Finding the right stock to trade is like putting a puzzle together. The news, volume, chart, and other indicators all have to fit. When you finish the puzzle, you get a clear picture of what a trade should look like.
Stock volume is often the biggest piece of this puzzle because it’s the single biggest indicator of price change. One of the best ways to prepare for future runs is to study stock charts, and learn how stocks react to changes in trading volume.
Another factor that’s essential for me is the stock’s float. Think of float as supply — volume is the demand. High trading volume on a low-float stock might result in big price swings, but the same volume on a high-float stock probably won’t move the needle much. That’s why I focus on low-float stocks.
Keep reading to learn more about high-volume penny stocks and how to trade them!
Table of Contents
- 1 What Are Penny Stocks?
- 2 What Are High-Volume Penny Stocks?
- 3 Why High-Volume Penny Stocks Are Important to Traders
- 4 How to Find High-Volume Penny Stocks
- 5 High-Volume Penny Stocks To Watch Right Now
- 5.1 1. TPT Global Tech (OTCPK: TPTW) — The Sub-Penny Breakout Stock
- 5.2 2. Wialan Technologies (OTCPK: WLAN) — The Sub-Penny Internet Stock
- 5.3 3. Exela Technologies Inc. (NASDAQ: XELA) — The Pre-Spin-Off Penny Stock
- 5.4 4. FuelCell Energy Inc. (NASDAQ: FCEL) — The EV Penny Stock
- 5.5 5. BioNano Genomics Inc. (NASDAQ: BNGO) — The Biotech Penny Stock Former Runner
- 5.6 6. Enzolytics Inc. (OTCPK: ENZC) — The Biotech Penny Stock Pump
- 5.7 7. Sonoma Pharmaceuticals Inc. (NASDAQ: SNOA) — The Low-Float Biotech Penny Stock
- 5.8 8. CytoDyn Inc. (OTCQB: CYDY) — The Biotech Penny Stock Former Short Squeeze
- 6 Are Penny Stocks Worth Buying in 2022?
- 7 Where to Buy High-Volume Penny Stocks
- 8 How to Evaluate the Performance of Your Trade
- 9 High-Volume Penny Stocks FAQs
What Are Penny Stocks?
Penny stocks are stocks traded below $5 per share. You can find them listed on major exchanges like Nasdaq and the New York Stock Exchange (NYSE), but most are traded through over-the-counter (OTC) transactions.
Penny stocks are seen as risky assets because they’re volatile and sketchy, which is true. Many penny stocks are even outright scams. All that said, trading the right ones can build your account quickly.
You can’t treat penny stocks like other stocks. If you want to make money trading penny stocks, you need a strategy that works with their advantages while mitigating their risks.
What Are High-Volume Penny Stocks?
High-volume penny stocks are penny stocks with many traders actively trading them. However, we’re not just looking for high-volume stocks — we’re looking for penny stocks with unusual volume.
Volume spikes on low-float stocks can lead to price spikes — more people want to buy these stocks, driving demand up. There are a number of ways you can use the strategies I teach to capitalize on these spikes.
If a stocks volume is high due to a surge in buying or selling, it's worth checking out! However if a stock volume is high just because it's high, save it for high-frequency traders. It's still important to look for chart… https://t.co/lNMoVInA4u
Why High-Volume Penny Stocks Are Important to Traders
High-volume stocks have more potential for big price moves, whether downward or upward. Here’s why I prefer trading high-volume (and low-float) penny stocks:
Volatility is a double-edged sword. On the one hand, no one can accurately predict stock price movements — on the other, you don’t have to wait long to see if you made the right (or wrong) call. Money flows fast in high-volume stocks because people are looking to buy or sell at a profit.
If you made the right call, these price movements might lead to bigger profits. Stocks with high volatility can also lead to bigger losses, which is why you should ALWAYS cut losses quickly.
High-volume stocks are more liquid, meaning your sell and buy orders get filled faster. Conversely, illiquid stocks are harder to buy or sell because fewer people are trading them.
High stock liquidity makes getting in and out of a trade easier, whether you’re turning a profit or experiencing a loss.
The number of traders on each side of a trade will also depend on the price movement. I tell my students to sell into strength — there are always more willing buyers when a stock is trending up than when it is falling.
How to Find High-Volume Penny Stocks
Now that you know why high-volume penny stocks are great, it’s time to look for them.
Big price increases from the previous trading session can bring more volume into a penny stock. So can news.
You need a powerful stock screener like StocksToTrade to help you find the best penny stocks. Instead of flipping through dozens of different pages and websites, you can open StocksToTrade and find everything you need to analyze stocks in one place.
