This penny stocks list is a curated selection of low-priced stocks, typically trading below $5 per share, that are considered high-risk and potentially high-reward. These lists are valuable tools for traders looking to capitalize on market volatility and are often categorized by sector, market cap, or other financial metrics. Due to the inherent risks and often limited information available on these companies, a penny stocks list should only be used for watching — there’s no guarantee I’ll trade any of these stocks.
Table of Contents
- 1 5 Penny Stocks To Watch This Week
- 2 What Is a Penny Stock?
- 3 Why Penny Stocks Are Great for Trading
- 4 How To Find the Best Penny Stocks to Trade
- 5 Top Penny Stocks List: February 16, 2024
- 6 Top 5 Penny Stocks to Watch This Week
- 6.1 1. Datasea Inc (NASDAQ: DTSS) — The Earnings Winner Penny Stock That I’m Looking To Dip Buy
- 6.2 2. MicroCloud Hologram Inc (NASDAQ: HOLO) — The Best Penny Stock Short Squeeze of 2024
- 6.3 3. Beamr Imaging Ltd (NASDAQ: BMR) — The NVIDIA Partnership Penny Stock
- 6.4 4. China Natural Resources Inc (NASDAQ: CHNR) — Confirmation That My Supernova Pattern Is Working!
- 6.5 5. SoundHound AI Inc (NASDAQ: SOUN) — The Former Runner With NVIDIA News
- 7 Trading Education
- 8 Why You Should Consider Penny Stocks
- 9 How To Choose the Right Penny Stocks to Trade
- 10 How To Use the Top Penny Stocks List
- 11 What Are the Common Risks of Investing in Penny Stocks?
- 12 Key Takeaways
- 13 Frequently Asked Questions
5 Penny Stocks To Watch This Week
My top penny stock picks right now — rated on chart pattern, price action history, and news — include the following:
|MicroCloud Hologram Inc
|Beamr Imaging Ltd
|China Natural Resources Inc
|SoundHound AI Inc
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.
What Is a Penny Stock?
A penny stock is a stock trading at less than $5 per share. You can trade penny stocks on major exchanges like the New York Stock Exchange (NYSE) and Nasdaq, but many of the penny stocks I trade are exchanged through over-the-counter (OTC) trades.
You can buy penny stocks on Robinhood, TD Ameritrade, Charles Schwab, and other stock brokerages. All of them allow you to trade penny stocks on major exchanges, but some of them don’t offer OTC trades.
Before you invest your time and resources into penny stocks, it’s crucial to understand what they are and how they operate.
Penny stocks are cheap and often sketchy, but they can build your trading account quickly if you trade well. They’re volatile and unpredictable, so you need a tailor-made strategy for penny stock trading.
Why Penny Stocks Are Great for Trading
Despite being sketchy and unpredictable, I still primarily trade penny stocks. Why is that? Here are my reasons for trading penny stocks:
Small Accounts Grow Quickly
With penny stocks, you should go for singles instead of home runs. And they’ll add up. Penny stock trades are often faster than trades of listed stocks, so you’ll build your trading account faster than if you were trading pricier stocks.
You can’t do this without a good broker though. That’s why I write broker-specific guides — such as this one on penny stocks on Chase. The platform offers a unique set of tools and analytics that can help you make informed decisions. Knowing how different platforms present penny stocks can be a game-changer. Learn more about penny stocks on Chase to expand your trading options.
Less Interference from Big Investors
Wall Street doesn’t like penny stocks because they see them as high-risk and sketchy, which isn’t wrong. However, their loss is our gain because you don’t have to worry about giant investment firms crashing penny stock prices by unloading their shares.
That said, the risk of trading penny stocks is real. You will encounter scams and unscrupulous companies trying to make a buck at your expense, so always research before trading.
Extended Price Moves
Fewer people trade penny stocks due to their sketchy reputation. Because penny stock trading isn’t as popular as other stocks, price moves typically play out over days, not minutes.
