In this week’s top penny stocks list and update…
- When to hit the ‘time-out’ button. (Read the Top Tested Trading Tip.)
- Why coupon clipping will never make you rich. (Check out Millionaire Mentor below.)
- And … where exponential growth really starts. (See Monday Motivation.)
- PLUS: Join me on August 13 for another all-day Trading Mastery session. (Details below.)
First, the watchlist…
Top Penny Stocks List: August 9, 2021
Patience is key in this market. Summer trading can be slow and choppy. So keep your eyes on these stocks but wait for your perfect setup. Even then, you might not be right. (Read the Trade Review below for an example of being wrong.)
These are the OTCs I’m watching this week…
And here are the listed stocks I’m watching…
3 Penny Stocks to Watch This Week
Even though there aren’t as many plays so far in August, OTCs are the most volatile. Which is why they’re still my main focus.
Top Penny Stocks List #1: Net Savings Link Inc. (OTCPK: NSAV)
Net Savings Link is a crypto/blockchain and fintech company. Today, August 9, is the announced launch date of its new cryptocurrency exchange.
An August 2 press release hyped the launch. And on August 4, the company announced it will appoint a new CEO in the coming week. As I mentioned in my monthly watchlist, this could be another ‘buy the rumor, sell the news’ play.
NSAV is also a big-time Twitter and follow-the-leader chat pump.
Here’s the NSAV one-year chart…
NSAV was volatile last week and there were panic dip-buy opportunities. Especially on August 2 and 3. But the end result was consolidation.
We’ll see how the market reacts to the crypto exchange launch. I’m watching for potential dip buys into any big panic. And I’ll watch for any big spike, ideally with volume. See details of my NSAV trades here.*
Top Penny Stocks List #2: Smartt Inc., formerly CarSmartt Inc. (OTCPK: CRSM)
Smartt Inc. is a holding company. One of its subsidiaries is ridesharing service CarSmartt. But recently the company branched into crypto and real-estate.
On August 6, Smartt announced the acquisition of an Italy-based commercial property company.
CEO Roy Capasso said, “This is just the beginning for Smartt, Inc. to grow exponentially in the real estate market. We are planning to invest and dedicate more time and resources in closing on new real estate deals in Europe, LATAM and the United States. We are also working on several deals in the Technology Industry, the Fintech and Crypto sectors to be exact.”
Read the full press release here.
Here’s the CRSM one-year chart…
CRSM spiked 84% on Friday before pulling back. I’ll continue to watch for morning spikes, ideally with news and volume. If it can run for multiple days, I’ll watch for potential dip buys into any big panic. See details of my CRSM trades here.*
Top Penny Stocks List #3: Sphere 3D Corp. (NASDAQ: ANY)
Sphere 3D is an IT services and data storage company.
On August 5, Sphere announced entry into crypto with a bitcoin mining deal. The deal gives Sphere 3D the rights to Hertford Advisors Ltd.’s bitcoin mining agreements.
CEO Peter Tassiopoulos said, “This is a significant milestone for Sphere 3D as we look to the future. We are pleased to have the opportunity to place Sphere 3D as a leader in the space with state of the art miners, in a very competitive market where time to delivery is paramount.”
Read the full press release here.
Check out the ANY one-year chart…
The bitcoin news spiked ANY after hours on Thursday. It hit a 52-week high on Friday before a sell-off near the open. It closed up roughly 40% on the day. I’m watching for potential dip buys into any big morning panics. It’s been a few years since I’ve traded this ticker, but you can see details of my ANY trades here.*
Now, it’s time for trading talk…
Trading Mentor
Successful traders learn to take losses — they’re part of the game. Sometimes losses are out of your control. Other times you’re just wrong. And then there are times when you’re off or out of sync with the market. Every top trader goes through it.
No matter how great you feel after any one winning trade, or how crappy you feel after any one losing trade, or trades, never forget to learn from what you did right & wrong and optimize/do better in the future…it’s a process so think about what you can do to improve later on!
— Timothy Sykes (@timothysykes) August 6, 2021
The key is to learn from every trade. Check it out…
KYN Capital Group Inc (OTCPK: KYNC)
KYNC is a recent runner featured on my August monthly watchlist. On August 5, the company announced the launch of its Koinfold Pay platform. I was watching for a morning panic. But when it gapped up on the premarket news, I thought it could spike more.
Here’s the chart with my entry and exit comments.
The company first announced the digital payment platform in June. There was a lot of hype around the launch. As you can see from the chart, it turned out to be a ‘buy the rumor, sell the news’ play.
When it dropped fast and I wasn’t able to get out, I averaged down. It’s a risky strategy, but I thought it still had potential. There was no bounce, so I followed rule #1 and cut losses quickly. See details of my KYNC trade here.*
Why attempt to average down if it’s risky? I don’t recommend it for newbies or anyone trying to grow a small account. It’s a slippery slope adding to a loser.
But the recent price action, combined with the news and hype, made me think there would be buyers. Check out the KYNC five-day chart…
KYNC had shown it could gap up with continuation. It had shown it could spike. And it had proved it could panic and bounce. So averaging down was speculative. Again, I don’t recommend this for newbies. But I do recommend you study history.
What’s the most important lesson from this trade? Check it out…
This Week’s Top Tested Trading Tip
Two or one this week…
First, always follow rule #1 and cut losses quickly. It’s OK to be wrong. And it’s even OK to be wrong twice. It’s never OK to hold and hope.
