Top 8 Penny Stocks to Watch on Robinhood in September 2025

Robinhood penny stocks trade at $5 or less per share, and they hold opportunities for traders building small accounts. These stocks are cheap and often sketchy, and they require different strategies from larger stocks. For beginners, Robinhood is an accessible starting point for trading penny stocks, thanks to its zero fees and no minimum deposit policy. Traders with more experience should consider switching to brokers that cater to advanced trading needs.

8 Robinhood Penny Stocks to Watch on Robinhood September 2025

My top 8 Robinhood penny stocks to watch in September 2025 are:

• NASDAQ: OPEN — Opendoor Technologies Inc. — The New Meme Stock Supernova
• NASDAQ: ABAT — American Battery Technology Co — The Former Meme Battery Stock
• NASDAQ: SBET — Sharplink Gaming Inc — The Dip-and-Rip Ethereum News Supernova
• NYSE: WOLF — Wolfspeed — The Chip Supplier for AI Data Centers
• NYSE: QS — QuantumScape Corporation — The Meme Battery Stock I’m Watching for a Bounce
• NYSE: JOBY — Joby Aviation Inc — The eVTOL Hot Sector Leader
• NYSE: ACHR — Archer Aviation Inc — The eVTOL Defense Contractor Stock
• NYSE: RKT — Rocket Companies Inc — The 50% Short Interest Meme Stock

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 Opendoor Technologies Inc. (NASDAQ: OPEN) 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 Opendoor Technologies Inc. (NASDAQ: OPEN), Sharplink Gaming Inc (NASDAQ: SBET), and American Battery Technology Co (NASDAQ: ABAT).

• 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 get to the picks …

Opendoor Technologies Inc. (NASDAQ: OPEN) — The New Meme Stock Supernova

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My first Robinhood penny stock pick is Opendoor Technologies Inc. (NASDAQ: OPEN).

Opendoor’s July rally completely caught people off guard.

The stock surged nearly 700%*, fueled by a new wave of meme stock momentum that reignited names like GoPro (GPRO), Rocket (RKT), and Krispy Kreme (DNUT).

Together, they’ve earned a new nickname: the “DORK” basket — a Gen Z remix of the original 2021 mania.

The media took notice. Headlines shouting “meme stocks are back” only amplified the action — which tells you everything about the current sentiment.

When traditional outlets start covering retail-led breakouts, the crowd is clearly in control.

This wasn’t a fundamentals-driven move. OPEN surged on social firepower — nostalgia, short interest, and community narrative.

It also drew attention for being the first major meme stock rally led by a female CEO, adding a new cultural layer to the hype cycle.

Why I Like It

These setups can keep running as long as volume and volatility stay elevated. OPEN doesn’t need earnings or catalysts — just attention and momentum.

Here’s the trade potential:

• Bullish Scenario: If it clears $3 with conviction, momentum could carry it back toward $5 — a key level from the initial spike.
• Bearish Scenario: A dip under $2 could offer a setup for emotional bounce trades — especially if another meme name starts ripping.

Read more about this setup: Will Opendoor’s Rollercoaster Ride Make Or Break It?

Traders knew the meme game never really died. And now the rest of the world is waking up to it again.

American Battery Technology Co (NASDAQ: ABAT) — The Former Meme Battery Stock

My second Robinhood penny stock pick is American Battery Technology Co (NASDAQ: ABAT) .

ABAT isn’t just another EV-adjacent name anymore. It’s turning heads as one of the few U.S.-based players building serious infrastructure to tackle America’s battery metal gap.

After closing out 2024 with a 360%* run, the stock continues to rally in 2025 — now eyeing a breakout at the $4 level.

What once looked like a speculative spike is shaping up as a potential major trend reversal.

The catalyst? ABAT’s fully integrated approach. It combines recycling, resource extraction, and advanced metal processing into one closed-loop system. That’s exactly what’s needed as lithium-ion demand skyrockets.

Read more about ABAT’s lithium projects.

