Top 8 Penny Stocks to Watch on Robinhood in April 2024

Robinhood penny stocks trade at $5 or less per share, and they hold opportunities for traders building small accounts. These stocks are cheap and often sketchy, and they require different strategies from larger stocks. For beginners, Robinhood is an accessible starting point for trading penny stocks, thanks to its zero fees and no minimum deposit policy. Traders with more experience should consider switching to brokers that cater to advanced trading needs.

8 Robinhood Penny Stocks To Watch

My top Robinhood penny stock picks for April — rated on chart pattern, price action history, and news — include the following:

The penny stocks on this list are some of the wildest movers on the market …

Trading any of these stocks should be approached with a clear strategy and an understanding of the risks involved. I don’t trade until I see a setup I like.

Jump ahead to get to my trading plans for these top Robinhood penny stocks!

Trading on Robinhood

Robinhood is an easy-to-use, no-commission trading platform accessible to just about anyone. It also offers zero minimum deposits … You can even buy partial stock with its fractional shares feature.

Robinhood gives you access to over 5,000 U.S. listed stocks and ETFs, as well as ADRs in foreign listed companies. As of this year, Robinhood now allows trading in select OTC stocks as well.

Can You Buy Stocks Under $1 on Robinhood?

Yes, you can definitely buy stocks under $1 on Robinhood. Listed penny stocks will often fall beneath the $1 minimum listing threshold.

The OTC stocks that Robinhood allows access to are often on the pricier side.

Buying penny stocks is as easy as buying any other stock on the app, too. Just choose your stock, pick your order type, input how many shares you’re buying, and submit your order.

Penny Stocks on Robinhood Under 10 Cents

Looking to trade the cheapest stocks on Robinhood? Penny stocks under 10 cents will occasionally pop up, but not too often.

If you’re looking to trade stocks under 10 cents, the OTC markets have the biggest selection. Unfortunately, Robinhood doesn’t allow trading of the sketchiest OTC stocks.

Learn how I choose which stocks to trade in this guide. Use this stock scanner to further improve your trading game.

Robinhood Penny Stocks Market

Many stock traders use Robinhood to buy penny stocks because it doesn’t charge fees. This has led to runs on certain penny stocks, because of Robinhood’s limited selection.

How to Find Penny Stocks on Robinhood

Robinhood has curated stock lists under its “Trending Lists” section, but, unfortunately, it doesn’t feature a list of penny stocks. You might need to play around with some filters on Robinhood to see these cheap stocks.

Here’s how you access penny stock lists on Robinhood:

1. Log into your Robinhood account.
2. Select the magnifying glass, and click on the “Trending Lists” menu.
3. Select the business sector of your choice and sort in ascending order to see the cheapest stocks listed. Alternatively, you can push the filter button and set a maximum share price of $5, so you only see penny stocks.

You can rinse and repeat these steps to find the best penny stocks on any curated list Robinhood creates. If you’re confused because you find duplicate stocks across the lists, you can just write down which companies offer penny stocks and create a custom penny stock list.

Finding penny stocks on Robinhood is just the beginning of your trading journey. Understanding the market trends and sectors can significantly enhance your trading strategy. For those interested in diving into specific sectors like biotech, additional resources can be valuable. Explore the hot sector of biotech penny stocks to diversify your trading. These insights can provide a more comprehensive view of the market and help you make informed decisions.

What Is a Good Penny Stock to Buy on Robinhood?

A few of the stocks I’ve been watching lately are accessible to Robinhood traders. Just remember …

This is only a watchlist. I have no plans to trade these stocks — and I won’t unless they fit into one of my preferred setups.

I want you to focus on my process, not my stock picks. If you want to become a self-sufficient trader, you’ll need to create your own watchlists.

Get a new no-cost watchlist sent to you each week by signing up here.  

Can You Become Rich Just Trading Penny Stocks On Robinhood?