This isn’t to say that penny stock prices move slowly. Major price swings can lead to quick profits — or even quicker losses if you aren’t disciplined.
How To Find the Best Penny Stocks to Trade
I skip the fundamental analysis on penny stocks because most companies offering them have bad fundamentals (remember BBBY?). Instead of learning more about the company, the best way to understand penny stocks is to observe and understand. Learn their patterns and how their prices move to get a good feel of how the stock behaves.
Here are some of my top tips:
- Analyze: Analyze the market trends and news to get a better understanding of which penny stocks are worth your attention.
- Compare: Compare the volatility and liquidity of different penny stocks to make an informed decision.
- Track: Track the performance of your selected penny stocks over a period to gauge their reliability.
- Investigate: Investigate the company’s financials and news to avoid falling into a pump-and-dump scheme.
- Monitor: Monitor your watchlist regularly, study their patterns, and spot the stocks that might make big runs in the future.
- Research: Research is the cornerstone of any good trading plan. Use tools like StocksToTrade to dig deeper into each penny stock’s history.
- Assess: Assess the risk factors associated with each penny stock. Remember, we’re here for the long haul. We’re here to identify high-risk to reward setups.
- Evaluate: Evaluate the stock’s performance during market highs and lows to understand its resilience.
- Examine: Examine the stock’s trading volume and price action to predict future movements.
Study the History
Think of stocks like athletes — they won’t deliver the same performance every time, but they have their own styles and a track record you can learn from.
One of the best ways to find which penny stock to trade is to use software like StocksToTrade to create watchlists of past runners. Monitor your watchlist regularly, study their patterns, and spot the stocks that might make big runs in the future.
Understand the Charts
Technical analysis is my preferred method for picking penny stocks because penny stock companies usually don’t have good fundamentals. Technical analysis involves identifying trends and patterns in penny stock movements.
I don’t have any magic tricks for technical analysis aside from practice, practice, and practice. Analyze as many charts as you can, make trades, and learn with every win or loss.
Top Penny Stocks List: February 16, 2024
There are always plays to make in the small-cap market …
But there are times to get aggressive, and times to be cautious.
Right now it’s time to trade more cautiously/conservatively.
There’s a decent amount of fear in the markets.
And while I don’t trade the stocks that people put their retirement money into, three out of four penny stocks follow the market.
That means that if there’s bearish sentiment, there will be fewer spikes in my niche. In addition to that, any potential spike will likely top out earlier than a spike during a bull market.
We’ve got to keep our expectations in check. That’s how pro traders protect their accounts in choppy markets.
I can’t take more than the market is willing to give me.
My job is to show up, play the patterns as I see them, and protect my brokerage account.
Either way, I’m trading safely.
I’m seeing lots of spikes with no follow-through…
You’ll hear me say it a million times. I’d rather go home flat than go home red. So, identify the penny stocks that align with your trading strategy before diving in.
I like trading multi-day runners, which give me confidence that they will bounce well off of the panics I like to trade.
There are still opportunities in this choppy market. Just make sure to keep your risk tight.
Know when to buy. Timing is everything in trading, especially with penny stocks.
Selling at the right time is just as important as buying. Always have an exit strategy.
Trade based on patterns, not emotions. Stick to your rules and you’ll be fine.
Follow the trends but don’t forget to do your own analysis.
Think like a sniper. A sniper can watch a target for days, weeks even. When the right moment comes, they’re prepared.
Top 5 Penny Stocks to Watch This Week
My top penny stock recommendations to watch this week are:
- NASDAQ: DTSS — Datasea Inc — The Earnings Winner Penny Stock That I’m Looking To Dip Buy
- NASDAQ: HOLO — MicroCloud Hologram Inc — The Best Penny Stock Short Squeeze of 2024
- NASDAQ: BMR — Beamr Imaging Ltd — The NVIDIA Partnership Penny Stock
- NASDAQ: CHNR — China Natural Resources Inc — Confirmation That My Supernova Pattern Is Working!
