It’s what every trader wants to know: What are the most promising penny stocks to watch in February 2020?
Not so fast. You probably already know this, but finding success trading penny stocks isn’t just about following hot stock picks. It’s about understanding what makes stocks move so you can anticipate trading opportunities.
To really find lasting success as a trader, it’s important to develop your own system for filtering down all the penny stocks out there to a manageable watchlist. This allows you to create intelligent trading plans. So when a play fits your criteria, you’re ready to pounce.
That said, sometimes a little guidance can be helpful. So here, I’m going to offer up some of the penny stock movers and shakers that have me interested in February 2020 — complete with commentary.
To be clear, you should NEVER trade solely because someone else deemed a stock worthy of watching. Don’t just buy what other people say are the penny stocks on Robinhood or some finance site … and don’t just buy stocks because you read about them here!
Instead, here’s your invitation: Use this list as your inspiration to watch and observe. This is one way you can see what kinds of movements or trends could create trading opportunities.
Table of Contents
- 1 5 Penny Stocks to Watch
- 2 NanoViricides (AMEX: NNVC)
- 3 Alpha Pro Tech, Ltd. (AMEX: APT)
- 4 Trillium Therapeutics Inc. (NASDAQ: TRIL)
- 5 Cel-Sci Corporation (AMEX: CVM)
- 6 Virgin Galactic Holdings, Inc. (NYSE: SPCE)
- 7 Can You Make Money in Penny Stocks?
- 8 How to Trade Penny Stocks
- 9 Are You Ready?
- 10 One Platform. One System. Every Tool
5 Penny Stocks to Watch
An informed trader is a smart trader. You may never trade any of these stocks. Or the price action can fizzle by the time you read this. But there are still lessons you can learn from the stock movements and patterns.
NanoViricides (AMEX: NNVC)
Connecticut-based NanoViricides is a biopharma company that develops and sells drugs that treat viruses. It has a variety of products ranging from topical creams and eye drops to injectable antiviral drugs.
Why NNVC Is Worth Watching
Unless you’ve been living under a rock, you’ve probably heard about the coronavirus outbreak.
This is a virus that causes infection in the nose, sinus, and throat. And, unfortunately, there’s been a rash of fatal cases recently. The concentration is highest in Southeast Asia, but there are a handful of documented cases in the U.S. too.
Plenty of news coverage has people following the story … and that means more interest in products and companies related to potential treatment and prevention of the virus.
Last week, amid speculation that the company’s products could be used to treat the virus, the stock shot from $8.21 per share to $15.60 per share within a few days. Since then, there’s been some consolidation. But it’s definitely worth watching this sector and stock.
Alpha Pro Tech, Ltd. (AMEX: APT)
Alpha Pro Tech, Ltd. is a Canadian company that creates and manufactures disposable and limited-use products for industrial and medical markets.
In plain-speak, that means they make disposable items that are often used in hospitals and doctor’s offices. Think shoe covers, hospital caps and gowns, lab coats, bedding, face masks, and more.
Why APT Is Worth Watching
This stock made some big moves in late January. For the past few months, the stock holds fairly steady … But then in a matter of days, it suddenly jumps from the $3s to as high as $7.72 per share.
What’s nice here is that the company has some history. It’s been around since the late 80s. So there’s plenty of data to look back at. And APT has a history of spiking during health scares and virus outbreaks.
The stock surged during SARS, H1N1, and Ebola virus outbreaks. That makes sense — people are more likely to buy disposable-use items like face masks during outbreaks. Could coronavirus provide another opportunity for this stock to surge?
Trillium Therapeutics Inc. (NASDAQ: TRIL)
Trillium Therapeutics Inc. is a Canadian in the immuno-oncology sector. Its focus is on developing cancer treatment therapies.
Why TRIL Is Worth Watching
If you look at the stock’s chart, it was pretty much flatlining until December 2019. But since then, it’s shot up from about 30 cents per share to over $4.50 per share.
The catalyst? Successful completion of a Phase one study on one of the products in its pipeline. Some people see it as a hot new innovator in the world of cancer treatment.
Should you believe the hype? Hard to say, especially since so many penny stocks fail. However, this stock’s insane growth may warrant it a spot on your watchlist.
Cel-Sci Corporation (AMEX: CVM)
Vienna, VA–based Cel-Sci Corporation is a biotech company that’s involved in the research, development, and manufacturing of immunotherapy products. The products are related to infectious diseases and cancer treatment.
That includes potential treatments for head and neck cancers, a treatment of pandemic influenza, and a vaccine for rheumatoid arthritis.
Why CVM Is Worth Watching
At the beginning of January, this stock was trading at around $8 per share. As of late January, shares were trading for over $14. That’s enough to make traders take note!
This uptick followed news of updates regarding the continued Phase 3 clinical progression of one of the company’s drugs, Multikine. The company also exercised an over-allotment option regarding over 90,000 additional shares of common stock.
News like this has moved this stock before. In 2017, its Multikine drug was approved for Phase 3 testing. Shares shot up more than 50%, from the low $1s to the mid-$3s in premarket trading.