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Repeat after me: small gains add up. Can you become rich trading penny stocks on Robinhood? It’s a question, and one that requires a level-headed analysis. You can find hundreds of penny stocks on platforms like Robinhood, and while some Wall Street analysts tout them as undervalued assets, the reality is often more complex. Penny stocks are often speculative and lack the capitalization that more established stocks offer. With the right strategy, tools like a stock screener, and an eye on breaking news, gains are possible. But don’t expect instant riches. Think of Robinhood Gold, offering extended trading hours, but it can’t transform an unstable investment into gold overnight.

What Are the Risks Associated with Trading Penny Stocks on Robinhood?

Still with me? Good. Let’s dig into the risks. Trading penny stocks on Robinhood or other brokers can be a game of swings and roundabouts. Illiquidity and volatility can be a trader’s nightmare. The lack of depth in the market cap of these stocks means wild price swings are common, and if you’re not careful, losses can accrue quickly. Even with Robinhood’s simplicity and user-friendly interfaces, it doesn’t eliminate the risks associated with speculative investments in categories like marijuana penny stocks. Be mindful of the reality and keep your portfolio balanced. Don’t put all your eggs in the penny stock basket; diversify with other assets, products, or services.

8 Robinhood Penny Stocks to Watch on Robinhood April 2024

My top 8 Robinhood penny stocks to watch in April 2024 are:

• NASDAQ: TRUG — Trugolf Holdings Inc — The AI Golf Penny Stock
• NASDAQ: AISP — Airship AI Holdings Inc — The Government Contract AI Penny Stock
• NASDAQ: NKGN — NKGen Biotech Inc — The Alzheimer’s Spike And Consolidation …
• NASDAQ: AXTI — AXT Inc — My AI Earnings Winner Supernova Alerts Pick
• NASDAQ: GOEV — Canoo Inc — The Foreign Trade Zone Catalyst Play
• NASDAQ: NNOX — Nano-X Imaging Ltd — The NVIDIA Catalyst AI Stock
• NASDAQ: CXAI — CXApp Inc — The Crappy AI Penny Stock That’s Holding Support
• NASDAQ: XTLB — XTL Biopharmaceuticals Ltd — The Upcoming News Biotech Stock

The following are some of the stocks that people on Robinhood have been trading more than most of the market…

There’s no guarantee I’ll trade any of these stocks. I’m watching them to see if they match my preferred setups — only then will I trade them.

The best traders watch more than they trade — that’s what I’m trying to model here.

Here’s some background info on Robinhood penny stocks:

• What is the most promising Robinhood penny stock?

A stock with a lot of volatility like AXT Inc (NASDAQ: AXTI) is a good bet for the most promising Robinhood penny stock. Remember, we’re traders, not investors. We’re watching the stocks on this list for short-term moves, not predicting which of these stocks will still be around in 2030.

• What are the top 3 Robinhood penny stocks to buy now?

My top 3 Robinhood penny stocks to buy now (as long as their price action is strong) are Airship AI Holdings Inc (NASDAQ: AISP), AXT Inc (NASDAQ: AXTI), and Canoo Inc (NASDAQ: GOEV).

• Which Robinhood penny stocks have a “Strong Buy” analyst rating?

Analysts don’t give any Robinhood penny stocks “strong buy” ratings. These stocks are sketchy and unstable, and should never be investment targets. Always trade with a plan.

Let’s get to the picks …

Trugolf Holdings Inc (NASDAQ: TRUG) — The AI Golf Penny Stock

My first Robinhood penny stock pick is Trugolf Holdings Inc (NASDAQ: TRUG).

The price spiked 90% on March 20 after the company announced an expanded business agreement with AI company mlSpatial.

The news broke at 9 A.M. Eastern, 30 minutes before the market opened for regular hours. I snagged a whopping 31% during the premarket spike.

Right now there are quite a few premarket runners. We still see profit opportunities intraday. But for those who work a day job, premarket trading can be a good solution.

My starting stake was $4,832, here are my trade notes:

As I mentioned in my notes, StocksToTrade Breaking News alerted the play first.

