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Watchlists-Penny Stock Investment Strategy

Top 8 Penny Stocks to Watch on Robinhood in June 2025

Timothy SykesAvatar
Written by Timothy Sykes
Updated 6/4/2025 27 min read

In this article

  • HOLO0.00%
    HOLO - NASDAQMicroCloud Hologram Inc.
    $4.820.00 (0.00%)
    Volume:  26031
    Float:  4.81M
    $4.79Day Low/High$4.94
  • FAAS-0.16%
    FAAS - NASDAQDigiAsia Corp.
    $0.62-0.00 (-0.16%)
    Volume:  9123
    Float:  55.41M
    $0.60Day Low/High$0.62
  • BOX+1.47%
    BOX - NYSEBox Inc. Class A
    $34.50+0.50 (+1.47%)
    Volume:  26
    Float:  138.18M
    $0.00Day Low/High$0.00
  • SYTA+4.33%
    SYTA - NASDAQSiyata Mobile Inc.
    $2.41+0.10 (+4.33%)
    Volume:  408000
    Float:  966698
    $2.27Day Low/High$2.79
  • SBET+0.43%
    SBET - NASDAQSharpLink Gaming Inc.
    $9.40+0.04 (+0.43%)
    Volume:  339782
    Float:  610207
    $9.32Day Low/High$9.80
  • COIN+1.28%
    COIN - NYSECoinbase Global Inc
    $357.95+4.52 (+1.28%)
    Volume:  432123
    Float:  242.48M
    $353.38Day Low/High$359.50

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.

Stock TickerCompanyPerformance (YTD)
NASDAQ: HOLOMicroCloud Hologram Inc-98.08%
NYSE: BOXBox Inc+6.48%
AMEX: SGNSigning Day Sports Inc
NASDAQ: SBETSharplink Gaming Inc+18.74%
NASDAQ: FAASDigiAsia Corp-27.06%
AMEX: UECUranium Energy Corp
NASDAQ: SYTASiyata Mobile Inc-61.52%
OTCPK: FNMAFederal National Mortgage Association

Table of Contents

8 Robinhood Penny Stocks to Watch on Robinhood June 2025

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

  • NASDAQ: HOLO — MicroCloud Hologram Inc — The Quantum Pump Meme Stock
  • NYSE: BOX — Box Inc — The Earnings Winner Cloud Computing Stock
  • AMEX: SGN — Signing Day Sports Inc — The BlockchAIn Merger Penny Stock
  • NASDAQ: SBET — Sharplink Gaming Inc — The 1,000%* Ethereum News Supernova
  • NASDAQ: FAAS — DigiAsia Corp — The SBET Sympathy Runner True Penny Stock
  • AMEX: UEC — Uranium Energy Corp. — My Uranium Penny Stock Weekend Winner
  • NASDAQ: SYTA — Siyata Mobile Inc — The AI User Bump Mobile Gaming Stock
  • OTCPK: FNMA — Federal National Mortgage Association — The Mortgage Giant About to Go Public

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 MicroCloud Hologram Inc (NASDAQ: HOLO) 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 MicroCloud Hologram Inc (NASDAQ: HOLO), Sharplink Gaming Inc (NASDAQ: SBET), and Siyata Mobile Inc (NASDAQ: SYTA).

  • 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 …

MicroCloud Hologram Inc (NASDAQ: HOLO) — The Quantum Pump Meme Stock

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My first Robinhood penny stock pick is MicroCloud Hologram Inc (NASDAQ: HOLO).

This is a huge former runner in the market. The stock’s been spiking since 2023.

For example, in February 2024 the price spiked 6,400%*.

And since its latest spike, on April 21 this year the stock held a reverse split to stay listed on the Nasdaq.

The reverse split also drastically lowered the float.

HOLO is now trading with only 4.8 million shares in the float. And when the share supply is low like that, it’s easier for the price to spike higher.

It’s a simple law of supply and demand.

Most recently, on May 22, HOLO announced progress on its quantum-computing imaging technology.

The price spiked 110%* after the news.

That’s on the low end of HOLO’s capabilities. Keep an eye out for more volatility in June.

Box Inc (NYSE: BOX) — The Earnings Winner Cloud Computing Stock

My second Robinhood penny stock pick is Box Inc (NYSE: BOX).

On May 27 during after hours, BOX announced bullish earnings for its most recent quarter.

Revenue increased 4% year-over-year to $276 million. And the company’s leadership highlighted the importance of AI in its current business operations.

After the announcement, the stock surged to new all-time highs.

The share price is a little higher than the stocks that I usually trade, but I’m including this runner to emphasize the point that there are multiple ways to profit in the market.

  • Maybe you like to trade penny stocks like me.
  • Maybe you like to trade higher priced stocks with options.
  • Maybe you’re a short seller (be careful in this volatile market).

My patterns manifest throughout the market.

All you have to do is find an angle that works for you.

Stay curious. Continue to study profitable price action in the market.

This will click eventually!

More Breaking News

Signing Day Sports Inc (AMEX: SGN) — The BlockchAIn Merger Penny Stock

My third Robinhood penny stock pick is Signing Day Sports Inc (AMEX: SGN).

