Traders need to understand something critical about Reddit penny stocks…
Just because Reddit traders believe in a company, doesn’t mean it’ll succeed. These stocks won’t trend up forever — some may not even trend up at all.
I think the reason many Reddit traders even mention certain stocks is because they’re bag-holding them from a much higher price. So they want others to join in to pump up the price.
Never follow the crowd based on some newbie’s so-called due diligence…
Always do your own research. Never ignore the chart, volume, or price action.
The market’s always right. It doesn’t care what you or any other trader wants.
Now, let’s take a quick look at what’s happening on the WallStreetBets Reddit page…
- Robinhood Markets, Inc. (NASDAQ: HOOD) continues to see increased mentions.
- Clover Health Investments, Corp. (NASDAQ: CLOV) is back on traders’ radars.
- Electric vehicle (EV) play Microvast Holdings, Inc. (NASDAQ: MVST) also saw increased mentions after it broke out over $10 and made a high of $13.35.
Now, back to my favorite niche…
Here are the top Reddit penny stocks to watch this week.
Also, read to the end for two crypto stocks with increased mentions on Reddit.
Who’s still up studying?!?! Let’s see who wants it the most?!? ALL MY TOP STUDENTS BECAME OBSESSED WITH LEARNING BEFORE THEY MADE BANK SO YOU TELL ME IF YOU WILL STUDY HAAAAAAAAAARD?
— Timothy Sykes (@timothysykes) August 8, 2021
5 Reddit Penny Stocks to Watch This Week
I’ve cut through the noise and chatter on Reddit to come up with these top six Reddit penny stocks to watch now.
But remember, this watchlist isn’t a recommendation to buy or trade these stocks.
And if you’re hoping to get rich quick or wondering “can you get rich off penny stocks?” … you have the wrong mindset.
Don’t focus on the money.
That only creates bad trading habits like going all in, gunslinging, and overtrading…
Those are all the habits Reddit traders seem to promote and encourage.
Ignore that BS. Never blindly follow or listen to promoters or pumpers on social media and in chat rooms. They all claim these stocks are going to the moon. They’re not.
Most penny stocks fail.
Always expect the worst from every company so you won’t be disappointed. Be ready to take advantage of the hype and volatility, trade your patterns and trading plan, then move on.
If you’re new to penny stocks, get my FREE guide to trading this niche here.
Let’s do this…
Reddit Penny Stocks to Watch #1: Kaixin Auto Holdings (NASDAQ: KXIN)
KXIN’s a Chinese used car dealership.
The stock received increased mentions on the Reddit penny stock page after the company announced it’s entering the EV market on August 6. The company’s reportedly in merger and acquisition talks with Chinese EV manufacturers.
The stock had its first green day after the news, but the next day, it gapped down and consolidated on low volume. I’ll watch for more news about the company’s potential entry in the EV sector. Until that news comes out, I’ll watch it for a dip buy into a big panic.
Reddit Penny Stocks to Watch #2: Exela Technologies, Inc. (NASDAQ: XELA)
This tech company offers document management and digital business process services.
The stock had increased mentions on the Reddit penny stock page last week. The chatter continues as the company announced the launch of its human resource outsourcing service in India and the U.S. on August 5.
XELA will also report second-quarter financials on August 10. I’ll watch for a reaction to the earnings before planning a trade.
Reddit Penny Stocks to Watch #3: Tarena International, Inc. (NASDAQ: TEDU)
TEDU’s a Chinese education stock. The sector has seen increased momentum recently.
On August 8, a user posted a due diligence thread on the Robinhood penny stocks page. On August 9, the stock was up over 40%.
At the end of July, the stock had a nasty gap down and it was in a downtrend for weeks. I don’t love the chart so I won’t chase spikes. I’ll watch it for a morning panic dip-buy opportunity.
Reddit Penny Stocks to Watch #4: Asia Broadband, Inc. (OTCPK: AABB)
AABB is a metals and mining company that produces and sells precious and base metals.
The company also created a cryptocurrency backed by gold and a crypto wallet.