With the U.S. producing less than 1% of global supply for lithium, cobalt, nickel, and manganese, ABAT’s domestic-first strategy hits at the heart of two megatrends: national security and green tech independence.

Why I Like It

This isn’t just about future promises — ABAT’s operational scale is becoming real. The Reno-based facility anchors its vertical supply chain ambitions, giving it an edge as investors shift focus from flashy EVs to foundational battery infrastructure.

And with Washington pushing for onshoring and ESG priorities, ABAT sits right in the policy slipstream.

Here’s the trade potential:

• Bullish Scenario: A decisive break over $4 could fuel another leg up — with $5+ in reach if ESG flows or government contracts kick in.
• Bearish Scenario: A failure at resistance may offer a pullback toward the $2 zone — a potential loading area if fresh deals or grant headlines hit.

ABAT isn’t just riding a trend — it’s helping to build it. That’s what makes this one worth watching closely.

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Sharplink Gaming Inc (NASDAQ: SBET) — The Dip-and-Rip Ethereum News Supernova

My third Robinhood penny stock pick is Sharplink Gaming Inc (NASDAQ: SBET).

SharpLink isn’t just a sports betting backend name anymore. It’s morphing into one of the most unconventional Ethereum-aligned plays on the public markets.

In May 2025, SBET flipped the script with a jaw-dropping $425M private placement — not to expand its gaming operations, but to launch a full-scale Ethereum treasury strategy.

This wasn’t a run-of-the-mill raise. It brought in some of crypto’s biggest names: Pantera, Galaxy Digital, Electric Capital, Arrington, and more.

Even more shocking? Ethereum co-founder and Consensys CEO Joseph Lubin stepped in as Chairman of the Board — signaling this isn’t a stunt, it’s a statement.

SBET now plans to hold ETH as its core treasury asset, positioning itself as a publicly traded Ethereum proxy.

Why I Like It

This isn’t just about crypto speculation. SBET already exploded 4,300%* in May, and after cooling off, ripped another 310%* off July lows.

The price action behind SBET’s recent dip and rip.

This kind of resilience suggests the story’s not over.

It’s also one of the few ultra-low-float tickers tied to Ethereum in a meaningful way — and the market is starved for ETH exposure outside of ETFs.

Here’s the trade potential:

• Bullish Scenario: A clean break over $40 with volume could set off another parabolic move, especially if Ethereum prices firm up.
• Bearish Scenario: A pullback toward the $10–$15 zone could create reload opportunities on emotion-driven flushes.

This is pure narrative-meets-crypto-meets-equity market fuel. And when stories like this catch fire, they can move far faster than most are prepared for.

Wolfspeed (NYSE: WOLF) — The Chip Supplier for AI Data Centers

My fourth Robinhood penny stock pick is Wolfspeed (NYSE: WOLF).

Wolfspeed isn’t just another semiconductor name — it’s a critical supplier of silicon carbide and GaN chips that power everything from AI servers to EV drivetrains and advanced defense systems.

This is mission-critical tech for the next industrial cycle.

In early July 2025, Wolfspeed shocked Wall Street with a Chapter 11 restructuring plan aimed at eliminating $4.6 billion in debt. But instead of collapsing, the stock exploded 750%* in a single day — the biggest rally since its IPO.

Why? Because this isn’t a wind-down — it’s a reset.

Read more about WOLF’s restructuring here.

The deal is backed by key creditors, structured to fast-track the company through bankruptcy, and targeted for emergence by Q3 2025. Majority lender approval is already in place, signaling this is a clean-up move — not a fire sale.

Why I Like It

Free from heavy debt, Wolfspeed is in position to scale its U.S. chip production and cement its role in the domestic supply chain.

It’s something both private markets and federal policy are focused on. Demand for silicon carbide is surging across AI, EV, and military sectors, and Wolfspeed is one of the few American players in the space.

The chart is cooling off just under $1.50 after the vertical spike — a textbook consolidation.

