Stocks Under $1 That Will Explode

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!

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?

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: PIXY — ShiftPixy Inc — The Reverse Split AI Penny Stock That’s Spiking Again
• NASDAQ: SHOT — Safety Shot Inc — The Potential Short if You Like Pain and Stress Dip Buy Penny Stock
• NASDAQ: CDIO — Cardio Diagnostics Holdings Inc — The Biotech Spiker With Strong FEMY Vibes
• NASDAQ: LIFW — MSP Recovery Inc — The Biotech Breaking News Winner
• NASDAQ: GFAI — Guardforce AI Co., Ltd. — The Former Runner AI Penny Stock

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…

ShiftPixy Inc (NASDAQ: PIXY) — The Reverse Split AI Penny Stock That’s Spiking Again

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My first Nasdaq penny stock pick is ShiftPixy Inc (NASDAQ: PIXY).

There are certain things I look for in a stock I might trade: Does it have a history of spiking?

Better yet … Have I traded it before?

Stocks that have shown past profit opportunities CAN do the same in the future. Past spikers can spike again.

For example, I’ve traded PIXY quite a few times.

The first ever was in June 2017. And I most recently dip-bought it on June 22 this year.

The most recent spike was in late September. Prices launched 370%. I didn’t catch that move, but I’m ready for the next one …

My StocksToTrade software shows the float is only 7.4 million shares. That’s below our goal of 10 million shares or fewer.

A low share supply helps the stock spike higher when demand increases. That’s a basic property of supply and demand.

On September 26 during after-hours, the company announced a 1-for-24 reverse split. Reverse splits can be bullish or bearish catalysts …

• Bullish: The share supply decreases further. That makes every remaining share more valuable.
• Bearish: The company usually isn’t valuable if it’s doing a reverse split. Penny stocks use reverse splits to push the price up and stay listed. On the Nasdaq, there’s a $1 share price minimum.

Either way, the volatility is unmistakable.

It’s now trading just above the penny stock threshold of $5.

If this stock’s track record is any indication, it’s just a matter of time until another announcement stirs up the volatility.

Safety Shot Inc (NASDAQ: SHOT) — The Potential Short if You Like Pain and Stress Dip Buy Penny Stock

My second Nasdaq penny stock pick is Safety Shot Inc (NASDAQ: SHOT).

It never ceases to amaze me.

I’ve been in the market for over two decades. And the hottest stocks continue to follow the same pattern.

It’s called the 7-step framework.

Right now I’m looking for a #5 pattern on SHOT.

The stock just reached $7.50 and spiked 490% in November. But that kind of bullish volatility is unsustainable. And the price will likely pull back drastically.

Short sellers are foaming at the mouth for an opportunity like this. Here’s the catch: It’s not that simple …

This is a small-cap stock. The liquidity is minimal. And that makes the price movements highly volatile.

If there are too many short sellers in a stock, any bullish momentum could cause some to panic and get out. They have to buy to cover and that adds to the bullish momentum.

For short sellers … The situation gets scary pretty quickly.

That’s why I focus on long-biased patterns.

The #5 pattern allows me to target bullish momentum even while the price is falling. I’m talking about an upcoming bounce.

When volatile stocks fall from the highs, we usually see substantial bounces. That’s what I’m most interested in.

And from the looks of the chart, SHOT is already starting to dive on November 22.

Wait for the bounce …

Cardio Diagnostics Holdings Inc (NASDAQ: CDIO) — The Biotech Spiker With Strong FEMY Vibes

My third Nasdaq penny stock pick is Cardio Diagnostics Holdings Inc (NASDAQ: CDIO).

There are breadcrumbs I follow to find the hottest stocks.

We’ll cover three of them while I explain the opportunity on CDIO …

• Past spikers.
• Hot sectors.
• Low float.

Past spikers can spike again.

In February and March, CDIO spiked 250% and 680% respectively. In November, the price already launched 900%.

We can’t predict when a stock will spike. But if it has a history of spiking, our trade conviction is stronger once it wakes up again.

CDIO is in a hot sector.

Biotech stocks have been hot ALL YEAR. CDIO reminds me of Femasys Inc. (NASDAQ: FEMY). A stock that spiked 1,400% between September and October.

CDIO’s most recent spike started on October 31 after the company announced a new contract for its AI heart disease tests … It’s in the biotech sector AND the AI sector.

Last but not least, the low float.

A stock’s float shows the number of shares available. A low supply of shares helps the price spike higher. It’s a basic law of supply and demand.