These plays can move fast. I use Breaking News to find the market’s biggest runners before they go vertical.

The chart below shows the alert at 9:01 A.M. Eastern.

Share prices sank after the spike, but there’s a significant possibility it will rally.

We have to recognize this play for what it is: A trash recreational stock with meaningless AI news. All of the spike on March 20 was due to hype. But some of the biggest spikes in the market come from the trashiest stocks.

Ever since the GameStop Corporation (NYSE: GME) supernova in 2020 and 2021, Robinhood traders and Reddit chat rooms are obsessed with the next “meme stock”.

These degenerate traders love random recreational plays, for example, TwinVee PowerCats Co. (NASDAQ: VEEE) spiked 120% in 2022. The company makes boats to use for fishing. I’d also include plays like DraftKings Inc. (NASDAQ: DKNG) in this category.

Basically, if you can picture the average finance bro getting excited about it, there’s a chance for trading hype:

• Golf
• Fishing
• Sports gambling
• Etc.

Now, we have to wait for the TRUG chart to show increased bullish volatility. I’m not going to buy this stock at random.

Once it starts to move again, I can use popular trade patterns to profit.

Airship AI Holdings Inc (NASDAQ: AISP) — The Government Contract AI Penny Stock

My second Robinhood penny stock pick is Airship AI Holdings Inc (NASDAQ: AISP).

On March 5 at 8:31 A.M. Eastern, the company announced a new government contract with the U.S. Department of Justice. Government news is HUGE for a penny stock.

AISP spiked and set resistance at $9, consolidated above $5, and then broke higher to touch $14. The whole move measures 760%. Since then, prices fell and right now are consolidating above $8.

The chart is below, every candle represents one trading day:

Trading tip: Resistance can become support and vice versa.

I’m watching the consolidation around $8. There’s a chance the price will rally and spike to new highs in 2024. The stock market this year is on a massive bull run. And that momentum trickles down into our small-cap sector.

That’s one of the reasons AISP spiked like it did, the market environment is conducive to big runners. I traded this spike 5 times, all for a profit:

• March 5: Starting stake of $7,725. Profit of $682.
• March 5: Starting stake of $15,150. Profit of $576.
• March 6: Starting stake of $12,512. Profit of $542.
• March 8: Starting stake of $17,577. Profit of $117.
• March 18: Starting stake of $19,320. Profit of $540.

In total that’s $2,457 on one stock. I’m looking for my next opportunity!

Set an alert in StocksToTrade. If the price moves toward the breakout level you’ll get a  notification.

NKGen Biotech Inc (NASDAQ: NKGN) — The Alzheimer’s Spike And Consolidation …

My third Robinhood penny stock pick is NKGen Biotech Inc (NASDAQ: NKGN).

The stock launched 320% on March 6. Two days earlier, on March 4 the company announced an upcoming presentation on March 25 and 26.

Prices sank after March 6, but it’s still holding some of its gains, take a look at the chart below. Every candle represents one day:

We’ll have to see how the share price reacts to the presentation.

If prices start to push toward the breakout level at $4, we know it’s time to plan a trade.

Conversely, if the price falls below support, consider it dead. We’ll have to wait for the next catalyst to spike the price.

And it’s only a matter of time. StocksToTrade shows the float holds 7.1 million shares. Anything below 10 million shares is considered a low float. And the low supply of shares helps prices spike higher when demand increases.

Keep an eye on this price action.

AXT Inc (NASDAQ: AXTI) — My AI Earnings Winner Supernova Alerts Pick

My fourth Robinhood penny stock pick is AXT Inc (NASDAQ: AXTI).

AXTI is on ‘supernova’ watch.

Some of the stocks in our small-cap niche can spike 1,000% or more. And the biggest runners tend to follow the same framework. We call them supernovas.

Usually the price spikes, it consolidates and then shoots higher at an explosive pace.

AXTI announced bullish earnings on February 22. The company beat analyst expectations for earnings per share and overall revenues. Shares spiked 130% the next few days.

The chart shows consolidation above $4 after the spike. And there’s a breakout level at $5.50.

