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10 Top AI Penny Stocks To Watch for July 2024

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Written by Timothy Sykes
Reviewed by Friedrich Odermann Fact-checked by Ed Weinberg
Updated 7/1/2024 31 min read

Artificial intelligence (AI) penny stocks trade below $5, and are known for their high risk and potential high reward. These stocks generally belong to smaller companies at the forefront of integrating AI into diverse products and services. For traders, these stocks present a chance to take advantage of the hottest sector right now. However, the inherent volatility and the nascent stage of these companies necessitate thorough analysis and a sharp awareness of market trends.

Table of Contents

10 Best AI Stocks for July 2024

My top AI penny stock picks are:

  • NASDAQ: MINM — Minim Inc — The AI WiFi Penny Stock
  • NASDAQ: MLGO — MicroAlgo Inc — The Micro-Consciousness Quantum Research Penny Stock
  • NASDAQ: WLDS — Wearable Devices Ltd — The Extended Reality Penny Stock
  • NASDAQ: AISP — Airship AI Holdings Inc — The 10.45 AM Rule AI Penny Stock
  • NASDAQ: BMR — Beamr Imaging Ltd — The Oracle Catalyst AI Penny Stock
  • NASDAQ: LIDR — Aeye Inc — The Autonomous Vehicle AI Stock
  • NASDAQ: ONMD — OneMedNet Corporation — The Medical Data AI Stock
  • NASDAQ: WISA — WiSA Technologies — The Wireless Sound Penny Stock With Partnership News
  • NASDAQ: RENT — Rent the Runway — The AI-Powered Fashion Stock
  • NASDAQ: ONFO — Onfolio Holdings Inc — The Holding Company With an AI Pump in Its Past

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

Sign up for my NO-COST weekly watchlist to get my latest picks!

Here’s some background info on the AI sector:

  • What is the most promising AI stock?

A sector leader like NVIDIA Corp (NASDAQ: NVDA) is the best bet for the most promising AI stock. But remember, we’re traders, not investors. So the stocks on this list are ones we’re watching for short-term moves, not predictions of which will lead stock exchanges in 2030.

  • What are the top 3 AI stocks to buy now?

My top 3 AI stocks to buy now (as long as their price action is strong) are Aeye Inc (NASDAQ: LIDR), OneMedNet Corporation (NASDAQ: ONMD), and Minim Inc (NASDAQ: MINM).

  • Which company is most advanced in AI?

NVIDIA is the most advanced publicly traded company in AI, that’s why it’s the sector leader. But other leading tech stocks like Apple, Microsoft, Google, and Facebook are all safe bets to pull ahead at some point.

  • Which Artificial Intelligence stocks have a “Strong Buy” analyst rating?

Analysts tend to love these tech leaders — NVIDIA, Microsoft, Google, and Facebook. Most analysts have rated all of these stocks as “strong buys.”

Let’s get to the picks …

1. Minim Inc (NASDAQ: MINM) — The AI WiFi Penny Stock

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My first AI penny stock pick is Minim Inc (NASDAQ: MINM).

This historic AI runner has spikes from 2023!

Past spikers can spike again.

And the MINM chart is a perfect example. Take a look below, every candle represents one trading day:

MINM chart multi-month, 1-day candles Source: StocksToTrade

The most recent price jump was a 60% spike on June 21.

There wasn’t any news … The strength of the overall market and the focus on AI can cause these plays to spike out of nowhere.

MINM works in the internet industry, specifically supplying the hardware necessary for internet connection. And since the advent of AI … The demand for high-quality internet has skyrocketed.

The 60% spike on June 21 was impressive. But I’m waiting for a definitive catalyst to push the price higher in July.

This rocket needs some fuel!

2. MicroAlgo Inc (NASDAQ: MLGO) — The Micro-Consciousness Quantum Research Penny Stock

My second AI penny stock pick is MicroAlgo Inc (NASDAQ: MLGO).

MLGO is a tech stock that develops algorithms for online advertising and the gaming industry.

Thanks to all of the AI momentum in 2024, MLGO managed a 330%* spike in less than two days during February of this year.

But that pales in comparison to the moves from June …

The price spiked 860%* on June 4 and 450%* between June 24 and 25. Take a look at the chart below. Every candle represents one trading day:

MLGO chart multi-month, 1-day candles Source: StocksToTrade

The most recent spike shows good signs of consolidation.

