Top 7 Stocks to Watch in January 2021

It’s the beginning of a whole new year … so what are my top stocks to watch in January 2021?

We made it to 2021! 2020 was a historic year in so many ways … It brought a lot of challenges for people around the world.

For stock market traders though, it meant lots of opportunity. We had a major market crash in March … then it shot up to record highs several months later! If you caught any of the action, you likely had a killer trading year.

You’d think the market would give us a breather in December … Nope. We broke record highs several times in this month alone.

There was a lot of other news, too.

The FDA approved COVID-19 vaccines and started rolling them out to Americans, giving hope to businesses and investors.

We have a new $900 billion stimulus package on the way.

Tesla Inc.’s (NASDAQ: TSLA) stock went bonkers, sparking an electric vehicle sector run. TSLA even joined the S&P 500 … the largest company by market cap to join the index yet.

And Bitcoin is going nuts! It’s over $30,000 as of this writing. I’ve been saying that 2021 could be the year for crypto. Some experts say it could reach six figures this year. I don’t know about that, but I’ll be watching.

And I’m stoked about what the market will do in 2021! So let’s take a look at my seven top stocks to watch in January 2021.

Want to learn more about volatility? Check out “The Volatility Survival Guide” I created with my friend Tim Sykes for this crazy market.

Top 7 Stocks to Watch in January 2021

Apple Inc. (NASDAQ: AAPL)

AAPL is one of my favorite stocks, and I think the company is the best in the world. I’m such a fanboy that I keep buying its products … This Christmas, I even bought my wife the new iPhone 12.

The world’s becoming increasingly mobile and Apple has set the gold standard. For the longest time, we were looking forward to the iPhone 5G rollout, which happened in October … But the pandemic took over all the headlines.

As we see more 5G capabilities become available, I think everyone will get 5G envy. I only have the iPhone 10. But when the 5G switch happens, I know I’ll have to get one.

I don’t think I’m alone ther, either.

When Apple’s sales numbers come out soon, we’ll probably see explosive growth. AAPL is near 52-week highs and I see little downside, so I’ll be watching it in January.

Expedia Group Inc. (NASDAQ: EXPE)

I was really surprised to see this travel stock on my breakout scan. I used to do a lot of traveling before the pandemic. But in this new world, I haven’t traveled anywhere since June.

The stock hit a low in March when it was in the $40s … I definitely didn’t expect it to be here near $140!

If this stock is this strong and preparing for a breakout while getting pounded by the pandemic, I believe it could do even better when travel restrictions lift and businesses reopen. It’s a super bullish sign, and EXPE is on my watchlist.

GameStop Corporation (NYSE: GME)

I’ve been talking about gaming since September, and my idea is still intact. I think professional sports really messed up. To me, they missed an opportunity to gain market share during the pandemic by focusing on politics when people were trying to get away from it.

Gaming companies have been flourishing as people stopped watching sports and switched to gaming and esports. Even GameStop has gotten new life. I mean … this company was on its way out before the pandemic. Now its stock is at three-year highs!

A big hedge fund saw the opportunity and bought into GameStop. You know what I always say … follow the smart money. I got my eye on GME.

Luminar Technologies Inc. (NASDAQ: LAZR)

LAZR is a recent stock in the lidar space. If you don’t know what lidar is, it’s a method that uses laser lights and sensors to measure distances, and it could be a key technology for self-driving cars.

LAZR gapped up big in its early December market debut but then got slammed back down. Now it’s grinding back up and might breakout over the $38 level. If it does that, I wouldn’t be surprised if it goes to all-time highs in the $48s.

There’s a rumor that people have spotted a Luminar Technologies box on a Tesla car recently. If that’s true, it could be a big boost for the stock. If it’s not, plenty of other car companies will need lidar technology. I see a lot of opportunity for LAZR.

Starbucks Corporation (NASDAQ: SBUX)

I like to call SBUX an ‘opening back up’ play.

We’re in 2021 and hopefully, businesses will start to reopen soon. If downtown areas become lively again, Starbucks will sell a lot of coffee. 

Think about walking around with a friend in New York or Chicago when it’s cold outside. If you pass by a coffee shop, you stop in to buy hot coffee. It’s just what so many people do.

SBUX has a beautiful breakout chart, and it’s at all-time highs.

Snap Inc. (NYSE: SNAP)

SNAP was one of the top tech stocks of last year, and it just got an analyst upgrade from Goldman Sachs.