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High-Volume Penny Stocks To Watch Right Now
My high-volume penny stock picks are:
- (OTCPK: TPTW) — TPT Global Tech — The Sub-Penny Breakout Stock
- (OTCPK: WLAN) — Wialan Technologies — The Sub-Penny Internet Stock
- (NASDAQ: XELA) — Exela Technologies Inc. — The Pre-Spin-Off Penny Stock
- (NASDAQ: FCEL) — FuelCell Energy Inc. — The EV Penny Stock
- (NASDAQ: BNGO) — BioNano Genomics Inc. — The Biotech Penny Stock Former Runner
- (OTCPK: ENZC) — Enzolytics Inc. — The Biotech Penny Stock Pump
- (NASDAQ: SNOA) — Sonoma Pharmaceuticals Inc. — The Low-Float Biotech Penny Stock
- (OTCQB: CYDY) — CytoDyn Inc. — The Biotech Penny Stock Former Short Squeeze
Don’t copy my watchlist picks blindly. What you should do with my list of stock picks is learn my process and understand why I chose them.
If you need more inspiration… Subscribe to my NO-COST weekly stock watchlist here!
1. TPT Global Tech (OTCPK: TPTW) — The Sub-Penny Breakout Stock
My first high-volume penny stock pick is TPT Global Tech (OTCPK: TPTW).
I wrote this tweet in 2021, but it’s once again relevant:
OTCs are backkkkkkk $TPTW $LCLP $OZSC
TPTW’s 500% mid-November run was kickstarted by 3 consecutive days of 100 million shares traded. In the days leading up to it, it traded in the low millions.
This is the kind of volume spike I look for. And it led to one of TPTW’s patented runs.
I first traded TPTW in June of 2020. It had a smattering of 100 million shares traded days as it ran from sub-penny land up more than 2,000%! It didn’t always need heavy volume to continue its run — but the days when volume poured in usually overlapped with price spikes.
This is a crappy stock that stays on my radar for one big reason — I’ve made over $20,000 trading it in the past three years. This technology/medical tech/telecom/media/crypto company has kept up with its press releases, and occasionally one of them sticks.
I traded TPTW for a boring, safe $149 in November… that was a 7.5% trade on a 30% move.
The pump doesn’t look dead yet.
2. Wialan Technologies (OTCPK: WLAN) — The Sub-Penny Internet Stock
My second high-volume penny stock pick is Wialan Technologies (OTCPK: WLAN).
This sketchy little stock’s default state is DEEP in sub-penny land.
It kicked off a 500% October-November run that brought it above the penny mark with 8 straight days of heavy volume. It continued to attract volume throughout November, as it went on a run that’s now at five weeks and counting…
During this run it traded 100 million shares 3 times. It traded 40 million shares 17 times.
WLAN’s default volume is in the low millions.
The catalyst was supposedly the hiring of a former T-Mobile engineer, who brought a patent for micro wireless devices for street light fixtures with him…
The real catalyst was a stock pump. One month in, let’s see if it still has any juice left.
3. Exela Technologies Inc. (NASDAQ: XELA) — The Pre-Spin-Off Penny Stock
My third high-volume penny stock pick is Exela Technologies Inc. (NASDAQ: XELA).
How does a sub-$1 penny stock like XELA stay on the Nasdaq? It’s had two reverse splits in the past two years, which produced one new share for every 60 pre-2021 shares.
Reverse splits can be catalysts for stock moves, especially when stocks become low-float after the split. With 120 million shares still out there, that isn’t the case with XELA.
So what prompted XELA to trade 170 millions shares — more than 10 times its usual volume — on November 14? It obviously wasn’t the revenue part of their earnings call that day, which saw XELA double the expected losses per share.
Maybe it was the news of their upcoming SPAC merger slowly making the rounds. SPACs and IPOs have preyed on the newbie mindset forever…
No different from the $COIN IPO, this $HOOD IPO is taking full advantage of all the #Stimuluscheck newbies who have created this massive bubble, seriously major props to everyone on the inside, hopefully some of them will feel bad enough & donate their ill-gotten gains to charity
In 2022 this sector went completely nuts. AMTD Digital Inc. (NYSE: HKD) saw the kind of short squeeze that put even GameStop Inc. (NYSE: GME) to shame…
More relevant: I traded Green Globe International Inc. (OTCPK: GGII) for $1,485 (starting stake $5,445) in the lead-up to their spin-off of Hempacco Co Inc. (NASDAQ: HPCO). I’ve traded Meta Materials Inc. (OTCPK: MMTLP) for $3,642 as it prepares to issue its own spin-off.
