Stock Trading
Feb. 8, 202118 min read

Penny Stocks on Nasdaq to Watch: Ultimate Guide

Tim BohenAvatar
Written by Tim Bohen

Looking for penny stocks on Nasdaq to watch and potentially trade?

Here’s your ultimate guide to putting together your Nasdaq watchlist.

Nasdaq is one of the largest and most popular trading exchanges. But with over 3,300 stocks listed, it can be tough to determine which penny stocks to watch.

Due to its listing standards, there aren’t many true penny stocks on this exchange. Still, I think there are a lot of opportunities as we head into 2021.

So how do you figure out which penny stocks on Nasdaq you should add to your watchlist?

Let’s find out!

Want to know which stocks are on my weekly watchlist? Find out now — it’s completely free and can help you prep every week. Sign up for my weekly watchlist here.

Penny Stock on Nasdaq: What Is It?

A true penny stock is technically any stock trading for under $1. But most traders consider stocks that trade under $5 or even $10 per share penny stocks.

Usually most low-priced and penny stocks trade as pink sheet securities on OTC markets.

Nasdaq penny stocks have to meet minimum trading standards. So these listed stocks must maintain a price of $1 or more. If a stock trades for less than $1 per share for 30 consecutive trading days, it’s in danger of being delisted.

So while there may not be many true penny stocks on Nasdaq, there are many trading in the $1–$3 range that could be well worth keeping an eye on.

Nasdaq: How Does It Work?

Nasdaq Trading Floor 

Unlike the NYSE, Nasdaq is a completely electronic exchange. So there’s no trading floor. 

When you make a trade on this exchange, your buy or sell order is routed through an online network to get filled. 

Market Type

Nasdaq is a dealer’s market. Your orders don’t get matched directly with the orders of other active traders. Instead, they’re sent through a market maker who’s standing by ready to buy or sell or at any time, acting as an agent between the exchange and traders.

Traffic Control

Each stock listed on Nasdaq has at least one market maker standing by to monitor and regulate trading activity. There are about 14 market makers on each security. This helps ensure efficiency, quality, and liquid trading.


An index is a collection of stocks, usually in a sector, that shows how the group is moving on average. 

If you’d like to keep an eye on the market as a whole, it may be worth watching an index that covers your chosen market or sector. This way you can get a good idea of what’s going on in a specific sector.

For example, are you interested in biotech stocks? If so, you can check out the Nasdaq Biotech Index to see how biotech stocks are trading on the Nasdaq.

Market Perception

The market’s perception of a stock exchange depends largely on the kind of companies listed on it. 

Companies listed on the Nasdaq are generally viewed as more volatile and growth-oriented. That may be because high-profile tech companies like Amazon and Facebook list on the exchange.

On the other hand, the NYSE is known to trade more traditionally respected blue-chip companies — the slow, steady, established giants of the market.

Most Active Penny Stocks on Nasdaq

Saying 2020 has seen crazy high trade volume is a GIANT understatement. 

Five years ago, if a penny stock on Nasdaq traded 10 million shares in a day, people’s hats would fly off. Today, no one even bats an eye. It’s happening every day!

It’s become the new normal. So with that being said, let’s take a look at some of the most active penny stocks to watch on Nasdaq right now…

Aphria Inc. (NASDAQ: APHA)

APHA is a Canadian company that cultivates, produces, markets, distributes, and sells cannabis internationally. 

I’m a fan of this sector, and I believe there could be a big weed stock rally in 2021…

This stock is sitting in a nice range, at around $7 a share, only 75 cents from a breakout.

penny stocks on nasdaq apha chart

Aphria Inc. (NASDAQ: APHA) 6-month chart (Source: StocksToTrade)

FuelCell Energy Inc. (NASDAQ: FCEL)

FCEL designs, manufactures, and operates fuel cell battery power plants.

Those of you who tune into the Pre-market Prep on Instagram every trading day at 8:30 a.m. Eastern know … I’ve been talking about this stock for a while now.

EV technology is inevitable. One day soon, I think we’ll all be driving around in electric vehicles.

FCEL was at $2 all year till the big EV break in November and currently sits at about $10 a share.

penny stocks on nasdaq fcel

FuelCell Energy Inc. (NASDAQ: FCEL) 6-month chart (Source: StocksToTrade)

Gevo Inc. (NASDAQ: GEVO)

GEVO is a renewable fuels company based in Denver. It’s a penny stock on Nasdaq I’ve been watching for a while.

