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6 Penny Stocks On The Rise For Q2 2024

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Written by Timothy Sykes
Updated 5/22/2024 22 min read

Nobody knows where the stock market will go. Following market predictions blindly gives you one strategy that falls apart when the market moves another way.

I stay ready for any kind of market by being prepared. It won’t matter what kind of market Q2 2024 will bring because I’ve studied the past, built up my knowledge account, and most importantly — I never predict, I only react.

If you’re new to trading, this might sound confusing. But when you lose enough “can’t miss” trades, you’ll see the wisdom in my method. Instead of spending all that time and energy trying to figure out what stocks will break out, put your effort into studying charts, reviewing past performance, and attending webinars.

A trader’s job is to react and capitalize on market movements. Watching stocks is the best way to learn how. Read on to see my list of six penny stocks to keep an eye on in spring 2024, and learn more about trading penny stocks while you’re at it!

What Are Penny Stocks?

how to calculate relative volume
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Penny stocks are cheap stocks, typically traded at less than $5 per share. You can find penny stocks on major exchanges like Nasdaq and the New York Stock Exchange (NYSE), but the vast majority of them are sold through over-the-counter (OTC) transactions.

With their low cost come big risks. Most penny stocks are sketchy and unstable, some are even outright scams. However, the quick moves they make can build your trading account quickly.

Penny stocks don’t behave like regular stocks, so you can’t employ the same strategies. If you’re new to penny stocks, pay close attention…

Trading Penny Stocks in 2024

Check out my video below for a breakdown of 2024’s bull market!

2023 more than made up for 2022’s losses…

2024 has pushed the market to all-time highs not even touched in 2021’s once-in-a-generation hot market!

The best part? My penny stock niche has had so many runners I can’t catch them all!

Advantages of Penny Stocks

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Many traders see penny stocks as sketchy and unpredictable. They’re partly right, but they’re also missing out.

Here are a few great reasons for trading penny stocks:

Faster Trading Account Growth

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Just because most penny stocks will never actually hold onto their gains doesn’t mean you can’t make money with them. Penny stocks spike faster than pricier stocks, so your small gains can add up and build your trading account really quickly.

Lower Chance of Wall Street Interference

Wall Street barely pays attention to penny stocks because they’re sketchy, which means hedge funds and investment firms rarely touch them. This is a big plus because penny stock supply and demand are relatively predictable without major investor interference.

With major stocks like Amazon, hedge funds or big investors can unload their shares and affect prices without warning. With penny stocks, there’s a lesser chance of that happening.

Those investment firms are right — penny stocks are sketchy and full of risk. If you want to trade penny stocks, you’d better be prepared for scams and market manipulators.

It’s Easier to Nail Your Entries

Because the market ignores penny stocks, information travels slower. Good catalysts take more time to draw volume in, meaning that big moves can take days to play out.

This is good if you struggle with entries. The multi-day and week runs that some penny stocks go on provide more chances to make profitable trades. You can’t compete with the algorithms trading large-cap stocks…

But you can routinely win trades with chat room sheep and the newbies that really believe in penny stocks.

Risks of Penny Stocks

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Where there’s reward, there’s risk. Before trading penny stocks, it’s a good idea to understand these risks:

High Volatility

Penny stocks often have low liquidity because the market is smaller. This can make for big losses when you can’t unload stocks quickly as share prices plummet.

You can turn this risk into reward with discipline. This volatility cuts both ways. Smart penny stock traders don’t jump into trades. They take advantage of upside volatility while cutting losses quickly when a trade goes against them.

Increased Chance of Failure

About 99% of all penny stock companies fail, so you’ll probably take some losses in your trading journey. While you might lose money, you’ll walk away with more experience — that’s what makes you into a better trader.

Being honest about your losses is the ONLY way you can become a self-sufficient trader. That’s why my students and I are honest about our losses. They’re part of trading, and good traders build them into their overall strategy.

Bigger Fraud Potential

American financial and securities regulators warn us time and time again about penny stock scams, and they’re right to do so. The penny stock market is filled with scammers and market manipulators looking to make a buck at your expense.

Don’t believe everything you read about the “best penny stocks” — most social media posts and news articles are promotions, attempts to artificially inflate prices. Take all information with a grain of salt, and do your homework before trading any penny stock.

What Makes a Penny Stock a Good Trading Opportunity?

Penny stocks can make for good trading opportunities because they tend to follow predictable patterns — check out my 7-step pennystocking framework for a cheat sheet:

Penny stocks are also really cheap, meaning there’s a much lower barrier to entry.

Take me as an example — I started out with $12,415 of Bar Mitzvah money and became a millionaire while still in college.

Don’t have that much money? Don’t worry! One of my top students, Tim Grittani, turned $1,500 into over $13.5 million, surpassing the $7.6 million I’ve accumulated so far.

If you put in the hours, study hard, and learn from your mistakes, you too can be a successful trader.

The Opportunity of Fast-Growing Penny Stocks

Trading penny stocks isn’t a surefire way to get rich quickly, but there are good reasons why I target them. Many penny stocks are low float, meaning less than 10 million shares are publicly tradeable.

Due to their limited supply, low-float stocks can have large price swings when demand changes. If you’re looking for penny stocks with the potential for quick gains, keep an eye on their float.

