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Penny Stocks-Timothy Sykes Millionaire Challenge

Stocks Under $1 That Will Explode

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Written by Timothy Sykes
Reviewed by Friedrich Odermann Fact-checked by Ed Weinberg
Updated 5/7/2024 32 min read

Looking for penny stocks under $1 that will explode? You’re not the only one … and no guarantees on whether their ‘explosion’ is a good or bad thing.

Nasdaq is the home of many of these super-cheap stocks. The exchange began life in the ‘70s as the tech upstart little brother to the NYSE. That isn’t the case any longer, as Nasdaq has become home to some of the overall market’s most exciting stocks. Blue chip stocks like Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), and Tesla Inc. (NASDAQ: TSLA) are some of the leading stocks on the entire market!

How do you keep track of the 3,300 stocks that trade on the Nasdaq? You keep a watchlist.

You should read this article because it provides a comprehensive guide on Nasdaq penny stocks, offering valuable insights into trading strategies, stock analysis, and top picks for 2024.

I’ll answer the following questions:

  • What are penny stocks, and why are they significant for traders?
  • Does Nasdaq have penny stocks, and what are the criteria for them?
  • What happens when a penny stock moves to the Nasdaq?
  • What key factors should you consider when selecting a penny stock?
  • How can you identify top penny stocks to watch on Nasdaq in 2024?
  • What are some examples of Nasdaq penny stocks under $1 that might explode?
  • How does news and market sentiment affect penny stock prices?
  • What are the risks and rewards associated with trading Nasdaq penny stocks?
  • Let’s get to the content!

Read on to see my top Nasdaq penny stocks to watch in 2024!

Table of Contents

What Are Penny Stocks?

Penny stocks are shares of small companies trading at low prices, often under $5 per share. They’re a playground for retail traders looking for big moves on a small budget. But here’s the catch: these stocks are volatile, and their low price doesn’t always mean value. They’re not your blue-chip stocks; they’re more like wild cards in the world of trading. When you’re dealing with penny stocks, you’re often looking at businesses with smaller market caps, and sometimes, less transparency.

This means doing your homework is crucial. Dive into their financials, understand their industry position, and keep an eye on their EBITDA and revenue margins. You should know what a company is before you trade it …

But remember, trading penny stocks is not about believing in a company’s story; it’s about trading patterns and price action.

If you want to go even deeper into the sketchy neighborhoods of penny stock land, check out my roundup of stocks under 10 cents. These stocks represent the lower end of the market cap spectrum, often involving higher risks and volatility. However, for the informed trader, they can offer unique opportunities for quick gains. It’s crucial to approach these stocks with a well-defined strategy, focusing on pattern recognition and market trends rather than getting swayed by the low price alone. For a deeper dive into the world of ultra-cheap penny stocks, check out this list of penny stocks under 10 cents.

Does Nasdaq Have Penny Stocks?

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Yes, there are penny stocks on Nasdaq. Generally, a penny stock is a stock that trades for under $5 per share.

The Nasdaq has rules and criteria that companies must meet before they can list on the exchange. One of those requirements is that its stock trades for over $1 per share.

You can find Nasdaq penny stocks under $1 … but they won’t stay there for long. The exchange will send the company a letter. Then the company will have a certain amount of time to get its stock price over $1 and remain listed.

This is where you can see some creative pumps from companies. They may put out press releases about products or contracts, paid promotions, and maybe even do a reverse stock split to get the price up.

If you’re looking for “true” penny stocks — stocks that trade under $1 — you’ll have to look at the OTC markets.

The OTC markets are where OTC stocks and pink sheets trade. These are the most hated of all penny stocks … but they’re my favorite.

I love them because they fit my patterns best. And I don’t have to compete against hedge fund traders and algorithms.

What Happens When a Penny Stock Goes to the Nasdaq?

If a stock is listed on the OTC markets and has news that it’s uplisting to the Nasdaq, it usually creates some trader interest. There are a few reasons this can be good news…

First, the larger stock exchanges have more stringent requirements for companies to list. So if an OTC penny stock is uplisting, it can give a company some legitimacy.

Second, institutional investors and hedge funds typically don’t trade OTC stocks because there’s not enough liquidity. When a stock uplists to the Nasdaq or NYSE, they can trade it.

Last, larger exchanges are the best place for a company to have access to more investors from around the world.

All of these results spell additional volume.