There’s a fair chance these shares surge higher in July.

Plus, the float is only 1.8 million shares. The low supply of shares (anything below 10 million) helps the price spike higher when demand increases.

Don’t waste time looking for the perfect entry on this volatile runner! My AI trading bot is tracking this price action 24/7 using the framework that my millionaire students and I use to profit.

Try using AI for your next trade!

3. Wearable Devices Ltd (NASDAQ: WLDS) — The Extended Reality Penny Stock

My third AI penny stock pick is Wearable Devices Ltd (NASDAQ: WLDS).

On June 10, the company announced the successful phase-1 integration of its technology with Qualcomm’s Snapdragon Spaces.

WLDS is an AI company partnering with Qualcomm in an effort to increase its innovation of gesture-based controls.

The stock spiked 100%* after the news went public. It gave back most of those gains within a few hours. But after an announcement of WLDS’ presentation on June 18, the stock started to run again.

Take a look at the chart below, every candle represents one trading day:

WLDS chart multi-month, 1-day candles Source: StocksToTrade

WLDS is slowly pushing toward the breakout level from the June 10 spike. Keep an eye on that resistance!

4. Airship AI Holdings Inc (NASDAQ: AISP) — The 10.45 AM Rule AI Penny Stock

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

There’s a new pattern in the stock market right now.

Don’t worry, the framework that we use to trade is still the same!

Here’s the difference:

Due to the overall market strength in 2024 and the return of meme-stock volatility thanks to Keith Gill and GameStop Corporation (NYSE: GME), we’re watching volatile stocks follow our framework at a different time of day.

It’s called the 10:45 A.M. rule.

And we’ve seen it more than once, on stocks other than AISP. See my post on X below:

Usually, there’s a lot of volatility right after the market opens, in the first hour, between 9:30 A.M. Eastern and 10:30 A.M. Eastern. And there are amazing opportunities to profit during that volatility.

But … The shares move fast and there isn’t much price action to help traders find key support and resistance levels.

Instead … Thanks to the immense bullish momentum in this market, a trader can wait until 10:45 A.M. (this is an inexact science) and find a decent setup using price action from earlier that morning.

Usually the bullish momentum dies down mid day, that’s what makes this pattern “new”.

The 10:45 A.M. Trade On AISP:

AISP was one of the first stocks to follow this new pattern in June, 2024. Take a look at my post on X below:

These stocks don’t deserve to spike mid-day. There aren’t any fundamentals to support the huge moves.

That’s how we know they’re bullish short squeezes.

When there’s bullish intraday price action on crap stocks, it’s a hint that the price could squeeze higher …

For example: Take a look at the chart below that shows key consolidation before AISP surged higher in the morning.

Every candle represents one trading minute:

AISP chart intraday, 1-minute candles Source: StocksToTrade

I traded AISP two times that day, on June 11, when it spiked 70%. See my notes below:

Source: Profit.ly

AISP has a huge history of running.

Before the June 11 spike, in March of this year it spiked 860%*.

I’m waiting for more volatility like that in July …

5. Beamr Imaging Ltd (NASDAQ: BMR) — The Oracle Catalyst AI Penny Stock

My fifth AI penny stock pick is Beamr Imaging Ltd (NASDAQ: BMR).

On February 12, at 7 A.M. Eastern during premarket hours, BMR announced a partnership with NVIDIA Corporation (NASDAQ: NVDA).

NVDA is arguably the most popular company in the world right now.

The company is STILL surging to new heights as the tech sector scrambles for NVDA microchips.

The massive tech stock is smashing company value records and even pushed past other +$1 trillion tech businesses like Meta Platforms Inc. (NASDAQ: META) and Alphabet Inc. (NASDAQ: GOOG).

It even briefly surpassed Microsoft Corporation (NASDAQ: MSFT) to be the most valuable company listed on the U.S. stock exchange in June.

A hook up with a sector leader like NVDA is HUGE news for a penny stock like BMR.

The share price spiked 1,500%* in less than 24 hours on February 12. Since then, the stock lost 80% of its value.

But there’s a possible squeeze brewing … Ever since Keith Gill returned to the market in May, the short-squeeze volatility has been off the charts!

And BMR could be the next victim. Prices spiked a bit on June 12 after the company announced an AI-ready video processing system for customers. I need more volatility, but the catalyst was perfect!

