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 2019, 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 2019 are:

1. Ameri Holdings Inc. (AMRH) $.2135

This stock has been getting hammered the last month. But $.25 is a resistance we are eyeing. This is strictly a technical play because the fundamentals have been iffy over the last 3 months.

2. Histogenics Corporation (HSGX) $.24

This one is making a strong ascending triangle formation which is one of our favorite patterns at StackedBid. Also, there is an upcoming merger possibility with this penny stock. Would like to see a move above $.36, but wouldn’t advise holding above it.

3. Guardion Health Sciences, Inc. (GHSI) $.2539

Will potentially have an agreement deal with China and India upcoming. The last time they were granted an agreement, they went up 97% in a day. The closed a public offering at $.45, which is an increase of 80% at its current stock price. Our price target here is $.40.

4. IZEA Worldwide, Inc. (IZEA) $.3138

On the last day of August, it had a bullish candle possibly indicating a reversal to the $.36 level. If it breaks there, we want to see a move to the $.60 level. Would like to see at least a move to its 50 day MA (Moving Average) at $.45.

What is a Moving Average?

It is an indicator commonly used in technical analysis that “smooths” out price action from sporadic short term fluctuations of a stock price. The reason it is popularly used is because it CAN emphasize a long term trend. There are a lot of variable that go into, so we will be writing a blog post on it shortly. STAY TUNED. BOOKMARK THIS PAGE FOR AN UPDATE.

5. Advaxis, Inc. (ADXS) $.34

We are in this one at $.35. The book value of this company is $7.32. An offering was closed at $.70 with warrants at $2.80. Our PT (Price Target) 1 would be $.43 (which would be a 25% move) and our PT 2 would be $.56 (which would be a 64% move). Watching carefully around the low $.3s because we are playing with all time lows around $.31.

What is a PT (Price Target)?

A Price Target can be a projected future price level of a stock as stated by an investment analyst based off of projected earnings. OR it can be used as a technical analysis tool of where the past patterns of the stock could be replicated. For example, the reason we have set a PT1, or first price target, at $.43 on this stock is because that is where we have seen levels of resistance and support in the past and would like to see the stock gravitate towards resistance before making a move in either direction.

6. Conatus Pharmaceuticals Inc. (CNAT) $.3420

On August 7th, Conatus Pharmaceuticals Inc. beat on Q2 Earnings and on August 19th it was upgraded to a strong buy. On Aug 30th, it closed above the 50 day Moving average (Bullish sign), and the 9EMA (Exponential Moving Average). We have our price targets around $.40

7. Ekso Bionics Holdings, Inc. (EKSO) $.6583

Ekso Bionics had a lot of volume on the last trading day of August. However it is at a relatively low level for RSI, close to its 9EMA, and 50 day Moving average. We see a nice short term swing trade opportunity to $.74 & $.80.

What is RSI (Relative Strength Index)? Click Here to Learn More

8. Cool Holdings, Inc. (AWSM) $1.67

Cool Holding stock has a very low share float so it has a tendency to make crazy moves in a day. Would like to see a short term bounce to $1.80, $1.85, & $2 based on Support and Resistance Levels. This could also be a merger prospect for some big names, which is why it is on our radar. However, based on past performance you have to be REALLY careful with this one as it makes huge moves intraday.

What does “low share float” mean?

Share float refers to the amount of shares that are freely available to trade on the stock exchange. The lower the float, the higher the likelihood of big moves in intraday trading. For example if you look at the chart below, you can see on July 5th this stock had a low of $1.70 and a high of $2.42. That is a huge fluctuation in the price of a stock during intraday trading. So the lower the float, the higher the likelihood of big intraday volatility of a stock.

9. Himax Technologies, Inc. (HIMX) $1.84

Himax was upgraded from sell to hold on Aug 30th, which is a bullish sign for the stock for the long-term. It has been beaten down over the last few weeks. On August 28th, we saw a very bullish candle, which COULD indicate a reversal here. It has a VERY low RSI and should see a short term bounce from these levels. Would like to see a push to $2 in the short term to confirm a reversal here.

10. Chimerix, Inc. (CMRX) $2.02

We’re seeing a multiple bottom pattern with this one around $2, as you can see it bounced hard off of $2 from April – June going from $2 – a high of $4.40. Not only is this a pattern we like to trade, but also this name is has an extremely oversold RSI of 20.52 on the daily chart. So this one as well should see a short term bounce from the current levels.

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.