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Top 8 Penny Stocks to Watch on Robinhood in July 2024

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Written by Timothy Sykes
Reviewed by Friedrich Odermann Fact-checked by Ed Weinberg
Updated 7/1/2024 34 min read

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.

Table of Contents

8 Robinhood Penny Stocks to Watch on Robinhood July 2024

My top 8 Robinhood penny stocks to watch in July 2024 are:

  • NYSE: GME — GameStop Corp — The Supernova Meme Stock That Roaring Kitty Just Can’t Quit
  • NYSE: AMC — AMC Entertainment Holdings Inc — The GME Sympathy Penny Stock
  • NASDAQ: FFIE — Faraday Future Intelligent Electric Inc — The Meme Sympathy Play Former Runner
  • NASDAQ: AISP — Airship AI Holdings Inc — The 10.45 AM Rule AI Penny Stock
  • NASDAQ: LGVN — Longeveron Inc — Another 10.45 AM Winner
  • NASDAQ: KAVL — Kaival Brands Innovations Group Inc — The Super Low-Float Penny Stock Runner
  • NASDAQ: MBIO — Mustang Bio Inc — Jack’s $50k Winner* (and My Small Gains Classic)
  • NASDAQ: NNE — Nano Nuclear Energy Inc — The Weekend Winner That I Sold Too Soon

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 AMC Entertainment Holdings Inc (NYSE: AMC) 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 AMC Entertainment Holdings Inc (NYSE: AMC), GameStop Corp (NYSE: GME), and Faraday Future Intelligent Electric Inc (NASDAQ: FFIE).

  • 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 …

GameStop Corp (NYSE: GME) — The Supernova Meme Stock That Roaring Kitty Just Can’t Quit

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My first Robinhood penny stock pick is GameStop Corp (NYSE: GME).

The GameStop hype continues in 2024!

Let me explain:

GME doesn’t deserve to spike +100%. It’s an out-of-date video-game retailer in an ecosystem that’s dominated by online game providers, like Steam.

Because the stock is crap, a lot of major Wall Street players were/are shorting it.

Theoretically, it’s a good strategy. Crap stocks will probably drop lower. And it’s profitable for short sellers.

But there’s one major issue: If there are too many short sellers in a stock, the strategy can become overcrowded.

When short sellers exit a position, they buy to cover. And if the short ratio is too high, the momentary bullish momentum can cause a domino effect of short sellers blowing up.

It looks like a massive stock spike that traders are banking off of. But in reality, it’s mostly short sellers blowing up. Except for a select-few traders  who are savvy enough to profit off the common price action. Like me and my students.

Roaring Kitty, A.K.A. Keith Gill was one of the first traders to recognize the GME short-squeeze potential back in 2020 … and on Sunday, May 12, 2024 he returned to social media after a long hiatus.

One of my most successful millionaire students, Jack Kellogg already banked off of the most recent GME spike in 2024.

GME Trade Opportunities

Ever since Gill’s post on May 12, GME’s been on the move. And there are profit opportunities as it whipsaws through volatility.

Take a look at some examples of trades that Jack made below:

Keep in mind, Jack is trading with a larger account than most of us.

Source: Profit.ly
Source: Profit.ly

One of the most recent updates in the GME story: Keith Gill held a YouTube livestream on Friday, June 7. And it kind of blew up in his face.

Here are the details.

But, as long as Gill continues to hold shares and post on social media, the GME volatility will continue.

We just have to wait for the price action to match our framework.

AMC Entertainment Holdings Inc (NYSE: AMC) — The GME Sympathy Penny Stock

My second Robinhood penny stock pick is AMC Entertainment Holdings Inc (NYSE: AMC).

AMC is a veteran sympathy play from the first GME spike in 2021. And when GME spiked again in May 2024, AMC spiked too …

You guessed it: Jack took some CRAZY profits on this stock.

See some examples below:

Source: Profit.ly
Source: Profit.ly

AMC surged over $11 per share on May 14. In total, it spiked 300%* before pulling back.

But back in 2021, AMC spiked past $60 … 

(The yearly chart shows AMC spiked much higher because of a reduction in the total share count. It’s a ratio issue.)

There’s no telling how high the price could spike in 2024.

Currently, the chart is consolidating above $4, more than 50% off of the recent highs. It’s been doing that for more than a month …

Wait for the chart to match one of the patterns within our trading framework.

We could see a #5 bounce any day. And remember, this stock is tied to Keith Gill’s meme momentum.

Faraday Future Intelligent Electric Inc (NASDAQ: FFIE) — The Meme Sympathy Play Former Runner

My third Robinhood penny stock pick is Faraday Future Intelligent Electric Inc (NASDAQ: FFIE).

FFIE spiked as a direct result of the meme-stock momentum caused by Keith Gill’s return to social media. This is one of the most impressive meme runners since Gill resurfaced.

It ran 9,600%* in one week.

Once again … my students, like Jack Kellogg, were ready and waiting.

Source: Profit.ly

You don’t need to be a professional trader to profit off of these moves.

Jack Kellogg is one of the best traders in our community … But you might have noticed that his starting stakes are MASSIVE!

There are a lot of people profiting right now who aren’t as successful as Jack.

See the posts on X below:



Most small-account traders don’t have $50k to put toward a stock …

That’s OK!

Jack’s success is something to strive for. But recognize that all of my students start from humble beginnings. And we take it one trade at a time.

FFIE never traded above $4 … You could start with $100 in your account. Heck, you could start with $10.

That’s the beauty of this niche: Massive percent gains are accessible for traders with small accounts.

Even for brand new traders, there are HUGE opportunities to succeed!

