to you. (Like so many other \u2018top penny stocks to watch\u2019 articles.) I won\u2019t tell you to buy and hold a stock because \u201cthe market is undervaluing this stock.\u201d Frankly, that kind of thinking with penny stocks is \u2026 total BS. Most penny stocks fail. Just like most traders \u2014 roughly 90% \u2014 lose. So use this list \u2014 and each of my monthly penny stocks to watch lists \u2014 as a tool for learning to create your own watchlist. Can You Trade Penny Stocks? If you\u2019re 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 \u201cThe Complete Penny Stock Course\u201d 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\u2019t 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\u2019t be fooled into thinking you\u2019re gonna succeed if you jump right in. Why? Because 90%+ of traders lose. So be willing to invest in your education \u2014 because if you don\u2019t, 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 \u2014 and again in premarket \u2014 I look for the biggest percent gainers. And that\u2019s what I focus on. I\u2019m not interested in stocks that aren\u2019t on the move. I use StocksToTrade stock scanning software. With 40+ built-in scans \u2014 some created specifically for my strategies \u2014 it\u2019s amazing right out of the gate. Yes, you can also create custom scans. (Hint: when you start using the software there\u2019s 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 a stock makes a big percent gain, but the trading volume is so low it doesn\u2019t make sense to trade it. One of the top penny stocks to watch this month, Rivex Technology, is tough to trade because the volume is so low. So 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\u2019s 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\u2019s 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 \u201cThe Complete Penny Stock Course.\u201d If you already have the book \u2026 it starts on page 183. If you don\u2019t have it \u2026 get it now.) Tip #4: Look at the Long-Term Chart When you\u2019re trying to find the best penny stocks to watch, it\u2019s 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 This might sound a little strange if you\u2019re 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\u2019re 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\u2019re 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\u2026 If Most Penny Stock Companies Fail, Why Not Just Short Sell? Because it\u2019s a very dangerous, overcrowded game right now. The level of risk so many moron newbie short sellers take these days is unconscionable. It\u2019s completely crazy. Of course, you can be successful as a short-seller. Many of my top students focus on short selling and I\u2019ve personally made millions from short selling. But the number of messages I get almost daily from short-sellers getting caught in short squeezes is \u2026 scary. How Much Money Do I Need to Get Started? I\u2019m going to say, again, invest in your education first. It doesn\u2019t take a huge amount of money to get started trading. Different brokers have different account minimum requirements. (I use these brokers\u00a0and avoid offshore brokers altogether.) But the market will make you pay more if you aren\u2019t 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 \u2014 arguably the best penny stock trader in the world \u2014 didn\u2019t make anything for nine months. So before you fund a trading account, fund your knowledge account. If you\u2019re 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 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\u2019ll take this list of the best penny stocks to watch in January 2021 and use it as a learning tool. \ud83d\udc49\ud83c\udffcSUBSCRIBE 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\u2019t matter if every stock on your list is not perfect. Or doesn\u2019t play out the way you thought. You get better by making your daily watchlist and then seeing what happened during the trading day. Remember\u2026 ... this list of penny stocks to watch is NOT a recommendation to buy penny stocks. Also, my results are not typical and I\u2019ve developed exceptional skills over two decades of trading. What do you think of the top penny stocks to watch in January 2021? Comment below, I love to hear from all my readers!