We’re heading into another month of this crazy year … If you’re trading this historic market, you’re looking for the top stocks to watch in August 2020.
July was another interesting month. My favorite billionaire didn’t disappoint … Tesla (NASDAQ: TSLA) ripped to all-time highs. Elon Musk became richer than Warren Buffet.
Shutdowns continue across the country … There’s no end in sight.
One big issue is the approaching back-to-school season. There are a lot of disagreements on how to fully open. The government announced a new stimulus package proposal … and tensions between the U.S. and China continue.
What’s really on my radar? The new earnings season…
It’s the first earnings season to reflect the impact of the pandemic … We’ll see how the market reacts.
So far, McDonald’s announced its revenue dropped 30% and that it’s permanently closing some locations. Harley Davidson reported its first loss in more than a decade.
Did the market bottom out? Or will earnings numbers land another blow?
Only one thing’s certain…
The pandemic continues to force everyone to find new ways to live, learn, work, and connect, on a daily basis.
That reminds me … You can join me on Instagram daily every morning at 8:30 a.m. and at noon Eastern. In the mornings, I get specific with tickers and plans. At noon, I go macro to help you understand the overall market. Join me!
One thing I cover is finding opportunities in any market … What we’re seeing now definitely influences my list of top stocks to watch in August 2020.
Let’s get to it!
Table of Contents
- 1 Top 5 Stocks to Watch in August 2020
- 1.1 Chegg Inc. (NYSE: CHGG)
- 1.2 Blue Apron Holdings Inc. (NYSE: APRN)
- 1.3 Apple Inc. (NASDAQ: AAPL)
- 1.4 Advanced Micro Devices Inc. (NASDAQ: AMD)
- 1.5 Infosys Limited American Depositary Shares (NYSE: INFY)
- 1.6 How Can You Trade Stocks?
- 1.7 5 Tips on How to Pick the Top Stocks to Watch
- 1.7.1 #1: Look for Big Movers
- 1.7.2 #2: Watch for Catalysts
- 1.7.3 #3: Study the Charts
- 1.7.4 #4: Stay Away From Illiquid Stocks
- 1.7.5 #5: Check Social Media
- 1.7.6 Common Trading Questions
- 1.7.7 Is Trading Stocks Risky?
- 1.7.8 Is Short Selling Really That Risky?
- 1.7.9 How Much Money Do I Need to Start Trading?
- 1.8 Conclusion
- 1.9 One Platform. One System. Every Tool
Top 5 Stocks to Watch in August 2020
Chegg Inc. (NYSE: CHGG)
Chegg Inc. is an e-education company. I consider it a ‘NOT going back to school’ play.
We’ll see how things pan out. But I believe schools will be doing a lot of work online, especially in the fall.
Funny story … I’ll always remember this stock. Years ago when I had to train my team on how to use StocksToTrade, I used CHGG as an example.
It was a penny stock back then, but I remember being bullish on e-education.
It’s a higher-priced stock now … but I think this one’s a mover.
Back in May, it jumped from $44 to $67 in a week. That’s a 50% move!
Certain higher-priced stocks can move like penny stocks … And the pandemic shutdown might be the right environment for CHGG to break out again.
Blue Apron Holdings Inc. (NYSE: APRN)
Blue Apron sends meal-prep kits to its customers. Yep, it’s another stay-at-home, pandemic play.
This stock’s a good example of how a strong catalyst can change a company’s future.
Not long ago, I had written APRN off. I even did a post about how it was the worst IPO ever.
That all changed in March when the shutdown began. APRN shot up from $2 to almost $30 in a matter of days.
Remember … this was a penny stock at the beginning of the year.
It’s held up pretty well through the pandemic. Now it looks like it wants to break out past the $15 mark.
Apple Inc. (NASDAQ: AAPL)
This is definitely not a low-priced stock. But it makes my list of stocks to watch in August 2020 for a good reason. I look at AAPL as a remote-work play.
Apple bounced back strong after the market crashed in March. It’s been trending up for months.
With so many people working from home, a lot of them are probably on an iPhone or Macbook.
It’s also a ‘NOT going back to school’ play.
Apple is heavily used in the education market … So I’m considering how many people will buy new laptops for back to school if their kids have to do online learning.
Then you have the new iPhone a lot of people are anticipating, which should be released in time for Christmas.
It’s a bullish stock that has a lot going for it.
Advanced Micro Devices Inc. (NASDAQ: AMD)
Speaking of Apple … did you hear that it ditched Intel?
I think that Intel got too fat and lazy and that’s why AAPL ended their partnership. One company is reaping the benefits of that — AMD.
AMD released earnings the other day. It had a big gap up after it announced a strong second quarter during the pandemic.
This came in strong contrast to Intel announcing delays of its next-generation chips.
On a personal note, about 20 years ago, I had a company that built computers. Back then Intel did everything right, while AMD constantly fumbled.
That’s flipped now, though, it seems.
If Intel was doing things well, Apple wouldn’t have left them. It just goes to show, even if you’re at the top … you can’t stop delivering the goods. I’ll be keeping an eye an AMD along with Apple.
INFY is a remote-work play. This company provides consulting and IT services.
It announced a good earnings report and gapped up nicely from the mid-$10s to over $12.
What’s nice about earnings here is that analysts aren’t just looking at its success in the short term. They’re also optimistic about INFY’s earnings for the coming quarter and year.
INFY is at 52-week highs and could be heading for more breakouts.
What I also like about INFY is that it’s a low-priced stock.
That’s a wrap for my 5 top stocks to watch in August 2020.
All these companies have been affected positively by the pandemic shutdown. People’s habits are changing when it comes to work, learning, and food.
It just goes to show you that there are always opportunities if you know what to look for.
It’s important to train yourself to look for stocks that make sense for the environment you’re in … Then only trade them when they fit your setups.
Now, here are some tips to help you add your own stock picks to your watchlists and trade smart.
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.
#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. So you have to learn to respect the risks. You gotta cut your losses. And you have to make smart trades and do your research.
Are you willing to put in the time and effort to learn? Are you committed to seeing the learning process through? If so, I’d love to help. Join the SteadyTrade Team today!
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.
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 August 2020 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 like 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 August 2020? Comment below, I love to hear from all my readers!