Best Penny Stocks Under $2 to Buy Today

The best penny stocks under $2 to buy today depend on today’s chart. The fact is, 99.9% of these cheap stocks will eventually be worth less than they are right now. That’s why I tell my students to build a watchlist every day.

The best traders watch more stocks than they trade. That’s essential for getting to know the charts of these stocks — these charts will give you valuable info about their future moves. If you study the patterns these stocks follow, you can find opportunities for the kind of small gains that can grow a small account fast.

Today I’ll show you how to build a watchlist for stocks under $2. Read on for the results!

Best Penny Stocks Under $2 to Buy in July 2024

The best penny stocks under $2 in July 2024 are:

• Virpax Pharmaceuticals Inc. [NASDAQ: VRPX]
• Big Lots Inc. [NYSE: BIG]
• WW International Inc. [NASDAQ: WW]
• Douglas Elliman Inc. [NYSE: DOUG]
• LivePerson Inc. [NASDAQ: LPSN]

This is a watchlist — not a “buy list.”

I’m sharing this so you can see my process. If you want to see more NO-COST watchlists, you can sign up for my weekly watchlist here.

What Are the Best Penny Stocks to Buy Under $2 in July 2024?

To find the best penny stocks to buy under $2 in July 2024 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 penny stock watchlists.

Try StocksToTrade for 14 days and see how it helps your watchlist skills — only $7!

To find watch-worthy penny stocks under $2, I input the following criteria:

• Last Price ≤ $2
• Last Price ≥ $0.50
• Volume ≥ 100,000

When I run this screen in July 2024 and sort by percent change, it gives me the following top results:

[[[{“widget”:”scn-wdgt-01-dev”, “params”: {“top_price”:”2″,”bottom_price”:”0.5″,”bottom_volume”:”100000″,”bottom_trades_in_a_day”:”100″}}]]]

Read on for the best penny stocks that I’m watching today!

Virpax Pharmaceuticals Inc. [NASDAQ: VRPX]

Virpax Pharmaceuticals Inc is a preclinical stage biopharmaceutical company. The company is focused on developing pharmaceutical product candidates for pain management. Its product portfolio includes Topical metered-dose spray; Liposomal in Hydrogel encapsulation; and Enkephalin Intranasal spray.

Big Lots Inc. [NYSE: BIG]

Big Lots Inc is principally engaged in operating discount retail stores. The company provides a broad range of merchandise, including food, consumables, soft home products, hard home products, furniture, electronics and accessories, and seasonal products. The company sources the merchandise from traditional and close-out channels. In addition to merchandise, the company sells gift cards, issues merchandise credits, and more. The company operates stores throughout the United States, with around one-third of its stores in California, Texas, Ohio, and Florida.

WW International Inc. [NASDAQ: WW]

WW International (Weight Watchers rebranded) is one of the largest global providers of weight loss solutions, generating $1.2 billion in 2021 revenues (good for low-single-digit percentage market share, by most estimates). The firm has expanded its purview beyond its historical dietary focus, now offering an integrated wellness solution that extends into sleep tracking, fitness, mental health, and nutrition services through its mobile application ecosystem.

Douglas Elliman Inc. [NYSE: DOUG]

Douglas Elliman Inc is a real estate company. It offers sales, rentals, and new development to mortgages and title insurance, among other services related to real estate.

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.

Which Is the Cheapest High-Potential Stock to Buy Right Now?

To find the cheapest high-potential stocks, you have to study their charts.

Take a look at the 1-year chart for Clean Vision Corp. [OTCPK: CLNV]:

See how many spikes this stock had in the past year? Each one of these spikes was a trading opportunity — that’s the way I’ve made over $8,000 in total earnings trading this stock (click the link to see my individual trades).

However, that’s not a recommendation to “buy” this stock. See how it drops after every spike?

It follows my 7-step pennystocking framework perfectly. This is the chart you have to commit to memory:

Remember this chart well, its the basis for my 7-step framework, @30DayBoot & @completepenny & you must study not to fall prey to greed/ignorance or you'll get wrecked like 90% of traders. It's VITAL to sell into excessive strength/hype, do not just hold & hope like most newbies pic.twitter.com/QsAGHsI6lp

— Timothy Sykes (@timothysykes) February 28, 2021

How to Identify Penny Stocks Under $2

Identifying promising penny stocks under $2 involves thorough research and a strategic approach. These stocks trade on major and minor exchanges — which means that there’s a variety of opportunities out there for investors and traders.