We aim for a float below 10 million shares. CDIO has 11.1 million shares. Close enough, this is an inexact science.

CDIO has a lot going for it.

But these moves don’t last forever. Get in and out once you recognize key price action.

We follow the most popular patterns to protect our accounts. But the patterns we use depend on the current chart.

Avoid any latency issues: Join our next trading live stream where we cover the hottest setups.

There are real opportunities to profit right now.

MSP Recovery Inc (NASDAQ: LIFW) — The Biotech Breaking News Winner

My fourth Nasdaq penny stock pick is MSP Recovery Inc (NASDAQ: LIFW).

I’ve traded this stock a few times for small gains. My best trade was for a $714 profit (starting stake $6,732).

I even traded it right before I had to speak at the recent trading conference in Vegas.

I was fresh out of the shower and my whole team was trying to find out where I was. But when there’s a trade to make, I’m dialed in.

Plus, my trades don’t last very long.

I still made it to the conference. And let that be a lesson to you…

Trading doesn’t need to take all day.

Some people ignore stocks because they have a day job.

Trading is the perfect side hustle.

I traded a 50% spiker on October 26 in the morning and still had the whole day to give presentations.

On November 1, I traded it again! This time I made $388 on a starting stake of $5,328.

Some of these plays are obvious. The catalyst there was LIFW announced that the CEO bought 467,000 shares. That’s a huge vote of confidence.

I say it’s an obvious play because I know what to look for and I’ve been in the industry for over two decades.

You need experience if you’re going to trade these spikers.

Every day my students and I cover …

• The hottest stocks.
• The top patterns.
• Market sentiment.
• Trading rules.

It’s all during our live streams.

Years ago we needed to be in the same room to trade these spikers. Thanks to technology, we hang out every day and plan the best setups together.

LIFW could spike even further. But make sure you understand the setup before you put money in the market.

Guardforce AI Co., Ltd. (NASDAQ: GFAI) — The Former Runner AI Penny Stock

My fifth Nasdaq penny stock pick is Guardforce AI Co., Ltd. (NASDAQ: GFAI).

This is a security stock first and foremost.

As part of its data protection business, it incorporates artificial intelligence. This is how it became an AI sector leader.

We’ve seen security sector runners before, like when Russia invaded Ukraine. And the recent war in the Middle East adds to GFAI’s momentum.

It’s still on my watchlist because I think there are more opportunities to come.

And in the last six months, we’ve seen the price spike at least twice.

The first reached over 270%. After it cooled off it spiked again … over 660%.

The price fell after it completed a new share offering, diluting the value of its existing shares. But the float count is still below 10 million. That bodes well for future volatility.

A low supply will spike the price further as demand increases.

Past spikers can spike again. When GFAI decides to launch, I’ll be ready with the same patterns I’ve been using for decades.

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

5 Hot Nasdaq Penny Stocks Under $1 That Will Explode

My top Nasdaq penny stock picks under $1 are:

• NASDAQ: HOLO — MicroCloud Hologram Inc. — The ChatGPT Namedropper AI Penny Stock
• NASDAQ: BITF — Bitfarms Ltd. — The Low-Priced Crypto Penny Stock
• NASDAQ: HUBC — Hub Cyber Security Ltd — The Multi-Week Breakout Israeli Security Penny Stock
• NYSE: LLAP — Terran Orbital Corp — The American Security Stock With Partnership News
• NASDAQ: DTSS — Datasea Inc — The Big Breaking News Winner

MicroCloud Hologram Inc. (NASDAQ: HOLO) — The ChatGPT Namedropper AI Penny Stock

My first Nasdaq sub-$1 penny stock pick is MicroCloud Hologram Inc. (NASDAQ: HOLO).

And I’m watching for more plays like HOLO.

I used one of my favorite trading patterns and profited $252 from it on September 15 (starting stake was $3,864).

Some people scoff at a $250 profit. Those are the same people that want to make $1 million overnight. They’re crazy. That’s a delusion.

And hypothetically … let’s say it happened. You made $1 million on one trade.

Most lottery winners squander their wealth, 70% are broke within a few years. $1 million only goes so far. And my bet is, you’d lose it all in the market over the next few months.

90% of traders lose. If you give it all away on the next trade, a few lucky profits don’t mean anything.

See what I mean? Consistency is key.

$250 every trading day for a month … that’s an extra $5k. And my trades usually only last a few minutes. HOLO I traded in the first ten minutes on September 15.