What To Look for in a Penny Stock

When hunting for penny stocks, focus on a few key factors: trading volume, share price movements, and the company’s financial health. High trading volume can indicate interest and liquidity, essential for getting in and out of positions. Analyze the share price history to understand the range and volatility.

Look beyond the hype and dive into the company’s financials. Are their sales growing? Keep an eye on industry news and analyst ratings, but take these with a grain of salt. Remember, in penny stocks, information is power, but speculation is rampant. Your best bet is to develop a solid trading strategy, focusing on chart patterns and price levels, rather than getting swayed by every headline or analyst opinion.

Keeping a watchlist of promising penny stocks can be a game-changer, allowing traders to act swiftly and decisively. It’s not just about finding any penny stock, but about finding the right ones at the right time. For a curated list of penny stocks to keep an eye on, explore my top penny stocks to watch each month.

Or just read on …

List of 5 Top Penny Stocks To Watch on Nasdaq

My top penny stock picks to watch on Nasdaq are:

  • NASDAQ: AMST — Amesite Inc — The AI Product Launch Penny Stock
  • NASDAQ: MLEC — Moolec Science SA — The USDA Approval Fake Meat Penny Stock
  • NASDAQ: CGC — Canopy Growth Corp — The Legal Weed Stock With the Huge Catalyst
  • NASDAQ: EDBL — Edible Garden — The Reverse Split Agritech Penny Stock With Strong Earnings That’s Still in Delisting Danger
  • NASDAQ: MTTR — Matterport Inc — The Ex-SPAC Tech Stock That’s Being Acquired for a 207% Premium

For more top penny stocks to watch, sign up for my no-cost weekly watchlist.

I don’t trade every stock on my watchlist or in my alerts. But I share them to educate traders.

Use this watchlist to find out what I look for in stocks and learn to become a self-sufficient trader. That means building your own watchlists.

Here are some of the penny stocks on Nasdaq that I’ll be watching in 2024…

Amesite Inc (NASDAQ: AMST) — The AI Product Launch Penny Stock

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My first Nasdaq penny stock pick is Amesite Inc (NASDAQ: AMST).

This stock has its feet in two hot sectors:

  1. The biotech industry.
  2. The AI industry.

These are probably the two hottest sectors in the stock market right now. We’ve seen individual AI and biotech spikes since early 2023.

AMST pulls momentum from both of these sectors, that’s one of the main reasons I’m excited about this stock.

Here’s the news that sent it higher:

On April 24 the company announced it successfully launched an AI app that will reportedly empower 5.2 million nurses. Share prices spiked 110% that day,

I grabbed 15% of the move with a starting stake of $14,742. My trade notes are below:

Source: Profit.ly

The reason I was able to trade this stock so early is because Breaking News alerted me to the move.

Now, this stock is still in play … But make sure you’re watching Breaking News for the next stock to start spiking.

AMST’s price action shows sideways consolidation right now … The consolidation is a hint that the price could spike higher!

On the chart below I drew a line that shows the $3 support level on AMST, every candle represents 10 minutes:

AMST chart multi-day, 10-minute candles Source: StocksToTrade

Plus, StocksToTrade shows that the float is only 1.7 million shares.

Stocks with a float below 10 million shares are considered to have a low supply. And the low supply of shares will help prices spike higher when demand increases.

AMST is still deciding whether it wants to break out …

But all of the factors point toward an explosive push upward.

Moolec Science SA (NASDAQ: MLEC) — The USDA Approval Fake Meat Penny Stock

My second Nasdaq penny stock pick is Moolec Science SA (NASDAQ: MLEC).

On April 22, MLEC announced USDA approval for its plant-grown animal protein.

For a few years now, there’s been a push toward more sustainable animal protein. As it turns out, the meat industry produces quite a bit of pollution. Not to mention the higher prices of grocery store meat amid sticky inflation across the entire economy. Plant grown protein could offer lower costs in the long term.

There are attractive aspects of the fake-meat industry. And for a penny stock, any government approval can act as a HUGE catalyst.

When MLEC announced the USDA news, prices spiked 130% in one day. I snagged a quick 5% before the momentum switched.

These plays can be fast!

My trade notes are below, with a starting stake of $15,405:

Source: Profit.ly

The stock dipped after the initial day of spiking. It wasn’t able to hold support like some of these multi-day runners …

But I’m still watching it because past spikers can spike again.

We’ve already seen MLEC react well to bullish news. All it takes is another bullish catalyst to get things moving.

Canopy Growth Corp (NASDAQ: CGC) — The Legal Weed Stock With the Huge Catalyst

My third Nasdaq penny stock pick is 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:

Source: Profit.ly

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:

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

This stock is in play as long as it stays above $6!

