Top 8 Penny Stocks to Watch on Robinhood in 2022

By Timothy Sykes

Last updated on December 20, 2022
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According to the Securities and Exchange Commission’s (SEC) definition, penny stocks are defined as stocks that trade at $5 per share or less. They may seem cheap, sketchy, and unstable (many of them are), but they’re also great for building small trading accounts quickly.

When trading penny stocks, you can’t depend on the same market dynamics as bigger stocks. They’re entirely different animals, so you may need new trading strategies.

If you’re new to trading penny stocks or even trading in general, Robinhood is a good enough place to start — it charges zero fees and doesn’t require a minimum deposit. However, you might want to move to another broker down the line. Robinhood doesn’t give advanced traders everything they should be looking for in a broker.

Read on to learn more about trading penny stocks on Robinhood, and check out my list of penny stocks to watch on the platform!

Table of Contents

Trading on Robinhood

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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.

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.

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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

Many stock traders use Robinhood to buy penny stocks because it doesn’t charge fees. This has led to runs on certain penny stocks, because of Robinhood’s limited selection.

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 Is a Good Penny Stock to Buy on Robinhood?

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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.  

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8 Robinhood Penny Stocks to Watch on Robinhood 2022

My top 8 Robinhood penny stocks to watch for the rest of 2022 are:

  • (NASDAQ: MMAT) — Meta Materials Inc. — The Meme Penny Stock Play
  • (NASDAQ: PEGY) — Pineapple Energy Inc. — The Penny Stock Energy Spiker
  • (NASDAQ: GRAB) — Grab Holdings Ltd. — The Ride Sharing Penny Stock Spiker
  • (NASDAQ: NRBO) — Neurobo Pharmaceuticals Inc. — The Post-Dilution Biotech Penny Stock
  • (NYSE: NINE) — Nine Energy Service Inc. — The Oil and Gas Penny Stock Play
  • (NASDAQ: MULN) — Mullen Automotive Inc. — The EV Penny Stock Play
  • (NASDAQ: SOBR) — Sobr Safe Inc. — The Exciting Tech Penny Stock Former Runner
  • (NASDAQ: VS) — Versus Systems Inc.  — The Reverse Split Spiker

1. Meta Materials Inc. (NASDAQ: MMAT) — The Meme Penny Stock Play

My first Robinhood penny stock pick is Meta Materials Inc. (NASDAQ: MMAT). This is a junky penny stock that’s been adopted by the meme crowd …

It’s in an exciting sector: nanocomposites and functional materials. That’s basically the building blocks of hot sectors from 5G to electric vehicles (EVs), the Internet of Things to driverless cars.

This is one part of the formula for breakout penny stocks — convincing newbies that the stock has big potential for growth. This hype led to a 400% run in the meme-charged summer of 2021.

MMAT stumbled upon another part of its winning formula organically. When Facebook changed its name to Meta Platforms Inc. (NASDAQ: META), confused newbie traders caused MMAT to spike for a second time in 2021.

Why I Like It

One good reason for a penny stock to spike is a short squeeze. Meta Materials Inc. Preferred Shares (OTCPK: MMTLP), which trades on the OTC markets, has squeezed over 700% on its multi-month run.

I made more than $3,600 trading MMTLP (starting stakes were $133,015)..

Soon, MMAT started to run in sympathy — despite having an unsqueezable float of more than 300 million. It’s up nearly 300% in the same timeframe.

MMTLP is going to be spun off into shares of an oil and gas company called Next Bridge Hydrocarbons. I’ll be watching MMAT to see where all this meme stock momentum goes.

2. Pineapple Energy Inc. (NASDAQ: PEGY) — The Penny Stock Energy Spiker

My second Robinhood penny stock pick is Pineapple Energy Inc. (NASDAQ: PEGY), the biggest energy spiker of the past few months.

As MMAT was trending up, PEGY was going supernova.

Smart traders saw what was happening, and capitalized.

Like with MMAT, there was no real news. But there were other things I look for:

  • Hot sector: It’s in the solar industry.
  • Low float: It has a 7 million share float.
  • Big volume: On the second day of its October breakout, it traded more than 130 million shares. That’s nearly 20 times its float!
  • Multi-day runner: It sustained its early October run over nearly two weeks.

