What do the most active penny stocks have in common? Volume and volatility.
For a penny stock trader, that means opportunity … as long as you’re prepared.
How can you find the most active penny stocks and navigate through the volatility? I’ll go over some of the basics here. I’ll also answer some frequently asked questions about penny stock activity, and tell you about a few active penny stocks from this year. Study up so you can prepare.
Let’s get to it!
Table of Contents
- 1 What Are Active Penny Stocks?
- 2 Why Is Penny Stock Volume an Important Indicator?
- 3 List of 9 Most Active Stocks
- 4 Most Active Penny Stocks: The Bottom Line
- 5 Frequently Asked Questions About the Most Active Penny Stocks
What Are Active Penny Stocks?
Penny stocks are stocks that trade under $5 a share. The most active penny stocks have the highest trading volume — maybe a few million shares a day. Traders love them for their insane volatility.
How do you take advantage of that? It starts with education. I became a teacher so I can help traders prepare for the opportunities in active penny stocks. There’s no such thing as being too prepared. When I was starting out, I didn’t have anyone to help me prepare … Now I want to be the mentor I never had.
If you’re dedicated to trading and want help navigating your way through the volatility, apply to join my Trading Challenge. If you’re accepted — and not everyone is — you’ll get access to thousands of video lessons, live webinars, arguably the best trading chat room around, and more.
Why Is Penny Stock Volume an Important Indicator?
Volume shows how liquid a stock is. That’s crucial in penny stock trading.
Liquidity determines how easy it is to get in and out of a trade. If a stock isn’t liquid, there’s a chance you’ll get stuck in it.
That’s what happened to me. I ended up taking the biggest loss of my career because of illiquidity. You can read about it in my book “An American Hedge Fund.” I think every new trader should read it and learn from my mistakes…
A stock’s volume also gives you an idea of the direction it’ll take. More on that later…
How Can You Use the Volume Indicator When Penny Stock Trading?
Trading isn’t an exact science. You never know for sure what’s going to happen. But you can make some pretty solid guesses if you study and learn the patterns.
Every pattern is different. But in general, if there’s big volume at a key level, a stock is more likely to follow a specific pattern.
Say a stock is about to go full-on supernova. You want to look for increased volume at breakout points. That indicates buyers are in control.
The opposite goes for a downtrending stock. If you see heavy volume as a stock breaks support, it means sellers are in control. You might want to cut your losses.
It’s not always that simple … To master the art of using volume in your trading, you’ll need to understand Level 2 quotes, catalysts, and the market in general.
You can get started with my “Learn Level 2” DVD. Also, check out my no-cost “Volatility Survival Guide” and YouTube videos…
List of 9 Most Active Stocks
Before I get to the most active penny stocks from this year, I want to discuss a few higher-priced stocks that have been super active this year.
These have been some of the most volatile stocks I’ve seen — and they aren’t even penny stocks. I’m including them to show you that penny stock patterns and rules can apply to all stocks.
Super Micro Computer Inc (NASDAQ: SMCI)
On March 5 we learned that SMCI would join the S&P 500 this year.
That’s BIG news for a mega-cap stock.
Now, we usually trade low-priced stocks because:
- We can load up on shares.
- The low price helps the stock spike higher from a percentage perspective.
Higher priced stocks like SMCI aren’t known to surge like volatile penny stocks.
But the AI and tech sectors are so hot in 2024, we’re seeing some INSANE moves from big stocks. SMCI and NVDA are great examples.
Right now I’m watching SMCI because the chart looks a lot like a penny stock.
And in a lot of ways, SMCI acts as a tech sector leader. We can gain insight on tech trade opportunities in our low-price niche by watching setups like SMCI.
In 2024, prices spiked 330%* despite starting the year above $250 per share.
Look at the insane move so far this year. On the chart below, every candle represents one trading day:
I know that this runner is out of bounds for most small-account traders.
But … When large-cap stocks behave like volatile penny stocks, we can trade them for lower prices using options.
Now, at the mention of “options” a lot of traders shy away. But it’s not as confusing as you might think.
An option is a contract that gives you the right to buy or sell shares of a stock.
So, theoretically: If you think SMCI is going to trade higher in the future, you could buy a contract and then sell it after SMCI spikes without actually buying any shares of SMCI.
The value of the contract is what we’re trading, not the actual stock.
It’s easier said than done, but there IS a process for profits.For example, Ben Sturgill is a renowned options trader with verifiable profits. Take a look at his process.