When it was clear I was wrong, I got out. Putting things in perspective, it’s not a big deal. I’m still up $952,000 in 2021.*
Next lesson…
Last week I was a little off. Don’t get me wrong, it was still a profitable week. But Thursday I lost money and Friday was roughly scratch.
Some days you just don’t have it and that’s me today as I lost $2k+, but prevented bigger losses had I held and hoped on $KYNC so whenever you lose you have to look at what you did right and wrong…I can ALWAYS do better, but thx to https://t.co/0HhPp6CC1v this wasn’t that bad!
— Timothy Sykes (@timothysykes) August 5, 2021
So the lesson is … know when it’s time to put yourself in time out and/or size down. After three losses on Thursday, I put myself in time out. On Friday, I had one small loss and one small win. Clearly, I was off. So I decided to size down.
There’s nothing wrong with that. One of the greatest lessons a trader can ever learn is to protect what you’ve worked so hard to gain. Revenge trading is never good. And hunting for trades to make up for losses is madness.
Your time is better served reviewing recent trades and studying what’s working in the market.
And that leads to…
Monday Motivation
You have one life. How do you want to live it? A decade from now, how will you feel looking back on today? What will you have accomplished?
“It’s not what you are, it’s what you don’t become that hurts.” — Oscar Levant, pianist, composer, actor
Most people overestimate what they can do in one year. And they grossly underestimate what they can do in five or 10.
That’s why I tell students it’s a marathon and not a sprint. What can you do today, tomorrow, next week to prepare for two, three, or five years from now?
One of my favorite examples is my first female millionaire student Mariana.* Once upon a time, Mariana made $38 on a stock. Eight months later, she made $16,805 trading the exact same pattern.* Check it out…
For those who rip on small gains/small losses, learn from my 1st female https://t.co/occ8wKmlgm student @mari_trades to pass $1 million in profits, just 8 months ago she was trading small as it’s CRITICAL WHEN LEARNING/OPTIMIZING YOUR PROCESS TO SCALE UP LATER ON WITH CONFIDENCE! https://t.co/sEZdWIcrk1
— Timothy Sykes (@timothysykes) February 28, 2021
Mariana focused on the process. And her exponential growth in profits came only after exponential growth in knowledge.*
Too many people find it hard to work today for an unknown future. They underestimate how studying adds up over time. They want to cheat time and experience.
That’s the wrong mindset. It’s like trying to cut coupons to get rich…
Millionaire Mentor
A lot of people try to cheap out on everything. They’re coupon clippers. There’s nothing wrong with coupon clippers. It’s when you think it will get you rich that it’s a problem.
You might be able to save 5% or 10%. But coupon clipping can NEVER give you exponential growth. Education can. So study now — during the slow/choppy summer market — for the next time it heats up.
Help Karmagawa to Help Greece and Turkey
More than 150 wildfires fueled by high heat and winds are raging across Greece. Dozens of villages have been evacuated. In Turkey, more than 120 wildfires have been brought under control, but firefighters are still battling another seven.
Please share that post and donate to our fundraiser. To donate, open the post using the Instagram app on your phone and tap ‘Donate to Fundraiser.’
Remember, together we CAN change the world!
Trading Education
This is where your journey begins. If you can change your mindset from making money to learning, there’s hope.
This Friday, August 13, I’m doing another all-day Trading Mastery live trading session. Watching a successful trader navigate trades is a great way to learn. There’s no guarantee I’ll win or even trade. (I never trade for the sake of trading. That’s a lesson in itself.) But when you join me for Trading Mastery, you’ll see my screen and get real-time commentary on every step of trades I do take. Plus… Q&A.
**Join Me August 13 for Trading Mastery Live**
New to penny stocks? Start with my FREE penny stock guide.
Also, get my best-selling book “An American Hedge Fund” here at no cost.
For the basics of my strategies, read “The Complete Penny Stock Course.”
And if you think you have what it takes, maybe the Trading Challenge is for you. Only apply if you’re willing to study hard. It’s not easy, but it’s where all my top students refined their skills. (Trading Mastery live trading sessions are included in Trading Challenge membership.)
**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…
How Can You Create Your Own Watchlist?
To start, look for big percent gainers. For two decades, big percent gains have been my #1 criteria. After that, I look at trading volume and a catalyst or reason behind the price action. Read “Stock Watchlist Guide: Tips & Examples to Develop Your Own” for details about the entire process.
Should I Create a Watchlist Every Day?
All serious traders create a daily watchlist. If you’re serious about trading penny stocks, making a daily watchlist is essential.
Does Tim Sykes Provide a NO-COST Watchlist?
Yes. Subscribe to my weekly penny stock watchlists below.
How to Use the Top Penny Stocks List Weekly Update
When you read the weekly penny stock list (and the monthly watchlist), don’t think of them as hot picks. Frankly, sometimes they’ll be duds. That’s why it’s called a watchlist. Welcome to penny stocks.
👉🏼 SUBSCRIBE to my NO-COST weekly stock watchlist here.
It all starts with looking for big percent gainers. Try to figure out why I’ve 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!
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 depicted 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. 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. This figure is taken from tracking user accounts on Profit.ly, a trading community platform. Timothy Sykes has a minority shareholder interest in the platform. I’ve also hired Jack Kellogg, Tim Grittani, Matt Monaco, Mariana, Bryce, and Kyle to help in my education business.
**Tim has a minority ownership stake in StocksToTrade.com.
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