PEGY gained around 900% from October 3 to 12. Best of all, it had a very tradeable pattern most of those days …

It kept panicking at the open. This sucked in shorts, and made for perfect dip buys as it continued its climb.

Why I Like It

Former runners can run again.

Just check out that 65% spike PEGY had on November 15 in response to earnings. They weren’t even that good!

I’ll be watching it for the intraday panics that it’s shown it can bounce off of.

3. Grab Holdings Ltd. (NASDAQ: GRAB) — The Ride Sharing Penny Stock Spiker

My third Robinhood penny stock pick is Grab Holdings Ltd. (NASDAQ: GRAB). This ride sharing penny stock aims to become the Uber of Southeast Asia.

A big part of Uber’s recent success has come in deliveries. Grab is making big moves into that segment, breaking even for the first time in 2012! That’s largely due to the acquisition of the Malaysian supermarket chain Jaya Grocer, and the resulting food delivery synergies.

Grab isn’t a typical penny stock. It has a float of 2.4 billion shares — it’s a large-cap stock, not a flash in the pan like most penny stocks. This means that its price swings are less drastic than other penny stocks.

Why I Like It

Check out that chart. Even though GRAB doesn’t have the spikeability of other stocks on this list, it’s put together some nice multi-week runs over the past few months.

Right now I’m watching it, not trading it. Knowing its chart will help me trade it if a setup I like comes along.

4. Neurobo Pharmaceuticals Inc. (NASDAQ: NRBO) — The Post-Dilution Biotech Penny Stock

My fourth Robinhood penny stock pick is Neurobo Pharmaceuticals Inc. (NASDAQ: NRBO). NRBO completed the biotech penny stock life cycle recently by doing a $32 million share offering…

Despite this dilution, its float is still only 6 million shares after a 1-for-30 reverse split in September.

It briefly spiked after this reverse split. The traders who bid it up by 650% in the post-reverse split days were ignoring what this stock is and was…

It’s a sketchy biotech stock that was in danger of being delisted. Now that it’s cashed in its September momentum, it’s back on the brink of $1 again.

Why I Like It

If I hate this stock so much, why is it on my watchlist?

I’m only watching this stock. I won’t necessarily trade it.

What am I watching for? Definitely not for this stock to make it back to where it was in September …

When you understand the game of sketchy penny stocks, you can trade them while still playing it safe.

Dilution is part of the game for money-losing biotechs. So is the next pump. Let’s see if NRBO has another run in it.

5. Nine Energy Service Inc. (NYSE: NINE) — The Oil and Gas Penny Stock Play

My fifth Robinhood penny stock pick is Nine Energy Service Inc. (NYSE: NINE). This is one of the remaining low-float oil and gas plays from March’s run that still has some life in it.

Why did it beat out stocks with more March hype like Imperial Petroleum Inc. (NASDAQ: IMPP)? One word: earnings.

It’s been a slow and steady climb up from penny stock land to the $10 level where it sits at the time of writing. It started 2022 in danger of being delisted — in the months since it’s gained around 900%!

NINE’s sales have been helped by the ongoing energy crisis. Although energy stocks are usually slower to respond to panics — witness the nearly $700 I lost trading this stock — the occasional Saudi news item can lead to a spike.

I’m okay with how I’ve traded NINE (far too conservatively). I keep my penny stock trades on a short leash. Holding and hoping is how newbies blow up their accounts.

Why I Like It

NINE isn’t a penny stock for now. I’m definitely not chasing it any higher. And make no mistake — it can go higher.

I look for panics on uptrending stocks like NINE. And I’m not afraid to take a loss if it doesn’t bounce back fast enough.

6. Mullen Automotive Inc. (NASDAQ: MULN) — The EV Penny Stock Play

My sixth Robinhood penny stock pick is Mullen Automotive Inc. (NASDAQ: MULN). I labeled it “the EV penny stock play” but it’s also a favorite of the meme crowd.

They remember the monster runs MULN went on in the last couple of years. I do too — I made over $1,700 trading it.

But I also remember the obscene dilution spree it’s gone on. In the past 16 months, MULN has increased its float by more than 870 million shares!

Even a bottom-of-the-barrel valuation can’t keep MULN’s shame in check. It’s received authorization to sell another 2.25 BILLION shares! You can’t make this stuff up.

Your scam radar has to be set very high in the penny stock world. Better yet, memorize my 7-step pennystocking framework:

Skip ahead to the end. That’s where MULN is.

