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
- 1 8 Robinhood Penny Stocks To Watch
- 2 Trading on Robinhood
- 3 Can You Buy Stocks Under $1 on Robinhood?
- 4 Penny Stocks on Robinhood Under 10 Cents
- 5 Robinhood Penny Stocks Market
- 6 How to Find Penny Stocks on Robinhood
- 7 What Is a Good Penny Stock to Buy on Robinhood?
- 8 8 Robinhood Penny Stocks to Watch on Robinhood February 2024
- 8.1 Rail Vision Ltd (NASDAQ: RVSN) — The AI Rail Safety Stock With EU Approval
- 8.2 Processa Pharmaceuticals Inc (NASDAQ: PCSA) — The Positive Results Biotech Stock
- 8.3 Rumble Inc (NASDAQ: RUM) — The Barstool Partnership Stock
- 8.4 Bullfrog AI Holdings Inc (NASDAQ: BFRG) — The AI Psychiatric Research Stock
- 8.5 Phunware Inc (NASDAQ: PHUN) — The Trump Catalyst Stock That Jack and I Are Cautiously Watching
- 8.6 FaZe Holdings Inc (NASDAQ: FAZE) — The ESports Stock Up on Sponsorship News
- 8.7 Safety Shot Inc (NASDAQ: SHOT) — The Biotech Stock That’s Still in Play
- 8.8 Cardio Diagnostics Holdings Inc (NASDAQ: CDIO) — The Other Biotech Stock That’s Still in Play
- 9 What to Consider When Trading Penny Stocks
- 10 How to Buy Penny Stocks on Robinhood
- 11 Trading Fees on Robinhood
- 12 Quick Tips to Making Money With Penny Stocks
- 13 What Is the Minimum Needed to Buy Penny Stocks?
- 14 Key Takeaways
- 15 Penny Stocks to Watch on Robinhood FAQs
- 15.1 In which countries is Robinhood available for trading penny stocks, and who are its main competitors?
- 15.2 How is the page design on Robinhood’s app, and does it include any gamification elements (games) to engage users in penny stock trading?
- 15.3 How can one purchase penny stocks on Robinhood, and what are the payment options, including using a cash account or credit?
8 Robinhood Penny Stocks To Watch
My top Robinhood penny stock picks for February — rated on chart pattern, price action history, and news — include the following:
The penny stocks on this list are some of the wildest movers on the market …
Trading any of these stocks should be approached with a clear strategy and an understanding of the risks involved. I don’t trade until I see a setup I like.
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.
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:
- Log into your Robinhood account.
- Select the magnifying glass, and click on the “Trending Lists” menu.
- 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.
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 February 2024
My top 8 Robinhood penny stocks to watch in February 2024 are:
- NASDAQ: RVSN — Rail Vision Ltd — The AI Rail Safety Stock With EU Approval
- NASDAQ: PCSA — Processa Pharmaceuticals Inc — The Positive Results Biotech Stock
- NASDAQ: RUM — Rumble Inc — The Barstool Partnership Stock
- NASDAQ: BFRG — Bullfrog AI Holdings Inc — The AI Psychiatric Research Stock
- NASDAQ: PHUN — Phunware Inc — The Trump Catalyst Stock That Me and Jack Are Cautiously Watching
- NASDAQ: FAZE — FaZe Holdings Inc — The ESports Stock Up on Sponsorship News
- NASDAQ: SHOT — Safety Shot Inc — The Biotech Stock That’s Still in Play
- NASDAQ: CDIO — Cardio Diagnostics Holdings Inc — The Other Biotech Stock That’s Still in Play
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 Rail Vision Ltd (NASDAQ: RVSN) 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 Rail Vision Ltd (NASDAQ: RVSN), Bullfrog AI Holdings Inc (NASDAQ: BFRG), and Cardio Diagnostics Holdings, Inc. (NASDAQ: CDIO).
- 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 …
Rail Vision Ltd (NASDAQ: RVSN) — The AI Rail Safety Stock With EU Approval
My first Robinhood penny stock pick is Rail Vision Ltd (NASDAQ: RVSN).
On January 22 the company announced it secured EU approval for railway standards.
