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!

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.

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

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.

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 diving into specific sectors like biotech, additional resources can be valuable. Explore the hot sector of biotech penny stocks to diversify your trading. These insights can provide a more comprehensive view of the market and help you make informed decisions.

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.  

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.

8 Robinhood Penny Stocks to Watch on Robinhood September 2023

My top 8 Robinhood penny stocks to watch in September 2023 are:

• NASDAQ: TSHA — Taysha Gene Therapies, Inc. — The Biotech Stock at 52-Week Highs
• NASDAQ: AREB — American Rebel Holdings Inc — The Not-Too-Safe Safe Stock That Isn’t Giving Customer Combos to the FBI
• NASDAQ: VERB — Verb Technology Company Inc. — The TikTok News Robinhood Penny Stock
• NYSE: AMC — AMC Entertainment Holdings Inc. — The Reason You Never Trust a Penny Stock
• NASDAQ: NVOS — Novo Integrated Sciences Inc — Jack Kellogg’s #1 Long Watch Biotech Penny Stock
• NASDAQ: VFS — VinFast Auto Ltd. — The Recent IPO Jack Is Watching for a First Green Day
• NASDAQ: ICCT — iCoreConnect Inc — The Penny Stock Jack Is Watching for a First Green Day and I’m Watching for a Panic Dip Buy
• NASDAQ: AXLA — Axcella Health Inc. — Another Biotech Stock on Jack Kellogg’s Watchlist

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.

Taysha Gene Therapies, Inc. (NASDAQ: TSHA) — The Biotech Stock at 52-Week Highs

My first Robinhood penny stock pick is Taysha Gene Therapies, Inc. (NASDAQ: TSHA).

Most people think sketchy biotech stocks are worthless.

But really, they offer huge profit opportunities for small-account traders.

Take a look at TSHA …

It spiked on August 14 after announcing the company secured $150 million in private placement.

A private placement means a private investor bought shares of the company.

When the news dropped, TSHA’s market cap was less than $140 million. That means TSHA secured more money than it was worth.

That’s a huge sign of value added. And it’s why the price spiked more than 230% after the news went public.

Directly after the spike, it pulled back and started to consolidate. These plays CAN spike for multiple days and weeks, but they pull back now and then to consolidate. The price can’t spike forever … 

There was a failed breakout on August 24. Usually, that’s a sign the spike is over.

But in early September, it rallied and is trading near 52-week highs. If prices break through that $4 level, we could witness a parabolic move.

What about the failed breakout? How is it still spiking?

Good question. Here’s your answer: Shorts are stuck.

Everyone knows this is a crappy stock. The failed breakout lured in overzealous short sellers. And when there are too many short sellers, some of them get squeezed out.

Watch the video below for a guide to trading short squeezes …

I also understand there’s an ongoing investigation by Bronstein, Gewirtz & Grossman, LLC into the most recent price action …

We’ve seen investigations cause stocks to squeeze higher too.

American Rebel Holdings Inc (NASDAQ: AREB) — The Not-Too-Safe Safe Stock That Isn’t Giving Customer Combos to the FBI

My second Robinhood penny stock pick is American Rebel Holdings Inc (NASDAQ: AREB).

On September 6 we learned that Liberty Safe, while claiming to sell America’s #1 gun safes, provided the FBI with the codes to a safe belonging to a January 6 rioter.

I’m not here to discuss politics.

But the hype behind certain politically charged events CAN lead to substantial profits.

There’s already a significant amount of backlash from consumers and certain political affiliates. And AREB was quick to build on the hype.

On September 6, during after-hours, the company announced its subsidiary received a multitude of calls and requests to replace Liberty Safe products with ones that won’t give the FBI access.

AREB’s CEO also included a message that his company would seek to preserve personal freedoms.

The sign of increased demand launched the stock over 140% in less than two days.

But remember, this is all hype. Penny stock spikes don’t last forever.

We can ride the volatility while it lasts. But don’t believe the crap they’re peddling. It’s all smoke and mirrors.

Verb Technology Company Inc. (NASDAQ: VERB) — The TikTok News Robinhood Penny Stock

My third Robinhood penny stock pick is Verb Technology Company Inc. (NASDAQ: VERB).

There are a lot of reasons a stock could spike.

