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: IREN — IREN Ltd — The AI Data Center Stock With the Nvidia Shoutout
• NASDAQ: RGTI — Rigetti Computing Inc — The Quantum Computing With the Breakthrough Tech
• NYSE: BBAI — BigBear.ai Holdings Inc — The Earnings Loser Looking to Bounce
• NASDAQ: RIVN — Rivian Automotive Inc — The Heavily Shorted EV Stock
• NASDAQ: INTC — Intel Corp — The Trump Administration Stake Chip Stock
• NASDAQ: RR — Richtech Robotics Inc — The AI-Driven Retail Automation Stock
• NASDAQ: SOUN — SoundHound AI, Inc — The Post-Spike AI Voice Stock
• NASDAQ: OPEN — Opendoor Technologies Inc. — The Meme Stock Grinder

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), IREN Ltd (NASDAQ: IREN), and BigBear.ai Holdings Inc (NYSE: BBAI).

• 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 …

IREN Ltd (NASDAQ: IREN) — The AI Data Center Stock With the Nvidia Shoutout

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My first Robinhood penny stock pick is IREN Ltd (NASDAQ: IREN).

On August 29, Iris Energy revealed its second major GPU order:

• 1,200 air-cooled Nvidia B300s
• 1,200 liquid-cooled GB300s

The $168 million deal ties directly to its Canadian expansion in Prince George, where a new 10MW liquid-cooled facility is underway.

This pushes IREN’s GPU inventory to 10,900 units, spanning elite chips like the H100, H200, B200, B300, and GB300. It’s a clear sign the company is pivoting aggressively toward AI compute.

Momentum is further boosted by two big catalysts:

• Entry into Nvidia’s Preferred Partner program, strengthening its industry credibility.
• Securing $96M in non-dilutive funding, underscoring strong execution and vendor confidence.

The stock has been one of September’s strongest movers, hitting all-time highs three days in a row.

And Q2 results highlight the shift:

• Net income: $86.9M vs. a $28.9M loss last year
• Revenue: $501M, up 167.6% YoY

Read more about IREN’s recent moves.

Why I Like It

IREN is rapidly evolving from a crypto miner into an AI/cloud infrastructure player.

With 3GW of power access, a premium GPU arsenal, and a path toward $1.25 billion in annualized revenue, it’s among the most ambitious scale-ups in the space.

Trade Potential

• Bullish Scenario: Breakout above $30 could accelerate toward $35–$40+.
• Bearish Scenario: Failure under $25 may drag shares back to the $22–$20 zone.

The volatility here is undeniable. Expect more sharp moves as the AI build-out continues.

Rigetti Computing Inc (NASDAQ: RGTI) — The Quantum Computing With the Breakthrough Tech

My second Robinhood penny stock pick is Rigetti Computing Inc (NASDAQ: RGTI).

Rigetti has been one of the market’s most explosive names, soaring 1,700%* through 2024–2025.

And it’s back in focus thanks to a new milestone that could reshape its trajectory.

The company just announced 99.5% median two-qubit gate fidelity on its 36-qubit system. Slashing error rates compared to the older Ankaa™-3 model.

By combining modular 9-qubit chips, Rigetti is paving the way for scalable machines exceeding 100 qubits, potentially before year-end.

This advance is supported by a $5.48 million U.S. Air Force contract and collaborations with Quanta Computer, Iowa State, and Lawrence Livermore National Lab. That’s the kind of backing that gives credibility beyond the hype.

Read more about RGTI’s main partnerships.

But the numbers remain a concern: Just $9.2 million in revenue over the past year against $138 million in losses.

At a valuation north of 500x sales, the stock is priced for its future, not its present.

Why I Like It

Quantum computing is increasingly tied to AI development and national security priorities, from the Quantum Leadership Act of 2025 to rising fears of a “Q-Day” encryption threat.

Rigetti sits right at the center of those narratives.

Even with shaky fundamentals, the stock’s volatility + AI connection keeps it on the radar.

Trade Potential

• Bullish Scenario: A push over $18 could send shares testing the $20 resistance from January.
• Bearish Scenario: Failure below $14 risks a slide back toward $11, the prior support base.

Between hype, policy tailwinds, and real technological progress, RGTI stands as one of the most speculative, yet potentially game-changing, plays in quantum computing.

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BigBear.ai Holdings Inc (NYSE: BBAI) — The Earnings Loser Looking to Bounce

My third Robinhood penny stock pick is BigBear.ai Holdings Inc (NYSE: BBAI).