Government contracts and approvals are good catalysts for penny stocks.
Imagine a crappy little company that rarely announces news. The price lazily trades a few thousand shares a day.
Then, all of a sudden, it announces something big like government compliance. That’s a huge vote of confidence for a stock that previously had very little going for it.
After the January 22 announcement, prices spiked 570%. And there’s a possibility it could push higher.
Considering the strength of the market right now, we’re more likely to see multi-day runners. And RVSN is currently consolidating above the $7 price level.
I already traded it on January 25 for a 6% gain. And I’m ready for the next setup.
Keep an eye on the breakout level at $10.
Processa Pharmaceuticals Inc (NASDAQ: PCSA) — The Positive Results Biotech Stock
My second Robinhood penny stock pick is Processa Pharmaceuticals Inc (NASDAQ: PCSA).
PCSA works to create chemotherapy drugs capable of helping cancer patients.
During premarket hours on January 25, the company announced the successful completion of its cancer study safety evaluation. The price spiked 180% in one morning.
And my scan alerted it before the market even opened.
UPDATE: 166% GAIN off of $PCSA 🔥
— StocksToTrade (@StocksToTrade) January 25, 2024
The market’s best setups can show us early signs of running. And traders with the best tools are more likely to succeed.
I mention scan in my trade notes …
January 25 was just day one.
The price spiked even higher during after hours.
At this point: Anything is possible.
- The price could gap up and keep running.
- It could consolidate before another breakout.
- It could crash after one day of strength.
That’s why we don’t predict. We react.
The hottest stocks in the market like to follow popular patterns. We wait until the price matches a specific framework, then we plan a trade that mitigates risk.
It’s not gambling. There’s a science behind this process.
Rumble Inc (NASDAQ: RUM) — The Barstool Partnership Stock
My third Robinhood penny stock pick is Rumble Inc (NASDAQ: RUM).
Rumble is a media company competing with YouTube.
In the last few years, YouTube banned certain media personalities and specific videos for a variety of reasons. The censorship is a huge issue for some creators.
Rumble’s goal is to provide a space for creators to post content with less censorship.
Now, let’s fast forward to the most recent news:
On January 22, during premarket hours RUM announced a partnership with Barstool Sports. And Dave Portnoy confirmed Barstool would air its video content on Rumble.
Barstool and Dave Portnoy have a HUGE following. The main Barstool Instagram has 15.7 million followers.
Share prices of RUM spiked 90% as a result. I’ve traded it twice already, both for a profit.
We don’t know how far the price will spike.
Trade this momentum while it lasts.
Prices pulled back from the highs. That’s a good sign. We don’t want to buy an overextended stock.
Pay attention to any price consolidation. Right now I’m seeing support at $5. And a breakout level at $7.
Bullfrog AI Holdings Inc (NASDAQ: BFRG) — The AI Psychiatric Research Stock
My fourth Robinhood penny stock pick is Rumble Inc (NASDAQ: RUM).
The price spiked 50% on January 17 after BFRG announced a collaboration with Lieber Institute to map the brain using novel AI discoveries.
It pushed even higher the next few days. This is a multi-day runner that launched 200% so far. And the price is still trading near the highs.
I’m not comfortable buying at these levels in hopes of a subsequent breakout. This move is largely unsustainable and the price will eventually pull back.
The January 17 announcement includes a lot of fluff rhetoric. Things like:
- “… may turn out to be …”
- “… could revolutionize …”
- “… have the potential to …”
The announcement doesn’t show any clear value added.
The company may expand on these opportunities in the future. But the recent 200% run is due to hype.
And I’m hoping this stock crashes. The process that I use to trade helps me profit on the way up AND the way down.
I’m looking for a panic dip buy opportunity.
When volatile stocks fall from the highs, there’s an opportunity to buy when the movement is overextended on the lower end.
The strategy is to hold for a few minutes and ideally sell into a decent bounce.
But don’t overstay your welcome. The price will likely continue lower.
- Identify key price action.
- Get in.
- Get out.
And then we repeat the process on the next big runner.
Phunware Inc (NASDAQ: PHUN) — The Trump Catalyst Stock That Jack and I Are Cautiously Watching
My fifth Robinhood penny stock pick is Rumble Inc (NASDAQ: RUM).
