Before I get into the top stocks to watch in July 2021…
Let’s take a second to reflect. The post-lockdown market continues to smash expectations.
Meme stonks seem to be an unstoppable force and the Reddit armies show little signs of slowing down.
On top of that, I’m still watching short squeezes defy the odds.
I don’t know who needs to hear this, but I’ll say it in case it’s you…
Stop trying to predict the top. When you do that, you risk blowing up your account.
To all the short sellers out there, maybe try a dip and rip pattern for once. But don’t shoot the messenger. I’m just trying to help.
Now that I got that off my conscience, here are the top stocks to watch in July…
Table of Contents
- 1 Top 8 Stocks to Watch in July 2021
- 1.1 Stocks to Watch in July #1: Marin Software Incorporated (NASDAQ: MRIN)
- 1.2 Stocks to Watch in July #2: Alfi Inc. (NASDAQ: ALF)
- 1.3 Stocks to Watch in July #3: Microsoft Corporation (NASDAQ: MSFT)
- 1.4 Stocks to Watch in July #4: NVIDIA Corporation (NASDAQ: NVDA)
- 1.5 Stocks to Watch in July #5: Marvell Technology Inc. (NASDAQ: MRVL)
- 1.6 Stocks to Watch in July #6: AMC Entertainment Holdings Inc. (NYSE: AMC)
- 1.7 Stocks to Watch in July #7: CrowdStrike Holdings Inc. (NASDAQ: CRWD)
- 1.8 Stocks to Watch in July #8: Palantir Technologies Inc. (NYSE: PLTR)
- 2 What Do You Need to Trade Stocks?
- 3 How to Find Your Top Stocks to Watch: 5 Tips for Every Day
- 3.1 #1: Run Your Scans
- 3.2 #2: Know Your Catalysts
- 3.3 #3: Study the Charts
- 3.4 #4: Look for That Volume
- 3.5 #5: Learn From Other Traders
- 3.6 Frequently Asked Trading Questions
- 3.7 Isn’t It Risky to Trade Stocks and Penny Stocks?
- 3.8 How Risky Is Short Selling?
- 3.9 How Much Money Do I Need to Start Trading?
- 4 Conclusion
- 5 One Platform. One System. Every Tool
Top 8 Stocks to Watch in July 2021
From semiconductor and computer stocks to Reddit-hyped meme stonks and good old-fashioned penny stock breakout plays, here’s what’s on my radar…
Stocks to Watch in July #1: Marin Software Incorporated (NASDAQ: MRIN)
First up, I’ve gotta mention Marin Software Incorporated (NASDAQ: MRIN).
I’ll admit I was skeptical about this one at first. You can see it’s had some volatility and price movement in the past. But it’s always been tough for the stock to hold its gains.
I wasn’t that convinced by the news either. It’s some software integration that allows companies to connect with customers. It didn’t sound like the usual press releases capable of spiking a dead stock.
But here we are … It’s breaking 52-week highs. Sometimes when the market’s trying to tell you something you have to listen. Always be open to what the charts say.
Stocks to Watch in July #2: Alfi Inc. (NASDAQ: ALF)
The company announced a contract with Uber and Lyft to supply 10,000 digital tablets. It looks like these tablets are for marketing purposes.
But I recognized by the end of the day on July 15 that I underestimated the news. It closed at its highs and continued to hold up the next few days.
That’s what you’re looking for in this market: stocks that spike on news then hold their highs. It’s had a beautiful run so far, and I’m excited to see what happens next.
Stocks to Watch in July #3: Microsoft Corporation (NASDAQ: MSFT)
Fun fact: I put Microsoft Corporation (NASDAQ: MSFT) on the very first StocksToTrade Weekly Watchlist. That was around late 2016 or early 2017. Back then, it was way down in the $40s. Look at it now.
MSFT is back on the watchlist because I feel like the company is doing all the right things. Yes, Apple Inc. (NASDAQ: AAPL) owns the mobile space. The iPhone is a cultural icon. Apple’s laptops are popular as well. But I think they’ve given up slack in the desktop market.
That’s the slack Microsoft Corporation (NASDAQ: MSFT) is picking up.
There’s no doubt that working from home has had a big impact. Microsoft Teams is a work remote tool that lots of companies use.
All around, I think it’s in a good position, and MSFT is doing what it needs to do.
Stocks to Watch in July #4: NVIDIA Corporation (NASDAQ: NVDA)
This is great semiconductor play. You likely know I’ve been talking about semiconductors for a while. They’ve become a key component in computer manufacturing.
Lockdowns sent a lot of employees home, and even as things open up, a lot of people continue to work remotely. The whole industry is changing. That means a more digitized workplace and a greater reliance on computers.
That’s not the only thing NVIDIA Corporation (NASDAQ: NVDA) has going for it. It’s a gaming play and a crypto play as well. Definitely one to watch.
Stocks to Watch in July #5: Marvell Technology Inc. (NASDAQ: MRVL)
I like Marvell Technology Inc. (NASDAQ: MRVL) as a lower-priced play. I think it’s bullish for all the same reasons as NVIDIA Corporation (NASDAQ: NVDA).
It’s another semiconductor manufacturer.
Notice how multiple stocks can start to move because they’re in the same sector. Semiconductors are a hot commodity right now, so to me, it’s a good idea to keep an eye on the sector as a whole.
And if you’d like to potentially get in on the action for a lower price, take a look at MRVL.
Stocks to Watch in July #6: AMC Entertainment Holdings Inc. (NYSE: AMC)
Of course I have to add AMC Entertainment Holdings Inc. (NYSE: AMC) to the watchlist. This is the number-one meme stock, maybe forever.
It seems like every hedge fund is shorting this thing — and they’re all getting squeezed.
Say what you will about the company. But it raised billions of dollars in stock revenue by selling 11.5 million shares.
My opinion is that it’s not going anywhere, not yet anyway. We may see a continued squeeze out of this.
Stocks to Watch in July #7: CrowdStrike Holdings Inc. (NASDAQ: CRWD)
This is an online security play. I know we’re beating a dead horse here with the “technology after lockdowns” plays … But you can’t ignore this sector or trend.
CrowdStrike Holdings Inc.(NASDAQ: CRWD) is a cloud-based computing company that protects users against hackers. Cybersecurity has become a bigger and bigger issue as more people work remotely and more of our lives go online.
As a society, we rely on computers now more than ever. Information and data safety is vital to the economy as a whole.
I think this company will continue to perform well and I’m definitely interested.
Stocks to Watch in July #8: Palantir Technologies Inc. (NYSE: PLTR)
I’ve been talking about Palantir Technologies Inc. (NYSE: PLTR) for a while. It went public in September of 2020 and is now a SPAC play.
SPACs have grown in popularity in the last few years and can be a great source of volatility.
It’s also a Cathie Wood play. Her investment company ARK Investment just increased its stake in this former runner. You know how much I like Cathie’s picks. I don’t always play them, but I keep an eye on them.
The chart looks nice. It bottomed out in the high teens a little more than a month ago. Since then, it has been on a strong climb back up. I think we may get to see this thing test its highs.
No telling whether or not it’ll break through. I’d keep a close watch on this.
Well, that’s it — my 8 top stocks to watch in July 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 watchlists 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.
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
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.
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.
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 July 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 July 2021? Comment below, I love to hear from all my readers!