AABB’s a penny stock that Reddit traders believe in long term. Traders say they’re averaging down and holding large positions from much higher prices. They think the stock will fly in September when the company announces the launch of its crypto exchange.
On August 8, a user posted a thread about the company with a $1.80 price target.
It’s a former runner that’s held the 10-cent level since its run in February. But the chart looks like the ‘long kiss goodnight’ from my 7-step framework. If the company announces news that brings in high volume I’ll watch for one of my patterns.
Reddit Penny Stocks to Watch #5: Astra Veda Corporation (OTCPK: ASTA)
ASTA’s a tech company that invents and improves software applications and data security products.
It’s a multi-day runner that’s holding near its yearly highs just under a penny. But there’s no recent news on the company and it’s listed as dark or defunct on OTC markets.
We’ll see if the social media pumpers can get it to break out over 1 cent. That would be a multi-day breakout, but I’d prefer it had a catalyst. If it breaks down it could offer a panic dip-buy opportunity.
More Reddit Stocks to Watch
What else is trending on Reddit? Here are some stocks seeing increased chatter in the chat rooms. But remember, a lot of the traders in these chat rooms are HODLing.
They’re more like investors or swing traders than day traders. It seems many believe in these companies. I think that’s a huge mistake…
Prepared traders don’t get sucked into the chatter. Use the volume and hype to trade repeating patterns then move on to the next.
Crypto stocks and bitcoin sympathy plays received increased mentions in Reddit threads after bitcoin broke out above $45,000. They’re not technically penny stocks, but here are two more tickers trending with Reddit traders:
- Support.com, Inc. (NASDAQ: SPRT): SPRT was on the watchlist last week. Reddit traders still think it has potential to squeeze. If bitcoin continues higher, this sympathy play could follow suit.
- Bitfarms Ltd. (NASDAQ: BITF): BITF’s uptrending and following bitcoin’s moves. It’s close to a multi-month breakout over $7.35, but it’s also looking overextended. The company released a production update on August 5 and will report second-quarter financials after hours on August 16.
See the Penny Stocks I’m Watching
Want to know which stocks I’m watching each week?
Subscribe to my no-cost weekly watchlist. I’ll send my list of the top stocks to watch to your inbox every Sunday.
If you want even more stocks to watch, keep up with my blog. I update these watchlists every week:
- Top Biotech Penny Stocks to Watch
- Top Penny Stocks List and Weekly Update
- The Best Crypto Penny Stocks to Watch Now
I also send my daily watchlist and game plan to Profit.ly subscribers every morning. There are three ways to get it. Get a Profit.ly subscription for access.
But I don’t want you to blindly follow stock picks and alerts from anyone — including me. Learn the reasons behind my trades and stock picks. Then learn to find your own. Become self-sufficient just like my top students…
And all of my 10+ millionaire students have come from my Trading Challenge.*
If you’re accepted you’ll get access to all my top trading education resources — video lessons, webinars, all my DVDs, plus access to the top Challenge traders in my chat room.
If you’re truly dedicated to learning the process and mindset it takes to make it in the markets long term — apply to the Trading Challenge today.
The Final Word on Reddit Penny Stocks
Reddit chat rooms have the potential to push stocks higher. They can create giant short squeezes and supernovas. We’ve seen it happen in the past.
And although the past doesn’t repeat itself exactly, it often rhymes.
I’m in no way saying run out and buy these Reddit penny stocks. The chat rooms can be full of promoters and bots just as much as Twitter. But stocks with high volume and hype could present opportunities. So watch them for potential plays.
But always have a trading plan and stay disciplined. And never believe the hype.
Not sure which pattern or strategy is best for you? Watch the market, practice by paper trading on StocksToTrade**, and study all my trading education resources.
And when you’re ready, apply for my Trading Challenge.
Which of these Reddit penny stocks do you think has the most potential? Let me know in the comments … I love to hear from you!
Disclaimers
*This level of successful trading 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.
**Tim Sykes has a minority ownership stake in StocksToTrade.com.
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