Edible Garden (NASDAQ: EDBL) — The Reverse Split Agritech Penny Stock With Strong Earnings That’s Still in Delisting Danger

My fourth Nasdaq penny stock pick is Edible Garden (NASDAQ: EDBL).

On April 2, EDBL announced an incoming 1-for-20 reverse split.

For those who are unaware: A reverse split lowers the overall supply of shares. As a result, each individual share becomes more expensive.

Sketchy penny stocks tend to use reverse splits as a tool to inflate their share prices. See, stocks on exchanges like the Nasdaq have to adhere to certain listing requirements. One of them being a minimum share price above $1.

If the stock falls below $1, the company can always reduce the share supply to artificially push up prices. It’s a good sign for traders because we can see which stocks are willing to engage in shady activity that results in bullish volatility.

I don’t believe in the future of these stocks, I’m just riding the short term volatility.

The April 2 announcement and resulting volatility was a hint that this stock could spike again.

And sure enough, on April 17 the company spiked 170% after announcing first-quarter produce-revenue grew year-over-year by 40%. And cut-herb revenue grew by 200% within the same period.

The spike didn’t last long. Prices are on a bearish trajectory right now, back toward $1 …

Which means, it’s only a matter of time until we see EDBL try to spike the price again.

It shouldn’t be too difficult, since StocksToTrade shows the float is only 295k shares.

Matterport Inc (NASDAQ: MTTR) — The Ex-SPAC Tech Stock That’s Being Acquired for a 207% Premium

My fifth Nasdaq penny stock pick is Matterport Inc (NASDAQ: MTTR).

On April 22, we learned that CoStar Group Inc. (NASDAQ: CSGP) would acquire MTTR for an equivalent value of $5.50 per share.

At the time of the announcement, MTTR was trading below $2. The price spiked 180% that day but never pushed above $5 …

When there’s an announcement that includes a definitive share valuation, we have to be careful about the spike.

Whereas other catalysts might mention value added, the news from MTTR mentioned a $5.50 per share valuation. We don’t know whether the stock will run that high, but it’s an important level to keep an eye on.

Currently, the stock is consolidating under $5. A break of that level could send it to $5.50 within a single day.

On the chart below, every candle represents fifteen minutes:

MTTR chart multi-day, 15-minute candles Source: StocksToTrade

Use StocksToTrade to set a price alert on MTTR.

If it trades near the $5 level, we’ll get a notification!

Now let’s look at some hot penny stocks on Nasdaq under $1…

5 Hot Nasdaq Penny Stocks Under $1 That Will Explode

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My top Nasdaq penny stock picks under $1 are:

  • NASDAQ: PEGY — Pineapple Energy Inc — The Energy Penny Stock With the Crappy Catalyst
  • NASDAQ: PRZO — Parazero Technologies Ltd — My 40% Birthday Drone Safety Penny Stock Winner
  • NASDAQ: HOLO — MicroCloud Hologram Inc — The Meme Stock With an AI Pump in its Past
  • NASDAQ: ONFO — Onfolio Holdings Inc — The Holding Company With an AI Pump in Its Past
  • NASDAQ: SPRC — SciSparc Ltd — The AI Biotech Penny Stock

Pineapple Energy Inc (NASDAQ: PEGY) — The Energy Penny Stock With the Crappy Catalyst

My first Nasdaq sub-$1 penny stock pick is Pineapple Energy Inc (NASDAQ: PEGY).

The most recent spike on this stock wasn’t very good … but now we know that the company wants to inflate its price.

That can lead to great trade opportunities in the future!

On April 25 during after hours, this company commented on the Environmental Protection Agency’s announcement of $7 billion worth of awards within the Solar for All program.

PEGY didn’t win any of the cash. Instead, the company merely applauded the financial allocation and the general policy. Price launched 80% the next day but closed in the red.

I’m hoping to see a better catalyst from PEGY. One that shows more value added.

The recent volatility is a good sign!

I’m excited to watch this stock over the next few weeks …

Parazero Technologies Ltd (NASDAQ: PRZO) — My 40% Birthday Drone Safety Penny Stock Winner

My second Nasdaq sub-$1 penny stock pick is 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 chart multi-month, 1-day candles Source: StocksToTrade

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:

PRZO chart multi-week, 1-day candles. Source: StocksToTrade

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:

Source: Profit.ly

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.