- NASDAQ: SOUN — SoundHound AI Inc — The Former Runner With NVIDIA News
Some of these stocks might give you déjà vu…
My watchlists aren’t rocket science. They’re a product of paying attention to what’s already happened.
The stocks on this list are mostly former runners with recent news. That means I’m not the only one paying attention to them.
Here’s your disclaimer: There are a lot of factors to consider when trading penny stocks. The markets won’t forgive you if you trust in random chance instead of studying price patterns and trading selectively.
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.
Here’s some background on penny stocks:
- What is the most promising penny stock?
A stock with a lot of volatility like Rumble Inc (NASDAQ: RUM) is a good bet for the most promising 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 penny stocks to buy now?
My top 3 penny stocks to buy now (as long as their price action is strong) are Rumble Inc (NASDAQ: RUM), Bullfrog AI Holdings Inc (NASDAQ: BFRG), and Foxo Technologies Inc (AMEX: FOXO).
- Which penny stocks have a “Strong Buy” analyst rating?
Analysts don’t give any 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 …
1. Datasea Inc (NASDAQ: DTSS) — The Earnings Winner Penny Stock That I’m Looking To Dip Buy
My first penny stock pick is Datasea Inc (NASDAQ: DTSS).
On February 13, the company announced bullish revenue results, a bump up to $11.3 million from $1 million a year ago.
That’s good news for a penny stock, but the price didn’t move on February 13.
The spike started during premarket on February 14. And in classic fashion, degenerate short sellers piled in and tried to profit off a crappy stock spiking a full day after the earnings dropped.
The short squeeze is the most powerful catalyst in the market right now.
Thank you shorts not just for creating AWESOME SQUEEZES on $NVDA $SMCI $ARM $HOLO $BMR $INBS but also now plays like $DTSS $ELWS $CCG you guys are the gifts that just keep giving…thank you for your sacrifice, please never consider the risks or read https://t.co/jv0kL0C0ll https://t.co/jw5Oe55ybM
— Timothy Sykes (@timothysykes) February 14, 2024
Sure, the company announced bullish revenue. But the price doesn’t deserve to spike 1,200%.
Short sellers were trying to ride the momentum lower after a weak premarket spike. But there are too many short sellers in the market right now. And when they target low-float companies, they’re even more likely to get squeezed out.
DTSS wasn’t the first this year.
And as you’re about to see … DTSS wasn’t the last.
I already snagged two big profits from this runner on February 14:
An 11%, $1,680 profit with a starting stake of $14,470.
A 6%, $1,278 profit with a starting stake of $20,844.
Keep an eye out for more short squeezes that match my pennystocking framework!
2. MicroCloud Hologram Inc (NASDAQ: HOLO) — The Best Penny Stock Short Squeeze of 2024
My second penny stock pick is MicroCloud Hologram Inc (NASDAQ: HOLO).
On February 7 At 5:20 A.M. Eastern, MicroCloud announced plans to join the Communications Industry Association.
Here’s what that means: Absolutely nothing lolol!
Nobody cares about the Communications Industry Association.
That’s like if your grandpa joined the lawn bowling club at his senior-living center. It’s the wimpiest news I’ve seen in weeks.
I saw it spiking during premarket and I knew it was a short squeeze.
It spiked so fast and so high that the chart proportions are trash when I zoom out. So I’ve got a few charts for you. Here’s a good progression of HOLO that day:
$1.51 to $51.
From premarket, to intraday, to afterhours … It spiked 3,200%.
Let me put that in perspective.
$1,000 of HOLO on February 6 would reach a max value of $32,000 less than 48 hours later.
That’s the best case scenario. We’re never going to time it perfectly. But when there’s 3,200% on the table, it’s a lot easier to take the meat of the move.
That’s how I teach my students to trade. And when HOLO started to launch, our chatroom went wild!
I wasn’t the only one to profit. Not by a long shot.
In classic Tim Sykes fashion, I sold waaay too early.
