7 Top Stocks to Watch in October 2021

Stocks to Watch in October 2021: Key Takeaways

• The hottest potential spikers in October…
• Check out the breakout plays that are dipping and ready to set up…
• Want to pick the right stocks yourself? Focus on the ‘why’ to learn the process…

See my top stocks every week for no cost — sign up for my weekly watchlist!

Good variety on this month’s watchlist, including two great work-from-home ideas. Find out why I’m still excited about this sector.

I also added an athleisure company you’re sure to recognize. It’s been on the watchlist before, and it just keeps pushing. Plus, see my speculative play that just rocketed through its 52-week highs. You gotta see this spectacular chart — details below!

1. Asana Inc. (NYSE: ASAN … see my analysis here)
2. Salesforce.com Inc. (NYSE: CRM … see my analysis here)
3. Snap Inc. (NYSE: SNAP … see my analysis here)
4. Lululemon Athletica Inc. (NASDAQ: LULU) … see my analysis here)
5. Macy’s Inc. (NYSE: M … see my analysis here)
6. DatChat Inc. (NASDAQ: DATS … see my analysis here)
7. Camber Energy Inc. (Amex: CEI … see my analysis here)

Top 7 Stocks to Watch in October 2021

Before I get into the top stocks to watch in October 2021…

These are just tickers I’m watching. I might not end up trading any of them. My watchlists help me spot stocks before they show up on a scan. But don’t make any trade until you have enough data to make an informed play. 

This isn’t a gunslinging competition. Keep your expectations realistic and your head on your shoulders. Volatility can be a friend or a foe. It’s all in how you prepare for it.

Take the time to analyze my picks and why I chose them. Let’s get into it. Here’s my October watchlist…

Stocks to Watch in October #1: Asana Inc. (NYSE: ASAN)

I’ve had my eye on this stock for a while. I like the company and the technology. And my team uses it. I don’t get paid for saying that but … If you’re a lurking Asana employee, let them know I’ll take a sponsor.

Anyway, as you can see, it’s been grinding along for quite some time. Go look at the yearly chart. It’s been growing for a while now.

Makes sense. We all know jobs have been going more remote. Employees need a platform to stay in touch and collaborate on projects. It was a no-brainer from the very first lockdowns.

What’s even more exciting is the little gap-up breakout. It pushed up and flirted with the $120 level for a bit, but now it’s falling back down. Perfect time to buy on the dip if you get a good entry.

Don’t get ahead of yourself … Wait for it to set up and find support. Let’s see if this stock can push higher.

 

Stocks to Watch in October #2: Salesforce.com Inc. (NYSE: CRM)

This play is pretty similar to ASAN. The company utilizes cloud computing. I’ve been hot on that sector for a couple of months now. CRM also just bought Slack. It’s a technology similar to Asana that helps bring co-workers together.

This chart shows a big breakout of the $270 level. Now it’s dipping back down. I’d look for it to hold that level as support and then meander back up toward $280.

I think that CRM and ASAN are both great companies. They’re doing a lot of the right things for their sector. I’m excited to see where these stocks go in the future.

 

Stocks to Watch in October #3: Snap Inc. (NYSE: SNAP)

I’ve said it before and I’ll say it again… 

Snapchat is a happier place than Facebook Inc. (NASDAQ: FB) or Twitter Inc. (NYSE: TWTR). Yes, it’s still social media but with far less squabbling.

I think more people have gravitated toward Snapchat as their lives move further online. And if you had the choice between an ad machine that made you smile and one that made you angry — which would you choose?

Look at the five-year chart to see what I mean. Within the last few years, this stock has exploded. It’s hanging out at all-time highs.

I was excited about the $80 level. But when it broke out on low volume I expected a pullback like this.

I’m not sure where it’s going next, but I’m keeping it on my watchlist until it chooses a direction.

 

Stocks to Watch in October #4: Lululemon Athletica Inc. (NASDAQ: LULU)

I think the athleisure trend is here to stay. I do most of my work in a beat-up t-shirt and shorts. If I had an eye for a tennis outfit, I’d probably be knocking down the door of my nearest Lululemon.

More people are working at home. They don’t have to dress up as much. Maybe they want some expensive sweatpants (or shorts) to go with their dress shirts for video conferences.

There’s not much I agree with when it comes to the handling of the pandemic, but I’m all for work from home#3inchinseam pic.twitter.com/WdVZVYiXtM

— Timothy C. Bohen (@tbohen) September 15, 2021

Another thing it has going for it is the company’s at-home workout mirror. Fewer people go to the gym these days. If they want to stay at home they can buy the workout mirror and get a sweat in.