On May 28, this company announced it was merging with One Blockchain LLC to create a publicly traded crypto mining/AI company.

For your information, SGN used to be a company that helped high school athletes navigate the recruitment process. This stock made a major pivot, likely as a cash grab.

It’s important for you to realize the sketchy and shifty nature of these penny stocks.

We can trade the price action, but we never believe the company.

SGN spiked 410%* after the merger announcement.

And the price consolidated to end the month of May. I’m looking for a potential rally in June.

Sharplink Gaming Inc (NASDAQ: SBET) — The 1,000%* Ethereum News Supernova

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

On Tuesday, May 27, SBET announced a $425 million private placement to start an Ethereum treasury strategy.

Crypto stocks are heating up again. A new crypto regulation bill is working its way through Congress, and Bitcoin is flirting with all-time highs.

June could be explosive. There’s serious momentum across the crypto sector.

Whether you’re trading intraday spikes like SBET, or riding swings on big names like Coinbase Global Inc. (NASDAQ: COIN), there’s volatility here.

SBET went full supernova on Thursday, May 29. In total, it surged a mind-blowing 1,700%* over multiple days.

This is one of 2025’s biggest supernovas so far. We see massive moves similar to this every month.

Watch my video below for more details:

 

Study the chart, learn the setup, and get ready for the next opportunity.

DigiAsia Corp (NASDAQ: FAAS) — The SBET Sympathy Runner True Penny Stock

My fifth Robinhood penny stock pick is DigiAsia Corp (NASDAQ: FAAS).

The same day that SBET announced its crypto news, FAAS announced some news of its own.

The company launched a $100 million initiative to build a Bitcoin treasury.

This stock was already spiking in May, the price ran 330%*. And after this Bitcoin news was announced, the price spiked another 140%*.

The share price is still cheap, which means there’s room for it to run higher in June.

Make sure to look for my trade patterns in the price action.

Uranium Energy Corp. (AMEX: UEC) — My Uranium Penny Stock Weekend Winner

My sixth Robinhood penny stock pick is Uranium Energy Corp. (AMEX: UEC).

On Friday, May 23, the market learned of Trump’s executive orders to support growth in the nuclear sector.

We saw multiple nuclear stocks spike as a result.

Here are some other examples of nuclear runners:

  • Oklo Inc (NYSE: OKLO) spiked 44%.
  • NuScale Power Corporation (NYSE: SMR) spiked 45%.
  • Cameco Corporation (NYSE: CCJ) spiked 17%.

I found UEC spiking that day and noticed that it was following my weekend pattern. So I built a position that afternoon.

When I woke up on Tuesday morning (the market was closed on Monday for Memorial Day) I was up $2k!

Look at my trade notes below:

Source: Profit.ly

I look for this pattern every Friday afternoon.

It’s a perfect setup for side-hustle traders who work a day job or have other weekly responsibilities.

It’s one trade, every week, at the same time.

For a full tutorial of my weekend pattern, watch my video below:

Keep an eye on UEC and the rest of the nuclear sector in June.

Siyata Mobile Inc (NASDAQ: SYTA) — The AI User Bump Mobile Gaming Stock

My seventh Robinhood penny stock pick is Siyata Mobile Inc (NASDAQ: SYTA).

This stock lit up the charts in May.

On May 9, Core Gaming announced its AI Comic App reached 300,000 users. In just 24 hours after the launch.

That’s some serious viral momentum.

Now … SYTA signed a $160 million merger agreement with Core Gaming back in February. That means SYTA is riding this wave of AI-fueled momentum.

As a result, SYTA went full supernova later in May. It ran a jaw-dropping 810%* during its multi-day run.

Remember, we see multiple supernovas every month. Study the chart. Learn the catalyst. And get your mind locked in for the next explosive move.

I also have a full tutorial on how to trade these intense runners. Watch my video below:

Federal National Mortgage Association (OTCPK: FNMA) — The Mortgage Giant About to Go Public

My eighth Robinhood penny stock pick is Federal National Mortgage Association (OTCPK: FNMA).

On May 22, Trump expressed his interest in seeing FNMA and FMCC rejoin publicly listed stocks.

FNMA and FMCC are currently listed on the OTC exchange, which isn’t available for Robinhood traders. One of the key drawbacks to Robinhood’s services.

It’s a shame, because OTC stocks can follow my trade patterns more rigidly due to the lack of attention paid to the exchange.

FNMA spiked 55% after Trump’s announcement, FMCC spiked 56%. And both stocks consolidated to end the month of May. That signals a potential upcoming rally … 

You might be able to trade these stocks soon if they go public on the Nasdaq or NYSE.

Otherwise, upgrade your trading setup and find a real broker.

Everyone starts somewhere. There’s no shame in using Robinhood at first … But we’ve got to level up if we want to get better.

 

*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.



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Comments (1)
BerehaneOct. 27, 2023 at 9:27 pm

Love it. Thanks Tim!!


Author card Timothy Sykes picture

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

In this article (YTD Performance)


* 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”

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