Bullish quarterly earnings is great news for a penny stock. Most of these companies are trash. Any money flow at all is impressive, lol. That’s what makes me think the price could push higher. Instead of the usual hyped up catalyst we see in this niche, AXTI is doing real business.

And it’s in the semiconductor sector. That’s adjacent to the AI sector. Which helps lend bullish momentum to the play.

I traded AXTI three times after the quarterly announcement:

• March 23: Starting stake of $19,505. Profit of $990.
• March 23: Starting stake of $23,460. Profit of $275.
• March 23: Starting stake of $11,760. Profit of $1,680.

A total profit of $2,945 in one day on one stock.

I’m ready for the next move …

Canoo Inc (NASDAQ: GOEV) — The Foreign Trade Zone Catalyst Play

My fifth Robinhood penny stock pick is Canoo Inc (NASDAQ: GOEV).

On March 18, GOEV announced its Oklahoma City location was granted Foreign Trade Zone designation by the U.S. Department of Commerce.

As a result, GOEV is estimated to save around $70 million in 2024 and 2025.

Prices already spiked 290% in March. And there’s a chance it pushes higher. The chart hasn’t imploded yet … Remember, it’s a penny stock. The spike will crash eventually. But currently the price shows a lot of good support.

On the chart below, every candle represents 10 minutes:

Watch the breakout level around $4.50.

Nano-X Imaging Ltd (NASDAQ: NNOX) — The NVIDIA Catalyst AI Stock

My sixth Robinhood penny stock pick is Nano-X Imaging Ltd (NASDAQ: NNOX).

On February 15 during premarket we learned that NVIDIA Corporation (NASDAQ: NVDA) bought stake in multiple lower-priced companies. NNOX was one of them.

NVDA is the star of the U.S. stock market this year…

The AI sector is booming. Tech stocks are red hot. And at the center of the industry are NVDA’s microchips.

The chart of NVDA resembles a penny stock, even though prices are trading above $900 per share. The volatility is unmistakable. Take a look at the chart below where every candle represents one trading day:

Another unmistakable move: NNOX’s reaction to the NVDA news.

Below is a 1-day candle chart:

Notice the obvious consolidation on the chart …

NNOX is scheduled to report fourth quarter financials on April 1. That catalyst could send prices higher. But we’ll have to wait and see.

CXApp Inc (NASDAQ: CXAI) — The Crappy AI Penny Stock That’s Holding Support

My seventh Robinhood penny stock pick is CXApp Inc (NASDAQ: CXAI).

This is a HUGE former spiker.

Past spikers can spike again!

CXAI ran 1,400% in April of 2023. There wasn’t even any news that sent it higher. It was just an AI sympathy play.

That’s how powerful this sector is. There are AI penny stocks spiking without any news.

But this year, CXAI ran in anticipation of earnings. The announcement for CXAI’s upcoming earnings was on February 27 during pre-market hours.

The price spiked 170% in anticipation and it’s still consolidating.

I traded it twice on the day of the announcement, both times for a profit:

• February 27: Starting stake of $6,510. Profit of $1,470.
• February 27: Starting stake of $9,415. Profit of $385.

StocksToTrade shows the float is still only 10.7 million shares. The low supply can help prices spike higher.

Pay attention to key areas of support and resistance.

XTL Biopharmaceuticals Ltd (NASDAQ: XTLB) — The Upcoming News Biotech Stock

My eighth Robinhood penny stock pick is XTL Biopharmaceuticals Ltd (NASDAQ: XTLB).

On March 20 we learned that XTLB is set to acquire an AI company, The Social Proxy Ltd.

The company will also conduct a shareholder conference on April 30. A major catalyst on the meeting’s agenda is the approval of a $1.5 million private placement provided XTLB’s successful acquisition of The Social Proxy Ltd.

There are forward looking statements embedded within this catalyst. Understand, when the market knows about a highly publicized catalyst in the future, the price can behave strangely.