BigBear.ai has been one of the most volatile small-cap AI names of 2025.

After surging 130%* between June and July to hit highs near $8.70, the stock collapsed following a rough Q2 earnings release.

The company reported $32.5 million in revenue vs. $40.6 million expected and a widening net loss, tied to disruptions in federal contracts and new spending initiatives.

Read more: BigBear.ai Stock Tanks: Analysis of the Recent Dive

Management also cut 2025 revenue guidance to $125 million–$140 million, well below the prior $167.7 million consensus. On top of that, they withdrew adjusted EBITDA guidance and disclosed plans for potential mixed securities issuance, raising dilution fears.

Why I Like It

Despite the sharp sell-off, BigBear.ai still holds a solid cash cushion and remains entrenched in high-profile sectors: National security, supply chain, and digital identity.

With contracts spanning U.S. defense and intelligence, plus its AI decision-intelligence platform, the stock has a strong narrative.

Trade Potential

• Bullish Scenario: A rebound above $8.70 (the July breakout level) could reignite momentum, especially if new federal program wins are announced.
• Bearish Scenario: Continued weakness under $5 risks a slide back toward the low-$4s, with dilution headlines as the key threat.

Right now, BBAI is consolidating around $5.

It’s a beaten-down AI play with speculative bounce potential. But one that traders must approach with caution given its shaky financials and volatile contract pipeline.

Rivian Automotive Inc (NASDAQ: RIVN) — The Heavily Shorted EV Stock

My fourth Robinhood penny stock pick is Rivian Automotive Inc (NASDAQ: RIVN).

Rivian’s Q2 earnings in early August were a mixed bag. Revenue came in slightly ahead of estimates, but net losses were deeper than forecast. Even as gross margins improved.

The company maintains a solid cash cushion, yet with R2 production not expected until 2026, additional fundraising could be necessary.

Beyond trading setups, Rivian is steadily building an integrated EV platform:

• Consumer: R1T pickup + R1S SUV
• Commercial: Amazon delivery van program
• Ecosystem: FleetOS software, servicing network, and the Rivian Adventure Network of DC fast chargers

What has traders locked in right now is the surge in short interest. By mid-August, over 20% of Rivian’s float was sold short. The highest level ever recorded.

Since August 6, shares are up 29%, with price action now moving toward the crucial $17 breakout zone, which also doubles as the 52-week high.

Why I Like It

Rivian continues to divide the market.

Bulls highlight its strong partnerships, cash on hand, and short squeeze potential. Bears focus on losses, scaling risks, and the likelihood of new capital raises.

Trade Potential

• Bullish Scenario: Break above local highs at $15 could fuel a move toward $17.
• Bearish Scenario: A decisive slip under $14 may open the door to a retest of the $12–$11 support zone, especially on dilution headlines.

With record short positioning and a breakout level just overhead, Rivian is shaping up as a high-stakes battleground name to track closely.

Intel Corp (NASDAQ: INTC) — The Trump Administration Stake Chip Stock

My fifth Robinhood penny stock pick is Intel Corp (NASDAQ: INTC).

Intel just landed a catalyst that could reshape its future.

The Trump administration announced an $8.9 billion equity investment in Intel, acquiring a 9.9% ownership stake.

This isn’t just bullish. It’s unprecedented.

Washington is directly backing Intel’s plan to spend +$100 billion on U.S.-based chip fabs, reinforcing national leadership in advanced semiconductor manufacturing.

Unlike prior CHIPS Act grants, this isn’t a subsidy. It’s an actual equity position tied to the Secure Enclave program.

The government bought in at $20.47 per share and holds warrants that could expand its stake as Intel’s foundry business evolves.

The market has already responded. Shares surged 39% in August, now consolidating around $25.

A breakout above $26.50 could trigger a new momentum leg, especially with institutions likely to follow the U.S. government’s lead.

Why I Like It

This setup is bigger than a chart pattern. It’s a national security trade.

When government policy aligns with technical strength, the upside can be significant.

Trade Potential

• Bullish Scenario: A push through $26.50 on volume could open a run toward $30+, fueled by AI + defense headlines.
• Bearish Scenario: Weakness under $23 would damage the setup, risking a pullback toward $20 if broader markets stumble.

With politics, defense, and AI all converging, Intel now sits in a rare position to drive both headlines and price action.