Not exactly my thing but I get the concept and I think it’s a popular product.

I liked its little double bottom off of $420. Now it’s coming back down and I’d say it’s do-or-die. Either the price falls off, or it’ll base and rally back. Only time will tell. I’ve got both eyes on it.

 

Stocks to Watch in October #5: Macy’s Inc. (NYSE: M)

I like to bash old-line retailers. I mean, with the rise of Amazon and online retailers, the brick-and-mortar stores just haven’t seen as much business. Take Sears Holdings Corp. (OTC: SHLDQ) and JCPenney for example.

But the stock market has proved me wrong before, and this looks like another one of those times.

Look at this thing push past $24. What a machine. I wouldn’t get in now though. It’s a little too overextended. I want to see it pull back a bit and set up some support.

I think M is doing better now that we’re approaching the holiday season. Even if more sales happen online, traders are anticipating increased business for this big retailer. Could be a self-fulfilling prophecy.

Either way, I’m glad to see a hundred-year-old American company keep kicking it with the young ones. Keep it up — I’m rooting for you!

 

Stocks to Watch in October #6: DatChat Inc. (NASDAQ: DATS)

I’ve been talking about DATS a lot recently. It’s a recent IPO, which is exciting. Plus it’s a blockchain play and a social media play. The technology is cool … You get the idea.

IPOs have been hot recently. If you don’t know what I’m talking about, tune in for my daily Pre-Market Prep sessions. We’ve been analyzing these spikers every morning for months.

And take a look at the breakout. It surged past $9. I thought maybe the $10 level would have given it some pause, but I guess not.

Again, I’m not looking to chase these runners. Once it pulls back and bases, I’ll look for a good entry. But only if the setup’s there.

 

Stocks to Watch in October #7: Camber Energy Inc. (AMEX: CEI)

Wowwee! This is a powerhouse. But don’t get too excited. This is the most speculative play I’ve included in this month’s list. The company is absolute garbage. 

But shorts keep getting caught and it keeps squeezing higher.

Also, I think oil and gas are on the up-and-up. So there are two reasons this little dumpster fire of a stock might continue spiking… 

• Short squeezes
• Oil and gas play

And you’ve gotta respect the power on this thing.

Look at the one-year chart so you can see its beautiful breakout. Check out the volume under the most recent candle … outstanding.

Be careful if you decide to play this one. It’s a risky stock. You’ve been warned.

 

Well, that’s it — my 7 top stocks to watch in October 2021.

Remember, this is just a watchlist of stocks with the potential to move. You need to look for your best setups. Only enter a trade after you create a trading plan. 

Sign up for my no-cost weekly watchlist to get my top watch picks in your inbox every Sunday. It can help you learn the process of finding your top stocks to watch.

Now, let’s look at what you need to build your own watchlists. Read on…

What Do You Need to Trade Stocks?

In 2021, it’s easier than ever to start trading. Brokers are more accessible than ever, commissions are $0 for many stocks, and the volume in the market makes for some incredible opportunities.

If you want to trade, all you really need is a computer or laptop, decent internet, and a trading account. 

But that doesn’t mean there’s anything easy about trading…

Yet so many newbies just jump in. If I can give you one tip to start your trading career, it’s this: Focus on your education. Learn different strategies. Test with paper trading.

Track every trade in a journal and review it often. That’s all part of how you find what works for you.

And if you’re ready to take your education to the next level, find a training program like the SteadyTrade Team. That’s our trading education community where you can get mentorship, webinars, and many more resources. 

I’m the lead trainer, and my goal is to teach you how to think for yourself and trade through any kind of market.

Now, here are 5 tips on how to trade smart and pick your top stocks to watch…

How to Find Your Top Stocks to Watch: 5 Tips for Every Day

#1: Run Your Scans

I scan the markets every day. And when I’m building watchlists, I start with big percent gainers. I want to find stocks that are already moving. 

If you know me at all, you know I’m up early. That’s when I start prepping for the market open and for my daily premarket sessions.

Of course, I use StocksToTrade. It comes loaded with 40+ built-in scans that any trader can customize. Check out this video where I share my top three go-to scans…

#2: Know Your Catalysts

It’s not enough to find the day’s biggest gainers. You have to understand why they’re moving. If you can’t find a good reason, like a press release or hot news item, the momentum will probably fade. 

Here are few questions to ask:

• Did the company announce good earnings? 
• Is there a new government contract or juicy deal? 
• Was there a company merger?
• Is there a new investor or big money flowing into the company?

Many factors can drive price action. 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. So do your homework.

