“What have you been up to lately?” they asked him during the holiday party. Old friends catching up during the holidays was nothing new. But his answer was a new revelation.

“I’ve been trading penny stocks for the last six months.”

Shocked looks followed by laughter. He sat there with a straight face. “No, seriously. What have you been doing for work?” They didn’t believe him. Penny stocks were a joke to them. They couldn’t understand that he was getting rich on the pink sheets. They didn’t realize he was living a life of luxury in a tropical locale while trading penny stocks from his smartphone.

The thing is…he didn’t care to explain any longer. He’d had the same conversation with dozens of other friends and family members. He knew explaining and elaborating would be a waste of time. Let them laugh. He was already laughing all the way to the bank each week.

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 2018, including a detailed list of our ten best penny stocks to be watching out for in the coming year.

The 10 Best Penny Stock Picks of 2018 are:

1. Alkame Holdings, Inc. (ALKM)

We posted ALKM as our Spotlight Stock to our Pro Members on 1/24 because of growing volume and buzz on social media.  It broke out over 50% on 1-30-18 and another 25% the following day.  150% total gains possible.  ALKM has been entering the CBD beverage market for the past year and it is finally starting to see some traction.  This will likely be a huge market on par with energy drinks or protein shakes.  ALKM may turn out to be the best penny stock to buy in the CBD sector.  CBD stocks are similar to Marijuana Stocks except for the fact that CBD oil is legal in all 50 states while marijuana is not.  This means that CBD stocks are less effected by the ups and downs of marijuana legislation.  The stock has a strong following and it could turn out to be one of the best penny stocks for 2018.

2. Beyond Commerce, Inc. (BYOC)

The chart for this stock is beautiful.  It started taking off back in October of 2017 and it has been on a major run since then.  Our Spotlight Traders had BYOC on our watch list since 1-16-18 when it broke out over recent resistance levels.  We added it to our watch list when the stock was around the $.05 mark and volume was strong and climbing.  BYOC closed at over $.14 ten days later which created massive gains and made it one of the top penny stocks for our members.  The stock is still trading strong well into February of 2018.  If the stocks volume stays strong this tock could continue its move upwards.

3. Apple Rush Company, Inc. (APRU)

We added APRU to our Daily Watch List after it broke out over previous resistance to make a new 52 wk high 1-05-18.  It has moved over 100% higher since then.  Breakouts over multi-month resistance is a key indicator that we follow.  This could be one of the top penny stocks to watch in 2018 if this trend continues.  They retained a securities lawyer in late January which could mean the company is ready to start making some moves.

4. Purio, Inc. (PURO)

We added it to our watch list when the stock started trending sideways and forming a new base on December 22nd and it has been on a tear since then.  Sideways consolidation with increasing volume is another key indicator we look for.  PURO moved from $.005 to $.02 in 5 trading sessions.  PURO announced a $10,000,000 investment in the company as well as a corporate restructuring and merger in January of 2018.  If the cryptocurrency trend stays hot this stock could get a lot of attention in 2018.

5. Peer to Peer Network (PTOP)

This Spotlight Stock pick started under $.01 and was trading above $.06 within 5 days.  Possible gains of over 600% on this one.  Another sideways consolidation breakout play that worked really well.

The company announced the release of its cryptocurrency called MobiCoin in late January 2018.  This is another stock that could do very well in 2018 if the cryptocurrency crazy stays alive.

 

6. Integrated Ventures, Inc. (INTV)

We added it to our watch list when the stock started trending sideways and forming a new base in mid-December.  The stock went on a major run later in the month.  They recently announced the acquisition of a loan processor platform to test their loan funder software.  This could be a huge milestone for them as alternative financial instruments will be a big industry for 2018 and beyond.  This is another cryptocurrency stock that will continue to be popular as long as people are still investing in cryptocurrencies.

7. Favored, Inc. (FVRD)

This play was alerted to our members by one of our top Spotlight Traders in the chat room SlyStock.  The stock moved over 1,000% from SlyStock’s alert price.  The stock has held gains well since it went on the 1.000% rocket ship ride which is fairly unusual to see.  Typically stocks that rise this fast fall just as quickly.  However, FVRD is one of the best penny stocks because it is actually supported by revenue.  The company posted over $4,000,000 of revenue in 2016 which is almost a ten fold increase over 2015.

8. Helios and Matheson Analytics Inc. (HMNY)

Swing trade style Spotlight Stock.  We made HMNY our Spotlight Stock after it broke out over $4 and made a new 52wk high on heavy volume.  The stock hit almost $40 less than 30 days later!  Ideal swing play.  The stock has pulled back since making highs around $40 and we actually called a great short play from around $35 all the way down to $7 level.  Now that the stock has pulled back and regrouped we may see it start to trend higher during the first half of 2018.

9. Firefish, Inc. (FRFS)

This stock was alerted in chat by multiple Spotlight Traders and also added to our Daily Watch list.  Over 1,800% gains were possible with this flyer.  The stock made multiple 1,000%+ moves over a 3 month period and it is possible that the stock may regroup and make another huge run sometime in early 2018.

10. Central Wireless Inc. (CWIR)

Chat room alert for stock that was breaking out of sideways consolidation.  Our Spotlight Traders are excellent at finding breakout patterns and posting them in chat. After making a giant run from under $.0003 to over $.01 the stock pulled back into range.  CWIR recently started making a second move higher.  The second move higher is typically not as big as the first, but the first half of 2018 could see this stock attempt to re-challenge its former highs.

The Risks and Rewards

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.