I pulled an 11%, $2,240 profit with a starting stake of $19,040. There’s a chart of my trade in premarket below (the green circle is my entry, the red is my exit):
I’m a better teacher than a trader.
You can do better than me.
Study this price action and get ready for the next one!
3. Beamr Imaging Ltd (NASDAQ: BMR) — The NVIDIA Partnership Penny Stock
My third penny stock pick is Beamr Imaging Ltd (NASDAQ: BMR).
On February 12, at 7 A.M. Eastern during premarket hours, it announced a partnership with NVIDIA Corporation (NASDAQ: NVDA).
NVDA is arguably the most popular company in the world right now. It’s surging to new heights as the tech sector scrambles for NVDA microchips. The massive tech stock is smashing company value records and pushing past businesses like Alphabet Inc. (NASDAQ: GOOG).
A hook up with a sector leader like NVDA is HUGE news for a penny stock.
I traded it twice on February 12.
An 11%, $1,950 profit on a starting stake of $16,575.
And a 22%, $3,741 profit on starting stake of $16,709.
These are two different patterns that manifest within my 7-step framework.
BMR is not the same stock now compared to when it first spiked on February 12.
Take past price action into account when you plan a trade.
So far, the price is still up even after the February 14 offering of 400,000 shares. Pay attention to stocks that can consolidate!
It’s a hint the price could surge higher.
4. China Natural Resources Inc (NASDAQ: CHNR) — Confirmation That My Supernova Pattern Is Working!
My fourth penny stock pick is China Natural Resources Inc (NASDAQ: CHNR).
The spike was alerted in premarket hours on February 15 at 8:29 A.M. Eastern.
This trading tool is ESSENTIAL for side-hustle traders who want to catch the market’s hottest stocks in time.
254% GAIN off of $CHNR!🔥
Retweet & favorite if you caught a piece of this move!
— StocksToTrade (@StocksToTrade) February 15, 2024
I had to retweet my favorite …
Because you know I snagged a piece of that juicy action! My starting stake was $4,320 and I pulled a whopping 58% profit!
I’m not trying to brag, I’m genuinely excited and stunned at this profit.
Usually I try to pull between 5–10% profits.
The only reason I caught this much of the move is because the stock halted and I was forced to hold shares as the bullish momentum gained.
Here’s my trade on a chart:
CHNR was another short squeeze. And it followed my Supernova pattern to a T.
I’ve been trading runners like this for years.
My guess is that the squeeze is over now. I’m not still buying shares. Unless it shows me bullish volatile price action again.
But CHNR won’t be the last stock to squeeze higher.
Study this intense price action!
5. SoundHound AI Inc (NASDAQ: SOUN) — The Former Runner With NVIDIA News
My fifth penny stock pick is SoundHound AI Inc (NASDAQ: SOUN).
This is a HUGE former runner from 2023’s AI boom.
It’s in the AI sector. The company works in “conversational intelligence”. Basically it helps business people communicate if there are language barriers.
The price spiked 410% in 2023.
Now, a lot of trashy penny stocks spike hundreds of percentage points. But then they come crashing down.
It’s possible for the price to rally later in life and push to new all-time highs. But it takes a BIG catalyst and BIG volume to push through all the bagholders.
In 2024, SOUN was trading far off its highs until some special news broke on February 15 …
It was announced that NVIDIA Corporation (NASDAQ: NVDA) bought a stake in SOUN. Remember, NVDA is the star of the U.S. stock market this year.
The price spiked 80% on February 15 and shot near its 2023 highs.
Keep an eye on this former AI spiker that just woke up …
Research is your best weapon in this battlefield. Equip yourself with knowledge before you start trading.
Newbie: How fast can I make $1 million?
Veteran trader: How fast can you learn patterns, ideal setups & discipline to be prepared for what the market offers?