Richtech Robotics Inc (NASDAQ: RR) — The AI-Driven Retail Automation Stock

My sixth Robinhood penny stock pick is Richtech Robotics Inc (NASDAQ: RR).

Richtech just scored a major credibility boost.

On August 21, the company signed a multi-year master services agreement with a top global retailer.

Richtech’s product lineup is already deployed across multiple industries:

• Matradee robotic servers in restaurants
• DUST-E autonomous cleaning units in hospitals and casinos
• Titan logistics platform for large-scale operations

And while the client hasn’t been disclosed, the structure suggests long-term potential for this new deployment.

The deal carries a two-year base term with automatic yearly renewals unless canceled. That sets Richtech up as a strategic automation partner for one of the world’s largest retail networks.

Shares ripped 110%* in August, peaking at $3.80 before pulling back. That level now marks the key breakout zone heading into September trading.

Why I Like It

This isn’t just a concept robotics play.

Richtech is rolling out real AI-powered solutions, and with this new retail foothold, it gains the validation to capture wider market attention.

Trade Potential

• Bullish Scenario: A push back above $3.80 on strong volume could trigger another breakout leg.
• Bearish Scenario: Failure to reclaim $3 risks a fade to the $2 support zone from earlier in 2025.

With AI + robotics adoption accelerating, this agreement could be the catalyst that shifts Richtech Robotics (RR) from niche speculation to a legitimate growth story.

SoundHound AI, Inc (NASDAQ: SOUN) — The Post-Spike AI Voice Stock

My seventh Robinhood penny stock pick is SoundHound AI, Inc (NASDAQ: SOUN).

SoundHound remains one of the most volatile and closely watched names in the AI sector.

After another earnings-fueled surge, the stock is once again pressing into breakout territory.

The company has built a strong conversational AI stack serving multiple industries: From voice-enabled autos and TVs to restaurant kiosks and enterprise customer service.

Core platforms include Houndify, Smart Answering, and SoundHound Chat AI, giving clients scalable, voice-first solutions with proven real-world deployment.

Following its viral 2023 run during the early ChatGPT boom, SOUN has delivered multiple triple-digit spikes. Including a 400%* surge in 2024 that drove shares to record highs.

In 2025, the stock already rallied 130%, lifted by strong earnings and bullish guidance tied to its expanding Vision AI platform.

The kicker: despite the rally, SOUN is still trading below its peak. While some see downside risk, that gap could represent major upside potential.

Read more: SoundHound Stock Dive: Is Recovery Possible?

Why I Like It

Short interest remains heavy at nearly one-third of the float, paired with spiking call option volume and growing institutional flows.

That’s a recipe for a possible short squeeze. And recent market squeezes have been extreme.

Trade Potential

• Bullish Scenario: A breakout over $17 could propel shares toward the $24 highs from December, especially with upgrades or retail momentum.
• Bearish Scenario: Watch $12 as immediate support. A failure there could set up a slide toward the $10 zone.

This is a classic post-spike consolidation with volatility, strong fundamentals, and the fuel that shorts hate most: Real growth.

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

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

Opendoor has turned into one of 2025’s wildest tickers, skyrocketing 1,200%* since early July in a move fueled almost entirely by meme-stock speculation.

The latest surge carried shares to fresh 52-week highs on September 8, powered by retail trader enthusiasm, social media hype, and interest from well-known investors.

Read more about Opendoor stock’s September price action.

Among the catalysts:

• Anthony Pompliano, a high-profile crypto voice, disclosed a sizable position in August.
• Eric Jackson, hedge fund manager, revealed plans to join the board and advocate for leadership changes.

Those developments injected even more energy into the rally.

On the business side, Opendoor has pivoted to an agent-first model that improved customer conversions and engagement.

New products like the Key Agent iOS app and Cash Plus hybrid solution highlight its evolution. Though none of this has mattered as much as sentiment-driven trading.

Why I Like It

OPEN continues to trade like a textbook meme stock.

Massive runs followed by sharp collapses. With heavy volume and momentum that’s still in play, it remains a name traders can’t ignore.

Trade Scenarios

• Bullish Scenario: A breakout above recent highs could push toward $10 if the squeeze extends.
• Bearish Scenario: A breakdown under $5 would signal fading energy, setting up a retrace toward prior consolidation zones.

At its core, Opendoor is a high-risk, high-reward meme play. One of the purest examples of speculative mania still running hot in 2025.

*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.