Here’s the trade potential:

• Bullish Scenario: A breakout over $2 could trigger a short squeeze and bring a rush of momentum buyers eyeing a move back toward $3.30+.
• Bearish Scenario: A break below $1.50 might trigger a flush back toward $1, where dip buyers may reload.

I’m watching restructuring updates, volume patterns, and court filings closely for the next catalyst.

QuantumScape Corporation (NYSE: QS) — The Meme Battery Stock I’m Watching for a Bounce

My fifth Robinhood penny stock pick is QuantumScape Corporation (NYSE: QS).

QuantumScape is aiming to revolutionize energy storage with solid-state lithium-metal battery tech.

The company’s anode-less cell design promises faster charging, greater energy density, and better safety — all critical to next-gen EVs.

By removing the anode, QuantumScape reduces material costs and simplifies the manufacturing process. It’s a bold bet on the future of batteries … and Wall Street isn’t the only one watching.

Between June and July 2025, QS ripped 240%* in a meme-fueled breakout that saw Reddit, Twitter, and Fintok light up with hype.

Since then, it’s pulled back roughly 40% — and that retracement is creating a potential bounce setup.

Why I Like It

This isn’t just another EV play. QuantumScape’s solid-state batteries could leapfrog legacy lithium-ion tech — offering a strategic edge in the battery arms race.

The chart shows the stock cooling off after a vertical move, with volume tapering and consolidation near prior support.

Here’s the trade potential:

• Bullish Scenario: A reclaim of the $10 level with volume could spark a round two move, especially if meme momentum returns or we see a tech bounce. With stretch potential back toward $15.
• Bearish Scenario: A fail below $8 opens the door for a deeper unwind toward the $6 range.

I’m watching for news catalysts, social sentiment spikes, or unusual volume as triggers.

Joby Aviation Inc (NYSE: JOBY) — The eVTOL Hot Sector Leader

My sixth Robinhood penny stock pick is Joby Aviation Inc (NYSE: JOBY).

Joby Aviation is turning sci-fi into reality.

The electric vertical takeoff and landing (eVTOL) pioneer just hit a major milestone — delivering its first air taxi to the UAE and completing piloted flights in Dubai.

In July 2025, JOBY exploded 80% and cleared 52-week highs after announcing commercial readiness progress with Dubai’s Roads and Transport Authority.

Read more about JOBY’s insane July price action.

These are real flights — not test models — witnessed by top UAE officials, with infrastructure already breaking ground at Dubai International Airport for its first vertiport hub (targeting Q1 2026).

And Joby isn’t stopping there. It’s scaling up with a Toyota-style manufacturing playbook:

• Doubling capacity at its Marina, CA plant (435,500 sq ft).
• Ramping operations at a newly renovated Dayton, Ohio facility.
• Expanding its fleet, adding aircraft that receive airworthiness certification within a week.

Why I Like It

This isn’t just hype — it’s execution. Joby is leading the eVTOL space with real partnerships, real production, and real flights. That’s rare in a sector full of prototypes and promises.

The breakout over prior highs turned JOBY into a sector leader, and the pullbacks have been shallow — suggesting strong institutional support.

Here’s the trade potential:

• Bullish Scenario: A push over $12 with volume could open the door toward $14–15 range as eVTOL hype and Dubai headlines keep building.
• Bearish Scenario: A fade under $10.20 could trigger profit-taking, with support near $9.50–9.

I’m watching for new flight updates, vertiport progress, or additional partnership announcements to drive the next leg up.

Archer Aviation Inc (NYSE: ACHR) — The eVTOL Defense Contractor Stock

My seventh Robinhood penny stock pick is Archer Aviation Inc (NYSE: ACHR).

Archer Aviation is flying at the intersection of tech, transportation, and defense — and it’s gearing up for liftoff in more ways than one.

In early July 2025, Archer’s Midnight aircraft completed a successful flight test in Abu Dhabi under harsh desert conditions — high temps, humidity, and dust — proving its vertical takeoff and landing (VTOL) reliability in a commercial deployment environment.