I’ve called this the “worst stock in the world.” So it’s fair to say this is a speculative pick. But, with a history of running and 2020 so crazy, I had to include it.

GEVO sits at around $2.80, only 30 cents from a breakout, so it’s worth keeping an eye on.

penny stocks on nasdaq gevo

Gevo Inc. (NASDAQ: GEVO) 6-month chart (Source: StocksToTrade)

Marathon Patent Group Inc. (NASDAQ: MARA)

MARA is a Canadian company that operates cryptocurrency mining machines, specializing in Bitcoin.

MARA is my #1 crypto-related play going into 2021…

As Bitcoin continues to climb — it recently broke the $23,000 mark — crypto-related plays will likely rise with it. Right now this stock sits at just under $14 per share and is definitely one to watch.

penny stocks on nasdaq mara

Marathon Patent Group Inc. (NASDAQ: MARA) 6-month chart (Source: StocksToTrade)

MicroVision Inc. (NASDAQ: NVIS)

NVIS develops high-resolution miniature projection and three-dimensional sensor systems in the U.S. 

NVIS’s new high-tech Lidar 3D display system that could be used in self-driving vehicles is generating a lot of buzz.

The stock is also a former runner. It sat at around $2 a share for most of 2020, but in the past five days has gone from $3 a share to about $9.

penny stocks on nasdaq mvis

MicroVision Inc. (NASDAQ: MVIS) 6-month chart (Source: StocksToTrade)

Nano Dimension Ltd. (NASDAQ: NNDM)

NNDM is an Israeli additive electronics manufacturer specializing in 3D printing and aerospace technology.

Like many other stocks on this list, NNDM is a former runner. However, the company has a history of pivoting to hot sectors and hopping on bandwagons. So be wary when considering a trade. Do your research and stick to your trading setups.

This is definitely a stock to keep an eye on as it approaches a 52-week high of $10 per share.

penny stocks on nasdaq nndm

Nano Dimension Ltd. (NASDAQ: NNDM) 6-month chart (Source: StocksToTrade)


NXTD provides technology products and services for healthcare applications.

The company recently made the move to the cryptocurrency sector. It’s developing digital wallets, gadgets, and other tools to use in cryptocurrency mining. 

Currently trading at $1.40, this stock is one to watch as Bitcoin continues to rise.

penny stocks on nasdaq nxtd

NXT-ID Inc. (NASDAQ: NXTD) 6-month chart (Source: StocksToTrade)

Riot Blockchain Inc. (NASDAQ: RIOT)

RIOT is another company that operates blockchain technologies and is involved in the digital currency mining of Bitcoin.

Like MARA, this is one of my favorite crypto plays going into 2021.

As Bitcoin continues to reach all-time highs, expect crypto-related plays to continue to climb as well. As of this writing, RIOT sits at $15 per share.

penny stocks on nasdaq riot

Riot Blockchain Inc. (NASDAQ: RIOT) 6-month chart (Source: StocksToTrade)

Tilray Inc. (NASDAQ: TLRY)

TLRY is another Canadian company that cultivates, produces, markets, distributes, and sells cannabis.

TLRY had a crazy IPO in 2018, shooting from $20 to $300 in just a few days.

Right now it trades at around $8 a share. With a big year expected for weed stocks, this one will definitely be one to keep an eye on.

penny stocks on nasdaq tlry

Tilray Inc. (NASDAQ: TLRY) 6-month chart (Source: StocksToTrade)

Vuzix Corporation (NASDAQ: VUZI)

VUZI designs and manufactures augmented reality (AR) wearable displays and computing devices in North America.

The company’s products are in the form of smart glasses and AR glasses.

VUZI is another former runner, and as of this writing is sitting at around $10 per share.

penny stocks on nasdaq vuzi

Vuzix Corporation (NASDAQ: VUZI) 6-month chart (Source: StocksToTrade)

XpresSpa Group Inc. (NASDAQ: XSPA)

XSPA is a health and wellness services company that provides spa services at airports across the U.S.

XSPA made headlines earlier this year when it said it would provide Covid-19 testing at its locations, making the stock a pandemic play

This stock seems to run every time there’s a big news headline. As of this writing, it sits at around $1.

penny stocks on nasdaq xspa

XpresSpa Group Inc. (NASDAQ: XSPA) 6-month chart (Source: StocksToTrade)

Zynga Inc. (NASDAQ: ZNGA)

ZNGA is an American game developer that specializes in developing online social and mobile games.