Some of these catalysts are more obvious than others, but don’t worry …

The more experience you gain, the easier this becomes.

I had to teach myself more than 20 years ago because nobody was trading these gigantic moves. Imagine what it would be like if you didn’t have these watchlists full of valuable information.

It’s a shark’s nest out there.

I think that’s why all my millionaire students come from the Trading Challenge. It has all of the materials necessary for growing traders …

• Live trade webinars
• A library of trade reviews
• Video lessons
• The Challenge chat room

It’s not a 100% guarantee. This niche isn’t for everyone. But if you made it this far, you might have the right mindset …

>> Apply to join my Trading Challenge today <<

I’m sure most of my students have eyes on VERB as well.

For a seasoned trader, it’s an obvious watch.

On September 5 the company announced a “groundbreaking” TikTok integration. For penny stocks, a partnership with a famous company is like hitting the jackpot.

And TikTok is a globally viral sensation.

Plus, the float is only 3.6 million shares. Anything below 10 million is considered a low supply of shares. And the low supply helps prices spike higher when demand increases.

Naturally … the price spiked 360% after the news went public.

Prices pulled back since September 5, but already we’re seeing signs it could consolidate and push higher.

There’s support at the $1.50 level. Keep an eye on that for a potential bounce.

AMC Entertainment Holdings Inc. (NYSE: AMC) — The Reason You Never Trust a Penny Stock

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

I’ve already mentioned it … these spikes don’t last forever.

Ultimately, the stock price is low for a reason: The companies are garbage.

I’m not trying to find the next penny stock that makes it big. Understand, 99% of them will forever be penny stocks until they delist.

BUT … The low price and sketchiness encourage profitable volatility. As long as we understand what they are, we can mitigate the risk involved.

For example, AMC is a crappy theater company.

It’s estimated by some that it has almost $5 billion in debt. Which is probably why, on September 6 the company announced it might sell up to 40 million new shares to raise capital.

That’s a HUGE share dilution.

Prior to the offering, AMC carried out a 1-for-10 reverse split. From the point in mid-August that plans for the split were announced until now, shares are down over 80%.

Meanwhile, there are still bagholders from 2021 and 2022 that believe it could rally. Where are my diamond-hand bros at?

Don’t get me wrong, the spike was incredible. Prices launched over 3,500% in 2021.

But it’s imperative we know how to take profits.

AMC is not the next AAPL. It will never be the next AAPL.

I’d like to see it prove me wrong … But I have NO faith in it. That’s the mindset you need when you’re trading.

Novo Integrated Sciences Inc (NASDAQ: NVOS) — Jack Kellogg’s #1 Long Watch Biotech Penny Stock

My fifth Robinhood penny stock pick is Novo Integrated Sciences Inc (NASDAQ: NVOS).

I mentioned my millionaire students earlier …

Jack Kellogg is one of the best-known.

I’m proud of all the students who continue to push and grow in this niche. But Jack Kellogg is an example of the true opportunities.

He’s profited over $12.7 million from trading in less than 5 years.

Compare that to my $7.4 million over 2 decades … Jack is a better trader than I am.

And one of his top stocks to watch is NVOS.

He mentioned it as his “#1 long watch” in a recent Challenge watchlist.

I won’t reveal Jack’s whole trade plan … We reserve that information for Challenge students.

But if you see what we see, start planning a trade.

Here’s a hint: It’s approaching multi-month resistance.

*Psst, if you don’t know what support and resistance are, watch the video below … *

NVOS first spiked on August 15 after it announced an agricultural partnership with Farm7 Group Inc.

But it continues to push higher because lately, short sellers are greedily piling into these trash stocks at the top. Just like TSHA.

Any more bullish momentum starts the domino effect all over again.

NVOS is in the middle of a HUGE squeeze. And that volatility can be profitable.

VinFast Auto Ltd. (NASDAQ: VFS) — The Recent IPO Jack Is Watching for a First Green Day

My sixth Robinhood penny stock pick is VinFast Auto Ltd. (NASDAQ: VFS).

VinFast is a Vietnamese EV manufacturer.

On August 15 it IPO’d and started trading at $22 per share.

IPOs are historically volatile.