As we approach the April 30 conference, we can trade the volatility.  But we don’t want to hold shares through the event.

This is a common occurrence for publicized catalysts: Everyone who would have bought already did because they heard about it early. When the event comes to pass, all that’s left are sellers and the price tanks.

I like this catalyst for two reasons:

• There’s AI involved.
• A private placement is usually a catalyst — everyone wants to follow the smart money.

We just have to be careful about the timing of our trade.

Robinhood Stocks Under $5

The appeal of hot sector stocks accessible on platforms like Robinhood, especially those classified as penny stocks, is compelling for both novice and seasoned investors. The energy and technology sectors, for instance, are witnessing rapid growth and innovation, making stocks within these domains particularly attractive for those on the lookout for the next breakout investment. The allure lies in the potential for substantial returns on investment, as even minor developments or positive news within these sectors can lead to significant price jumps.

Nonetheless, it’s imperative to navigate these waters with caution and a well-thought-out strategy. The inherent volatility of penny stocks, combined with the speculative nature of emerging sectors like renewable energy and tech innovations, underscores the importance of a meticulous approach. Before diving in, ensure you’ve done your due diligence, looking past the initial excitement to assess the true potential and risks of these ventures. It’s wise to trade these stocks rather than invest long-term, given their unpredictable nature.

Success in trading hot sector stocks priced under $5 on platforms such as Robinhood hinges on a selective and strategic approach. The goal is to tap into the explosive growth potential of sectors like renewable energy and technology while implementing robust risk management practices. By zeroing in on companies poised for leadership within their specific niches, traders can seize opportunities for disproportionate gains. This strategy, coupled with a disciplined approach to maintaining a tight investment strategy and promptly cutting losses, can pave the way for trading success in these dynamic market segments.

What to Consider When Trading Penny Stocks

Penny stocks trades are volatile and unpredictable, so while there’s a chance of big gains, there’s also the risk of major losses. This means you shouldn’t invest in penny stocks — just trade them.

If you’re getting into penny stocks, it’s not enough just to read my stock picks. You need to build your own knowledge account so you can make informed decisions.

Here are four things to consider as a penny stock trader:

Price Action

A good way to see whether a penny stock is worth buying is to check its price history. If the stock’s chart shows that it has run before, there’s a good chance that it can run again.

Unusual Volume

The market is based on supply and demand. If there’s a lot of demand — more trading volume than usual — it can drastically affect price.

Besides for price, this is the single most important indicator in penny stock trading.

Real News

Stock prices usually move for a reason, and newsworthy changes often cause prices to rise. But look at how the market is reacting before you trade.

The penny stock world is rife with deception, which brings me to my last point …

Scam Possibilities

There’s always the possibility — heck, the probability — of scammers driving penny stock momentum. Pumps are especially common in this world, because it’s easier for gullible newbies to buy penny stocks than high-priced stocks.

If you see social media chatter about buying a popular penny stock, don’t buy it impulsively. Do your research and determine whether the stock is worth trading before making any decisions.

How to Buy Penny Stocks on Robinhood

Buying penny stocks on the Robinhood app or website is just like buying any other stock. Now that you’ve learned how to find penny stocks on Robinhood, here’s how to buy them:

1. Log into your Robinhood account.
2. Use your debit card or bank account to transfer funds into your Robinhood account.
3. Choose a penny stock to buy.
4. Select your order type (i.e., market, limit, stop loss, stop limit, or trailing stop order … I never use market orders for trading penny stocks).
5. Input how many shares you want to buy.
6. Review your order and ensure everything is correct.
7. Confirm your trade.

Why Do Only Certain Penny Stocks Appear On Exchanges?

Attention to detail, that’s what you need when looking at why only certain penny stocks appear on exchanges. You’ll find some of them on Robinhood and other platforms, but why not others? Here’s the fact: Exchanges like the NYSE have specific requirements. Pink sheets, often home to Canadian penny stocks like Xela, operate with different rules. There’s a range of factors including capitalization, regulatory compliance, and partners’ links that determine what makes it to the public eye. In this diverse world of investments, there are types and categories of stocks that might not make it to the main stage. Knowing the difference and understanding where to look – be it newsletters, articles, or PDFs – can put you one step ahead in the game. Always keep an eye on the corner of the market that fits your strategy, but don’t lose sight of the entire playing field.