Newbie: Give me hot picks so I can get rich ASAP
Veteran trader: Give me education so I can learn to be self-sufficient
— Timothy Sykes (@timothysykes) June 4, 2022
I can give you all the “hot picks” you want — but that means nothing if you don’t know what to do with them.
Becoming a self-sufficient trader isn’t a game of getting the right picks before anyone else…
The market is based on supply and demand. For a stock to move, other traders have to know about it.
If you spend just five minutes with a powerful trading platform like StocksToTrade, it will be obvious what stocks are hot on any given day.
Guess what? Other traders know that too.
Trading is a battlefield. If you don’t read the instructions, you just get the location — no weapon.
But fear not — giving new traders their education is what I was put on this earth to do!
**Apply for the Trading Challenge Today**
I’ve been trading for more than 20 years. During that time, I’ve made over $7.5 million.
That isn’t what I’m most proud of. I’m prouder that I’ve turned more than 20 of my Trading Challenge students into millionaire traders.
I didn’t do this by giving them hot stock picks. I did it by being relentlessly honest about my successes and failures and teaching them to be that way, too.
You don’t become a millionaire trader by trying to impress your Twitter followers, like so many other ‘gurus’ do. You get there by being honest with them, and yourself. That’s why I’m always honest with my students — ESPECIALLY about my failures.
Because they’re not real failures if I’m following my rules, and cutting my losses quickly. When I lose, I want to show my students the right way to trade. That’s the secret to becoming a self-sufficient trader — knowing how to manage your losses.
Are you ready for this level of real talk? Apply for my Trading Challenge and show me what you’ve got.
We don’t accept everyone. We like to limit our community to people who are humble, people who work hard.
Think you’ve got what it takes? Apply to my Trading Challenge today!
Why You Should Consider Penny Stocks
Penny stocks get a bad rap.
Sure, 99% of them are crap. Most are even outright scams.
But where else can you earn 15-30% profits on a single trade?
If you buy a penny stock thinking it will become the next Amazon, you’re basically buying a lottery ticket. That can be fun, but it’s no way to build your trading account.
The right way to go about it requires discipline and a good trading plan.
How To Choose the Right Penny Stocks to Trade
I want my students to become self-sufficient. Like I said before, my watchlists aren’t rocket science. I build them by sticking to these eight steps.
Look for Big Percent Gainers
How do you find hot stocks? The first step is learning to use a stock screener.
I scan in the premarket to know what’s moving. Penny stocks that know the game often put out PR in the premarket. This gives traders the whole day to send their stock prices up before they dilute.
I typically look for 10% gainers. These are the stocks that the rest of the market has their eyes on.
I keep these big gainers at the top of my watchlists. These stocks can offer quick gains if you play your cards right, but remember, the volatility works both ways. Stay ahead of the game by keeping an eye on penny stocks on the move.
Does It Have News?
We’re in the world of penny stocks, so this is a fair question to ask.
The ‘product’ of most penny stocks is their own stock. They want to pump it up, then insider trade/dilute into this built-up demand.
A lot of penny stock traders will believe anything — but I won’t. I want to see more than a celebrity tweet of a stock before I trade it.
How’s the Volume?
Volume is the proof of demand. If a stock has enough volume — on a small enough float — that’s a good sign that the price will continue to move.
Look at the Exchange
OTC exchanges aren’t for everyone.
Figure out whether your strategy works with OTC stocks. If you’re not willing to pay the fees and deal with low volume, you might want to stick to listed stocks.
Penny stocks on Nasdaq offer a different flavor of risk and reward. Understanding their nuances can give you an edge in your trading strategy. Check out this guide on penny stocks on Nasdaq for more insights.
Investigate the Company History
This is another good way of seeing whether the news will hold up.
Is this a real company? Is their stock a former runner?
You know the saying ‘fool me once, shame on you, fool me twice, shame on me?’ Smart traders don’t get fooled twice.
Always Verify Their Claims
Sketchy penny stock companies will say anything to pump their stocks.
Luckily, you have the internet at your disposal. Always check up on their claims.