Top UAE aviation and transport officials were present, signaling strong institutional support and regional buy-in.

The test flight was more than a milestone — it was validation for Archer’s Middle East expansion strategy and a big step toward full-scale operations.

Will ACHR Follow JOBY’s Flight Path?

Why I Like It

Archer isn’t just a commercial eVTOL player — it’s a dual-threat.

With a foot in defense contracts and global air mobility, it offers a more diversified growth runway than peers. It’s also one of the few names actually flying, not just rendering concepts.

The chart shows consolidation around $10 after two 2025 runs at all-time highs. Volume’s cooling, but the pattern is constructive — a classic coil under resistance.

Here’s the trade potential:

• Bullish Scenario: A breakout above $14 with volume could trigger a huge move..
• Bearish Scenario: A breakdown below $9.20 would invalidate the base and could send it back toward $7 support.

I’m watching for more Middle East flight tests, defense sector updates, or airworthiness certifications to spark the next wave of interest.

Rocket Companies Inc (NYSE: RKT) — The 50% Short Interest Meme Stock

My eighth Robinhood penny stock pick is Rocket Companies Inc (NYSE: RKT).

Rocket Companies is more than just a mortgage tech giant — it’s a powder keg sitting under 60%+ short interest, and it’s already lighting up WallStreetBets.

The Detroit-based fintech player spans the entire housing and finance ecosystem: Rocket Mortgage, Rocket Homes, Rocket Loans, Rocket Money — all under one AI-driven platform that touches everything from home search to financial wellness.

The company services millions of customers and moves tens of billions in volume annually.

But right now, the fundamentals don’t even matter. The meme mob is circling.

On July 23, shares spiked 20% on a wave of Reddit chatter, with mentions on WallStreetBets surging over 2,400%.

Why I Like It

This setup screams squeeze potential. The float is heavily shorted — over 73 million shares — and any sustained breakout could trap bears in a violent move.

The chart shows tight consolidation around $15, with clear resistance at $17.50. That’s the breakout level I’m watching.

Here’s the trade potential:

• Bullish Scenario: A move over $17.50 on volume could trigger FOMO buying.
• Bearish Scenario: A fade below $13 would cool the hype and suggest shorts are still in control. Watch for rejection on weak volume.

This is a momentum game. I’m watching social sentiment, short interest shifts, and any volume anomalies to catch the squeeze early.

*Past performance does not indicate future results

What Is a Good Penny Stock to Buy on Robinhood?

A few of the stocks I’ve been watching lately are accessible to Robinhood traders. Just remember …

This is only a watchlist. I have no plans to trade these stocks — and I won’t unless they fit into one of my preferred setups.

I want you to focus on my process, not my stock picks. If you want to become a self-sufficient trader, you’ll need to create your own watchlists.

Get a new no-cost watchlist sent to you each week by signing up here.

Trading on Robinhood

Robinhood is an easy-to-use, no-commission trading platform accessible to just about anyone. It also offers zero minimum deposits … You can even buy partial stock with its fractional shares feature.

Robinhood gives you access to over 5,000 U.S. listed stocks and ETFs, as well as ADRs in foreign listed companies. As of this year, Robinhood now allows trading in select OTC stocks as well.

How to Find Penny Stocks on Robinhood

Robinhood has curated stock lists under its “Trending Lists” section, but, unfortunately, it doesn’t feature a list of penny stocks. You might need to play around with some filters on Robinhood to see these cheap stocks.

Here’s how you access penny stock lists on Robinhood:

1. Log into your Robinhood account.
2. Select the magnifying glass, and click on the “Trending Lists” menu.
3. Select the business sector of your choice and sort in ascending order to see the cheapest stocks listed. Alternatively, you can push the filter button and set a maximum share price of $5, so you only see penny stocks.

You can rinse and repeat these steps to find the best penny stocks on any curated list Robinhood creates. If you’re confused because you find duplicate stocks across the lists, you can just write down which companies offer penny stocks and create a custom penny stock list.

