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.
Only read on because you’re interested in learning what to look for in potential penny stock trades.
This article will also answer the following …
- What Is a Penny Stock?
- How Can Small Accounts Grow Quickly with Penny Stocks?
- What Are the Risks of Trading Penny Stocks?
- How Do You Find the Best Penny Stocks to Trade?
- What Is the Importance of Research in Trading Penny Stocks?
- How Do You Use Technical Analysis for Penny Stocks?
Table of Contents
- 1 What Is a Penny Stock?
- 2 Why Penny Stocks Are Great for Trading
- 3 How To Find the Best Penny Stocks to Trade
- 4 Top Penny Stocks List: September 27, 2023
- 5 Top 5 Penny Stocks to Watch This Week
- 5.1 1. Cybin Inc (AMEX: CYBN) — A Reminder that Billionaire Plays Still Work
- 5.2 2. Mondee Holdings Inc (NASDAQ: MOND) — The Junky Penny Stock Trade That I Shouldn’t Have Overstayed
- 5.3 3. Avalo Therapeutics Inc (NASDAQ: AVTX) — The Low-Priced Biotech Runner That I’m Watching for a Potential Dip Buy
- 5.4 4. Ebet Inc (NASDAQ: EBET) — Jack Kellogg’s Top Penny Stock Watch
- 5.5 5. MSP Recovery Inc (NASDAQ: LIFW) — The Volatile Penny Stock That Jack Kellogg Is Avoiding
- 6 Trading Education
- 7 Why You Should Consider Penny Stocks
- 8 How To Choose the Right Penny Stocks to Trade
- 9 How To Use the Top Penny Stocks List
- 10 What Are the Common Risks of Investing in Penny Stocks?
- 11 Conclusion
- 12 Frequently Asked Questions
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: September 27, 2023
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.
Top 5 Penny Stocks to Watch This Week
My top penny stock recommendations to watch this week are:
- AMEX: CYBN — Cybin Inc — A Reminder That Billionaire Plays Still Work
- NASDAQ: MOND — Mondee Holdings Inc — The Junky Penny Stock Trade That I Shouldn’t Have Overstayed
- NASDAQ: AVTX — Avalo Therapeutics Inc — The Low-Priced Biotech Runner That I’m Watching for a Potential Dip Buy
- NASDAQ: EBET — Ebet Inc — Jack Kellogg’s Top Penny Stock Watch
- NASDAQ: LIFW — MSP Recovery Inc — The Volatile Penny Stock That Jack Kellogg Is Avoiding
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.
1. Cybin Inc (AMEX: CYBN) — A Reminder that Billionaire Plays Still Work
My first stock pick is Cybin Inc (AMEX: CYBN).
Some would say I have a habit of selling too soon.
But in my mind: It’s better than selling too late.
Also, I can always get back into a stock thanks to these watchlists. There’s a lot of opportunity in the market for those that prepare. And CYBN is a perfect example …
I bought 9k shares on September 18 when my scan alerted me that billionaire influencer Steve Cohen bought 19 million shares of the company for an 8% stake. Cohen is a famous hedge fund manager and owner of the New York Mets.
News like that for a tiny penny stock is like striking gold.
Since the 18th, the stock managed to push even higher. So far the spike has reached 110%.
And like I said … There are more opportunities to profit. Specifically, I’m watching for the chart to match my panic-dip-buy pattern. There’s a strategy tutorial below …
Make sure you’re trading with a pattern.
Billionaire-investor plays like these can dish out crazy profits. But it comes with a risk. If you get stuck on the wrong side of the price action … There’s nothing I can do to help.
2. Mondee Holdings Inc (NASDAQ: MOND) — The Junky Penny Stock Trade That I Shouldn’t Have Overstayed
My second stock pick is Mondee Holdings Inc (NASDAQ: MOND).
I mentioned that I usually sell too soon.
That’s what keeps me in the game. You’re about to see what I mean …
On September 22, MOND announced a stock repurchase program. That means the company is taking shares off the market. The smaller share supply helps the price spike higher. It’s a basic law of supply and demand.
The very next day I was ready to ride that same momentum. But the bottom fell out from under me.
I trade with patterns that help me keep risk in mind. If the stock does something I don’t like, I get out for a small loss or gain.
Speaking of which, if you’re interested in this niche you should attend a live trading session. Professional traders, including yours truly, share their screens and answer questions in real-time. It’s the best way to gain experience.
I’m still watching MOND for more opportunities. The price is consolidating near support at the moment …
Maybe it can bounce back up.
3. Avalo Therapeutics Inc (NASDAQ: AVTX) — The Low-Priced Biotech Runner That I’m Watching for a Potential Dip Buy
My third stock pick is Avalo Therapeutics Inc (NASDAQ: AVTX).
The biotech sector is red hot right now.
The market goes through periods of bullish, bearish, and sideways price action.
Similarly, in our low-priced niche, we see hot sectors and cold sectors. They’re always changing. That’s why it’s so important to check the market every day — that makes it easier to pick up on important trends.
Biotech stocks have been on-and-off hot for a few years. And in 2023 the sector’s been on fire.
AVTX is one of the most recent runners. It spiked 260% in mid-September after announcing its acquisition by AUG Therapeutics, LLC. Right now the price is working back toward that resistance level.
For AVTX, at the top of my list is a possible dip buy. Watch for huge price panics followed by substantial bounces.
These stocks eventually crash back down. But we can make money on both sides of the spike if we use the right patterns.
4. Ebet Inc (NASDAQ: EBET) — Jack Kellogg’s Top Penny Stock Watch
My fourth stock pick is Ebet Inc (NASDAQ: EBET).
90% of traders fail.
They think that they’ll get rich quick, and when they lose they never go back. It’s a shame … Because there are real profit opportunities in the market.
Jack Kellogg is a perfect example.
He shared his entire trade plan with students in the Trading Challenge. Here’s what he said …
“This is going to be my one very important watch next week. This listed penny stock traded __________ this week and started to move up with a nice trend. This penny stock is a former runner. This is a penny stock pumpers and retail (traders) are excited about on Twitter or X lol. I have had this stock on my watchlist for so many weeks. It is finally starting to move. I have a small starter position from ________ with a wide stop loss down on ____________ support. If this stock can continue to consolidate and move up toward the key _________ resistance, I will look to add to my position and move up my stop loss and sell into strength! If it falls back down, I’ll move on, but still keep it on watch.”
I had to redact the specifics of his trade plan. That information is for Challenge students only.
Jack started trading in the Challenge and now he gives back by helping other traders on their journey toward self-sufficiency.
5. MSP Recovery Inc (NASDAQ: LIFW) — The Volatile Penny Stock That Jack Kellogg Is Avoiding
My fifth stock pick is MSP Recovery Inc (NASDAQ: LIFW).
I’ve got more gains to show off …
On September 13 the company announced that an August lawsuit against LIFW had been dropped.
That’s why I keep these runners on my watchlist. You never know when the price action will fit one of our patterns. I had eyes on it so I was prepared.
So far, the price has spiked 650% since September 13.
Jack isn’t watching this stock, but that’s the beauty of this niche: There are so many opportunities.
Sometimes we’ll trade the same stock in different ways. Sometimes we play the same pattern on different stocks. Trading is all about what works for YOU.
I’m waiting for more panic-dip-buy opportunities from LIFW.
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
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.
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 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.
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?
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
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.
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
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.
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 stocks can be a blessing or a curse — it’s all in how you trade them.
If you’re new to this, start paying attention. Study the patterns I teach.
That’s the only way to survive in this penny stock game.
Which stocks are on your watchlist? Let me know 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.