You don’t have to be a math wiz. You don’t have to watch the market all day. You just have to apply popular patterns with trading experience.

Like clockwork…

Past spikers can spike again.

This sketchy stock likes to name-drop the hottest players in the market.

On September 8 it announced it was developing a ChatGPT holographic virtual digital human technology.

ChatGPT is the granddaddy of all AI products. And I say that hesitantly because ChatGPT is still very young. The sector is as a whole …

But the name recognition and accompanying status are unmistakable. That’s why HOLO used ChatGPT in its press release.

That was back in September. In October the price slid below the Nasdaq listing requirement of $1 per share. We’ll likely see some sort of announcement as an effort to boost share prices.

And in the last few days of October, prices already spiked 50%. That tells me something’s afoot.

I’m waiting for a solid press release. It could happen any day.

Bitfarms Ltd. (NASDAQ: BITF) — The Low-Priced Crypto Penny Stock

My second Nasdaq sub-$1 penny stock pick is Bitfarms Ltd. (NASDAQ: BITF).

It’s surprising to some … but crypto is on a massive tear heading into 2024.

Bitcoin (BTC) is up more than 80% since early January. It’s consolidating near 10-month highs.

All this strength leads to sector momentum in the stock market. And the top crypto ticker I’m watching is BITF.

I’ve traded it once already and managed to pull $420 in profits (starting stake was $9,300).

It’s still green on the year and consolidating under the breakout level.

Hub Cyber Security Ltd (NASDAQ: HUBC) — The Multi-Week Breakout Israeli Security Penny Stock

My third Nasdaq sub-$1 penny stock pick is Hub Cyber Security Ltd (NASDAQ: HUBC).

There are a lot of reasons a stock could spike …

• A merger
• A new business contract
• Bullish quarterly reports
• Regulatory approval
• Etc.

As traders, it’s our job to recognize key catalysts.

That’s how we find the best setups.

It might take some time to notice the trends.

But the more experience you gain, the better you become. And I’m here to help until you’re proficient.

HUBC is on watch because of the huge catalyst of October 7. Militants from Hamas invaded and shot rockets into Israel. Israel promptly declared war on Hamas and their home region in the Gaza Strip.

War is a gruesome reality that humanity has lived with for centuries. It’s not my intent to promote this violence. But I have to highlight the market’s hottest profit opportunities …

Fear moves stocks. There are trades to make as a result of global conflict.

On Monday, October 9, as a result of the attacks, Israeli security company HUBC spiked 240%.

It wasn’t the only one. I’m also watching Parazero Technologies Ltd (NASDAQ: PRZO). The price spiked 460% in October.

They’ve both since fallen. Don’t count them out yet …

Terran Orbital Corp (NYSE: LLAP) — The American Security Stock With Partnership News

My fourth Nasdaq sub-$1 penny stock pick is Terran Orbital Corp (NYSE: LLAP).

When it comes to U.S. security stocks, Lockheed Martin Corporation (NYSE: LMT) is at the top of the list.

So when a tiny company like LLAP partners with a celebrity company like LMT, it’s a big deal.

On October 24, LLAP announced its new partnership to build satellite buses. The price spiked  20% that morning. And that was just Day 1 …

This is a real collaboration between a penny stock and a massive blue-chip company. That’s the kind of news that has legs.

We may see the stock pick up momentum in the coming days.

At the very least, I expect some sort of business update. And that’s the perfect opportunity for the company to hype up its operations with Lockheed Martin.

Datasea Inc (NASDAQ: DTSS) — The Big Breaking News Winner

My fifth Nasdaq sub-$1 penny stock pick is Datasea Inc (NASDAQ: DTSS).

Here’s a great example of why you NEED to be watching your news feed…

On October 17 DTSS announced a possible financing at $1.35. That means the company was attempting to sell shares at $1.35. And the price was trading well below $1 …

The overvaluation caused enough bullish momentum for me to trade the stock four times in total.

My best trade was for a $497 profit in only 14 minutes (starting stake $5,373)!

I told you there were real opportunities right now …

I traded it so many times because my scanner alerted the news RIGHT when it dropped. The early bird gets the worm. It matters which tools you use to trade in this market.

DTSS is still under $1. There could be a larger move coming.

In this niche, sometimes news will take a few days to travel. Keep DTSS on the watchlist, and if it starts to shoot upward, you’ll know it’s time to plan a trade.

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

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.

Conclusion

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 $7.5 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.