This market has shown us some crazy runners this year and many of them are stocks under $ 1. Penny stocks are my preferred way of trading. If you stick to a solid trading plan these can potentially present high risk / high rewards.
The fat cats on Wall Street laugh at these cheap stocks … but I love them. You can create some of my favorite patterns.
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 are a beginner.
So build your knowledge by starting small and practicing the basics.
Remember, this is a WATCH list. There is no guarantee that these stocks will run or that I will trade them. It’s about understanding the process.
Now let’s look at the stocks below $ 1 that I’m watching right now …
How to find stocks under $ 1
When it comes to finding stocks under $ 1, there are several approaches.
You have to do some research, don’t you? Just be careful where you look. There are many forums out there, but they can be difficult to follow. Every trader has his or her intentions … which can lead to misinformation.
Another option is a stock scanner. I recommend this tool for all day traders and especially for beginners.
Finding stocks under $ 1 can be easy. Stock scanning software can help you narrow down what you’re looking for. By specifying settings like price range, profit percentage, volume, etc., you can better sort out stocks that do not fit your trading plan.
New to Penny Stocks? Start with my FREE online guide.
Check out StocksToTrade
Here’s just one reason I think StocksToTrade is such a great platform … I think it has one of the best stock scanners out there. I invested in this platform because it was built for the stocks I love to trade in. It also has cutting edge features like the paper trading tool, indicators and beautiful charts.
(Short Disclaimer: I was involved in the design and development of StocksToTrade and I am an investor.)
And then there is StocksToTrade’s broker integration feature. You can link a qualified brokerage account and trade directly through the StocksToTrade platform. Love level 2? You can add that too.
Do you want access to the news that can trigger big stock spikes? Check out the Breaking News Chat add-on. My trading has changed fundamentally since I started last year.
How do I find tips for my watchlists every day? I use StocksToTrade. That’s it. Check out a 14 day trial here and see how powerful it can be.
6 stocks under $ 1 to see
Stocks Below $ 1 To See # 1: Masterbeat Corp (OTCPK: MSTO)
MSTO is a potential runner rising from a sub-penny to 2 cents on March 9th.
There’s a ton of OTC stocks under $ 1 out there, but they haven’t been that hot lately. I will approach this setup carefully. I will look for a strong continuation.
We have seen several potential runners in the past few weeks. But now the markets look like they can rebound.
I would love to see a high volume morning spike … otherwise I won’t be convinced by much. A news catalyst could do it even better. This run may not be over yet …
Stocks Seeing Under $ 1 # 2: Labor Smart Inc (OTCPK: LTNC)
LTNC has been a big runner lately, rising from a sub-penny to 4.5 cents in February. It had a big panic about a week ago, but it struggled.
However, one day 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 will look carefully but be ready to reduce losses quickly if I trade with it.
Stocks Below $ 1 To See # 3: Global Technologies Ltd. (OTCPK: GTLL)
This stock has a big multi-day breakout. On February 5, it broke out on over 800 million shares in Penny Land. It ran up to 3.5 cents and has since withdrawn.
This run might not go through … I don’t think this stock has really recovered yet. It came back to sub-penny but immediately shot back over 1 cent. Maybe it can jump back to 2 or 3 cents.
I will wait for an A + setup. That means, ideally, large volume, a morning spike, and hopefully a solid catalyst.
Stocks Seeing Under $ 1 # 4: Atari (OTCPK: PONGF)
This stock is new to me. I didn’t know Atari was trading on OTC … and now it’s a crypto game!
I won’t let nostalgia get in the way of discipline. On March 9th, I bought this stock on the news, but it became a rule # 1 scenario. I got out for a small loss, but then it hit the high point of the day.
The relative volume was NUTS. Almost 6 million stocks have been traded and we have a nice daily chart in front of us. I think PONGF has the potential to be a multi-day runner.
Make sure you are following your own plan. If this pattern doesn’t fit your trading process, don’t trade it.
Stocks Below $ 1 See # 5: Barrel Energy Inc. (OTCPK: BRLL)
I’m sure traders saw this stock go insane in February. This was one of the bigger multi-day runners I’ve seen in a while.
Once it hit penny territory, BRLL shot to 90 cents and never looked back. After that, it offers multiple dip-buy opportunities and appears to have found support near 20 cents.
I think there is tons of potential reach for this bounce game. If it gets better, many traders may be interested in this because of the recent moves.
However, it is still far from the 1 cent breakout level. If this support does not apply, I do not want to be involved. I will be looking for bulk and preferably breaking news.
Stocks Below $ 1 To See # 6: Marijuana Company of America Inc. (OTCPK: MCOA)
Weed stocks will always have a special place in my heart. This sector always brings back memories of crazy multi-day runners. We saw it in 2018 and again for the past few months.
But now, in March 2021, we are hearing rumors of marijuana legalization at the federal level. This is the best catalyst to revitalize the sector.
MCOA was one of my favorite weed populations this past run. It always felt like a clean price action. So if we get a little more oomph, this will be one of my top watches for the industry.
The daily chart shows a lot of room to bounce off. But I’m not getting speculative with this one. Without more important news, I don’t think it’s worth it.
See the stocks that I watch
Subscribe to my free watchlist to see what I see each week. My top watches land directly in your inbox. Use these stocks to create your own watchlists and trading plans.
Let me repeat: the stocks on my watchlist are not a recommendation to trade. I watch these stocks for possible opportunities. Always do your own research and due diligence for each trade. Never blindly follow warnings or tips. Ever.
I love trading penny stocks, especially stocks under $ 1. These small businesses are often total crap. But if you know what to look for, they can offer amazing trading opportunities.
While they can be volatile, stocks under $ 1 can offer some of the best risk / reward trading out there. And they can be great for small accounts.
But you know what you are doing. Knowledge should be your number one priority.
In my Trading Challenge, my top students and I are always looking for the hottest stocks. And I’ve now started several top traders in my challenge, achieved major milestones and now helped moderate the chat room and teach beginners. * It’s an amazing environment to learn in.
I am a transparent mentor AND trader. I post all of my trades on Profit.ly. Study my mistakes … remember them so you can avoid making them yourself.
When you’re ready to join an amazing day trading community, apply for my challenge. But be warned … I only accept the most dedicated students. Unless you’re a hard worker, chances are you won’t cut it.
If you’re ready to go into the strenuous exertion, you may have what it takes to be my next millionaire student. *
(* Trading results are not typical. Individual results vary. Most traders lose money. My top students and I benefit from 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 of trading stocks under $ 1? Let me know in the comments!