Stocks To Trade
Apr. 4, 202416 min read

10 High-Volume Penny Stocks and Trading Strategies

Tim BohenAvatar
Written by Tim Bohen

High-volume penny stocks should be on your watchlist because of their potential for quick gains — but they come with their own set of challenges and risks.

Top High-Volume Penny Stock Picks

My top high-volume penny stock picks — rated on chart pattern, price action history, and news — include the following:

Stock Ticker Company Performance (YTD)
NASDAQ: SIRI Sirius XM Holdings Inc – 23.50%
NASDAQ: AUR Aurora Innovation, Inc – 38.47%
NYSE: GOTU Gaotu Techedu Inc + 113.46%
NASDAQ: INVZ Innoviz Technologies Ltd – 40.50%
NASDAQ: BLUE Bluebird Bio, Inc – 2.72%
OTCPK: IFUS Impact Fusion International, Inc – 27.27%
NASDAQ: JTAI Jet.AI Inc – 35.42%
NASDAQ: ONTX Onconova Therapeutics, Inc + 15.19%
NASDAQ: KTTA Pasithea Therapeutics Corp – 9.40%
NASDAQ: INPX Inpixon – 0.80%

Before diving into specific picks, it’s crucial to understand what sets these investments apart and how to approach them with a strategic mindset.

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.

Jump ahead to get to these top penny stocks!

What Is a High-Volume Penny Stock?

A high-volume penny stock is a share trading at a low price, typically under $5, with a significant number of shares being traded on stock exchanges. High volume indicates strong investor interest, which could be due to various factors, including speculative news or sector trends. This liquidity can offer opportunities for quick entry and exit, a key aspect of day trading strategies in the fast-paced penny stock markets.

What Is the Significance of High Volume in Penny Stocks?

High volume in penny stocks signifies active trading, which can lead to price volatility. For traders, this volatility presents opportunities for profit, given the right timing and strategy. High trading volume also provides a semblance of liquidity, making it easier to buy or sell without significantly impacting the stock price, essential for executing quick trades in the speculative world of penny stocks.

Top 10 High-Volume Penny Stocks

My top 10 high-volume penny stock picks are:

When delving into the realm of penny stocks, particularly those with high trading volumes, it’s crucial to focus on sectors and companies showing promise for growth or significant activity. These often include small-cap companies in emerging technologies, renewable energy, biotech, and other high-growth potential areas. 

While specific stock names like Nikola Corporation, In8bio, and Gaotu Techedu Inc. might catch a trader’s eye due to recent news or market movements, the essence of identifying valuable penny stocks lies in recognizing broader market trends and sector movements. In my experience, diversification across different high-volume penny stocks can mitigate risks while allowing traders to capitalize on multiple speculative opportunities, balancing their portfolio against potential losses with strategic recommendations.

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 in this article. Pay attention to the work that goes in, not the picks that come out.

Sign up for my NO-COST weekly watchlist to get my latest picks!

Sirius XM Holdings Inc. (NASDAQ: SIRI)

My first high-volume stock pick is Sirius XM Holdings Inc. (NASDAQ: SIRI).

Though closer to the upper limit of penny stock classification, SIRI often experiences high trading volumes, reflecting its strong market presence and investor interest. Its performance in the satellite radio industry makes it a staple in many penny stock watchlists.

Aurora Innovation, Inc. (NASDAQ: AUR)

My second high-volume stock pick is Aurora Innovation, Inc. (NASDAQ: AUR).

Focused on autonomous driving technologies, AUR stands out for its innovative approach in a high-growth sector, often resulting in significant trading volumes as investors speculate on future technological advancements.

Gaotu Techedu Inc. (NYSE: GOTU)

My third high-volume stock pick is Gaotu Techedu Inc. (NYSE: GOTU).

As an education technology company, GOTU taps into the growing online learning market, making it a subject of interest among traders looking for high-volume trades in the tech sector.

Innoviz Technologies Ltd. (NASDAQ: INVZ)

My fourth high-volume stock pick is Innoviz Technologies Ltd. (NASDAQ: INVZ).

INVZ, specializing in LiDAR technology for autonomous vehicles, represents another high-volume penny stock with potential due to the increasing demand for vehicle automation solutions.