What to Consider When Trading Penny Stocks on Robinhood

Trading penny stocks on Robinhood requires a clear understanding of both the platform and the nature of penny stocks. Robinhood offers an accessible way to enter the stock market with its user-friendly interface and commission-free trades.

But this ease of access comes with limitations — especially when dealing with highly volatile, low-priced small-cap stocks.

To navigate these challenges, you need to understand penny stock trading, and how Robinhood’s features and limitations can impact your trading strategy.

Understand the Nature of Penny Stocks

Penny stocks trades are volatile and unpredictable, so while there’s a chance of big gains, there’s also the risk of major losses. This means you shouldn’t invest in penny stocks — just trade them.

Penny stocks are defined by:

• Price per share: Typically trading for less than $5.
• Market capitalization: Often small-cap stocks with market caps below $300 million.
• Trading venues: Found on OTC markets as well as major exchanges.

Common characteristics of penny stocks include:

1. High volatility: Prices can swing dramatically within a short period.
2. Low liquidity: Fewer shares are traded, which can lead to significant price movements. Learn more about the most active penny stocks to keep an eye on here.
3. Risk of manipulation: Due to their low price and trading volume, they are often targets for pump-and-dump schemes.
4. Lack of information: Reliable data and analysis can be hard to find.

Research the Stocks Thoroughly

If you’re getting into penny stocks, it’s not enough just to read my stock picks. You need to build your own knowledge account so you can make informed decisions.

Before trading penny stocks, thorough research is crucial. Unlike blue-chip stocks, penny stocks often lack extensive analyst coverage and detailed financial reports. This makes doing your due diligence even more critical.

To research penny stocks effectively, follow these steps:

1. Review financial statements: Look at the company’s balance sheet, income statement, and cash flow statement. Keep a healthy sense of skepticism — penny stocks are notorious for inflating their value claims.
2. Understand the industry: Know the sector in which the company operates and its competitive position.
3. Monitor market trends: Be aware of broader market conditions and trends that could impact the stock.
4. Check recent news: Stay updated on recent developments or announcements from the company.
5. Evaluate management: Research the background and track record of the company’s leadership team.

Consider Robinhood’s Limitations

When trading penny stocks on Robinhood, you have to be  super aware of the platform’s limitations. These are the big ones:

• Trade execution speed: Execution may be slower compared to other platforms, impacting your ability to react swiftly in volatile markets.
• Limited research tools: Robinhood offers fewer analytical tools and research resources than other brokerages.
• Restrictions on certain stocks: Some penny stocks won’t be available for trading on Robinhood — especially the sketchy OTC stocks that I love to trade!

These limitations can significantly affect your trading strategy. Slower execution speeds mean you might miss optimal buy or sell points, which really matters in fast-moving penny stocks. And if you can’t trade the stocks that are making moves, you’re limiting your options for no reason.

Webull is a worthwhile Robinhood alternative, with the same focus on mobile-first trading and ease of use. Its advantages includes advanced charting options, real-time market data, and extended trading hours. By utilizing these features, traders can make more informed decisions and capitalize on market opportunities. For an in-depth look at the best penny stocks to buy on Webull, check out my Webull penny stocks watchlist.

Manage Risk Effectively

Effective risk management is HUGE when trading penny stocks, given their high volatility and potential for significant losses.

Risk management techniques include:

• Stop-loss orders: Automatically sell a stock when it reaches a certain price to limit potential losses.
• Take-profit orders: Set a specific price to automatically sell and secure profits.

Diversification and position sizing are also important for managing risk. Here are two of the basic techniques traders use:

1. Diversification: Spread your trades across multiple stocks to reduce the impact of any single stock’s poor performance.
2. Position sizing: Limit the amount of capital allocated to any single penny stock, preventing significant losses from a single trade.