Trading Fees on Robinhood

Robinhood doesn’t impose trading fees on its users. However, the Financial Industry Regulatory Authority (FINRA) is legally obliged to charge a fee, which you have to pay, on stock sales.

The trading activity fee for stock sales is $0.00013/share and $0.00218/share for options sales, with a maximum fee cap of $6.49. Robinhood only charges this fee if you sell more than 50 shares in one penny stock transaction.

Quick Tips to Making Money With Penny Stocks

Penny stock trading can bring in a lot of money, but it’s also a risky proposition — you could lose big if you aren’t careful. Here’s what you should do when you’re trading penny stocks:

• Cut your losses quickly because penny stocks are volatile by nature.
• Focus on small gains, and don’t overcommit to a stock.
• Concentrate on day trading instead of holding penny stocks for long-term gains.
• Research the company before buying its stock, and keep track of industry news.
• Follow your trading plan.
• Trade with money you can afford to lose. Even in the worst-case scenario of losing everything you spent on penny stocks, you’ll still have a safety net.

Making money with penny stocks requires a combination of strategy, research, and understanding of market dynamics. While focusing on small gains and cutting losses quickly is essential, staying updated with the latest trends and tools can also be a game-changer. Whether you’re a beginner or an experienced trader, continuous learning is key. Learn more about the most active penny stocks to keep an eye on here. It offers valuable insights and tips to help you navigate the ever-changing world of penny stocks.

Looking for more money-making tips with penny stocks? Learn from my 20+ years of experience by applying for the Trading Challenge and reading my FREE book right now.

What Is the Minimum Needed to Buy Penny Stocks?

Robinhood doesn’t have a minimum amount for penny stocks — or any stocks — that cost $1 or more. You can start trading fractional stocks when a stock reaches that threshold.

Key Takeaways

Penny stock trading is a great way to build your account as a new trader. Robinhood is an okay place to trade stocks as a beginner because it doesn’t have fees and minimum deposits. However, it’s missing many of the capacities I look for in a broker. I recommend you move to another broker as soon as you can.

Key Considerations:

• A lot of penny stocks are shady. Risk in Robinhood penny stocks can be heightened due to limited company information and unsavory promotion.
• There’s a possibility for big gains. I trade penny stocks because you can trade conservatively and still rack up gains. These stocks can go supernova at any time. Aim for “the meat of the move.”
• These companies are often young. Some Robinhood penny stocks are newer companies, and can dramatically shift their market trajectory and valuation.

While I’ve given you eight stocks to watch on Robinhood, don’t just copy my penny stock picks blindly. Learn why I picked them and choose your own stocks to watch.

Have you traded penny stocks on Robinhood? Write “I always trade with a plan” in the comments!

Penny Stocks to Watch on Robinhood FAQs

In which countries is Robinhood available for trading penny stocks, and who are its main competitors?

Robinhood is primarily available in the United States but has been expanding to other countries. Its main competitors in the penny stock trading space include apps from Charles Schwab, E-Trade, and Webull. Availability might vary depending on regulations and market conditions in specific countries.

How is the page design on Robinhood’s app, and does it include any gamification elements (games) to engage users in penny stock trading?

Robinhood’s app is being designed with a sleek and user-friendly page layout that aims to make trading accessible to all. Some users feel that the app’s interface has gamification elements, including games and interactive visuals, making the trading experience more engaging, especially for younger investors.

How can one purchase penny stocks on Robinhood, and what are the payment options, including using a cash account or credit?

Purchasing penny stocks on Robinhood is a straightforward process that can be done through the app or web platform. Payment options include using a cash account or linking a credit/debit card. The purchase can be done with a few taps, and users can track their investments on the main page of the app.