Their low prices make them highly speculative and prone to volatility. Successful trading requires understanding the company behind the stock, market conditions, and their chart.

Key points to consider in your research include:

• Market Cap: Look for stocks with a reasonable market cap relative to their sector.
• Financial Health: Evaluate balance sheets, revenue, and profitability.
• Trading Volume: Ensure sufficient liquidity.
• News and Developments: Stay updated with recent company and industry news.
• Analyst Opinions: Consider insights from reputable analysts.

If trading stocks under $2 is too sketchy, check out my list of stocks priced under $5. These stocks can provide a broad range of opportunities while maintaining affordability. Here’s my curated list of penny stocks under $5!

Stock Screeners and Filters

Stock screeners are invaluable tools for narrowing down penny stock choices. They allow you to filter stocks based on specific criteria such as price, volume, and market cap. Using these tools can help you find undervalued stocks that might be poised for growth.

When it comes to trading platforms, StocksToTrade is first on my list. It’s a powerful trading platform that integrates with most major brokers. I helped to design it, which means it has all the trading indicators, news sources, and stock screening capabilities that traders like me look for in a platform.

I use StocksToTrade to scan for news, tweets, earning reports, and more — all covered in its powerful news scanner. It also has a selection of add-on alerts services, so you can stay ahead of the curve.

Grab your 14-day StocksToTrade trial today!

Financial News Websites

Financial news websites are essential for up-to-date information on penny stocks. They offer insights into market trends, company developments, and expert analysis. Regularly checking these sites can help you stay informed and make more educated trading decisions.

Reputable financial news websites to follow:

• Bloomberg: Comprehensive coverage of financial markets.
• CNBC: Timely news and market analysis.
• Reuters: In-depth reports and financial news.
• MarketWatch: Focus on stock market trends and company news.

For my personal trading, I use the Breaking News Chat alerts service to find hot plays every day. The Breaking News chat room alerts me to important news articles in stocks and the overall economy, giving me a crucial trading edge.

In fact, roughly half of my recent trades have been based on Breaking News tips!

Get a 14-day trial of Breaking News Chat here — only $17!

Brokerage Platforms

Brokerage platforms play a critical role in trading penny stocks under $2. These platforms provide the necessary tools and resources to execute trades efficiently. Choosing the right broker can significantly impact your trading experience and profitability.

Criteria for selecting a suitable brokerage platform:

• Low Fees: Minimize costs to maximize returns.
• User-Friendly Interface: Easy navigation and order execution.
• Research Tools: Access to robust analysis and data.
• Customer Support: Reliable assistance when needed.

Penny Stock Newsletters

Subscribing to penny stock newsletters can provide valuable insights and trading ideas. These newsletters often include stock picks, market analysis, and trading strategies from experienced traders. They can be a helpful resource for staying informed about potential gainers.

My Trading Challenge sends out a penny stock newsletter every morning, with stock picks, recent trades, and my take on the market.

Historical Price Data

Analyzing historical price data of penny stocks is crucial for identifying patterns and trends. This data helps traders understand past performance and predict future movements. By studying historical charts, you can make more informed decisions about entry and exit points.

Here’s how to interpret patterns and trends:

• Support and Resistance Levels: Identify key price points.
• Volume Trends: Look for changes in trading volume.
• Moving Averages: Use averages to smooth out price fluctuations.

Don’t be too strict about the price bracket you’re screening for — check out this watchlist of stocks priced under $1. Like $2 stocks, these stocks are often on major exchanges, and can heat up when the right news hits.

Here’s my watchlist on the best penny stocks under $1!

Social Media Channels

Social media can be a valuable source of information and sentiment on penny stocks. Platforms like Twitter/X and Reddit allow traders to share ideas, news, and opinions. They’re also a nest of those vipers known as promoters.