Why I Like It

Like is a strong word. But meme stock traders have surprised me before. Remember when they sent the stock of Hertz up 680% after the rental car firm gave notice of bankruptcy?

Just because MULN is on the last step of my pennystocking framework doesn’t mean it can’t start over. I’m not betting on it — but I am watching it.

7. Sobr Safe Inc. (NASDAQ: SOBR) — The Exciting Tech Penny Stock Former Runner

My seventh Robinhood penny stock pick is Sobr Safe Inc. (NASDAQ: SOBR). SOBR makes touch-based alcohol detection devices, the first of which came out this year. I can’t figure out why this stock isn’t more hyped than it is.

This stock appeared on trader radar in September, after a government report recommended that highway authorities adopt non-invasive alcohol detection. That’s exactly what SOBR set out to do when it uplisted to the Nasdaq in May.

StocksToTrade’s Breaking News Chat alerted the news in advance of a 300% rally.

Breaking News Chat is my secret weapon with these breakout plays. It’s a good way to make sure you’re not chasing a stock that’s already had its spike.

Check out a two-week trial of StocksToTrade and Breaking News Chat for only $17!

Why I Like It

The market is playing it safe with SOBR. That’s always a smart instinct in the world of penny stocks … especially when a company’s transformational idea isn’t bringing in profits yet.

The multi-week breakout it went on in September and October is a good sign. And I like its small float of under 11 million.

This stock should soon have bigger news than the small contract announcements it’s released so far. When it does — watch out.

8. Versus Systems Inc. (NASDAQ: VS) — The Reverse Split Spiker

My eighth Robinhood penny stock pick is Versus Systems Inc. (NASDAQ: VS). Remember when I said reverse splits can be bad signs?

They can also give a stock stability. After VS did a 1-for-15 reverse stock split in early November, it regained Nasdaq compliance toward the end of the month.

It didn’t have NRBO’s crazy post-reverse split spike, although it did spike a bit. In VS’s case, I think that lack of volatility is a good thing.

Why I Like It

VS is hanging around at the $2 level it debuted at post-reverse split. This could be consolidation for a push higher.

With a cool business centered around interactive advertising and no shortage of press releases, VS might have some more spikes in it.

What to Consider When Trading Penny Stocks

Penny stocks 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.

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.

Here are four things to consider as a penny stock trader:

Price Action

A good way to see whether a penny stock is worth buying is to check its price history. If the stock’s chart shows that it has run before, there’s a good chance that it can run again.

Unusual Volume

The market is based on supply and demand. If there’s a lot of demand — more trading volume than usual — it can drastically affect price.

Besides for price, this is the single most important indicator in penny stock trading.

Real News

Stock prices usually move for a reason, and newsworthy changes often cause prices to rise. But look at how the market is reacting before you trade.

The penny stock world is rife with deception, which brings me to my last point …

Scam Possibilities

There’s always the possibility — heck, the probability — of scammers driving penny stock momentum. Pumps are especially common in this world, because it’s easier for gullible newbies to buy penny stocks than high-priced stocks.

If you see social media chatter about buying a popular penny stock, don’t buy it impulsively. Do your research and determine whether the stock is worth trading before making any decisions.

How to Buy Penny Stocks on Robinhood

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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.

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.

Quick Tips to Making Money With Penny Stocks

artificial intelligence stocks under 10 to watch
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Penny stock trading can bring in a lot of money, but it’s also a risky proposition — you could lose big if you aren’t careful. Here’s what you should do when you’re trading penny stocks:

  • Cut your losses quickly because penny stocks are volatile by nature.
  • Focus on small gains, and don’t overcommit to a stock.
  • Concentrate on day trading instead of holding penny stocks for long-term gains.
  • Research the company before buying its stock, and keep track of industry news.
  • Follow your trading plan.
  • Trade with money you can afford to lose. Even in the worst-case scenario of losing everything you spent on penny stocks, you’ll still have a safety net.

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.

What Is the Minimum Needed to Buy Penny Stocks?

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.

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.

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 checked the penny stocks on Robinhood? What are your penny stock picks?

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Comments (1)
Author imageTimothy Sykes
Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my Trading Challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don’t forget to check out my 30 Day Bootcamp, it will teach you everything you need to know about trading.

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