Top 5 Robinhood Penny Stocks to Watch in 2024

How can traders find Robinhood penny stocks to watch this year? 

I get that question a lot. Robinhood has taken over the newbie day trading community. It offers commission-free trading and gives a ‘free’ stock to anyone opening an account. But how does it stack up for day trading penny stocks?

So many newbie day traders choose a broker without doing any research. I think they pick the one that seems most convenient. You want to make sure you use the best broker for your trading style.

So in this post, I’ll get into all of it. I’ll cover the ins and outs of Robinhood penny stock trading. And have a few Robinhood penny stocks to watch in 2024 if it’s still your broker of choice…

But know that adding a stock screener to the mix is critical for finding stocks. I use StocksToTrade to scan for stocks every day. It has 40+ built-in scanners, killer charts, and SO much more. I helped design it to fit my trading strategies.

Can You Day Trade Penny Stocks on Robinhood?

The short answer is yes. But when you look closer, you’ll see there are lots of penny stocks you can’t trade on Robinhood.

Penny stocks are stocks that trade for under $5 per share. There are tons of them out there. Even after 20 years of trading, I’ve only seen a fraction.

Robinhood allows you to day trade penny stocks — as long as they’re listed on a major stock exchange, like the New York Stock Exchange or the Nasdaq. But as soon as you try to day trade stocks in the OTC markets, you’ll get stopped in your tracks. More on that in a bit…

First, let’s go over some Robinhood penny stocks you can watch.

List of 5 Robinhood Penny Stocks to Watch

Before I get to the list of Robinhood penny stocks to watch, I must remind you that these aren’t recommendations. These are potential trading ideas to help you learn the patterns and process. I want you to think for yourself, not follow my trades.

Want to be a smart trader? You have to put in the time to learn the patterns.

Do your due diligence to find stocks with the potential to be good trades for your setups.

Robinhood Penny Stocks to Watch Under $5

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• NASDAQ: AMST — Amesite Inc — The AI Product Launch Penny Stock
• NASDAQ: EDBL — Edible Garden — The Reverse Split Agritech Penny Stock With Strong Earnings That’s Still in Delisting Danger
• AMEX: INDO — Indonesia Energy Corp Ltd — The Oil Stock Benefitting From the Oil Shock
• NASDAQ: MLEC — Moolec Science SA — The USDA Approval Fake Meat Penny Stock
• NASDAQ: PEGY — Pineapple Energy Inc — The Energy Penny Stock With the Crappy Catalyst

The following are some of the stocks that people on Robinhood have been trading more than most of the market…

There’s no guarantee I’ll trade any of these stocks. I’m watching them to see if they match my preferred setups — only then will I trade them.

The best traders watch more than they trade — that’s what I’m trying to model here.

Here’s some background info on Robinhood penny stocks:

• What is the most promising Robinhood penny stock?

A stock with a lot of volatility like Amesite Inc (NASDAQ: AMST) is a good bet for the most promising Robinhood penny stock. Remember, we’re traders, not investors. We’re watching the stocks on this list for short-term moves, not predicting which of these stocks will still be around in 2030.

• What are the top 3 Robinhood penny stocks to buy now?

My top 3 Robinhood penny stocks to buy now (as long as their price action is strong) are Amesite Inc (NASDAQ: AMST), Moolec Science SA (NASDAQ: MLEC), and Edible Garden (NASDAQ: EDBL).

• Which Robinhood penny stocks have a “Strong Buy” analyst rating?

Analysts don’t give any Robinhood penny stocks “strong buy” ratings. These stocks are sketchy and unstable, and should never be investment targets. Always trade with a plan.

Let’s start with stocks priced between $1 and $5. These are the penny stocks you’ll most likely be trading on Robinhood … A stock that trades below $1 for too long gets delisted.

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

My first Robinhood 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:

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:

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.

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

My second Robinhood 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.

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

My third Robinhood 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:

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.

Robinhood Penny Stocks to Watch Under $1

You find the most penny stocks under $1 per share listed on the OTC markets. But it’s not unusual to find a few fighting to stay on a major exchange.

These can be good stocks to watch. These companies will do just about anything to push their stock prices higher to avoid delisting…

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

My fourth Robinhood 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:

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.

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

My fifth Robinhood 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 …

Can I Find OTC Penny Stocks on Robinhood?

Robinhood doesn’t have access to the majority of OTC penny stocks. So if you want to trade these stocks, that’s definitely something to consider before you hop on the Robinhood train.

I love trading sketchy OTCs. They’re part of how I’ve made over $7 million in trading profits.* But I go in with a plan and years of experience. It’s what I teach all my students. And it’s why I can’t fathom not having access to them as a day trader.

Take Jack Kellogg, for example. He started in my Trading Challenge in 2017. In the past year, he’s been crushing it. Jack broke the $1 million mark in November 2020 and is now over $6.4 million!* A lot of those profits came from trading OTCs.