MicroCloud Hologram Inc (NASDAQ: HOLO) — The Meme Stock With an AI Pump in its Past

My third Nasdaq sub-$1 penny stock pick is 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:

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

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:

HOLO chart, multi-week, 1-day candles Source: StocksToTrade

It’s only a matter of time until the stock tries to spike again …

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

My fourth Nasdaq sub-$1 penny stock pick is Onfolio Holdings Inc (NASDAQ: ONFO).

In June 2023 the company announced its intent to increase an AI business presence through acquisitions and by leveraging certain subsidiaries.

The chart didn’t spike like some of its peers in the same sector.

But I’m still watching the price action.

The company obviously knows what’s hot. They tried to inflate the price with an AI press release in June of 2023. That’s only a few months after the AI craze began.

Also, StocksToTrade shows that the float is only 3.2 million shares.

ONFO is a powder keg that’s waiting for the perfect spark.

SciSparc Ltd. (NASDAQ: SPRC) — The AI Biotech Penny Stock

My fifth Nasdaq sub-$1 penny stock pick is SciSparc Ltd. (NASDAQ: SPRC).

This stock combines the two hottest sectors in the market.

  • AI
  • Biotech

It seems there’s a new batch of biotech stocks spiking every week right now.

The biotech sector has been hot in the past. It’s not a huge surprise to see these stocks spiking.

But it’s very exciting when we find stocks with a foot in two hot sectors instead of one.

Besides the double sector, SPRC has an incredibly low float.

StocksToTrade shows only 259k shares.

The chart also shows a huge history of spiking in 2023. Take a look below, every candle represents one trading day:

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

Just like ONFO, SPRC is a powder keg.

Get ready for the next spike …

Remember, all of these Nasdaq penny stocks under $1 will eventually have to get their stock price back over $1 or risk being delisted.

That’s reason to be careful — and reason to have them on your watchlist.

The Benefits of Investing in Nasdaq Penny Stocks

bohen and nasdaq
© Millionaire Media, LLC

Investing in Nasdaq penny stocks can be a game of high risk and high reward. These stocks offer a chance to buy a large number of shares with a relatively small amount of money, potentially leading to significant gains if the stock price spikes. Nasdaq, being a reputable exchange, adds a layer of credibility compared to penny stocks traded on less regulated platforms. For traders who do their due diligence, understand the risks, and have a clear exit strategy, Nasdaq penny stocks can be an exciting addition to their trading portfolio. Remember, it’s not about finding the next big thing; it’s about finding stocks with the potential for big moves.

Trading sector-specific stocks can further drill down on the stocks on your watchlists. Trading gold penny stocks requires an understanding of the commodities market, global economic indicators, and sector-specific news — which is good news for traders willing to put in the work. For traders looking to diversify their penny stock portfolio or capitalize on the nuances of the gold market, gold penny stocks can be an intriguing option. To learn more about trading in this specific sector, delve into my guide to gold penny stocks.

Potential Drawbacks of Investing in Nasdaq Penny Stocks

The world of Nasdaq penny stocks is not for the faint-hearted. These stocks are notoriously volatile, making them a risky bet for the unprepared trader. The low share price often comes with lower liquidity, meaning it can be hard to sell your shares at the desired price. Also, information on these companies can be scarce, leading to decisions based on speculation rather than solid data. Many of these companies are in their early stages or struggling, which adds to the risk. As a trader, you need to be aware of these drawbacks and trade with a strategy that acknowledges these risks.

Common Mistakes to Avoid When Trading Penny Stocks

Trading penny stocks is a unique battlefield, and common mistakes can cost you. First, never trade based on emotions or hype. The penny stock world is full of stories and speculation, but your decisions should be based on research and strategy. Avoid chasing a stock after it has already made a significant move; you’re likely too late to the party. Don’t ignore the importance of volume; trading in stocks with low volume can leave you stuck in a position. Also, don’t forget to set stop-loss orders to manage your risk. Remember, in penny stock trading, cutting losses quickly is just as important as capturing gains.


If you want to trade super-cheap penny stocks, your skills need to be on point. Trading is a battlefield. To be profitable you’ll have to fend off competition from professional traders, hedge funds, and algorithms.

In the world of “true” penny stocks, you’ll also need to see through the lies of penny stock promoters…

I use StocksToTrade every day to find the biggest percent gainers and the stocks trading the most volume. Its Breaking News Chat alert service has put many of the stocks I’m now watching on my radar.

If you want to know more about how I trade penny stocks, apply for my Trading Challenge.