And the stronger the catalyst, the more powerful the stock movement can be. So find that catalyst! 

BTW, StocksToTrade has a great feature to help you catch the news that can supercharge stock moves. Learn more about STT’s Breaking News Chat room here!

#3: Study the Charts

I say this a lot: You gotta read the charts until your eyes bleed.

OK, that’s a little bit of an exaggeration, but I want you to understand how important it is to learn to read charts. It’s how you spot patterns. 

And when you look for top stocks to watch, don’t just look at one time frame…

Change it up! One-minute, five-minute, 15-minute, and daily charts — each time frame can tell you a different part of a stock’s story.

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

#4: Look for That Volume

You can find the juiciest, hottest stock … but if it doesn’t have volume, move on. 

Yes, you need stocks making big moves on strong catalysts … But you also need liquidity to trade.

High volume means lots of traders are interested in buying and selling the stock. That makes it easier to enter and exit the trade. Also, more volume can mean powerful moves.

We’ve seen crazy volume in 2020 and 2021. That’s one reason we’re so lucky to be in the markets now.

But volume is never a guarantee. So I make sure there’s enough volume before I consider trading any stock. That’s a big part of my trading checklist that I run through for every single trade.

#5: Learn From Other Traders

One reason I joined the StocksToTrade team as the lead trainer is that I knew from experience that trading can be lonely. I also love teaching people…

But I want every trader to know that they don’t have to go it alone. That’s why we have so many ways to connect and for every trader to learn. Here are just a few:

• Pre-Market Prep: Join me live every trading day to check out the hottest movers and strategies for the day.
• SteadyTrade podcast: I host this podcast with Kim Ann Curtin and Stephen Johnson. We take a fun and in-depth look at all things day trading and market related.
• TWIST podcast: In this revamped spinoff of the SteadyTrade podcast, upcoming traders Matthew Monaco, Jack Kellogg, and Kyle Williams give their latest perspective on the day trading world.
• SteadyTrade Team: This is our hands-on mentorship program where you can get two to three webinars daily to help you find your strategy. I’m gonna full-on brag: I think we have the best trading community here. 

You have many options for learning and connecting with other traders. It’s key to your growth and education. The only thing to do now is to find where you belong.

Frequently Asked Trading Questions

No doubt, you have more questions. Let’s tackle them now…

Isn’t It Risky to Trade Stocks and Penny Stocks? 

Yep, all trading is risky. Never believe anyone who tells you there’s an opportunity for a risk-free trade. There’s no such thing. 

That’s why you have to study. 

You need patterns, rules, and strategies to make smart trading decisions. I’ve spent years working on my own education. And it never really ends. Back when I ran my IT business, I woke up early to study. That habit still sticks with me today.

And now I get to use my experience to help students improve.

You decide where you want to start, but always keep risk management in mind. Learn how to lose — it’s part of the process. 

And know that you can lose 60% of the time and still grow your account. Also, it’s OK to start with a small account and small trades. Respect the risks. Cut your losses. Make informed trades with research.

How Risky Is Short Selling? 

Remember the big GameStop (NYSE: GME) short squeeze? An army of retail traders squeezed out billionaire hedge funds. Those fat cats lost billions! So think of it this way…

If professional billionaire hedge fund traders can blow up their accounts while shorting, so can you.

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 are partly due to stubborn shorts getting squeezed out of their trades…

Some traders have the discipline and experience to short stocks well. But you can’t just short any penny stock that’s up. 

And remember: you risk losing exponentially more than what’s in your account with shorting. Tread carefully! Like any other strategy, do your homework before you try it. 

How Much Money Do I Need to Start Trading?

One of the most well-known penny stock traders, Tim Grittani, started with only $1,500! Check out his tips for new traders in this video:

To answer the question though, you don’t need a lot of money 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, do your research before you choose a broker to make sure it’s the right one for you. 

Bottom line: 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. Trading isn’t easy. The market’s a battlefield where you can lose real money — fast.

Conclusion

That’s all I have for the top stocks to watch this month.

Remember, your watchlist is everything when it comes to trading. Get to work today and start building your watchlists. Find what works for you and learn to adapt to any market.

I give you these monthly top stock lists to help you understand what I see happening in the markets … But I love seeing students build their skills and trade smarter day by day. I often urge all my students to try to improve just 1% every day. Seems small, but that adds up over time.

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

The best way to learn is to try. Follow the tips above — don’t try to be 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 and build better trading plans.

Reminder: This list of stocks to watch is NOT a recommendation to buy … It’s a guide to help you learn how to spot big movers and hot opportunities.

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