Part of the reason I’m watching SNAP is because of all of the challenges TikTok is facing dealing with national security. Call me a conspiracy theorist if you want, but I’m seeing too many red flags in that situation. Even if TikTok doesn’t get shut down, it could be facing heavy restrictions.

If any of that happens, we could see a large flow of TikTok users switching to Snapchat.

Renesola Ltd. (NYSE: SOL)

I was going over this stock in a live webinar last week, and it checked every box for what I look for in a potential trade.

It’s an alternative energy play that has been a recent hot sector … The company did a recent offering and received $20 million … And it has a great breakout chart near 52-week highs.

With Joe Biden taking the presidency, I see SOL’s uptrend continuing.

BONUS PICK! Booking Holdings Inc. (NASDAQ: BKNG)

I almost didn’t add this one to the list because it’s a higher-priced play — over $2K a share. I know that’s not accessible to some of my followers. But I’m adding it as a bonus pick because this ticker is worth looking at — and it could pave the way for lower-priced plays.

You know I love to travel … I can’t wait to get back on planes and get moving around the world again.

I’m not the only one. People are excited about traveling again, and it shows in BKNG’s chart. 

Like many other companies, it suffered in March 2020, dipping to the low $1,000s. But it’s recovered nicely, and in the past month, it’s been breaking out. The chart is there, and the thesis is there. Even if it’s too expensive for your taste, watch and learn! 

There you have it … my seven top stocks to watch in January 2021 … plus a bonus pick.

All of these have amazing potential to move but don’t just buy them, hoping that they’ll go higher. Wait to make sure that they fit your particular setups and make sure to create a trading plan.

Find Your Resources

If you don’t know what setups work for you, then you gotta do more studying. Without knowing your setups, your trading attempts will be like shooting fish in a barrel.

If you’d like help improving, think about joining my mentorship program called the SteadyTrade Team. Membership makes you part of a community of like-minded people who are working to become smarter traders. Every trading day we have two live webinars where you’ll get hands-on guidance to better understand the market and become a better trader. Join today!

If you liked this watchlist, I do weekly ones that get sent to your email inbox. You can sign up for it here.

For the rest of this article, I’ll teach you how to build your own watchlists so you can continue your journey to becoming a smarter trader. Read on…

How Can You Trade Stocks?

New to trading? Start with your education. This post is a good place to start.

It’s easier than ever to start trading. All you really need is a decent laptop, solid Wi-Fi, and a trading account. But don’t be fooled into thinking trading is easy…

Most traders lose. If it were easy, everyone would quit their jobs and do it.

Most newbie traders just jump in. The smart way to set yourself apart is to focus on your education. Try different strategies to find what works. Test with paper trading.

Track every trade in a journal and go back often and review what’s working and what’s not…

Joining a program like the SteadyTrade Team can make things A LOT easier. That’s our trading education community. You get mentorship, webinar lessons, and many more resources. We focus on how to trade through any kind of market.

Here are 5 tips on how to trade smart and pick the top stocks to watch…

5 Tips on How to Pick the Top Stocks to Watch

#1: Look for Big Movers

When I start building my watchlists, I always look for big percent gainers. I want to find stocks that are already moving. 

I always harp about the benefits of getting up early. If you’re part of the SteadyTrade Team, you’ve seen how it helps me prepare for the market open. Doing research after trading hours is also helpful. Some stocks start to move after 4 p.m.

No big surprise here, but for my scanning software, I use StocksToTrade. It has a bunch of built-in scans that are specifically designed to find stocks that fit the strategies I teach.

If you’re more hands-on, you can create your own custom scans. And if you’re a newbie, don’t worry … There’s a ton of help to get you up to speed. Keep an eye on this blog and follow StocksToTrade on YouTube. We post fresh content all the time.

And of course, there’s the SteadyTrade podcast. Traders of all levels can learn something here, and we have an awesome time every week. Tune in!

#2: Watch for Catalysts

Once I find the top moving stocks, I wanna find out why they’re moving. If there isn’t a good reason, the momentum will probably fizzle out. So you gotta find those catalysts.

Did the company announce good earnings? Did it win a new government contract? Was there a company merger?

A lot of things can move a stock. And the stronger the catalyst, the more powerful the stock movement can be.

Some sectors even have specialized news catalysts. For example, biotechs could get FDA approval for a new drug … or complete a phase of a major study. This is why you gotta do your homework.

