Top Reddit Penny Stocks to Watch: Key Takeaways
- Reddit traders are stalking the next big potential short squeeze.
- Three stocks with massive gains — they’re not even penny stocks anymore!
- A 60% gainer that traded over 500 million in volume on Apple rumors…
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Reddit traders have their sights set on short squeeze targets. Can one of these stocks repeat SPRT’s move and squeeze to $60? Find out the big percent gainers targeted for a short squeeze and the patterns I’m aiming for below. Plus, discover more trending Reddit stocks, including the top trending ticker on WallStreetBets.
- Naked Brand Group Limited (NASDAQ: NAKD … Read our full analysis here.)
- Vinco Ventures, Inc. (NASDAQ: BBIG … Read our full analysis here.)
- Aterian, Inc. (NASDAQ: ATER … Read our full analysis here.)
- Globalstar, Inc. (AMEX: GSAT … Read our full analysis here.)
- Sphere 3D Corp. (NASDAQ: ANY … Read our full analysis here.)
HOW BAD DO YOU WANT IT?!? #preparationisthekey
— Timothy Sykes (@timothysykes) August 22, 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: Naked Brand Group Limited (NASDAQ: NAKD)
Naked Brand manufactures and sells clothing and swimwear.
It was on the Reddit watchlist last week after a trader posted a thread noting the company has “zero debt” and a “major acquisition is in the works.”
I was watching for more volume and one of my trading patterns. Volume came in on August 24, and it gapped up and climbed for three days. But the volume’s nothing compared to what it traded when it had a huge run in February. (Past performance is not indicative of future results.)
It continues to pop up in Reddit penny stock threads, so I’ll watch it for a multi-day breakout over 77 cents.
Reddit Penny Stocks to Watch #2: Vinco Ventures, Inc. (NASDAQ: BBIG)
BBIG’s a consumer cyclical stock that offers toys, electronics, and housewares to retailers and distributors.
The stock had huge gains on August 27 then gapped up on August 30, making a high of $10 before fading back to the $7s.
Reddit traders compare this stock to Support.com, Inc. (NASDAQ: SPRT). They’re ready to buy any dips in hopes this thing continues to run and squeeze shorts. Their price targets are anywhere from $20 to $50 or $60 like SPRT.
I won’t chase or buy and hold. I’ll watch it for a morning panic dip buy.
Reddit Penny Stocks to Watch #3: Aterian, Inc. (NASDAQ: ATER)
ATER is a tech company that uses an AI machine-learning platform to analyze data to market and sell products.
The stock ran from $4.14 to $6.72 on August 27. The next trading day it gapped up to open at $8.88 before fading back to $6.48. The company also announced a shareholder perk program on August 30, which offers shareholders weekly discounts on ATER products.
Reddit traders are “extremely bullish on ATER”, and think it’s “gonna be huge.” Some traders think it has the potential to squeeze due to its high short interest.
It’s another one I’ll watch for a potential dip buy into any big morning panic.
Reddit Penny Stocks to Watch #4: Globalstar, Inc. (AMEX: GSAT)
GSAT is a mobile satellite service provider.
The stock soared over 60% on August 30 after a report circulated that Apple Inc. (NASDAQ: AAPL) could use satellite communication connectivity in the iPhone 13 to service areas without 4G or 5G coverage.
The news and percent gain piqued Reddit traders’ interest. It received plenty of mentions in the daily thread.
GSAT could play out as a ‘buy the rumor, sell the news’ play. It has a huge float but it also traded high volume of over 500 million shares. I’ll watch this one for more potential upside and squeeze, but only if the high volume continues.
Reddit Penny Stocks to Watch #5: Sphere 3D Corp. (NASDAQ: ANY)
ANY is a software tech company.
In June the company announced it will merge with Gryphon Digital Mining to create the first 100% renewable energy bitcoin mining company. The merger is expected to close in the third quarter of 2021, subject to shareholder approval.
The stock broke out to new 52-week highs on August 30, going from $5.20 to a high of $7.68. Reddit traders compare ANY’s merger news to SPRT’s merger news that sparked its big squeeze.
I’ll watch it for a morning panic dip buy.
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.
Over on WallStreetBets, Root, Inc. (ROOT) was the top-mentioned ticker on August 30 as the next short squeeze target. The stock gapped up from $6.40 to $7.92, made a high of $8.40, then tanked the rest of the day.
Here’s what else is trending with Reddit penny stock traders:
- Meta Materials Inc. (NASDAQ: MMAT): MMAT’s a former runner that’s another short squeeze target. It’s not trading high volume like the others on my watchlist. It also has a huge float so likely needs a news catalyst to bring in more volume for a big move.
- American Battery Metals Corporation (OTCQB: ABML): ABML had its first green day on August 27. On August 30 it gapped up and received mentions in the Reddit daily thread after the company announced a new CEO.
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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