Develop a Trading Strategy

A well-defined trading strategy is vital. Key components of a successful strategy include:

• Clear entry and exit points: Define when to enter and exit trades based on specific criteria.
• Risk management rules: You can use stop-loss and take-profit orders, or be disciplined in follow your trading plan. Stick to your position sizing limits.
• Regular review and adaptation: Continuously assess and adjust your strategy based on market conditions and trading performance.

Some of the most popular trading strategies include momentum trading, where you target stock trends, and breakout trading, where you enter trades when a stock moves beyond a resistance level. Here are some other strategies I’ve used over the years:

Identifying penny stocks before they spike can really boost your trading success. This involves thorough research and understanding market indicators that signal potential upswings. One effective strategy is to analyze historical data and monitor social media trends for emerging stocks. Additionally, using specialized screeners and trading algorithms can help pinpoint these opportunities early. Check out my strategies for finding penny stocks pre-spike here.

Robinhood Stocks Under $5

The appeal of hot sector stocks accessible on platforms like Robinhood, especially those classified as penny stocks, is compelling for both novice and seasoned investors. The energy and technology sectors, for instance, are witnessing rapid growth and innovation, making stocks within these domains particularly attractive for those on the lookout for the next breakout investment. The allure lies in the potential for substantial returns on investment, as even minor developments or positive news within these sectors can lead to significant price jumps.

Nonetheless, it’s imperative to navigate these waters with caution and a well-thought-out strategy. The inherent volatility of penny stocks, combined with the speculative nature of emerging sectors like renewable energy and tech innovations, underscores the importance of a meticulous approach. Before diving in, ensure you’ve done your due diligence, looking past the initial excitement to assess the true potential and risks of these ventures. It’s wise to trade these stocks rather than invest long-term, given their unpredictable nature.

Success in trading hot sector stocks priced under $5 on platforms such as Robinhood hinges on a selective and strategic approach. The goal is to tap into the explosive growth potential of sectors like renewable energy and technology while implementing robust risk management practices. By zeroing in on companies poised for leadership within their specific niches, traders can seize opportunities for disproportionate gains. This strategy, coupled with a disciplined approach to maintaining a tight investment strategy and promptly cutting losses, can pave the way for trading success in these dynamic market segments.

Can You Buy Stocks Under $1 on Robinhood?

Yes, you can definitely buy stocks under $1 on Robinhood. Listed penny stocks will often fall beneath the $1 minimum listing threshold.

The OTC stocks that Robinhood allows access to are often on the pricier side.

Buying penny stocks is as easy as buying any other stock on the app, too. Just choose your stock, pick your order type, input how many shares you’re buying, and submit your order.

Penny Stocks on Robinhood Under 10 Cents

Looking to trade the cheapest stocks on Robinhood? Penny stocks under 10 cents will occasionally pop up, but not too often.

If you’re looking to trade stocks under 10 cents, the OTC markets have the biggest selection. Unfortunately, Robinhood doesn’t allow trading of the sketchiest OTC stocks.

Learn how I choose which stocks to trade in this guide. Use this stock scanner to further improve your trading game.

Robinhood Penny Stocks Market

Finding penny stocks on Robinhood is just the beginning of your trading journey. Understanding the market trends and sectors can significantly enhance your trading strategy.

For those interested in targeting specific sectors, additional resources — like my sector watchlists — can be valuable. Explore the hot sector of biotech penny stocks by looking at the stocks I’m watching this month!

How to Buy Penny Stocks on Robinhood

Buying penny stocks on the Robinhood app or website is just like buying any other stock. Now that you’ve learned how to find penny stocks on Robinhood, here’s how to buy them:

1. Log into your Robinhood account.
2. Use your debit card or bank account to transfer funds into your Robinhood account.
3. Choose a penny stock to buy.
4. Select your order type (i.e., market, limit, stop loss, stop limit, or trailing stop order … I never use market orders for trading penny stocks).
5. Input how many shares you want to buy.
6. Review your order and ensure everything is correct.
7. Confirm your trade.