Expect the stock you’re watching to tank. Nine out of 10 will — the percentage goes higher if you watch them long enough.
Rinse and Repeat to Add Penny Stocks to Your List
That’s it! Keep an eye on stocks that are moving, and wait for their next move. Never trade them before they fit your preferred setup.
How To Use the Top Penny Stocks List
You should use this list as a model for your own watchlists.
Don’t just copy the stocks on this list. Learn my selection process and create your own.
Sign up here and I’ll send you a new NO-COST watchlist every week.
What Are the Common Risks of Investing in Penny Stocks?
If you’re thinking about investing in penny stocks, you better know the risks involved. These aren’t your blue-chip, dividend-paying stocks. We’re talking about companies with a low market cap, often less than $300 million. These are small-cap stocks, and they come with their own set of challenges.
First off, let’s talk about volatility. Penny stocks are like riding a roller coaster without a seatbelt. The share price can swing wildly in a matter of hours. I’ve seen it all in my years of trading and teaching. One minute you’re up, and the next, you’re staring at a sea of red on your trading page. High volatility isn’t for the faint-hearted. You need a solid strategy to navigate these choppy waters.
Next up, low liquidity. You might find a penny stock with a great name and business model, but if no one’s buying or selling, you’re stuck. I’ve written articles and newsletters warning about this. You can place an order, but there’s no guarantee it’ll get filled. Low liquidity means you might not be able to sell when you want to, and that’s a risk you can’t ignore.
Be wary of pump-and-dump schemes. These are orchestrated efforts to inflate a stock’s price artificially. I’ve been exposing these scams for years. They often include misleading information and are usually promoted through sketchy newsletters or web pages. Don’t fall for it. Always do your due diligence.
Lack of Information
Lastly, the lack of information. Unlike large-cap stocks, penny stocks don’t have to disclose as much. You might find yourself sifting through Canadian or even Chinese companies with little to no information. Access to reliable data is limited, and that’s a significant risk. Always double-check your sources and look for credible links.
Penny stock trading is a great way to build your account as a new trader. If you’re new to this, study the patterns I teach. And pay attention to the following …
- A lot of penny stocks are shady. Risk in 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 penny stocks are newer companies, and can dramatically shift their market trajectory and valuation.
Penny stocks can be a blessing or a curse — it’s all in how you trade them. Don’t just copy my penny stock picks blindly. Learn why I picked them and choose your own stocks to watch.
Which penny stocks are on YOUR watchlist? If you’ve been paying attention, write “I always trade with a plan” in the comments!
Frequently Asked Questions
Trading is the hardest thing you’ll ever learn. There are no dumb questions.
How Many Penny Stocks Should I Buy?
Diversification is key, but don’t go overboard. I usually recommend watching a few different penny stocks, and making even fewer trades. But remember, the more you include, the harder it is to keep track of them all. Stick to a manageable number.
Should Beginners Invest in Penny Stocks?
Penny stocks aren’t for everyone. The risks are high, and the learning curve is steep.
And whatever you do, remember… never invest in these stocks, only trade them!
Is There Any Alternative to Investing in Penny Stocks?
If penny stocks seem too risky, there are alternatives. Consider investing in small-cap ETFs. These give you exposure to small businesses without the extreme volatility. You can also look into dividend-paying stocks with a higher market cap for a more stable investment.
How Does Fundamental Research Affect Penny Stocks?
Reports are crucial documents that often provide detailed financial statements and analyses of a company. They can significantly influence the growth of penny stocks by revealing positive or negative performance metrics. Notices, on the other hand, are usually shorter pieces of information like press releases or regulatory disclosures that can also impact stock growth. For example, if a company receives a notice about an upcoming partnership, this could positively affect its growth prospects.
What Role Does Market Context Play in Penny Stocks?
Partners can offer substantial business advantages, especially for penny stocks which are often smaller companies seeking growth opportunities. A strategic partner can provide much-needed capital, expertise, or market access to markets like China.