As interest in penny stocks continues to grow, Robinhood remains a popular choice for trading these under $5 stocks. With high volatility and a low barrier to entry, penny stocks on Robinhood offer opportunities for disciplined traders aiming to build smaller accounts. Here’s a look at three top Robinhood penny stocks to watch after Trump’s election win, alongside trading insights and key risks to consider.
My top Robinhood penny stock picks after Trump’s win — rated on chart pattern, price action history, and news — include the following:
Stock Ticker | Company | Performance (YTD) |
---|---|---|
NASDAQ: PHUN | Phunware Inc | - 71.39% |
NASDAQ: DJT | Trump Media & Technology Group Corp | + 100.20% |
NASDAQ: DRUG | Bright Minds Biosciences Inc | + 2,534.24% |
3 Robinhood Penny Stocks to Watch After Trump’s Election Win
My top 3 Robinhood penny stocks to watch after Trump’s victory are:
- NASDAQ: PHUN — Phunware Inc — The Donald Trump Pump AI Penny Stock
- NASDAQ: DJT — Trump Media & Technology Group Corp — The Trump Mid-Cap Stock
- NASDAQ: DRUG — Bright Minds Biosciences Inc — The Meme Biotech Stock Supernova
Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.
The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.
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1. Phunware Inc (NASDAQ: PHUN) — The Donald Trump Pump AI Penny Stock
Phunware Inc, a tech company focused on AI-powered mobile engagement, has been on the radar for many Robinhood traders. Following its October 16 announcement of a generative AI platform, PHUN gained traction for its dual focus on AI and political connections.
Key Drivers:
- Trump Association: PHUN has historical ties to Donald Trump’s campaigns, often sparking significant price movements. Ahead of the November 5 election, the stock surged by 330%*, highlighting its sensitivity to political events. Here’s a look at PHUN’s incredible post-election volatility.
- AI Innovation: With growing interest in generative AI, PHUN’s platform announcement positions it within one of the market’s most dynamic sectors.
Trading Insight: Watch for post-election volatility. PHUN’s history suggests that price fluctuations are likely, regardless of election outcomes. Use technical analysis to determine entry points that align with familiar trading patterns.
2. Trump Media & Technology Group Corp (NASDAQ: DJT) — The Trump Mid-Cap Stock
Representing Truth Social, Trump Media & Technology Group has a history of sharp, speculative price spikes, making it one of the most-watched stocks in the lead-up to the election.
What to Watch:
- Significant Price Swings: DJT spiked 1,600%* in October 2021, followed by additional gains in early 2024. In October 2024, the stock rose 260%* as election momentum built. Even though DJT isn’t a penny stock I’d still advise traders to stick to a disciplined trading plan — at the time of writing it’s down 35% from its post-election highs!
- Speculative Appeal: Though Truth Social faces challenges with user growth and revenue, its trading history suggests that it remains a candidate for short-term gains.
Advice for Traders: Identify familiar patterns and set clear exit strategies to manage risk. DJT’s history of sharp reversals underscores the need for strict risk management.
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3. Bright Minds Biosciences Inc (NASDAQ: DRUG) — The Meme Biotech Stock Supernova
Bright Minds Biosciences has delivered one of the most significant penny stock moves this year. On October 15, DRUG experienced a massive short squeeze, jumping from $3 to $38 intraday, totaling a 3,000%* gain by October 18.
Check out my video!
Lessons From This Week’s 1,000%-2,000% Short Squeezes
Why Traders Are Interested:
- Continued Volatility: The stock remains at elevated price levels, presenting potential intraday opportunities.
- Short Squeeze Dynamics: High short interest can trigger sharp price increases when traders rush to cover positions.
Strategic Tip: Use price dips to capture potential rebounds. This aligns with the “Dip Buy” and “Dead Pump Bounce” phases in my 7-Step Pennystocking Framework.
*Past performance does not indicate future results
Best Practices for Trading Penny Stocks on Robinhood
Trading penny stocks can be risky, especially on a platform like Robinhood, which is optimized for ease of access but lacks some advanced trading features. Here’s how to approach these trades smartly:
- Monitor Volume and Catalysts: Watch for sudden volume increases and news catalysts that can drive price movements.
- Use Technical Analysis: Rely on chart patterns and historical price data to guide entry and exit points.
- Set Stop-Loss Orders: Given the volatility of penny stocks, setting stop-losses can protect you from unexpected reversals.
- Be Wary of Hype: Verify any news independently to avoid buying into inflated stocks.
Using Robinhood for Penny Stock Trading
Robinhood provides an accessible way to enter the market with zero-commission trades and fractional shares. However, trading penny stocks on Robinhood comes with some limitations, including:
- Execution Speeds: Slower trade execution can make it challenging to enter or exit positions in fast-moving stocks.
- Research Tools: Robinhood offers limited research options compared to more advanced platforms, which may impact your ability to analyze volatile stocks effectively.
When it comes to trading platforms, StocksToTrade is first on my list. It’s a powerful trading platform that integrates with most major brokers. I helped to design it, which means it has all the trading indicators, news sources, and stock screening capabilities that traders like me look for in a platform.
I use StocksToTrade to scan for news, tweets, earning reports, and more — all covered in its powerful news scanner. It also has a selection of add-on alerts services, so you can stay ahead of the curve.
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Key Takeaways From a Hot Post-Election Market
While Robinhood offers a straightforward way to trade penny stocks, successful trading requires a solid strategy and disciplined risk management. Stocks like PHUN, DJT, and DRUG represent the opportunities and risks in this market segment. Approach trades with caution, and remember that a solid trading plan is essential for navigating the highs and lows of penny stocks.
Trading isn’t rocket science. It’s a skill you build and work on like any other.
I built my Trading Challenge to pass on the things I had to learn for myself…
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Trading is a battlefield. The more knowledge you have, the better prepared you’ll be.
Join the Conversation: What’s on your penny stock watchlist for this month? Share your thoughts in the comments, and let’s exchange strategies!
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