I’ve traded this runner multiple times since the initial spike on February 12. See some examples below:

Source: Profit.ly

Now, it’s not a 100% guarantee that BMR will push to new highs.

Nothing is guaranteed when it comes to the stock market.

But we know that volatile stocks can follow popular patterns. That’s how my millionaire students and I pull profits from the market.

We’re not certain BMR will break out … But if it does, there are patterns we can use to trade the price action.

6. Aeye Inc (NASDAQ: LIDR) — The Autonomous Vehicle AI Stock

My sixth AI penny stock pick is Aeye Inc (NASDAQ: LIDR).

This is an AI runner that aims to be instrumental in the self-driving revolution. The “eye” is related to its LiDAR (light detection and ranging) technology: The cameras that help cars drive without human pilots.

The stock spiked 420%* in May!

The best part about these plays: The massive percent gain is accessible for small-account traders due to the cheap share prices. LIDR barely spiked above $5, we can load up on these cheap shares and ride the percent gain for larger profit opportunities.

The chart sold off over the last month … That puts it in the perfect position for a #5 bounce from our trading framework!

Get ready for more bullish volatility in July.

7. OneMedNet Corporation (NASDAQ: ONMD) — The Medical Data AI Stock

My seventh AI penny stock pick is OneMedNet Corporation (NASDAQ: ONMD).

On May 23 during premarket hours the company announced more than a five-fold growth of its iRWD network.

As a result of the news, ONMD spiked 550%* in May.

iRWD is a service that aims to connect and utilize real-world repositories (RWD) of existing healthcare clinics. The system also “de-identifies” the data, making it accessible for medical studies while preserving the privacy of patients.

And AI is at the heart of the network.

In June, the stock gave back almost all of its May gains.

But as we know … Past spikers can spike again.

Plus, StocksToTrade shows that the float is only 5.3 million shares. The low supply helps encourage bullish volatility.

8. WiSA Technologies (NASDAQ: WISA) — The Wireless Sound Penny Stock With Partnership News

My eighth AI penny stock pick is WiSA Technologies (NASDAQ: WISA).

This company boasts about its sound products for “intelligent devices” and home entertainment systems.

The mention of intelligent devices alludes to artificial intelligence. And on the front of the company’s page is the NVDA logo (the market’s #1 AI powerhouse right now).

Take a look below:

Share prices already spiked 520%* in April. I traded the run three separate times.

My notes are below:

Source: Profit.ly

Want to trade like me? Follow the next AI trade alert. My AI bot follows our specific process for profits.*

On May 9, the company announced a partnership with CITECH to combine WiSA’s technology with CITECH’s line of media streamers. CITECH also plans to use WiSA’s technology in a line of speakers.

The stock didn’t spike much in response to the news …

But we know that the stock CAN spike thanks to the April move. And we know that the company CAN send out bullish press releases thanks to the May 9 announcement.

Eventually, those two factors should line up for another glorious spike.

9. Rent the Runway (NASDAQ: RENT) — The AI-Powered Fashion Stock

My ninth AI penny stock pick is Rent the Runway (NASDAQ: RENT).

On April 11, the company announced quarterly revenue numbers along with upbeat comments from the company’s top officials.

It was described that RENT was finally turning a corner toward profitability.

But as a penny stock whose company allows users to rent or buy designer apparel … I had my doubts.

Regardless of the long-term reality behind this trashy stock, it went on an impressive multi-month run.

The whole move measured 460%*.

Take a look at the chart below, every candle represents one trading day:

RENT chart multi-month, 1-day candles Source: StocksToTrade

Prices slid lower in June. That makes it a SOLID bounce setup in July.

10. Onfolio Holdings Inc (NASDAQ: ONFO) — The Holding Company With an AI Pump in Its Past

My tenth AI penny stock pick is Onfolio Holdings Inc (NASDAQ: ONFO).

On January 4, the company announced it would acquire RevenueZen, a search-engine optimization company focused on dealing with new challenges posed by AI.

The news didn’t gain much traction, but it solidified itself as a potential AI runner.

Then, shares started to spike on Monday, May 20 as the company announced quarterly revenue data.

For the fourth quarter of 2023: ONFO reported -$0.14 EPS and a revenue of $1.59 million. Believe it or not, this was good news — the company is getting closer to profitability.

Thus far the spike measures 210%*. And prices are consolidating near the highs.