You’ll also have access to all my DVDs, video lessons, archived webinars, and arguably the best chat room ever.

The Trading Challenge is your opportunity to commit to your trading education and prepare for any market.

Pay attention to risk, follow the rules, and only trade the best setups. Take singles and cut losses quickly. It’s how I’ve grown my account to $7.6 million and counting.

Do you trade Nasdaq penny stocks? Let me know in the comments … I love to hear from you!

Penny Stocks Under $1 FAQs

Where Can I Find a List of All Penny Stocks on Nasdaq?

Use a stock screener like StocksToTrade to find a list of penny stocks on Nasdaq. You can use filters to find stocks based on price, volume, market cap, or float. Visit Timothy Sykes

What Is the Cheapest Penny Stock on Nasdaq?

The cheapest penny stock on Nasdaq will be around $1. That’s because the Nasdaq exchange requires listed companies to maintain a listing price of over $1 per share. Visit Timothy Sykes

Can I Buy Penny Stocks Under 10 Cents on Nasdaq?

You won’t find many stocks under 10 cents on the Nasdaq. The exchange has a minimum listing requirement of $1, and will delist stocks that trade under that level for too long. Most stocks that trade under $1 trade on the OTC markets.

What Do Analysts Say About Stocks Under $1?

Analysts provide essential analysis and price targets for stocks under $1, often influenced by Wall Street trends and industry directions. Their opinions are usually based on various factors, including company performance, CEO strategies, and market demand. Reading articles and facts from reputable sources can offer insights into their views.

How Can I Learn About Stocks Under $1?

For those interested in investing in stocks under $1, resources like online courses, newsletters, and investment tips on platforms like YouTube and Instagram can be valuable. Following money managers and insiders in the field, and engaging with their content, can provide practical ideas and steps to identify potential stocks.

What Technology and Healthcare Stocks Under $1 Show Promise?

In the technology and healthcare sectors, look for companies involved in software development, medical devices, and patient services. Analyzing Canadian, Californian, or Chinese companies in these industries can reveal stocks under $1 with potential, especially those with FDA approvals or innovative solutions.

How Important Are Stock Catalysts and Industry Backdrop?

Understanding the catalysts that drive stock prices and the industry backdrop is crucial. Events like product launches or regulatory approvals can significantly impact stock prices, especially for companies under $1. Identifying these catalysts and understanding the difference they make can guide your investment decisions.

What Should I Consider Before Investing in Stocks Under $1?

Before investing in stocks under $1, consider the types of industries these stocks belong to and the specific names or companies that analysts and insiders focus on. It’s also wise to consider the legal disclaimer associated with such investments, as these stocks can be more volatile and risky.

How Do ETFs and Stocks Under $1 Interact in the Market?

Exchange-Traded Funds (ETFs) often track a range of assets, including low-priced stocks. When investing in stocks under $1, it’s important to see how they fit within the broader ETFs landscape. For example, some ETFs might include small-cap or niche sector stocks, which can include stocks trading under a dollar.

What Role Do Headlines and Media Play in Stocks Under $1?

Media headlines can significantly impact stocks under $1, particularly in terms of public perception and investor sentiment. For instance, positive trial results or breakthroughs in China’s markets, especially concerning technology or healthcare sectors that affect patients, can lead to a surge in stock prices. It’s crucial to follow reliable news links and understand how media coverage influences these stocks.

How Can Social Media Influence Stocks Under $1?

Social media platforms and their vast number of followers can be a powerful tool for influencing the popularity of stocks under $1. Influential figures on platforms like YouTube and Instagram can sway public opinion, sometimes based on specific instances or examples they share. However, investors should approach these sources critically and differentiate between hype and substantive information.

What Are the Key Indicators for Evaluating Low-Priced Stocks?

When evaluating low-priced stocks, consider metrics like market capitalization, average price target, and potential upside. Tools like StocksToTrade can offer insights into a stock’s performance, helping to refine investment strategy decisions.

How Do Product Launches in Electric Vehicles Impact Stock Prices?

Product launches in the electric vehicle sector can significantly impact stock prices, particularly for companies on my Robinhood Penny Stocks watchlist. Investors should monitor daily volumes and price targets to gauge market reactions and potential investment opportunities.

What Investment Strategies Are Effective for Marijuana and Drug Stocks?

For sectors like marijuana and drug products, investment strategies should consider regulatory changes and market capitalization. Using platforms like Charles Schwab can help regular investors access these markets, potentially leading to substantial upside.

*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”