StocksToTrade has a brand-new feature to help you catch the news that can really move stocks. Find out more about our Breaking News chat room here!

And watch this video to learn more about catalysts:

#3: Study the Charts

You gotta learn to read charts and spot patterns. And when you look for top stocks to watch, don’t just look at one time frame.

Change it up. Look at one-minute, five-minute, 15-minute, and daily charts. Each time frame can tell you a different part of the stock’s story.

Is it at all-time highs? Is it stuck in a particular range?

Look for areas of support and resistance. It’s a smart way to set your entries and exits. 

With StocksToTrade, you can use the news feature to see which catalysts caused certain moves on longer-term charts. You can then compare the movements of similar catalysts to help you make better trading decisions.

#4: Stay Away From Illiquid Stocks

Another important thing when finding the top stocks to watch is trading volume.

So you need big movers with great news catalysts … And you also need to make sure the stocks are liquid enough to trade.

Big volume ensures there are enough traders buying and selling so that you can enter and exit the trade easily. Also, the more volume the stock has, the more powerful the moves can be.

After I find the big percent gainers that have good news catalysts, I make sure there’s enough volume before I even consider trading them.

#5: Check Social Media

You wanna know what other traders are watching? Our social media search can be a good tool for that.

You can figure out what a lot of traders are thinking from their tweets and posts…

StocksToTrade makes it even easier to follow the buzz on stocks you’re watching with a built-in Twitter scanner that you can customize. Try StocksToTrade for 14 days — it’s just $7. See for yourself just how useful this little tool can be! 

Common Trading Questions

A lot of people look at the market and see money. There are definitely opportunities in trading. But you gotta learn strategies and how the market works.

So let’s tackle a few common questions now…

Is Trading Stocks Risky? 

Yes, trading is risky. There’s no such thing as a risk-free trade or investment. Ever. That’s why you have to study. 

You gotta learn patterns, rules, and strategies to make smart trading decisions. I’ve spent years working on my own education. Even when I ran my IT business, I woke up early to study. I traded at my office. I put in the work.

Now I use my experience to help SteadyTrade Team students improve.

Start with your education. Start trading with small positions. Paper trade to gain some experience.

That’s part of how you learn to manage your risk. And you gotta learn how to lose. Losing is part of the process. 

But you can lose 60% of the time and still grow your account. You have to learn to respect the risks. You gotta cut your losses. You have to make smart trades and do your research.

Is Short Selling Really That Risky? 

No doubt, short selling is risky. It requires a lot of skill to do it right. And there are a lot of newbie traders just following “gurus” blindly and blowing up their accounts.

A lot of the big price moves we see today can be because ignorant short sellers get squeezed out of their trades…

Some traders have the discipline and experience to do it well. But it’s not a matter of shorting any penny stock that’s up. 

And you can lose more than what’s in your account if you short sell. You have to tread carefully here. Don’t believe anyone who says shorting is easy. Like any other strategy, do your homework before you try it. 

How Much Money Do I Need to Start Trading?

In reality, it doesn’t take a lot to start trading. You can even paper trade the first few months if you can’t fund an account yet.

If you’re ready to fund an account, some brokers require minimums. Check out this post for tips on choosing a broker. 

If you’re serious about trading, prepare. Give yourself a better chance for success by building your knowledge and skill level.

All the successful traders I know put in the time and work. Realize that trading isn’t easy. The market is a battlefield where you can lose real money — fast.

Want to speed up your learning curve? Join me and a community of like-minded traders with the SteadyTrade Team. You don’t have to go it alone. 

Conclusion

Your watchlist is everything when it comes to trading. So start working today to build solid watchlists. Find what works for you. Learn to adapt to any market.

These monthly top stock lists can help you understand what I see happening in the markets … But I love seeing students build up the skills to make their own and trade smarter every day.

I hope you use this list of top stocks to watch in January 2021 to help you create your own watchlists.

The best way to learn is to try. Follow the tips above — and don’t worry about being perfect. 

Do the work, make mistakes, and learn from them. If the stocks you watch don’t play out as you thought, find out why. Keep a trading journal. This can help you improve and craft better trading plans.

This list of stocks to watch is NOT a recommendation to buy … It’s a guide to help you learn how to spot those big movers and hot opportunities. That’s what we’re all about in the SteadyTrade Team community. Come join us today!

What do you think are the top stocks to watch in January 2021? Comment below, I love to hear from all my readers!