We’re in the last quarter of a historic year and everyone wants to know … what are the top stocks to watch in October 2020?

September was no less of a roller coaster experience for the 2020 train we’re all riding.

The SPY continued its big bounce back and hit all-time highs at the beginning of the month — only to end it with a near 10% sell-off. 

Is this just a correction … or are we headed for another big market downturn?

The global pandemic continued to rage as some countries increased lockdown restrictions, hoping to prevent a second wave.

The pandemic isn’t stopping everything, though…

Electric car sales are up as analysts worry about another hit to oil demand. California’s governor is pushing to switch to electric vehicles by signing an order to ban new gas vehicles within 15 years.

In what seemed like a storyline from the TV series “Billions,” the founder of Nikola Corporation (NASDAQ: NKLA) stepped down. In short, he’s accused of deceiving investors about his electric truck technology. Including making a video of a truck rolling down an incline and pretending it’s a working prototype.

Crazy, right?

Stay-at-home stocks continue to be a hot sector. That includes Zoom Video Communications Inc. (NASDAQ: ZM), which hit another all-time high and is up over 600% this year. Geez, Louise!

It was an interesting month for IPOs … like Snowflake Inc. (NYSE: SNOW). The stock surged 111.6% higher than its projected price of $120 in the biggest software IPO ever.

And my favorite billionaire Elon Musk is in the news again … this time revealing his plans to revolutionize the battery industry.

But enough about September … I have a longer list than usual for October. Let’s go!

7 Top Stocks to Watch in October 2020

Social Capital Hedosophia Holdings Corp. (NYSE: IPOB)

IPOB is a special purpose acquisition company (SPAC) … which is a really cool way for companies to go public.

IPOB is merging with Opendoor, and I’m crazy bullish about this idea.

The global pandemic and political events are causing a lot of people to leave the cities … And it makes a lot of sense.

Think about it … If you’re gonna be working remotely, do you still wanna live next to your office? Or would you rather move to somewhere less expensive with better scenery?

Or what about wealthier people with two homes? After leaving the city, a lot of them are realizing how great the quiet life is and selling their city homes.

Well, Opendoor helps these people sell their real estate without the normal hassles. Sellers get instant offers with less stress.

Any real estate solutions, especially online, can be a game-changer. So I’m bullish on IPOB.

Workhorse Group Inc. (NASDAQ: WKHS)

WKHS has been around for a while and makes electric delivery trucks.

It’s had a lot of news this year, including a highly anticipated $6.3 billion contract with the U.S. Postal Service. That could be signed before the year’s end.

Back in May, President Trump mentioned WKHS in a tweet that sent the stock surging more than 200%.

Everyone made fun of it … but look where it is today.

Technically, it broke out when Tesla Inc. (NASDAQ: TSLA) went wild in July. Since then, it pulled back, then broke out again at the beginning of the month.

After another pullback, it showed beautiful support around the $21.50 level … Now it’s up 10% again.

Take a look at the daily chart. WKHS is forming a nice cup and handle pattern. I’ll be watching it in October.

Tesla Inc. (NASDAQ: TSLA)

‘Battery Day’ wasn’t as amazing as everyone expected. But Tesla is still Tesla. I freakin’ love this stock and think it’s got so much going for it.

Listen, if I suddenly got tired of doing 500 webinars a day and decided that I wanted to go off the grid for a year … you know what stock I’d buy before I left?  

That’s right — TSLA.

I think this stock is like Apple all over again. Can you imagine where I’d be today if I had bought Apple 20 years ago?

I’m watching TSLA for October, especially now that it’s reclaimed the $400 mark.

Nautilus Inc. (NYSE: NLS)

Like I mentioned in the intro, stay-at-home plays are on fire.

If you’ve been following me for a while, you know my love for Peloton Interactive Inc. (NASDAQ: PTON). In fact, I think the stock’s gonna keep going, too.

Well, NLS is like a cheaper PTON.

Not wanting to workout at the gym is like not wanting to go back to work at the company office. It’s just part of the new normal.

I’ve been working out at home for six months now. Do I really want to deal with the commute now that the gym is open? What about dirty machines or people coughing?

No thanks. I have a really nice home gym.

People still want to work out. I think it’s just going to be more at home. In fact, another idea I have is to watch for a huge boom in-home fitness room construction.

Watch for setups of NLS in October.

By the way, this market is still really volatile. Check out “The Volatility Survival Guide” I helped my friend Tim Sykes with. It’s a smart, no-cost way to learn how to better trade in this crazy market.

GameStop Corp. (NYSE: GME)

The future of GME used to be pretty bleak. But now an activist investor has joined it and wants to help the company take on Amazon.

I’m huge on gaming.

Partly because I think professional sports screwed up. You never hear me talk about politics … But I think professional sports had a chance to really increase their revenues and blew it.

I was at a restaurant the other day and ESPN was on. Everything at the bottom of the TV screen was political.

To me, one of the reasons people watch sports is to get away from their daily lives. Even when events were held in colosseums, people just wanted an escape.

Gaming could have the potential to take some of the revenue sports leagues are losing.

GME has more than doubled in price since August, and I like the chances of it continuing.

Flying Eagle Acquisition Corp. (NYSE: FEAC)

Speaking of gaming, FEAC is another SPAC.

Mobile games platform Skillz Inc. will go public through a merger with FEAC … And the deal’s worth $3.5 billion.

Skillz is an esports platform. So in my mind, FEAC is the same concept as GME.

People who don’t want to watch sports anymore may want to play esports. I want to watch this stock going into Christmas.

Penn National Gaming Inc. (NASDAQ: PENN)

Dave Portnoy … love him or hate him, this boy knows how to get press. However you feel about him, he knows how to get press attention.

Penn National Gaming is both a media and gambling company … and Portnoy seems to be the perfect match for it.

Think about Steve Jobs. He was perfect for the tech industry.

I bet you if you listened to Jobs’ old speeches today, it would make you want to buy a computer. His passion and energy just had that effect on people.

Well, Portnoy is kinda the same thing — just for the sports gambling industry.

PENN is at all-time highs, and I think it’s worth watching it in October.

There you have it … my 7 top stocks to watch in October 2020.

This is a longer list than usual, but there’s just so much opportunity if you know what to look for.

Make sure not to trade these stocks just because you think it’s gonna move … a lot of traders lose money that way.

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.

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 and manage your risk. It’s crucial to learn to cut your losses. 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. 

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 October 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 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 October 2020? Comment below, I love to hear from all my readers!