Check out these social media platforms:

• Twitter/X: Follow influential traders and financial news accounts.
• Reddit: Participate in subreddits like r/pennystocks to find buzz-worthy penny stocks.
• Profit.ly: This is where my students and I share all of our trades!

Analyst Recommendations

Analyst recommendations can significantly influence penny stocks. These professionals analyze financial data and market trends to provide their opinions on stocks’ potential. However, it’s crucial to evaluate the reliability of these recommendations.

Factors to consider when evaluating analyst recommendations:

• Track Record: Check the analyst’s history of accurate predictions.
• Conflict of Interest: Be aware of any potential biases.
• Detailed Analysis: Look for thorough and well-supported opinions.

How to Trade Penny Stocks Under $2

Trading penny stocks under $2 requires a well-planned approach. Due to their high volatility and speculative nature, it’s essential to follow a structured process. Here’s a step-by-step guide:

1. Choose the Right Brokerage Account: Select a broker with low fees and good research tools.
2. Use Reliable Trading Platforms: Ensure the platform is stable and user-friendly.
3. Monitor Liquidity and Trading Volume: Look for stocks with high trading volumes to ensure liquidity.
4. Utilize Order Types (Market, Limit, Stop-Loss): Use the appropriate order type for each trade.
5. Manage Transaction Costs and Fees: Keep costs low to maximize profits.

Stocks priced under 50 cents can be even better at running — but they’ll test your discipline even more than $2 stocks! Diversifying your investments across different price ranges and industries can give you exposure to some of the best opportunities in the market. My watchlist of the best penny stocks under 50 cents has some of the penny stocks I’m watching the closest right now.

Choose the Right Brokerage Account

Selecting a suitable brokerage account is vital for trading penny stocks. Look for brokers that offer low transaction fees, robust research tools, and a user-friendly platform. A good brokerage account can enhance your trading experience and improve profitability.

Several online brokerage platforms support penny stock trading, each with its unique fee structures and restrictions:

• I use a few different brokers, depending on what I want from them — E-Trade and Interactive Brokers are usually prominent.
• No broker is perfect — check out this article I wrote on the best brokers for penny stock trading.
• Fees vary for penny stock trades, from close to free for penny stocks on major exchanges at the majority of US brokers, to $6.95 per OTC transaction. I don’t mind fees — any trade you make should consider the fees and still be profitable!

Use Reliable Trading Platforms

Reliable trading platforms are essential for executing penny stock transactions efficiently. They provide the tools and data necessary for making informed decisions and managing trades effectively.

You know my pick…

Try StocksToTrade today!

Features of ideal penny stock trading platforms:

• Real-Time Data: Access to live market data and quotes.
• Charting Tools: Advanced charting for technical analysis.
• Customizable Interface: Tailor the platform to your needs.
• Mobile Compatibility: Trade on the go with mobile apps.

Monitor Liquidity and Trading Volume

Monitoring liquidity and trading volume is crucial in penny stock trading. High liquidity ensures you can buy and sell stocks easily, while trading volume indicates the level of market interest.

Here are some basic strategies for assessing and responding to changing liquidity and volume:

• Track Daily Volume: Compare current volume to average daily volume.
• Check Order Book Depth: Look at the order book to gauge liquidity.
• Adjust Trading Strategy: Adapt your approach based on volume and liquidity trends.

Utilize Order Types (Market, Limit, Stop-Loss)

Using different order types is essential for effective penny stock trading. Each order type serves a specific purpose and can help manage risks and maximize returns.

Here are the ones you should know:

• Market Orders: For immediate execution at the current price.
• Limit Orders: To set a specific price at which you’re willing to buy or sell.
• Stop-Loss Orders: To automatically sell a stock if it falls to a certain price, minimizing losses.

Manage Transaction Costs and Fees

Transaction costs and fees can significantly impact the profitability of penny stock trading. Keeping these costs low is essential for maximizing returns.

Tips for minimizing costs and fees:

• Choose Low-Fee Brokers: Select brokers with competitive fee structures.
• Avoid Frequent Trading: Limit the number of trades to reduce transaction fees — and stop yourself from overtrading while you’re at it!

What Are the Penny Stocks Under $2 with the Highest Potential?

Look up at the charts of the stocks above. Do you see any spikes in their long-term chart?