I had eyes on it, but I don’t usually trade stocks over $5. I’m a small account trader, I like to load up on cheap shares and ride the wave.

It spiked on Day 1 and then sank lower.

I thought it was another failed IPO and I hoped to see it enter penny-stock territory soon.

But the week of August 21 it spiked more than 370%. That’s the kind of spike we see from penny stocks …

And it’s all because of the float.

There are only 1.3 million shares outstanding. That means the volatility will likely continue. Prices are a little high for me still, but Jack Kellogg is ready to go.

Here’s what he’s watching …

• VinFast just fell drastically off of the highs.
• Stocks that fall dramatically will sometimes offer substantial trade opportunities with a price bounce.
• It’s called the first green day: A huge spike with news after multiple days of sluggish price action.

This is what I’m talking about …

Wait for the volume to come back in. We need the volume to push prices back up.

And remember … we’re not looking to retest the highs. We just want to trade the bounce.

iCoreConnect Inc (NASDAQ: ICCT) — The Penny Stock Jack Is Watching for a First Green Day and I’m Watching for a Panic Dip Buy

My seventh Robinhood penny stock pick is iCoreConnect Inc (NASDAQ: ICCT).

The beauty behind my process is the amount of opportunities to profit.

Jack and I are watching the same stocks but we trade them differently.

Jack likes the first green day pattern.

I like to panic dip buy. There’s a video below explaining the pattern …

ICCT follows my 7-step framework. But within the framework, there are multiple strategies possible.

It already spiked 10,700% in August. We’ll see what September brings …

The price dipped after the spike.

But ICCT is still holding some of its gains. That consolidation could hint at higher prices in the future.

It’s not a guarantee, but that’s why we rely on popular patterns to mitigate the risk involved.

ICCT is a shining example of a red-hot biotech industry. Biotech stocks are always solid runners, but the sector isn’t always hot.

For the last few months, we have seen A LOT of biotech spikes. That makes our biotech trade conviction stronger.

Keep an eye out for more.

Axcella Health Inc. (NASDAQ: AXLA) — Another Biotech Stock on Jack Kellogg’s Watchlist

My eighth Robinhood penny stock pick is Axcella Health Inc. (NASDAQ: AXLA).

In case you hadn’t noticed there are some renewed COVID fears right now …

• Colder weather brings seasonal illness
• People are going back to school
• There’s news of new strains

I don’t think there’s anything to fear.

And I don’t think we’ll lock down again. But the hype manifests in the market.

That’s our sign to plan a trade.

On August 29, AXLA was granted a patent by the U.S. Patent and Trademark Office (USPTO) for its Long COVID fatigue treatment.

For a biotech penny stock … a U.S. patent related to a famous subject like COVID has spike potential.

That morning it launched over 350%.

The price promptly sank back down. I thought I would witness another spiker fade into the depths below.

But starting September 1 it showed signs of renewed life and then broke through resistance on September 7.

It’s in full short-squeeze mode.

Stay on top of this play!

You DON’T want to miss any follow-up moves.

What to Consider When Trading 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.

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

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.

Why Do Only Certain Penny Stocks Appear On Exchanges?

Attention to detail, that’s what you need when looking at why only certain penny stocks appear on exchanges. You’ll find some of them on Robinhood and other platforms, but why not others? Here’s the fact: Exchanges like the NYSE have specific requirements. Pink sheets, often home to Canadian penny stocks like Xela, operate with different rules. There’s a range of factors including capitalization, regulatory compliance, and partners’ links that determine what makes it to the public eye. In this diverse world of investments, there are types and categories of stocks that might not make it to the main stage. Knowing the difference and understanding where to look – be it newsletters, articles, or PDFs – can put you one step ahead in the game. Always keep an eye on the corner of the market that fits your strategy, but don’t lose sight of the entire playing field.

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

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.

Making money with penny stocks requires a combination of strategy, research, and understanding of market dynamics. While focusing on small gains and cutting losses quickly is essential, staying updated with the latest trends and tools can also be a game-changer. Whether you’re a beginner or an experienced trader, continuous learning is key. Learn more about the most active penny stocks to keep an eye on here. It offers valuable insights and tips to help you navigate the ever-changing world of penny stocks.

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 traded penny stocks on Robinhood? What are your penny stock picks?

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.