How to Find Penny Stock Companies on the Rise

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One of the keys to effective penny stock trading is to ignore the companies they represent — you should only care about the ticker.

I track penny stocks with the potential for trading by building and maintaining several watchlists. This way you can get a sense for their price movements and the way they respond to things like news and increased volume. This will also keep you away from randomly trading stocks, which is a sure way to lose.

What kind of stocks should be on your penny stock list? They should fulfill most, if not all, of the following criteria:

Is a Low-Float Stock

Low-float stocks are stocks that have 10 million or fewer shares that are publicly tradeable. Thanks to their limited supply, low-float stocks often have big price swings you can take advantage of.

Exhibits a Tradeable Chart Pattern

The patterns I teach have worked for the past 10 years I’ve traded them. Guess what — they still work.

A watchlist-worthy stock should have a record of spikes and multi-day runs. That makes it more likely the stock will run again.

Use a pro trading platform like StocksToTrade as one of your main tools. Sign up for a 14-day trial now to experience all of its features — it’s only $7!

Has an Unusual Daily Trading Volume

Stocks with higher daily volume are more liquid and have a higher potential for big price swings. They have more potential to spike. If they start dropping, you can sell them quickly.

Is a Former Runner

Stocks are like athletes in that they perform a certain way, and you can guess future performance based on how they did in the past. Penny stocks that have had multiple runs in the past are much more likely to run again. Check your watchlist picks’ history, and find ones that have a history of running.

Has Frequent News

News and press releases are often catalysts for major stock price swings, both downward and upward. Find a penny stock company that makes news regularly — and has a chart which shows good price action in response.

6 Penny Stocks on the Rise for Q2 2024

My picks for penny stocks on the rise in the second quarter of 2024 are:

  • NASDAQ: AMST — Amesite Inc — The AI Product Launch Penny Stock
  • NASDAQ: MLEC — Moolec Science SA — The USDA Approval Fake Meat Penny Stock
  • 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
  • AMEX: INDO — Indonesia Energy Corp Ltd — The Oil Stock Benefitting From the Oil Shock
  • NASDAQ: CGC — Canopy Growth Corp — The Legal Weed Stock With the Huge Catalyst

This is important: I’m only watching these stocks. I won’t trade them unless they fit my preferred setups.

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.

If you want to see more NO-COST watchlists, you can sign up for my weekly watchlist here.

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

My first 2024 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 2024 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.

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

My third 2024 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 fourth 2024 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!

Indonesia Energy Corp Ltd (AMEX: INDO) — The Oil Stock Benefitting From the Oil Shock

My fifth 2024 penny stock pick is Indonesia Energy Corp Ltd (AMEX: INDO).

We’ve seen oil stocks spike as a result of rising global tensions in Eastern Europe and the Middle East.

  • The war between Ukraine and Russia.
  • The war between Israel and Hamas.

INDO is a perfect example.

Russia invaded Ukraine in February 2022. INDO share prices spiked 1,800% as a result.

Fast forward to April 12, 2024, we learned of an incoming offensive against Israel from Iran. It signaled an escalation of the war in the Middle East. And INDO share prices spiked 140% in response.

The chart below shows consolidation above $4 after INDO’s most recent spike. Every candle represents 15 minutes:

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

Unfortunately, the conflicts overseas don’t show any signs of cooling.

As traders, it’s our job to take advantage of volatile price action caused by hot catalysts. Keep an eye on this oil runner as the world continues to navigate dangerous war-time catalysts.

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

My sixth 2024 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!

Why Trade Penny Stocks in 2024

Penny stocks are viable trading options in any market environment — they don’t get caught up in macro trends as much as pricier stocks. Now that more of the extremely online breed of trader has caught onto OTC trading, these stocks can really run!

I’ll always adjust my trading approach to fit recent results. Penny stocks have been making big runs so far in 2024, with demand that’s held up over weeks. When penny stocks show this type of momentum, I pay attention.

Want to learn how to make good trading calls in 2024? Apply for my Trading Challenge today!

Making the Right Penny Stock Trade

There’s no “magic trick” that makes all your trades right, and you won’t win big by copying my penny stock picks, either. The best way to make money trading penny stocks is to learn and be a self-sufficient trader.

Learning to be a smart trader is all about understanding what works and what doesn’t, improving your discipline, and preserving your account. It’s not about winning or losing — it’s about how you play the game.

Behind every win or loss, there’s something to be learned. Internalize every lesson, and work to be better next trade.

Do you have any stocks on your watchlist for Q2 2024? Let me know in the comments!

Penny Stocks on the Rise Q2 2024 FAQs

Can you get rich trading penny stocks?

You can definitely get rich by trading penny stocks — just ask my top students. But if you trade penny stocks to get rich quick, you’ll definitely lose. Keep learning with every trade, and you’ll improve your results.

Which stocks will double in 2024?

I don’t predict which stocks will double in 2024 — only frauds predict. Instead of wasting your time predicting what the market might look like, react to what the market gives you.

Which penny stock will grow in 2024?

Many penny stocks will grow in 2024. They will fall too. Be prepared to take advantage of their gains and mitigate the losses.

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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”