The 2024 political election is in full swing.
And certain political events have already acted as catalysts for HUGE stock spikes.
For example: Donald Trump won the Republican Iowa caucus on January 15. That’s why PHUN spiked 580% the next day.
Digital World Acquisition Corp. (NASDAQ: DWAC) spiked 230% following the news as well.
PHUN was involved in Trump’s 2020 election campaign. And DWAC is a SPAC that represents Trump’s social media company, Truth Social.
It’s no surprise these stocks are spiking while Trump wins key political races. They’re past spikers that are directly associated with the former president.
Caution: these spikes are unsustainable.
Trump may win the Republican nomination. But that doesn’t mean his social media company is worth more money.
The same goes for PHUN’s puny software company.
The spike is based on hype. But we can use that hype to profit.
We’re both watching PHUN right now for the perfect entry. But there’s a lot of volatility, so we have to be cautious.
I’m focused on PHUN because the share price is lower.
DWAC is a solid runner but it’s priced over $30.
If the shares are cheap, I can load up and ride the percent gain for bigger profits.
That’s the whole idea behind my profit strategy.
Pay attention to $PHUN’s price action over the last month. That’s how we find key support and resistance levels.
FaZe Holdings Inc (NASDAQ: FAZE) — The ESports Stock Up on Sponsorship News
My sixth Robinhood penny stock pick is Rumble Inc (NASDAQ: RUM).
This is a huge former runner that’s back from the dead.
In 2022 I traded FAZE for a $3,668 profit (starting stake of $24,900). These former spikers WILL spike again. It’s just a matter of time.
Most people might have misgivings about buying shares of a crappy Esports company.
Remember: We’re just trying to ride the hype for a profit.
On January 23 the company announced a new multi-million dollar sponsorship deal with Rollbit. The price spiked 270%. And the stock is still consolidating.
There’s a lot of resistance at $0.40. But the breakout level is even higher. Around $0.50.
I want the price to push above $0.40 before I think about making a trade.
Don’t get stuck on the wrong side of this price action.
Safety Shot Inc (NASDAQ: SHOT) — The Biotech Stock That’s Still in Play
My seventh Robinhood penny stock pick is Safety Shot Inc (NASDAQ: SHOT).
Shorts kept trying to guess the top on SHOT.
That’s what turned it into a massive short squeeze.
For the moment, it looks like short sellers got the best of it. SHOT lost 50% of its value in January.
But it’s still possible the stock could erupt into another massive short squeeze.
Some degenerates won’t be satisfied until SHOT sinks back to $1. That’s a dangerous game. If there are too many short sellers in a stock, any bullish momentum could cause them to panic and get out. The panic buying contributes to the spike and soon enough there’s another supernova squeeze.
All we need is a bullish catalyst to ignite it.
Like the January 19 announcement that SHOT will partner with internet personality, SteveWillDoIt. Celebrity partnerships are common for trashy penny stocks.
There isn’t much resulting volatility yet. But the longer Steve pumps SHOT, the higher chance there is for bullish momentum.
Cardio Diagnostics Holdings Inc (NASDAQ: CDIO) — The Other Biotech Stock That’s Still in Play
My eighth Robinhood penny stock pick is Cardio Diagnostics Holdings Inc (NASDAQ: CDIO).
There are a bunch of biotech runners that offer profit opportunities right now.
SHOT was just one example. CDIO is my second favorite.
The biotech sector was hot during all of 2023. And so far, 2024 is very similar.
CDIO is testing the $2 support level right now. And the company is doing its best to inflate the price with bullish press releases.
In early January it announced that the artificial intelligence platform could help prevent heart attacks.
The announcement didn’t contain much solid evidence of value added. But it’s nice to see the company is still trying to push prices higher.
That bodes well for future 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:
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.
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.
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 …
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:
- Log into your Robinhood account.
- Use your debit card or bank account to transfer funds into your Robinhood account.
- Choose a penny stock to buy.
- 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).
- Input how many shares you want to buy.
- Review your order and ensure everything is correct.
- 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.
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.
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.
- 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.