Take a look at the multi-month chart below:

ONFO chart multi-month, 1-day candles Source: StocksToTrade

Plus, StocksToTrade shows the float is only 3.2 million shares.

This AI-pump earnings winner has all the elements it needs to spike higher. Let’s see what happens …

Keep an eye on key support levels!

 

*Past performance does not indicate future results

What Is Artificial Intelligence?

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Artificial intelligence is when a computer simulates human intelligence. Artificial intelligence technology seeks to create machines that can fill roles traditionally carried out by people.

There’s a wide range of things you can accomplish with AI. Recent artificial intelligence products include chatbots, self-driving cars, industrial robotic solutions, and smart assistants. While we might still be very far from truly smart robots like the Star Wars droids or the Transformers, we’re closer than we’ve ever been before.

What Are AI Penny Stocks?

AI penny stocks are shares of small artificial intelligence companies that trade at a low price, often under $5. These stocks are part of an industry that’s booming with potential, from machine learning to data analytics. Just because they’re cheap doesn’t mean they’re a sure bet. I’ve been trading and teaching for years, and I can tell you that these stocks can be as volatile as a shaken soda can.

The allure of AI penny stocks lies in their growth potential. Companies in this sector are often in the early stages of development, focusing on applications like chatbots, security, and advertising. Investors are drawn to the high-reward prospects, but it’s crucial to understand the risks involved. You’re not just investing money; you’re investing in a business’s potential to revolutionize industries.

Apply for my Trading Challenge today and learn how to trade artificial intelligence stocks!

AI isn’t the only hot sector out there. Another sector that’s making headlines is green energy. Check out these 7 green energy penny stocks that are worth watching.

What Makes AI Penny Stocks Unique?

AI penny stocks are distinct due to their involvement in cutting-edge technology and the small-cap market. These companies, often in the early stages of development, harness artificial intelligence to drive innovation in various sectors, from automation to data analysis. The market size for AI-driven companies is rapidly expanding, making these stocks particularly volatile. This volatility can lead to high returns but also poses significant risks. Understanding these characteristics is crucial for traders looking to capitalize on AI’s growth potential.

Critical factors that differentiate AI penny stocks from other tech stocks and traditional penny stocks include:

  • Technology adoption: AI companies are at the forefront of technological innovation, often developing unique applications of AI.
  • Regulatory environment: AI technology is subject to evolving regulations, which can impact company operations and stock performance.
  • Investment risks: High volatility and the nascent stage of many AI companies mean potential for significant gains or losses.
  • Market position: Many AI penny stocks are small-cap companies with limited market presence compared to established tech giants.
  • Innovation pace: The rapid pace of AI development can lead to swift changes in company fortunes, impacting stock prices dramatically.

AI stocks often experience significant price fluctuations driven by technological advancements and market adoption rates. Expanding your portfolio with tech penny stocks can further diversify your investment and capitalize on the tech sector’s growth. To explore promising tech penny stocks and gain insights into their market potential, check out this comprehensive list of tech penny stocks.

What to Look for in an Artificial Intelligence Penny Stock

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Like with any stock, the best way to prepare for artificial intelligence penny stock rallies is to build a watchlist. A good watchlist will build up your knowledge about specific stocks, as well as keep you prepared for the opportunities that may come.

Don’t take your penny stock lists from other people’s picks — not even mine. Other traders have different priorities, goals, and risk appetites. Here’s what to look for in a penny stock when building your watchlist:

Exhibits a Tradeable Pattern on its Stock Chart

Start with the chart.

The stocks that make my watchlists have a record of tradeable chart patterns. Check out the charts in the previous section. Penny stocks follow a boom-and-bust cycle. Since they’re mostly stocks in worthless companies that are temporarily inflated by lying promoters and gullible newbies, their patterns often repeat.

If you want to get the best read on their charts, you need a powerful trading platform on your side like StocksToTrade.

I helped design StocksToTrade. So it makes sense that it has all the features traders like me want in a trading platform.

No more navigating clunky software or hopping between multiple windows to check on the news — StocksToTrade has everything you need!

StocksToTrade has changed the way I trade. Sign up for a 14-day trial today and see how it can change your trading — it’s only $7!

Is a Low-Float Stock

Any stock with less than 10 million shares publicly available for trading is considered a low-float stock. A smaller number of shares in play means that volume spikes can really move a stock’s price.