Virgin Galactic Holdings, Inc. (NYSE: SPCE)
Virgin Galactic Holdings, Inc. develops, owns and operates … wait for it … privately owned and built spaceships. The future is real, and it’s NOW!
The idea is that its fleet can fly you to space as quickly and easily as possible — and without astronaut training. So it’s kind of like an international flight … but to space. The company was founded in 2017 and is headquartered in Las Cruces, NM.
Why SPCE Is Worth Watching
Technically, this isn’t a penny stock. As of this writing, it trades for about $18 per share. But it may still be worth watching. Even if this exact stock is too expensive for you, there could be sympathy plays.
Why watch this stock? For starters, since it was listed, its ascent is steady. Aside from a dip in price following the IPO, its growth has been positively stratospheric.
Obviously, this is uncharted territory, but there are some definite selling points for this stock. For instance, the CEO is a former NASA Chief of Staff, tickets have already been sold, and Boeing has partnered with them.
Add the fact that über-entrepreneur Richard Branson invested billions of his own money in the company, and you’ve got the recipe for a ticker that knows how to get noticed.
If all systems are go, it’s possible that the first flights could depart this year. It’s got buyers speculating that this could be a killer ground-floor opportunity.
Can You Make Money in Penny Stocks?
That’s the question that everyone wants to know, right?
The short answer is yes … but don’t stop reading!
The longer answer is that you can’t expect to make money trading penny stocks. With any type of trading — day trading, swing trading, or long-term investing — there’s always a risk that you’ll lose money.
The risk is greater with low-priced stocks. They’re typically smaller, less stable companies. Low-priced tickers tend to be more volatile.
However, this volatility also means that penny stocks can experience exponential growth, too. But to be able to take advantage of opportunities, it’s extremely important to gain a good understanding of how the market works before you start trading.
How to Trade Penny Stocks
So how does one trade penny stocks? Here are some key tips to help traders who are just getting started. For even more info, check out this post.
5 Key Tips for Trading Penny Stocks
It doesn’t take a lot to start trading. All you need is a brokerage account, an internet connection, and a laptop or device to trade from. However, this easy entry can be tricky … It means that a ton of traders start trading without actually knowing what they’re doing.
Set yourself apart from the many new traders who fail … invest in your education first! With programs like StocksToTrade Pro, you can kick-start your trading career with mentorship, regular webinars, and a lot more learning resources.
Learn the Patterns
Penny stock patterns repeat time and time again. If you want to be able to take advantage of them, you’ve got to know what those patterns are!
While there are infinite variations on penny stock patterns, there are several basic “formulas” that you can learn … And this can make it easier to spot promising trades.
To a certain degree, learning to identify these patterns will be something that you’ll pick up over time. But you can definitely speed up the learning curve … you guessed it, by getting educated. Trading books, videos, and classes can all help you learn the patterns you need to know.
Yes, penny stock patterns repeat themselves over and over. However, that doesn’t mean they play out the same way every time.
Patterns change and evolve. That means that even if a setup worked 200 times in a row, you won’t necessarily have the same luck on #201. If you want to have a long-lasting career as a trader, you’ve got to be able to observe and adapt to the market … on a daily basis.
Keep a Watchlist
A penny stock watchlist is a shortlist of stocks that you’re interested in. On a regular basis, you should monitor your list, add new stocks, and cut dead weight.
Ideally, you’ll have a trading plan for all of the stocks on your list. So if the setup is right, you can pounce.
Keep a Trading Journal
A trading journal is a log where you track every trade you make. Keep note of things like entry and exit points, profits or losses, and general notes on how the trade went.
Not only can this help you observe your own tendencies as a trader, but it can help you start to zero in on what you’re doing right and what you’re doing wrong. This can keep you refine your strengths and start to reduce your mistakes.
Learn From Your Mistakes
Speaking of mistakes … it’s a hard truth, but every trader makes mistakes. It’s inevitable. The key to overcoming them? Learn from them. If you can learn from your mistakes, you’ll continue to grow as a trader.
Who knows … the small mistake you made today could keep you from experiencing a much bigger loss down the road. But you gotta be able to learn from the experience. There’s a ton of value in that.
If you want to find the best penny stock opportunities, you need a stock screener that can help you whittle down the many choices out there.
StocksToTrade is an all-in-one platform designed by traders for traders. Keep an eye on stock charts, scan for news stories, and check out social media mentions … all from one platform.
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It’s no coincidence that a lot of the top traders use StocksToTrade. See for yourself — get your 14-day trial for just $7!
Are You Ready?
Penny stocks move fast, and you’ve got to stay on top of the news and trends to spot the best opportunities.
Keeping up with the news and updating your watchlist based on the current moves in the market requires a lot. You need to be vigilant, dedicated, and work hard. But you just might be rewarded with great trading opportunities!
Ready to get smart about trading and track the biggest gainers? Check out StocksToTrade today!
What’s on your watchlist? Did any of these stocks make your list? Leave a comment!