I’ll be watching XELA as their $220 million European spin-off goes public too.
4. FuelCell Energy Inc. (NASDAQ: FCEL) — The EV Penny Stock
My fourth high-volume penny stock pick is FuelCell Energy Inc. (NASDAQ: FCEL).
If your stock has a float of 400 million, it shouldn’t be that hard to have a day where it trades 50 million shares.
Remarkably, FCEL has only done that once in 2022. And it was right at the start of a 60% multi-day run.
Like other stocks in the EV sector, FCEL’s potential hasn’t translated into profits. They’ve diluted MASSIVELY. Longtime holders of FCEL know they’ve been had.
ANOTHER MUST READ NEW BLOG POST: https://t.co/NuMQ953PgN Diluted Shares: Overview, Example, & How They Affect Share Price! This is the secret behind so many failed pumps on dilution machines like $GNUS where bag holders have no idea how diluted they've been
So why am I still watching FCEL?
It still responds to volume spikes — that day of 50 million shares traded kicked off a three-week run.
I’ve made $2,988 trading FCEL in the past… There is a newbie born every day, and they might believe FCEL’s hype next time the EV sector heats up.
5. BioNano Genomics Inc. (NASDAQ: BNGO) — The Biotech Penny Stock Former Runner
My fifth high-volume penny stock pick is BioNano Genomics Inc. (NASDAQ: BNGO).
Sure, this stock looks pretty dead right now. But it’s pretty hard to forget those December 2020–January 2021 days where it averaged more than 500 million shares traded per day.
Even more impressive was the catalyst. BNGO started that epic high-volume run with the news that Nasdaq wouldn’t delist it… Of course, there was a healthy amount of pumping too.
BNGO followed that volume spike with a new share offering that DOUBLED its float… That couldn’t stop BNGO from racking up 3,000% gains through February 2021.
Of course, BNGO fell off a cliff from there.
And @sttbreakingnews with the $BNGO offering, same promoters/pumpers as $ZOM $KTOV $IDEX all doing offerings right into the pumps….Bueller, Bueller, Bueller…do you see the pattern yet? Read https://t.co/QTYT7tytOA and realize how absolutely shitty trust/hope is in this niche!
Notice a pattern? Dilution is part of the penny stock game — especially for biotechs. These companies work on a years-long development timeline. Until they become the “next big thing,” they often bleed cash. New share offerings are a great way to raise capital until they actually start selling their product.
BNGO seems dead now, right? But look at that 60% spike it had on 80 million shares traded in August.
Former runners can run again.
6. Enzolytics Inc. (OTCPK: ENZC) — The Biotech Penny Stock Pump
My sixth high-volume penny stock pick is Enzolytics Inc. (OTCPK: ENZC).
I don’t like to shame newbies. I think of my message as shock therapy.
See my MANY warnings to $TXTM brainwashed believers that the same promoters as $ENZC $LTNC $HMBL $TGGI $ALPP $OZSC $CYDY would eventually crash the pump. Now after today's crash, bagholders DMing me wishing they'd listened. Same https://t.co/46W8tDBAGj pattern as always, WAKE UP! https://t.co/17vbWFQgi4
How did I get to $25k in profits on ENZC since October 2020? It wasn’t by holding and hoping.
ENZC started its only-in-penny-stock-land multi-month 95,000% run with 2 billion shares traded over three days in October 2020…
But take a look at the volume on the days I traded ENZC for $6,588 (starting stake $58,125) and $4,560 (starting stake $45,600). The volume on those days was 60 million and 70 million shares traded, respectively.
All that volume at the start of its run meant that there were a lot of bagholders when it started crashing.
Don’t get caught up in the hype. ENZC’s pump was so blatant that one of its promoters was actually arrested…
The lesson is that promoters & their BS lies come & goes, see $ENZC $OZSC $INND $HMBL $ALPP & https://t.co/A3cHHNTxWJ as examples along with coked out Discord promoters who've now lost allll their shady gains holding & hoping on $CYN $MRAI $PIK $STRN & realize how this all works!
Look how I traded ENZC for a $566 profit on October 20 (starting stake $10,140). I didn’t buy it on a volume spike…
I waited till it had made its move. Then I bought its panics, as desperate bagholders tried to force an even bigger move on this terrible stock.
7. Sonoma Pharmaceuticals Inc. (NASDAQ: SNOA) — The Low-Float Biotech Penny Stock
My seventh high-volume penny stock pick is Sonoma Pharmaceuticals Inc. (NASDAQ: SNOA).
This was a Supernova Alert back in May of 2020…
Traders who caught the alert could have made 35% on the move. Not bad, considering that SNOA was at $14 at the time of the alert.