Exhibits an Unusual Trading Volume

Stocks trading at unusual volumes are more prone to price swings, which increase your chances of safely trading “the meat of the move.” Penny stock volume is important for another reason — high volume stocks are more liquid and easier to sell.

Is a Former Runner

A penny stock that’s run in the past has a better chance of running again in the future. Why?

  • It’s shown that it can run in reaction to the catalyst that made it run the first time
  • The market has a memory
  • Promoters also have a memory, and they’ll keep on pumping a hot stock until the worthless company it’s associated with goes out of business

Gets Frequent Media Attention

Breaking news stories and press releases about new technology solutions often lead to major price swings in tech penny stocks. Like we’ve already established, AI is a sector that gets a lot of news coverage.

Where to Buy AI Penny Stocks

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You can buy AI penny stocks on major exchanges like the New York Stock Exchange (NYSE) and Nasdaq, as well as in the over-the-counter (OTC) markets. Most people trade penny stocks through broker websites and apps like Robinhood, Chase, and Wealthsimple Trade.

NYSE/Nasdaq Penny Stocks

You can find AI penny stocks among the tech giants listed on major exchanges like NYSE and Nasdaq. Listed stocks are more regulated than OTC stocks, and are generally perceived as more stable companies.

Most of the hot AI stocks are found on the Nasdaq. These stocks are generally more regulated and can offer a different kind of stability in the volatile world of penny stocks. Learn more about penny stocks on Nasdaq here.

OTC Penny Stocks

OTC or unlisted penny stocks fall into one of three tiers:

  • Pink sheet
  • OTCQB
  • OTCQX

Each OTC tier has different regulations and requirements. Pink sheets have little in the way of regulation, while OTCQX is more strictly regulated. That isn’t to say I won’t trade a pink sheet stock — I just won’t trust it.

Some AI stocks with the biggest potential for quick gains are found on the pink sheets. Of these, stocks under 10 cents are a distinct breed. These ultra-cheap stocks can be even more volatile, offering both higher risks and potentially higher rewards. If you’re looking to add some spice to your trading strategy, consider these options. Here’s a guide to penny stocks under 10 cents.

The Best Place to Buy Tech Penny Stocks

Are listed stocks better than unlisted, or vice versa? It depends on your risk appetite.

I trade both listed and unlisted stocks. I don’t see why I should limit myself.

How to Trade AI Penny Stocks

To start trading AI penny stocks, follow these guidelines:

  1. Set up a trading account: Choose a broker that offers access to penny stocks and supports trading automation.
  2. Choose the right trading platform: Look for platforms with robust research tools, low-cost trading options, and good user reviews.
  3. Understand trading fees: Be aware of all costs involved, including commission, spreads, and potential hidden fees.

Trading AI penny stocks requires a strategic approach. Technical analysis can help identify price patterns and trading opportunities. Fundamental analysis is essential to understand a company’s financial health and potential for growth. Staying informed about AI industry trends is crucial, as new developments can significantly impact stock prices. Drawing on years of trading experience, I’ve seen how crucial it is to stay updated with publications and reports on AI advancements to make informed trading decisions.

AI Stocks Under $5

Here are some of my top watches for AI penny stocks priced under $5:

  • Cyngn Inc (NASDAQ: CYN)
  • Nauticus Robotics Inc (NASDAQ: KITT)
  • BigBear.ai Holdings Inc (NYSE: BBAI)
  • Microbot Medical Inc (NASDAQ: MBOT)
  • Guardforce AI Co Ltd (NASDAQ: GFAI)

When I’m building my watchlist for AI penny stocks under $5, I look at the following factors. These factors don’t all matter when you’re trading penny stocks — but the perception of them does matter.

  • Growth potential: The company’s AI projects and innovations. Companies focusing on emerging AI technologies and automation can offer significant upside.
  • Financial health: The company’s balance sheet, revenue trends, and cash flow. A stable financial base is crucial for sustaining growth and weathering market volatility.
  • Market position: The company’s standing in the AI sector. Strong market positioning can indicate future success.
  • Management team: The company’s leadership. Research the backgrounds and track records of the key executives.
  • Industry trends: Broader AI industry trends. These are the biggest catalysts in penny stock land.

Some of the hottest AI penny stocks are in the biotech sector. Biotech is a great trading sector due to the potential for huge catalysts driven by successful clinical trials or FDA approvals. Like AI, trading biotech stocks requires staying informed about the latest developments in the industry. To identify high-potential biotech penny stocks, check out my monthly biotech penny stock watchlist.