There are so many opportunities to profit in this 2024 market.
Pick a strategy that makes sense to you and hit the ground running!
Canopy Growth Corp (NASDAQ: CGC)
The weed sector comes and goes. It’s never been the strongest batch of runners, but we have to respect CGC’s price action. The stock already spiked 231% between March and April.
This price action isn’t random.
There’s been a lot of talk about marijuana legalization recently. Both in the U.S. and worldwide:
- POTUS Biden and VPOTUS Harris both recently expressed an interest in reforming the U.S. approach toward marijuana.
- Germany decriminalized marijuana.
But CGC is also running thanks to a catalyst that was announced on March 14.
- There was news of a potential acquisition. The vote deadline for the acquisition was April 10. On April 15 we learned of a successful shareholder vote to endorse the acquisition.
I snagged a profit on March 22 thanks to the potential acquisition news. The price started running before we even learned of a successful vote.
Take a look at my trade notes below, with a starting stake of $21,420:
And now that the acquisition is successful, there’s a chance the price pushes even higher.
Below, a multi-month chart of the run shows support at $6. Every candle represents one trading day:
This stock is in play as long as it stays above $6!
Most Active Penny Stocks Under $5
Now for some of the most active penny stocks…
Most Active Penny Stocks #1: Parazero Technologies Ltd (NASDAQ: PRZO)
I bought shares of PRZO on Friday, April 12. The next Monday, my Birthday, April 15, I celebrated by selling those shares for a profit.
Unfortunately, that weekend the Middle Eastern conflict escalated, specifically between Israel and Iran. Israel had attacked an Iranian consulate early in April, and we learned of an incoming Iranian retaliatory strike the Friday of April 12.
But my experience in the stock market allowed me to take advantage of volatile price action related to the event.
There’s a chart below of the price action, every candle represents one trading day:
PRZO is an Israeli owned AI-drone company. And this isn’t the first time we’ve seen it spike.
In October 2023 — during the initial Hamas invasion of Israel, the stock spiked 460%.*
Interestingly enough, the company announced bullish news on Friday, October 6, the day before the Hamas attack. That’s why on the chart below, you can see the spike starting a day early.
Every candle represents one trading day:
The spike in October ‘23 is the reason I had the foresight to snag profits on the most recent weekend gap up. And any follow up Middle East tension could cause it to spike again.
My trade notes are below, with a starting stake of $6,565:
PRZO is one of the latest weekend trades that I’ve made in 2024 …
Every Friday I watch for very specific price action! Here’s the framework I followed for PRZO.
Most Active Penny Stocks #2: WiSA Technologies (NASDAQ: WISA) — The Wireless Sound Penny Stock With Partnership News
I traded this runner multiple times when it started to spike on April 16.
The company announced an additional license with a “multi-billion dollar revenue company” for its immersive audio technology. And I had eyes on it before the market opened thanks to the Breaking News alert.
Take a look at the chart below with alert details. Every candle represents one trading day:
These plays CAN run for multiple days, but it pays to have eyes on them early. For example, WISA spiked higher after April 16. The total move measures 920%.*
We’re seeing runners like this every week in the 2024 market!*
Here’s where you can find the next Breaking News trade alert.
Right after the market opened on April 16 I snagged some profits — my trade notes are below.
The first was with a starting stake of $8,760:
I traded it again midday for another profit. With a starting stake of $15,325:
The stock is still holding some of its gains. That’s a hint that it could push higher!
Take a look at the chart below that shows support at the $4 level, every candle represents five minutes:
Plus, StocksToTrade shows that the stock’s float is only 1.4 million shares.
Anything below 10 million shares is considered “low float” … also known as a low supply of shares. The low supply helps the share price spike higher when demand increases.
It essentially increases the volatility of the stock.
Keep an eye on this runner as it works back toward the breakout level.
Most Active Penny Stocks #3: MicroCloud Hologram Inc (NASDAQ: HOLO)
This is one of the most legendary short squeezes of 2024 … so far.
I’ve already written multiple blog posts about this stock and filmed a handful of videos tracking the price action …
Like the one below:
The most exciting thing about this stock right now: Past spikers can spike again.
There were HOLO spikes in January and August 2023 as well — 610%* and 350%* respectively
But unlike the most recent 2024 short squeeze, the spikes in 2023 had roots in the AI industry.
The volatility in 2024 just happened to turn HOLO into a massive squeeze. Forget the 610% and 350% 2023 spikes … in February 2024, HOLO launched 6,400%.*
It went from less than $2 to $98.