The first week of the FFIE spike, our AI bot alerted four different profitable trade entries. You could have traded any of these setups …

See the chart below, every candle represents one trading minute:

FFIE chart multi-day, 1-minute candles Source: StocksToTrade

Just like AMC, FFIE is consolidating way off of the highs … We could see a bounce opportunity any day.

>> Get the next AI trade alert <<

You don’t need to be an expert. You just need to follow the rules.

Airship AI Holdings Inc (NASDAQ: AISP) — The 10:45 A.M. Rule AI Penny Stock

My fourth Robinhood penny stock pick is Airship AI Holdings Inc (NASDAQ: AISP)

There’s a new pattern in the stock market right now.

Don’t worry, the framework that we use to trade is still the same!

Here’s the difference:

Due to the overall market strength in 2024 and the return of meme-stock volatility thanks to Keith Gill and GameStop Corporation (NYSE: GME), we’re watching volatile stock spikes follow our framework at a different time of day.

It’s called the 10:45 A.M. rule.


There’s a lot of volatility right after the market opens, in the first hour, between 9:30 A.M. Eastern and 10:30 A.M. Eastern.

And there are amazing opportunities to profit during that volatility. But the price moves fast and there isn’t as much price action to help traders find key support and resistance levels.

Instead … Thanks to the immense bullish momentum in this market, a trader can wait until 10:45 A.M. (this is an inexact science) and find a decent setup using price action from earlier that morning.

Usually, bullish momentum dies down mid day, that’s what makes this pattern “new”.

The 10:45 A.M. Trade On AISP:

AISP was one of the first stocks to follow this new pattern in June, 2024. Take a look at my post on X below:


These stocks don’t deserve to spike mid-day. There aren’t any fundamentals to support the huge moves.

That’s how we know it’s a bullish short squeeze.

When there’s bullish price action intraday on crap stocks, it’s a hint the price could squeeze higher …

Take a look at the chart below that shows key consolidation before AISP surges higher.

Every candle represents one trading minute:

AISP chart intraday, 1-minute candles Source: StocksToTrade

I traded AISP two times that day, on June 11, when it first spiked. See my notes below:

Source: Profit.ly

And on June 20 the stock broke past June 11 levels to make new highs.

This volatility isn’t over … 

Longeveron Inc (NASDAQ: LGVN) — Another 10:45 A.M. Winner

My fifth Robinhood penny stock pick is Longeveron Inc (NASDAQ: LGVN).

AISP wasn’t the only stock to follow this midday-spike pattern …

See the post on X below:

I included a chart below that shows the consolidation more clearly. Every candle represents one trading minute:

LGVN chart intraday, 1-minute candles Source: StocksToTrade

I traded LGVN three times that day, June 13. See my notes below:

Source: Profit.ly

Thanks to recent price action, the multi-day chart shows consolidation above $2 and a breakout level at $4.

Those are key levels to pay attention to as the stock continues to move in July.

Kaival Brands Innovations Group Inc (NASDAQ: KAVL) — The Super Low-Float Penny Stock Runner

My sixth Robinhood penny stock pick is Kaival Brands Innovations Group Inc (NASDAQ: KAVL).

Yet another 10:45 A.M. winner! Burn this strategy into your brain!

See the post on X below:

Here’s an example of my profits on KAVL from that Friday using the 10:45 A.M. pattern:

Source: Profit.ly

I snagged 3% from the 29% available, LOL.

You can do better than me! I have a crazy schedule traveling and teaching. It can hold me back from truly capitalizing on these plays.

A LOT of my students did better.

See my post from X below:

This stock could surge higher in July … One of the main factors contributing to that possibility is the tiny share count, also known as the float.

Anything below 10 million shares in the float is considered a low supply of shares. And the low supply helps prices spike higher when demand increases.

KAVL boasts a float of only 865k shares … Way below our goal of 10 million shares or fewer.

Mustang Bio Inc (NASDAQ: MBIO) — Jack’s $50k Winner* (and My Small Gains Classic)

My seventh Robinhood penny stock pick is Mustang Bio Inc (NASDAQ: MBIO).

We got a trade alert for this stock on June 17 during pre-market hours. Take a look at the chart below with the trade notification, every candle represents 1 trading minute:

MBIO chart intraday, 1-minute candles Source: StocksToTrade

>> Get the next Breaking News alert <<

Jack Kellogg wasted NO time trading this runner. See the post on X below:

In true Tim-Sykes fashion, I took a smaller part of the move, LOL. See my trade notes below:

Source: Profit.ly

But I could decide to trade this runner again … 

The price action is consolidating after the spike. And StocksToTrade shows a float of 12.2 million shares. That’s close enough to our goal of 10 million or fewer. This is an inexact science.

As a result, MBIO could show us A LOT more volatility in July.

Nano Nuclear Energy Inc (NASDAQ: NNE) — The Weekend Winner That I Sold Too Soon

My eighth Robinhood penny stock pick is Nano Nuclear Energy Inc (NASDAQ: NNE).

Every Friday we watch for a very specific trade pattern.

Friday’s are special because of the incoming weekend:

  • Short sellers usually buy back shares to cover positions and forego possible Monday gap ups.
  • Long-biased traders are trying to take advantage of the same Monday gap ups.

As a result, there’s a lot of bullish momentum that manifests in the market.

And the price action likes to follow our Friday framework. See the video below:

I used this exact pattern to trade NNE the weekend of June 14 to the 17. See my trade notes below:

Source: Profit.ly

Of course, I sold too soon … My exit price was $9.72. And shares spiked to $16.50 as of June 20.

Study my and Jack’s trade process. You can do better than me. Strive for Jack’s level of greatness!

Keep NNE on your watchlist this month. It’s on a strong multi-week run that could explode in July.


*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

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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.

How to Find Penny Stocks on Robinhood

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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.

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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

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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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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

* 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”