Video game stocks had a big year in 2020 … With most of us stuck at home during the pandemic, many people turned to online video games to get their daily dose of social interaction.

Currently in the $10s, this is a stock to watch in a growing sector as we move into 2021.

penny stocks on nasdaq znga

Zynga Inc. (NASDAQ: ZNGA) 6-month chart (Source: StocksToTrade)

The Best Penny Stocks on Nasdaq Under 10 Cents

If you’re looking for penny stocks to trade under 10 cents, you won’t find them on Nasdaq.

Stocks trading that low don’t meet the exchange’s standards. Also, personally, they aren’t my favorite trades.

If you have your heart set on trading penny stocks under 10 cents, there are some key indicators to look out for that can help you decide on a potential trade.

Look for a catalyst, press release, low float, and big volume. And most importantly … make sure this stock fits into your trading plan.

All this can tell you if a stock might be worth watching. 

Nasdaq Penny Stocks under $1

Never mind stocks trading under 10 cents. You won’t even find many penny stocks on Nasdaq trading for under $1. And if you do, they usually don’t stay there for long.

Nasdaq has pretty strict requirements, and if a stock can’t break that $1 mark within 30 consecutive trading days — it’ll get the boot.

However, there are some Nasdaq penny stocks that float around the $1 mark that could be worth watching. These companies are under the gun and need to keep their stock prices high to remain listed. That makes the stocks more volatile

Many companies try to engineer a reverse split to keep their stock prices up…

When looking to trade Nasdaq penny stocks around the $1 mark, make sure to go down your checklist and keep an eye out for a catalyst, news, or big volume.

Always be diligent, do your research, and have a solid trading plan.

How to Find a List of Penny Stocks to Trade on Nasdaq

To find a good list of penny stocks to trade on Nasdaq, you need to use a good scanner that can help you search for the penny stocks that fit your trading strategy.

That’s why I use the StocksToTrade platform: It’s a one-stop shop to scan for stocks. You can scan using almost any criteria — whatever indicates a good trade for you. 

With StocksToTrade, everything you need for scanning is available in one, easy-to-use program. See why some of the world’s best stock traders use StocksToTrade for all of their scanning needs. Get your 14-day trial for $7 now!

What Was the Nasdaq High in 2020?

Nasdaq stocks started off the year reaching all-time highs of around $9,000, only to completely crash in March when the pandemic hit. As of this writing, the Nasdaq Composite Index was near an all-time high of $12,750.

Most Common Questions About Nasdaq


What Does Nasdaq Mean?

Nasdaq stands for National Association of Securities Dealers Automated Quotation system. It’s the first exchange that enabled trades on a computerized, efficient, and transparent system.

Why Is Nasdaq Important?

The Nasdaq exchange is important because it’s a technologically advanced exchange, and was the first electronic stock exchange in the world. It’s also known for attracting technology companies like Google and Apple.

What Are the Top 10 Nasdaq Companies?

There are over 3,300 stocks listed on Nasdaq. Facebook, Amazon, Apple, Microsoft, Google… Using the StocksToTrade built-in scanners can help you spot the hottest stocks that fit your setups. 

What’s the Highest the Nasdaq Has Ever Reached?

Nasdaq hit $12,750 — its all-time high as of this writing.

What’s the Best Time to Trade on Nasdaq?

The best time to trade for you depends on you. To figure it out, you need to first establish what your risk is as part of your trading strategy and find the time that fits your goals as a trader. 


And there it is … the ultimate guide to penny stocks to watch on Nasdaq. 

Trading penny stocks on Nasdaq doesn’t need to be difficult, and you don’t need a big account to get started. Start small and do your research before you make a trade. 

You’ll notice there are a lot of good opportunities in Nasdaq penny stock land. So continue to update your watchlists and look out for hot, new emerging sectors.

It’s also important to remember that not every penny stock makes for a great trading prospect. You have to make sure that any penny stock you want to trade fits your setups.

Remember to check your lists, do your research, and stick to your trading plan!

Ready to learn more about trading stocks? Join the SteadyTrade Team. Every trading day, you’ll get mentorship, trading education, and more. 

You’ll also be surrounded by a great community of like-minded traders who are pushing to improve as traders. It’s all to help you build a process and become a smarter trader!

Which Nasdaq penny stocks are on your watchlist? Leave a comment below!