Will These Penny Stocks Reach New Highs Before Next Year?
Looking for penny stocks to buy can be easier said than done. One of the main reasons is that emotions can easily impact when and how you buy or sell. Simply put, it isn’t uncommon to see these cheap stocks race higher, quickly. But just as quickly as they climb, they can also fall. Having a proper strategy in place and nerves of steel helps avoid emotional trading.
Set proper profit targets and stick to your plan. The way traders lose with penny stocks is holding on too long and “hoping” the move continues. Most new traders will take all of the money they have in an account and throw it into a stock at one price in an “all or nothing strategy”. This isn’t the best tactic to use in my opinion.
Are there ways to day trade penny stocks without risking all of your money? Sure, and it’s a strategy that many professional traders use. It’s called tier trading and it involves buying in pieces and selling in pieces of the total amount of money allocated to a specific trade. I won’t get into the full lesson on tier trading but a quick example never hurts. Let’s say you’re looking to put $1,000 into a trade and let’s assume that isn’t your entire account value.
Day Trading Penny Stocks
In a tier trade, you’d start with a small portion of that to “test the waters” of a trade. If the trade begins to confirm that you’re correct, you’d then add to the position with double your starting position (generally speaking). As the trade continues working out, you can begin selling off in tiers as well, buying more, selling more, etc. so long as the trade continues doing what you wanted. It’s also important to understand the strength of the move.
It’s more than ok to sell out of a position, with profit even if the stocks continue higher after you’re out. Don’t get FOMO (fear of missing out). If the trend is truly a strong one, you’ll likely have more opportunities to trade that same stock again if you want. There are more details to tier trading and you can find them here. Long story short is to simply have a good strategy in place, especially if you’re looking at highly volatile stocks. With this in mind, will these be on your list of penny stocks this week?
Penny Stocks To Watch #1: AgEagle Aerial Systems (NYSEAMERICA:UAVS)
AgEagle Aerial Systems Inc. (UAVS Stock Report) is one of the drone penny stocks to watch this year. While we’ve reported on it for months, the last few weeks have been big for the stock. In fact, over the last week, the UAVS stock price has climbed over 35% so far. Some of the recent highlights of the company include a deal with Valqari LLC, to produce Valqari’s Drone Delivery Station.
Also, the company was chosen as an industry partner for the U.S. DOT’s Unmanned Aircraft System Integration Pilot Program as well as the BEYOND program. Right now we’ve seen certain initiatives push for things like “Urban Air Mobility” to cut down on pollution and further streamline things like delivery.
Something else to take into consideration is the momentum that has built heading into next week. The last few days have been some of the most active in months. Furthermore, UAVS stock is approaching levels it hasn’t seen since April. But as you’ll see, in April, those levels came and went in a very short period; just a few days. The trend in December has been a more consistent uptrend. The biggest question is whether or not this trend continues into year-end.
The FAA announced this quarter that it has finished the final phase of its Unmanned Aircraft System Traffic Management (UTM) Pilot Program (UPP). Findings of the drone demonstration phase is a “significant milestone in paving the way for operations beyond visual line of sight (BVLOS).” These findings will also support furthering policy and technology efforts toward enabling BVLOS operations. With the FAA expected to release its final rule on the remote identification of drones, there’s a proposed rule for operations over people and at night by the end of this year or early in 2021, which could put drone stocks in the spotlight.
Penny Stocks To Watch #2: Casi Pharmaceuticals Inc. (NASDAQ:CASI)
Casi Pharmaceuticals Inc. (CASI Stock Report) is another one of the penny stocks to watch especially if you’re looking for interesting technical trends in my opinion. The stock is once again testing a previous level of resistance that it ran into late last month and earlier this summer. Both times CASI failed to break above this level. However, the most recent test has seen shares hold closer to this upper resistance point, which it failed to do back in June. Meanwhile, daily trading volumes have continued consecutively increasing.
At the end of the week last week, CFO Weihao Xu picked up more shares in the market between $2.44 and $2.64. This came just after Xu was appointed to the CFO position. This seems to have been a trend this quarter with C-Level management. In November, CEO Wei-Wu He picked up over 220,000 shares between $2.12 and $2.18. This built upon a multi-million share position already established before these purchases.
These insider buys came shortly after Casi’s big update this quarter. Its partner Juventas completed the equivalent of a $65 million financing and enrolled the first patient in a Phase II registration study for CNCT19 (CD19 CAR-T) in China in patients with relapsed or refractory B-cell non-Hodgkin lymphoma (B-NHL). While this is the case right now, the importance right now could also be its current leukemia study. The company expects to begin the Phase II study by the end of 2020. So heading into year-end, some speculative momentum could be building around the timing of this expected trial start.
Penny Stocks To Watch #3: Seelos Therapeutics Inc. (NASDAQ:SEEL)
Seelos Therapeutics Inc. (SEEL Stock Report) is in the same position as CASI stock from a stock chart perspective. SEEL stock is once again at a point of previous resistance that it ran into this summer and at the start of the year. The $1.50-$1.70 range has become a point that the penny stock continues failing to break through. Whether or not that will change this time around is yet to be seen. However, what we can see is that SEEL stock has been in rally mode since the beginning of the quarter.
Seelos’ SLS-005 has become a bigger point of focus for traders recently. It was recently granted Orphan Drug Designation for the treatment of Lou Gehrig’s disease from the FDA. What’s more, Sean M. Healey & AMG Center for ALS at Massachusetts General Hospital selected Seelos’ Phase IIb/III study of SLS-005 for inclusion in the HEALEY ALS Platform Trial. This is the first-ever platform trial for the treatment of Lou Gehrig’s disease.
This isn’t the only topic of discussion. I’m sure you’ve seen a new trend in psychedelic stocks, mushroom stocks, and the like. One of the main targets of these companies is centered around mental health. The company’s SLS-002 could have the potential to treat Acute Suicidal Ideation and Behavior (ASIB) in Major Depressive Disorder (MDD) and Post-Traumatic Stress Disorder (PTSD). Considering that most psychedelic stocks are OTC penny stocks, SEEL is one of the few listed stocks with exposure to that arena.
Something else to keep in mind, however, is that the company just raised money. Will that ultimately pose dilution risk before the end of the year?
Penny Stocks To Watch #4: The9 Limited (NASDAQ:NCTY)
The9 Limited (NCTY Stock Report) has been one of the penny stocks to watch this quarter thanks to a relatively consistent uptrend that began in November. In fact, since then, NCTY stock has managed to climb as much as 100%. While you’ll see the “About” section on this company simply saying that it’s “an internet company” there’s more to take into consideration. One of those things is the current trend we’re seeing in the digital and mobile gaming space. Just to give you an idea, have a look at what Statista found for mobile gaming, alone:
Smartphone gaming revenue was estimated at over 63 billion U.S. dollars worldwide in 2020, with revenue from tablet games reaching $13.7 billion USD.
Earlier this year, the company signed an agreement with Voodoo, a French game developer and publisher. The9 and Voodoo will collaborate on the publishing and operation of casual games in mainland China. Voodoo is one of the large publisher and game developers on the global scale. Its games have been downloaded 3.7 billion times on iOS and Android phones cumulatively up-to-date, with monthly active users of 300 million.
This week the company holds its shareholder meeting. The interesting part about this meeting is that it won’t necessarily have anything to vote on. Rather, the company has it set up as an open forum for shareholders and beneficial owners to discuss Company affairs with management. The official date is December 22 so keep that in mind if NCTY is on your list of penny stocks to watch right now.