There wasn’t a ton of volume. With a three million share float, SNOA doesn’t need a lot to create pressure. And it can still attract the occasional 50 million shares-traded day.
Now that it’s back in penny stock territory, this ability to catch fire out of nowhere is doubly dangerous.
8. CytoDyn Inc. (OTCQB: CYDY) — The Biotech Penny Stock Former Short Squeeze
My eighth high-volume penny stock pick is CytoDyn Inc. (OTCQB: CYDY).
CYDY first came onto my radar in 2020. My top former student, $13.5 million trader Tim Grittani, made $54,798 (starting stake $629,206) shorting a mid-breakout panic in December 2020.
There were only 40 million shares traded over the two days of his trade.
When meme fever was catching in February 2021, I was cheering for a CYDY short squeeze…
LOL that $CYDY short squeeze trade idea I threw out here on $TWTR last night is working well, short squeeeeeeeze, gotta love the #wallstreetbets mentality, c'mon, you can do ittttttt! Down with #HedgeFunds
Again, CYDY managed to spike off of only 16 million shares traded!
Post-dilution, it has a float of 740 million. Short squeezes are not in CYDY’s future.
Yet this stock still shows a real sensitivity to unusual volume. CYDY had a 200% run from mid-July to early August off of volume that measured less than 10 million shares traded per day…
That makes a difference when its average volume is barely above 1 million shares per day.
Its lead developmental drug targets both HIV and cancer. That’s a huge market — which means there’s a ton of volume waiting in the wings for the next press release.
Are Penny Stocks Worth Buying in 2022?
Penny stocks are worth buying in 2022 — and every year. Despite the bearish overall market this year, some of my penny stock trades have worked really well. A good example of this is my GTII trades, where I’ve made over $4,000 to date.
Penny stocks tend not to follow macro factors as much as pricier stocks. They run on hype and FOMO. They can make for some big profits, if you can avoid their pitfalls…
Never forget 90%+ of traders lose & 99.9% of penny stock companies will fail, but if you study hard, expect the worst out of everyone/every stock & find what patterns/setups work best for you, it's possible to find your groove & succeed over time, especially in this CRAZY market!
My Trading Challenge is a great place to learn how to make money from trading. In this program, I share the things I’ve learned during my 20-plus year trading journey — all to help you become a safer and smarter trader!
I don’t accept everyone. But if you really want to learn how to trade penny stocks — and have the discipline to work hard at it — apply for my Trading Challenge today!
Where to Buy High-Volume Penny Stocks
You can find high-volume penny stocks on major exchanges like the NYSE and Nasdaq as well as OTC markets.
Listed penny stocks on major exchanges generally attract more volume because they’re easier to access. Major news stories are also more likelier for listed penny stocks — those are the ones that drive big-time volume.
OTC stocks get less volume in general — but remember, you should be looking for unusual volume. It can take less volume to move a stock on the OTC markets…
Study the charts of the OTC stocks on your watchlists and you’ll see how they respond to the volume they do get.
Not all brokers offer OTC trading. Your broker choice should fit your needs and strategy, not the other way around.
Where Should You Buy Penny Stocks?
You should buy penny stocks wherever there’s an opportunity. Personally, I trade both listed and unlisted stocks because I don’t want to limit my trading options.
How to Evaluate the Performance of Your Trade
An important part of trading is learning from your past trades. Keep a record of each trade and review them regularly to understand what went right and wrong.
You won’t learn much if you don’t have a trading plan. Set a reasonable goal — go for small wins instead of big ones and impose a maximum loss per trading day. Once you have a plan, stick to it and don’t trade with your emotions.
Do you have high-volume penny stocks on your radar? Let me know in the comments!
High-Volume Penny Stocks FAQs
How do you choose the right penny stocks to trade?
I choose the right penny stocks to trade by doing daily stock scans and watching the news. Once I find a promising stock, I put it on my list of penny stocks. A watchlist helps me monitor multiple stocks simultaneously without flipping through dozens of pages, saving a lot of time and effort.
Is trading penny stocks profitable in 2022?
Trading penny stocks was indeed profitable in 2022. My penny stock-centric strategies earned $131,000 since the beginning of the year.
Where do you find the average daily volume of a penny stock?
I use StocksToTrade to find the average daily volume of penny stocks. Its top-level stock screener helps active traders capitalize on penny stock trading opportunities.
As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!
Which is why I've launched my Trading Challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.
So when you get a chance make sure you check it out.
PS: Don’t forget to check out my 30 Day Bootcamp, it will teach you everything you need to know about trading.