He’s an exception — most traders lose — but Jack’s story shows you something about the opportunity in the OTC markets. If you use Robinhood, you’re eliminating OTC opportunities…

Is Robinhood Good for Penny Stocks?

In my opinion, Robinhood isn’t the best broker for penny stocks. Their commission-free trading and free stocks appeal to new traders — but there are some caveats.

If a brokerage doesn’t charge commissions, it has to be getting money somewhere else.

And even though you’re not paying a commission fee, you might lose money from poor executions.

Robinhood isn’t lying about giving away a free stock to new users, but it’s not like they’re handing you a share of Amazon. There’s a good chance you’ll get a stock priced between $2.50 and $10.

And there’s a $75 account transfer fee if you want to move a securities account to another firm. So you can lose money there, too.

Make sure you’re aware of all the potential fees with Robinhood … The same goes for any brokerage. You have to do your research and find the brokerage that works best for you.

Maybe you insist Robinhood is right for you. Let’s go over some potential good points…

Pros

Newbies love Robinhood’s commission-free trading, user-friendly app, and the ability to buy fractional shares.

Commission-free trading can be great for beginners with small accounts. If your average gain is only $20 and you have to pay $7 in commissions, you might have a harder time growing your account. I actually see commission fees as something that can make you more selective about trades.

Anyway … Many traders say they love the Robinhood app because it’s easy to navigate. But to others, it seems like Robinhood has gamified trading. Either way, it’s brought millions of people to the stock market. Customers also get benefits for referrals, which keeps the Robinhood community growing.

They’ve even introduced fractional shares for traders who don’t have enough cash to buy a full share. For example, you could pay $500 for a piece of an Amazon share.

Cons

I’ve already mentioned some reasons I wouldn’t trade Robinhood … Let’s go over them in more detail.

Most of the penny stocks I trade are volatile. If you don’t have quick executions, you might miss the meat of the move and even end up losing your hard-earned cash. I’ve heard horror stories about bad executions, and I don’t want you to experience that.

(If you want to learn how to take advantage of volatile markets, get a copy of my no-cost “Volatility Survival Guide” here.)

On top of that, you can’t trade OTC stocks on Robinhood … To me, that’s the biggest downside there is.

The top traders from my Challenge and I learned how to profit from OTC runners.* We approach them with thorough plans and risk management. I think OTCs are great because they tend to trade less choppy than listed stocks. I’ve watched the same patterns play out for over 20 years.

Here’s why I love the OTC and penny stock niche … I’m not the smartest guy in the world, but I found a niche where my hard work pays off for me.*

In penny stock land, it mostly comes down to you vs you. How well do you manage your emotions? How much time have you spent studying the patterns? Will you cut losses quickly and follow the other rules?

If you think you’ve got the dedication, apply for my Trading Challenge. I can teach you the fundamental habits that have helped so many traders. The Challenge can help you win the you-versus-you battle.

Robinhood Penny Stocks to Watch: The Bottom Line

A ton of new day traders jumped on the Robinhood train this past year. Sadly, they did so before doing any research on what Robinhood offers as a brokerage.

Yeah, there’s commission-free trading and a free share of stock, but there’s also purported slower execution and no access to the OTC markets. I’ve made most of my money in the OTC markets, so missing out on that seems to me like a huge disadvantage.*

Robinhood gives its customers access to penny stocks listed on major exchanges. Those are the Robinhood penny stocks to watch. Using a stock scanner like StocksToTrade can make it much easier to find the hottest stocks.

Make sure the broker you choose fits your trading style. Don’t just pick the first one that seems convenient … Pick a broker that suits you best.

How do you feel about Robinhood? Which do you think are the top Robinhood penny stocks to watch? Let me know in the comments!

Frequently Asked Questions About Robinhood Penny Stocks to Watch

Is Robinhood Good for Penny Stock Trading?

In my opinion, it’s not the best. OTC stocks make up a huge part of the penny stock market, and Robinhood doesn’t have access for trading them. In my experience, the execution speed complained about online can also be costly for traders.

Can I Get Rich Trading Penny Stocks?

Yes! I’m living proof. Check out my $7.6 million in career earnings.

There’s so much opportunity in penny stocks. But it takes time and hard work to learn your process and strategies. Focus on your education first. If you expect to make millions right away, you’ll be disappointed.

Can You Day Trade Penny Stocks on Robinhood?

The short answer is yes. Any penny stocks that list on major exchanges are tradeable on Robinhood. But you can’t trade OTC stocks, so if you go with Robinhood, you’ll miss out on a lot of penny stock opportunities.

Does Robinhood Really Give You Free Stock?

Robinhood gives you one free share of stock when you open an account. The catch? The stock you get will most likely be worth less than $10.