Top Reddit Penny Stocks to Watch: Key Takeaways
- 88 Energy Limited just announced it found oil.
- Pink sheet company ILUS International Inc. just announced ‘strong’ second-quarter financials.
- A Reddit penny stock fave just crashed 75% on bad news.
This week’s watchlist is a perfect example of why I teach my students to NEVER believe in penny stock companies. Learn this lesson from stock #5 now. Plus, read to the end to discover more trending Reddit stocks…
- Discovery Minerals Ltd. (OTCPK: DSCR … Read our full analysis here.)
- 88 Energy Limited (OTCPK: EEENF … Read our full analysis here.)
- Good Vibrations Shoes Inc. (OTCPK: GVSI … Read our full analysis here.)
- ILUS International Inc. (OTCPK: ILUS … Read our full analysis here.)
- Sesen Bio, Inc. (NASDAQ: SESN … Read our full analysis here.)
How was your weekend, did you manage to get in some studying too? Have you reviewed your @StocksToTrade scans for tomorrow yet? Finish your watchlist yet? PREPARATION IS THE KEY TO SUCCESS SO PREPARE, PREPARE, PREPARE!!!! Tomorrow it’s onnnnnn!
— Timothy Sykes (@timothysykes) August 15, 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: Discovery Minerals Ltd. (OTCPK: DSCR)
DSCR acquires and develops gold mining properties. It also entered the crypto space in May when it announced the launch of its utility tethered cryptocurrency, the Discovery Minerals Coin.
Reddit traders are discussing the company’s tweet announcing that it’s looking for a joint venture to fund its ruby gold mine project. These traders believe in the company and think the stock will go up once the company starts mining.
It’s a sub-penny stock, so not my favorite to trade. I’ll watch for huge volume and a catalyst before planning a trade.
Reddit Penny Stocks to Watch #2: 88 Energy Limited (OTCPK: EEENF)
EEENF’s an Australian company that explores for oil and gas in the U.S.
Over the weekend, a user posted a thread with a screenshot of the company’s press release announcing its well evaluation showed the presence of oil. Reddit traders are excited about the “good results.”
The stock’s a former runner and went on a multi-day run in March. But it traded much higher volume than it is now. It’s another one I’ll watch for more volume and one of my patterns before I plan a trade.
Reddit Penny Stocks to Watch #3: Good Vibrations Shoes Inc. (OTCPK: GVSI)
GVSI is a dark or defunct listing on the OTC markets website. The company hasn’t disclosed any filings since 2016.
Reddit traders think the stock’s ready to soar. George Sharpe recently took over custodianship and in July he tweeted that the company will have updated filings soon. There are also rumors circulating that the company could merge with SWAPP Protocol, a private company that offers a decentralized platform and an Ethereum-paired utility token.
GVSI is slowly uptrending. And updated filings is a catalyst that’s working in OTCs right now as the SEC’s September 28 deadline looms. If we see news about updated filings, I’ll watch for high volume and a potential breakout to new 52-week highs over $0.0605
Reddit Penny Stocks to Watch #4: ILUS International Inc. (OTCPK: ILUS)
ILUS acquires and develops tech companies.
On August 15 a Reddit user posted a thread about the company after it released second-quarter financials on August 13. The user also mentions the company’s July 22 announcement that it’s working on a share restructure plan and has future plans to uplist.
I’ll watch ILUS for a potential multi-month breakout over $0.078.
Reddit Penny Stocks to Watch #5: Sesen Bio, Inc. (NASDAQ: SESN)
SESN is a biotech company that’s been on the watchlist in the past. It’s a Reddit penny stock fave. Traders were HODLing in anticipation of the FDA approving the company’s bladder cancer drug.
The stock broke out over $4.80 on August 12. It was having its second big green day and made new 52-week highs of $6.04 on August 13. Then before the market close, StocksToTrade’s Breaking News Chat alerted that the stock was halted for pending news.*
The company announced, “The FDA has determined that it cannot approve the BLA for Vicineum in its present form and has provided recommendations specific to additional clinical/statistical data and analyses in addition to Chemistry, Manufacturing and Controls (CMC) issues pertaining to a recent pre-approval inspection and product quality.”
Read the full press release here.
When the stock reopened after the news it was trading at 78 cents — a 75% crash! It’s a perfect example of why trying to predict the market doesn’t work.
I include this stock on my watchlist as a lesson only. I usually love to dip buy stocks after a big panic, but not when they dip due to bad news.
These types of moves are exactly why I never believe in any penny stock company. I learned my lesson the hard way when I lost $500,000 of my own money. (Read about it and learn from it in my no-cost book “An American Hedge Fund.”)
And I became a teacher to help other traders avoid the same mistake. Want to learn from my 20+ years of experience trading penny stocks? Apply for my Trading Challenge.
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.
ContextLogic Inc. (NASDAQ: WISH) and Tesla, Inc. (NASDAQ: TSLA) were the top mentioned stocks on WallStreetBets. And here are two more tickers trending with Reddit penny stock traders:
- Support.com, Inc. (NASDAQ: SPRT): SPRT isn’t technically a penny stock. But Reddit penny stock traders still think it has the potential to squeeze. I think the move might be over. It broke out to new 52-week highs on August 13 but instead of squeezing higher, it tanked.
- Creative Medical Technology Holdings, Inc. (NASDAQ: CELZ): Like SESN, CELZ is another Reddit trader fave. Traders believe the stock will skyrocket sometime in the future on positive drug news. Hopefully, they learned a lesson from SESN and cut losses quickly.
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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