The chart below shows all of the moves since 2023. Each candle represents one trading day:
I don’t expect HOLO to run back to $98. That’s an unrealistic prediction. And besides, I don’t predict price action.
Instead, I react to it.
Here’s what I’ve noticed recently:
- HOLO tried to spike in March.
- It tried to spike twice in April.
I zoomed in on the daily chart below, take a look at the beat-down spike attempts:
It’s only a matter of time until the stock tries to spike again …
Most Active Penny Stocks Under 10 Cents
Now let’s go over a couple of penny stocks priced under 10 cents per share…
Most Active Penny Stocks #4: American Diversified Holdings Corp. (OTCPK: ADHC)
ADHC provides executive management, accounting, corporate governance, and other services.
Several holding companies have been popular this year, but ADHC leads the pack in the micro-cap space.
Check out ADHC’s six-month chart…
This stock tends to grind sideways, then shoot up when there’s a catalyst and high volume. As with all these stocks, watch for increased volume on positive news — because anything can happen with that setup.
But be cautious. Don’t trade this stock if the volume doesn’t give you adequate liquidity.
That’s the main caveat to trading OTC stocks. If you get into an illiquid stock, you could be putting your money into a risky, long-term hold without knowing it.
Most Active Penny Stocks #5: Regen Biopharma (OTCPK: RGBP)
RGBP is a biotech company focused on stem cell regenerative medicines. The company uses clinical trials to test its treatments.
Here’s the chart for RGBP…
Look at the increased volume and price action starting April 8. It saw more than 100 million shares traded multiple days after.
This is a great example of a multi-day OTC runner. After the first green day, traders piled in to take advantage of the rising price and increased volume. That led to greater volume over the next few days, which pushed the price even higher.
Most Active Penny Stocks in Canada
These Canadian stocks also trade in the U.S. markets. That can bring in more volume…
Most Active Penny Stocks List #6: Crescent Point Energy Corporation (NYSE: CPG)
CPG is a Canadian oil and gas company with oil and natural gas reserves in Canada and the United States.
Check out the chart…
The volume here looks a little different from the other charts. There isn’t a big gap up in volume or price action.
The thing I like about this stock is a bit harder to notice. If you look closely, you can see that the price action and volume follow the same trend.
Most Active Penny Stocks List #7: Liquid Media Group (NASDAQ: YVR)
YVR produces content for TV, gaming, and film networks. Look at the chart…
I think this company likes following hot sectors more than working on company projects. It recently announced an NFT platform, and just before that made a cryptocurrency deal.
I’d guess its fundamentals aren’t so hot, but YVR definitely knows how to spike interest and traders’ attention.
Keep a close watch on this stock and be ready for more hot sector news.
Most Active Penny Stocks: The Bottom Line
There’s so much opportunity in the most active penny stocks because of their insane volatility.
Learning how to navigate through volatility can be a game-changer. Apply for my Trading Challenge. I’ll do my best to help you speed your learning curve and find the trading styles that work for you in volatile markets. You just have to be willing to put in the work.
Use the active stocks above as a reference for learning trading patterns. Heavy volume can help you predict which direction a stock will go, but only if you’re prepared. So study up!
And remember to stay away from illiquid stocks. I don’t want you or anyone else to take a $500,000 loss like I did!
What do you think? What are the most active penny stocks on your watchlist? Let me know in the comments…
Frequently Asked Questions About the Most Active Penny Stocks
What Are the Best Penny Stocks to Trade?
I think the best penny stocks to trade are the biggest daily gainers with high volume. These stocks tend to give the best opportunities and risk/reward.
What Are the Most Popular Penny Stocks?
Those in hot sectors. Hot sectors are always changing. That’s why it’s so important to stay current in the markets. No one knows what the next hot sector will be or when it will pop up. Do your research and prepare.
What Is the Most Successful Penny Stock Ever?
This is a tough one. I’ve seen tons of penny stocks skyrocket in my 20+ years of trading. I think I’ve gotta go with Apple (NASDAQ: AAPL). It was trading for under $1 in 2003, and now it’s a tech giant. But remember that most penny stocks fail. Don’t believe in these companies!
Can You Get Rich Off Penny Stock Trading?
Yes! If you couldn’t, I wouldn’t have made $7.6 million in career earnings.
But know that it’s not easy and there are no guarantees. You have to work hard — but to me, the reward is worth it.
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