Bluebird Bio, Inc. (NASDAQ: BLUE)

My fifth high-volume stock pick is Bluebird Bio, Inc. (NASDAQ: BLUE).

Operating in the biotechnology sector, BLUE focuses on gene therapies for severe genetic diseases, a field that sees fluctuating investor interest based on trial results and regulatory news.

Impact Fusion International, Inc. (OTCPK: IFUS)

My sixth high-volume stock pick is Impact Fusion International, Inc. (OTCPK: IFUS).

IFUS operates in the nutritional supplement market, a volatile sector where new product announcements or health trends can lead to high trading volumes.

Jet.AI Inc. (NASDAQ: JTAI)

My seventh high-volume stock pick is Jet.AI Inc. (NASDAQ: JTAI).

JTAI, with its focus on artificial intelligence applications, attracts high volumes of trading amidst the growing AI and machine learning market trends.

Onconova Therapeutics, Inc. (NASDAQ: ONTX)

My eighth high-volume stock pick is Onconova Therapeutics, Inc. (NASDAQ: ONTX).

As a clinical-stage biopharmaceutical company, ONTX’s focus on cancer treatments makes it a target for speculative trading based on trial outcomes and FDA announcements.

Pasithea Therapeutics Corp. (NASDAQ: KTTA)

My ninth high-volume stock pick is Pasithea Therapeutics Corp. (NASDAQ: KTTA).

KTTA operates in the mental health treatment sector, a field with increasing public awareness and investor interest, leading to high trading volumes.

Inpixon (NASDAQ: INPX)

My tenth high-volume stock pick is Inpixon (NASDAQ: INPX).

Specializing in indoor intelligence solutions, INPX often sees high trading volumes as businesses look to enhance indoor navigation and security.

How to Identify High-Volume Penny Stocks

Identifying high-volume penny stocks requires efficient use of financial tools and resources available on various finance sites and trading dashboards. Utilizing stock screeners that filter stocks based on specific criteria such as market cap, volume, price changes, and sectors can streamline the search for promising penny stocks. These digital platforms offer access to a wealth of information, including company updates, dividend notices, and reports on market gainers, which can guide traders towards making informed decisions. 

For those interested in diversifying across different markets, exploring options in currencies, commodities like crude oil, or even crypto through platforms that offer comprehensive data and analysis can provide additional trading opportunities. Furthermore, keeping an eye on financial news pages and updates about companies with significant changes in trading volume can alert traders to potential high-volume penny stocks. Remember, the goal isn’t to use these tools and information to build a diversified portfolio — it’s to stay up to date on the trends of the moment, giving you the best chance to profit off these high-risk, low-priced investment products.

Keeping an eye on emerging opportunities is crucial. Penny stocks to watch are those poised for significant movement, often driven by sector trends or impactful news. Identifying these opportunities requires a blend of technical analysis and market intuition. For traders looking to stay ahead, focusing on penny stocks with potential can lead to lucrative trades if approached with the right strategy and risk management. Here’s a start — our penny stocks to watch list.

How to Use Stock Scanners and Screeners to Find High-Volume Penny Stocks

Stock scanners and screeners are invaluable tools for identifying high-volume penny stocks. These platforms allow traders to set specific criteria, such as minimum trading volume, price ranges, and market sectors, to filter through thousands of stocks efficiently. By regularly using these tools, traders can quickly identify potential trading opportunities based on real-time data and market trends.

You’ll need a trading platform with real-time data for the task. When it comes to real-time platforms, StocksToTrade is first on my list. It’s a powerful trading platform that integrates with most major brokers.

I use StocksToTrade to scan for news, tweets, earning reports, and more — all covered in its powerful news scanner. It has the trading indicators, dynamic charts, and stock screening capabilities that traders like me look for in a platform. It also has a selection of add-on alerts services, so you can stay ahead of the curve.

Grab your 14-day StocksToTrade trial today — it’s only $7!

Apps designed for penny stock trading can significantly enhance your trading experience by providing instant access to market analysis, news, and trade execution tools right at your fingertips. These apps are tailored to meet the needs of penny stock traders, offering features like low-cost trades, comprehensive charting tools, and alerts on volume spikes or price movements. For traders aiming to streamline their trading process and make informed decisions quickly, checking out the best apps for penny stocks can be a game-changer.

