While the story above may be hypothetical, a quick Google search proves it’s not too far from the truth for many successful penny stock traders. Just look at Josh Sason who made millions, or Tim Grittani who started with $1,500 only to turn it into a portfolio worth over $1 million. People are making a lot of cold, hard cash through the penny stocks. You can, too.
But you need good information, proper strategy and a little bit of luck on your side. That’s where we come in here at Stacked Bid. Below you’ll find everything you need to invest in the pinks sheets during 2023, including a detailed list of our ten best penny stocks to be watching out for in the coming year.
PLEASE NOTE: WE DO NOT ADVISE HOLDING THESE STOCKS FOR THE WHOLE MONTH. What we are giving you here are stocks that have a potential to make a move this upcoming month.
The 10 Best Penny Stock Picks in September 2023 are:
1. $NAKD Stock – $.6416 (NAKED BRAND GROUP LIMITED)
Let it come down to $.48 because it has spiked numerous times off of that support. NAKD stock price target: $.70
2. $CEI Stock – $1.2399 (CAMBER ENERGY INC.)
With energy stocks making 52wk highs and the price of a barrel rising, we had to include an energy name. Also, there is a lot of hype on this name on Twitter which should pump up this name. CEI stock price target: $3
3. $IGC Stock – $1.42 (INDIA GLOBALIZATION CAP INC.)
Looking to add on this name in the $1.19 – $1.34 area. Spikes to $2 when it gets to that support. IGC stock price target: $2.10
4. $PALI Stock – $2.74 (PALISADE BIO INC.)
It’s been bouncing around $2.35 – $3 for the last couple of months. The next move will be big. PALI stock price target: $3.25
5. $MITQ Stock – $2.74 (MOVING IMAGE TECHNOLOGIES INC.)
Relatively newer stock that has a low RSI and a lot of potential to run because of the descending wedge it’s forming. MITQ stock price target: $5
6. $AMPG Stock – $3.87 (AMPLITECH GROUP INC.)
Support at $3.20 and tends to spike to $4. Next support if breaks through is $2.75. We like it because it can make huge intraday moves. AMPG stock price target: $4.80
7. $WISH Stock – $5.315 (CONTEXTLOGIC INC.)
These next two are on the more expensive side of penny stocks, but are names we see a lot of potential in that are in growing industries.
8. $WKEY Stock – $6.07 (WISEKEY INTERNATIONAL HLDS LTD.)
Pretty big support level at $5.70 and good swings from that level. Let it come down a little bit before it ramps back up. Next supports of fails at $5.70 are $5.20 and we will go in BIG if it gets back down to $5. However, we expect a bounce off $5.70. WKEY stock price target: $7.50
9. $BARK Stock – $7.46 (THE ORIGINAL BARK COMPANY.)
We think this is the most undervalued company in the pet space and has a lot of potential in the short and long term. It’s forming a descending wedge and is always a good buy into earnings on 11/8. BARK stock price target: $7.71
The Risks and Rewards of Penny Stocks
Before we break down solid penny stocks to watch, we want to offer a quick disclaimer. You can make a lot of money investing in penny stocks. You can also lose a lot of cash on the pink sheets.
Penny stock trading is high risk, high reward. While you take a lot of risks, you have the potential for enormous returns. And why are there so many risks involved with penny stocks? Most agree there are three reasons penny stocks are risky.
First, there’s a lack of credible information surrounding most penny stocks. With no minimum standards for many stocks on the pink sheets and a lack of in-depth financial data, it’s rare you’ll find a company you can properly research and vet before investing.
Next, most investors quickly realize that a stock is considered a “penny stock” for a reason. Often, these companies are significantly overleveraged and on the verge of bankruptcy.
Bankruptcy leads us to our third penny stock risk – scammers. Many penny stock scammers make big bucks by luring investors into a nearly worthless stock before taking their money. You must be aware of the scams surrounding the pink sheets. Here are a few common ones:
- Pump & Dump Schemes
- Reverse Merger
- Short & Distort
- The Guru Scam
- Mining Scams
- Offshore Scams
- No Net Sales
The Definition of Penny Stocks
While there is some variation, most consider penny stocks as anything trading outside major market exchanges under $5 USD per share. Traditionally, anything under $1 USD is a penny stock.
Penny stocks are an extremely high-risk investment, and most investors consider them to be incredibly speculative. Most companies that find themselves trading on the pink sheets suffer from small capitalization, a lack of liquidity, large bid-ask spreads and limited disclosure.
These stocks do not trade on respected the major market exchanges. You won’t find penny stocks on the Nasdaq. Often, penny stocks have no SEC compliance and regulation to worry about. To say the wide world of penny stocks is the like the wild West wouldn’t be a stretch.
You can invest and trade penny stocks through the OTC Bulletin Board, also known as the OTCBB. Individual companies are also exchanged through the pink sheets, which are completely unregulated.
Get Started Today
If you’re a high-risk investor looking to see significant gains, then the penny stock markets may be right up your alley. Just remember – penny stocks will always be a big gamble. Only with proper research and strategy will you see profits with speculative plays.
While there’s a bit of doom and gloom above, there’s still a lot of money to be made through the pinks sheets. We wouldn’t have complied and created this article if we didn’t believe in penny stocks. Start slow and learn the markets before taking huge gambles that can offer huge payouts.
Things to Remember
If you’re still here, then investing in penny stocks may be right up your alley. If you’re an investor with a high tolerance for risk, then the pink sheets could be for you.
Before you make some trades, you must remember one thing: Penny stocks have a high level of volatility. Due to this fact, there’s the potential to make a lot of money and to lose a lot of money when investing in the pink sheets.
It’s vital to take certain precautions when investing in penny stocks. With precautions and a proper strategy, you can minimize losses – to a certain extent. One precaution many investors take when trading penny stocks is a stop-loss order. Before entering a trade, you have a predetermined stop-loss order that ensures you exit the market immediately if the market moves too far in one direction.
While many investors have illusions of grandeur when hitting the pink sheets for the first time, it’s important to note that realistic expectations should be managed. It can take months and years to find gains materializing in the stock market. Most investors don’t turn a few hundred into 100K in a matter of weeks.
Stocks trading on the pink sheets and the OTCBB usually have low trading volumes, which increases the risk of the investment. Any penny stock trading less than 100,000 shares a day should be avoided as you learn the market You could get stuck with shares of little to no value if you invest in a company with extremely low trading volumes.
To mitigate your risk while you start trading, you can trade penny stocks (under $5 USD a share) on the American Stock Exchange (AMEX) and the Nasdaq. These exchanges are continually regulated, which ensures you won’t be taken for too much of a ride while starting out.