AI Penny Stocks Under $10

Here are some AI stocks priced under $10:

  • Gaxos.AI Inc (NASDAQ: GXAI)
  • GSI Technology, Inc (NASDAQ: GSIT)
  • AXT Inc (NASDAQ: AXTI)
  • Airship AI Holdings Inc (NASDAQ: AISP)
  • SoundHound AI Inc (NASDAQ: SOUN)

Keeping an eye on companies involved in projects with buzz — sort of like Elon Musk’s Project Omega that we’ve been hearing about for years — can tip you off to future movements. Don’t give this hype a big position in your trading portfolios, but keep it on watch.

A robust penny stock watchlist should include a mix of stocks from various sectors to mitigate risks and capture opportunities across different markets. I don’t only watch AI stocks — I focus on any stock with strong growth potential. Regularly updating your watchlist and monitoring stock performance are crucial steps in staying ahead of the game. To see how I do it, check out my weekly penny stock watchlist.

Key Takeaways

Trading in AI penny stocks presents potential for profit, yet it’s crucial to keep an awareness of the risks involved. As traders, our approach isn’t about blindly pouring money into AI stocks. Instead, we focus on trading based on discernible patterns and deep market insights.

In trading, the small gains build over time. Don’t get swept away by the AI buzz; stay grounded in hard facts and observable market patterns. That’s the essence of trading AI penny stocks.

Key Considerations:

  • A lot of penny stocks are shady. Risk in AI penny stocks can be heightened due to limited company information and unsavory promotion.
  • There’s a possibility for big gains. With the AI sector’s potential for rapid advancement, these stocks can go supernova at any time.
  • The sector is young. AI penny stocks are impacted by technological innovations and developments, which can dramatically shift their market trajectory and valuation.

Artificial intelligence is one of the hottest sectors in trading, thanks to it being one of the hottest sectors in the popular imagination. The frequency of breaking news means there are bound to be opportunities for good trades.

Just because there are opportunities for trades doesn’t mean you will necessarily catch them. You have to be prepared. That means keeping a good watchlist, watching the market, and studying harder than all of the other traders trying to come out on top.

What are the AI penny stocks on YOUR watchlist? Let me know in the comments!

Frequently Asked Questions

How Should You Value AI Companies?

Valuing AI companies is a complex task that involves a deep dive into their financials, growth prospects, and market demand. Traditional metrics like earnings and revenue are important, but you also need to consider factors like data acquisition capabilities and the quality of their machine learning algorithms. From my experience, understanding the nuances of an AI company’s value can make or break your portfolio.

What AI Company Is Elon Musk Investing In?

Elon Musk recently launched xAI, billed as a ChatGPT alternative. Musk was a founding board member and investor in OpenAI, the company behind ChatGPT. He stepped away due to potential conflicts with Tesla’s AI development for self-driving cars.

How Do You Invest in the AI Industry?

Investing in the AI industry requires a well-thought-out strategy. You need to diversify your investments across various sectors like analytics, machine learning, and data security. You can use a mix of financial instruments like securities, equities, and even some options to balance out the risks and potential rewards.

What Information Can I Find in AI Articles?

By reading widely, you’ll find valuable information and insights related to artificial intelligence businesses and their customers. They often have content that contains various links to research and services, aimed to help you better understand this market.

What Determines the Market Cap of AI Penny Stocks?

The market cap of AI penny stocks is determined by a variety of factors including their momentum and results in the market. Monitoring these can give you an idea of their potential for profit.

How Can Services and Research Aid My Investment?

Services provide tools and platforms that can assist you in making informed decisions. The research, on the other hand, provides deeper insights into market trends, business models, and potential for profit, for stocks ranging from powerhouses like Tesla (TSLA), NVIDIA (NVDA), and Microsoft (MSFT) to penny stocks like AMST, POAI, and PBTS.

What Fundamentals Should I Look for in AI Penny Stocks?

Focus on low-cost, small-cap companies that show potential for high growth and innovation. Look for new ideas and technologies these companies are developing, and consider opinions and analyses from experts in the field to get a comprehensive understanding of the market. While AI penny stocks are primarily tech-focused, fluctuations in unrelated sectors, like crude oil, can still impact overall market sentiment and trading conditions.

*Past performance does not indicate future results


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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”