Trading Strategies for High-Volume Penny Stocks

Trading high-volume penny stocks requires strategies that account for their volatility and liquidity. Key approaches include setting precise entry and exit points, using stop-loss orders to manage risk, and capitalizing on short-term price movements through day trading or swing trading techniques.

A well-defined penny stocks strategy helps traders identify entry and exit points, manage risk, and capitalize on short-term price movements. Whether you’re a novice looking to understand the basics or an experienced trader refining your approach, developing a strategy tailored to the nuances of penny stocks is crucial. For insights into building a robust trading strategy that can navigate the complexities of the penny stock market, dive into penny stocks strategy.

Technical Analysis of High-Volume Penny Stocks

Technical analysis is crucial for trading high-volume penny stocks, focusing on chart patterns, price action, and volume indicators to predict future movements. Understanding support and resistance levels, along with trend lines and moving averages, helps traders make informed decisions.

Risks and Considerations in Trading High-Volume Penny Stocks

While the potential for profit exists, the risks are significant. These include the possibility of rapid price declines, the impact of market manipulation, and the challenge of executing trades at desired prices due to sudden shifts in liquidity.

You should also pay attention to the factors that can cause significant price swings, such as company news, market sentiment, and industry developments. For those new to the penny stock market or looking to deepen their knowledge, our comprehensive guide on penny stocks can provide a solid foundation for making informed trading decisions.

Key Takeaways

  • High-volume penny stocks offer trading opportunities but require careful strategy and risk management.
  • Technical analysis and the use of stock scanners are essential tools for identifying and trading these stocks effectively.
  • Understanding the inherent risks and maintaining disciplined trading practices are crucial for success in the penny stock market.

There are a ton of ways to build day trading careers… But all of them start with the basics.

Before you even think about becoming profitable, you’ll need to build a solid foundation. That’s what I help my students do every day — scanning the market, outlining trading plans, and answering any questions that come up.

You can check out the NO-COST webinar here for a closer look at how profitable traders go about preparing for the trading day!

What high-volume penny stocks are on YOUR watchlist? Write “I will respect price action” in the comments if my advice has taken hold!

Frequently Asked Questions

Are High Volume Penny Stocks a Good Investment?

High-volume penny stocks can be profitable but carry high risks. Investment decisions should be based on thorough research and a clear understanding of market volatility and individual risk tolerance. And you should never “invest” in penny stocks — only trade them.

How Can Traders Differentiate Between Genuine and Manipulative High Volume in Penny Stocks?

Differentiating genuine from manipulative volume involves analyzing the context of trading volume spikes, such as recent news releases, earnings announcements, or sector trends, and avoiding stocks with unexplained high volume, which could indicate pump-and-dump schemes.

What Are the Best Tools for Analyzing High Volume Penny Stocks?

Effective tools for analyzing high-volume penny stocks include technical analysis software, stock scanners, and financial news platforms that offer real-time data, charting capabilities, and market insights, helping traders make informed decisions.

What Are Essential Trading Tools for Analyzing High Volume Penny Stocks?

For analyzing high volume penny stocks, essential trading tools include browsers for accessing real-time market data, ETFs as a comparison for market performance, and one’s symbols to track specific penny stocks efficiently. Understanding these tools can significantly enhance a trader’s ability to make informed decisions, especially when dealing with the fast-paced nature of penny stock trading.

How Do Financial Instruments and Metrics Influence Penny Stock Trading?

In penny stock trading, financial instruments and metrics such as credit cards (for funding trading accounts), the dollar (as a base currency for many trades), and specific high-volume stocks like Lumen Technologies play a critical role. Analyzing ‘highs’ within the market can also provide insights into potential investment opportunities and risks.

How Important Is User Interaction and Content in Penny Stock Trading?

User interaction and content are crucial in penny stock trading for several reasons. Users sharing insights and experiences can provide valuable information, while rights to accurate and timely content are fundamental. Additionally, reading financial columns can offer in-depth analysis and perspectives on the penny stock market, aiding in better investment decisions.

What Is the Significance of Market Partners and Geography in Penny Stock Trading?

Market partners and geography, including Europe, are significant for penny stock traders looking for global investment opportunities. Understanding the role of partners in facilitating trades and the impact of European market trends can provide additional opportunities for diversification and profit in penny stock trading.