What Is the Minimum Amount to Buy Penny Stocks on Robinhood?

Robinhood doesn’t have a minimum amount for penny stocks — or any stocks — that cost $1 or more. You can start trading fractional stocks when a stock reaches that threshold.

Trading Fees on Robinhood

Robinhood doesn’t impose trading fees on its users. However, the Financial Industry Regulatory Authority (FINRA) is legally obliged to charge a fee, which you have to pay, on stock sales.

The trading activity fee for stock sales is $0.00013/share and $0.00218/share for options sales, with a maximum fee cap of $6.49. Robinhood only charges this fee if you sell more than 50 shares in one penny stock transaction.

Can You Become Rich Just Trading Penny Stocks On Robinhood?

Repeat after me: small gains add up. Can you become rich trading penny stocks on Robinhood? It’s a question, and one that requires a level-headed analysis. You can find hundreds of penny stocks on platforms like Robinhood, and while some Wall Street analysts tout them as undervalued assets, the reality is often more complex. Penny stocks are often speculative and lack the capitalization that more established stocks offer. With the right strategy, tools like a stock screener, and an eye on breaking news, gains are possible. But don’t expect instant riches. Think of Robinhood Gold, offering extended trading hours, but it can’t transform an unstable investment into gold overnight.

What Are the Risks Associated with Trading Penny Stocks on Robinhood?

Still with me? Good. Let’s dig into the risks. Trading penny stocks on Robinhood or other brokers can be a game of swings and roundabouts. Illiquidity and volatility can be a trader’s nightmare. The lack of depth in the market cap of these stocks means wild price swings are common, and if you’re not careful, losses can accrue quickly. Even with Robinhood’s simplicity and user-friendly interfaces, it doesn’t eliminate the risks associated with speculative investments in categories like marijuana penny stocks. Be mindful of the reality and keep your portfolio balanced. Don’t put all your eggs in the penny stock basket; diversify with other assets, products, or services.

Looking for more money-making tips with penny stocks? Learn from my 20+ years of experience by applying for the Trading Challenge and reading my FREE book right now.

Key Takeaways

Penny stock trading is a great way to build your account as a new trader. Robinhood is an okay place to trade stocks as a beginner because it doesn’t have fees and minimum deposits. However, it’s missing many of the capacities I look for in a broker. I recommend you move to another broker as soon as you can.

Key Considerations:

• A lot of penny stocks are shady. Risk in Robinhood penny stocks can be heightened due to limited company information and unsavory promotion.
• There’s a possibility for big gains. I trade penny stocks because you can trade conservatively and still rack up gains. These stocks can go supernova at any time. Aim for “the meat of the move.”
• These companies are often young. Some Robinhood penny stocks are newer companies, and can dramatically shift their market trajectory and valuation.

While I’ve given you eight stocks to watch on Robinhood, don’t just copy my penny stock picks blindly. Learn why I picked them and choose your own stocks to watch.

Have you traded penny stocks on Robinhood? Write “I always trade with a plan” in the comments!

Penny Stocks to Watch on Robinhood FAQs

In which countries is Robinhood available for trading penny stocks, and who are its main competitors?

Robinhood is primarily available in the United States but has been expanding to other countries. Its main competitors in the penny stock trading space include apps from Charles Schwab, E-Trade, and Webull. Availability might vary depending on regulations and market conditions in specific countries.

How is the page design on Robinhood’s app, and does it include any gamification elements (games) to engage users in penny stock trading?

Robinhood’s app is being designed with a sleek and user-friendly page layout that aims to make trading accessible to all. Some users feel that the app’s interface has gamification elements, including games and interactive visuals, making the trading experience more engaging, especially for younger investors.

How can one purchase penny stocks on Robinhood, and what are the payment options, including using a cash account or credit?

Purchasing penny stocks on Robinhood is a straightforward process that can be done through the app or web platform. Payment options include using a cash account or linking a credit/debit card. The purchase can be done with a few taps, and users can track their investments on the main page of the app.