The tech sector is home to many of the most tradable stocks in the market. From crypto stocks to artificial intelligence, tech stocks make up more hot sectors than any other stock market sector.
Tech stocks include all of the following, and more:
It isn’t unusual to have stocks that are active in both hardware and software. All of the biggest tech stocks have both hardware and software elements to them. But even a penny stock hardware company like GoPro Inc. [NASDAQ: GPRO] has a software component to its business. It sells cloud storage space to store the footage from its better known product, its camera.
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Best Stocks in February 2025 — Sector Leaders
Let’s unpack what the ‘best tech stocks’ should mean to you. I definitely don’t mean that they’re the best stocks to invest in.
I don’t think that any stocks are ‘safe.’ What I look for is volatility, and the best tech stocks have plenty of it!
When you’re learning about a sector, pay attention to the sector leaders. Their charts can tell you a lot about the health of the sector.
When they’re running, their momentum can affect their entire sector and create the sympathy plays I like to trade!
While we’re focusing on tech stocks here, it’s important to remember that the stock market is a vast and diverse place. There are many different types of stocks, each with their own unique characteristics and potential for profit. To truly excel as a trader, you need to understand the full breadth of opportunities available to you. Check out all the different types of stocks before you focus on these tech stock sector leaders…
Alphabet Inc. [NASDAQ: GOOGL]
Alphabet Inc. comprises Google Services — ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube — Google Cloud, and Other Bets segments.
Amazon.com, Inc. [NASDAQ: AMZN]
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS).
Apple Inc. [NASDAQ: AAPL]
Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod.
The Best Tech Penny Stocks in February 2025
The best tech penny stocks are constantly changing. Most of these companies won’t become the next Apple. I’m keeping them on watch to see if they match my preferred setups.
Penny stocks can be a great way to potentially make substantial profits, especially when you’re dealing with tech stocks. However, it’s also important to diversify your portfolio and consider other types of stocks as well. If you’re looking for some inspiration, check out my guide on how to invest in 10 top stocks. It’s a great resource for any trader looking to broaden their trading strategy.
NOTE: I have NO intention of trading these stocks unless they suit my favorite setups. This is only a watchlist.
To find the best tech penny stocks requires a top-level stock screener. I use the one in StocksToTrade — I helped design it, so it has all the tools and customizations I look for to create my stock watchlists.
Try StocksToTrade for 14 days and see how it helps your watchlist skills — only $7!
These are the penny stocks I’m watching in February 2025:
AXT Inc [NASDAQ: AXTI]
AXT Inc is a developer and producer of compound and single element semiconductor substrates, also known as wafers. The dominant substrates used in producing semiconductor chips and other electronic circuits are made from silicon. It is engaged in the design, development, manufacture, and distribution of high-performance compound semiconductor substrates and the sale of materials. The company provides alternative or specialty materials in the form of substrates or wafers, including compound and single element substrates. Its compound substrates combine indium with phosphorous or gallium with arsenic. Geographically firm has its business presence across the region of Europe, Japan, Taiwan, China, North America, and the Asia Pacific of which China derives maximum revenue to the company.
Upland Software Inc. [NASDAQ: UPLD]
Upland Software Inc is a provider of cloud-based enterprise work management software. The company provides a family of cloud- based enterprise work management software applications for the information technology, process excellence, finance, professional services and marketing functions within organizations. It services customers ranging from corporations and Government agencies to small- and medium-sized businesses engaged in the field of financial services, retail, technology, manufacturing, education, consumer goods, media, and telecommunications, Government, food and beverage, healthcare and life sciences, chemicals and travel and hospitality.
LivePerson Inc. [NASDAQ: LPSN]
LivePerson Inc offers cloud-based platform solutions. It enables businesses and consumers to connect through conversational interfaces, such as in-app and mobile messaging, while leveraging bots and Artificial Intelligence (AI) to increase efficiency. The company has two reportable segments namely Business and Consumer. It generates maximum revenue from the Business segment. The company has a presence in the United Kingdom, Asia-Pacific, Latin America, and Western Europe.
How To Trade Tech Stocks
Learning how to trade tech stocks starts with your education. You need to learn what penny stocks are, how they work, and how to identify their patterns.
My FREE penny stock trading guide is a good start.
From there, if you want to take it to the next level, consider joining my Trading Challenge.
Once you’re ready to start trading, you need a few key things…
Choose the Right Broker
To trade stocks, you need a brokerage account. Your broker is the gateway between you and trades. Choose a good one … Do your research and check out this guide for more tips.
Check out this quick startup guide to choosing a broker:
Get a Powerful Stock Platform
A stock screener can help you narrow down the many stocks available to trade. I use StocksToTrade, which can also help with the next item…
Build Your Watchlist
Before every trade, you need to perform a detailed stock analysis.
There are two key types of stock analysis: fundamental analysis and technical analysis.
See how I build my watchlists every Sunday by signing up to my NO-COST weekly watchlist!
StocksToTrade can help you do both: it has awesome charting software and links to stock news, SEC filings, and even social media mentions.
With day trading penny stocks, technical analysis — reading the charts — matters more. Chart patterns show me how a stock’s performed over weeks, months, or even years. That helps me on the next step…
Follow Your Trading Plan
A trading plan is where you plot out entry and exit points, risk, and profit goals. Ideally, you base the plan on careful research and stick to it.
Trading tech stocks, like any other type of stock, requires a solid strategy. It’s not enough to simply identify potential opportunities; you also need to know when to enter and exit trades, how to manage your risk, and how to stay disciplined when the market is volatile. If you’re new to trading or just looking to refine your approach, I highly recommend checking out my guide on day trading strategy. It’s packed with valuable insights that can help you trade more effectively.
Track Every Trade
You need to keep a METICULOUS trading journal. This is where the science of trading comes in.
How do you know what strategies work for you, and which don’t? You look at your trading journal.
How do you know when you’ve been overtrading and need a timeout? You look at your trading journal.
If you’re not careful, your emotions can determine your trading approach. Before long, you’ll be wearing the same socks that you were wearing on your “big day.” That isn’t trading anymore — that’s gambling.
Rinse and Repeat
Real trading is a job. It isn’t a boring, 9-5 job, but it’s still something that rewards consistency and discipline.
Follow these rules throughout your trading career. That will separate you from the constant flow of newbies trying to get rich quick, and protect you from the scammers trying to sell trading shortcuts.
