Penny stocks under 10 cents are the wild west of the stock market. These low-priced stocks offer the potential for significant gains, making them attractive to speculative traders. However, the same volatility that creates opportunities can also lead to substantial losses. For those willing to navigate the risks, these stocks can be an intriguing part of a trading strategy.
Table of Contents
- 0.1 Best Penny Stocks Under 10 Cents to Buy in 2025
- 0.2 Best Stocks Under 10 Cents That Will Explode in 2025
- 0.2.1 Aditxt Inc. [NASDAQ: ADTX]
- 0.2.2 Blue Hat Interactive Entertainment Technology [NASDAQ: BHAT]
- 0.2.3 Digital Ally Inc. [NASDAQ: DGLY]
- 0.2.4 Ocean Biomedical Inc [NASDAQ: OCEA]
- 0.2.5 Petros Pharmaceuticals Inc. [NASDAQ: PTPI]
- 0.2.6 Syros Pharmaceuticals Inc. [NASDAQ: SYRS]
- 0.2.7 Hepion Pharmaceuticals Inc. [NASDAQ: HEPA]
- 1 How to Invest in Penny Stocks Under 10 Cents
Best Penny Stocks Under 10 Cents to Buy in 2025
The selection of these stocks involves several key criteria. Here’s what I looked at:
- Market Trends: Stocks that align with emerging trends and are part of hot sectors have higher growth potential.
- Financial Health: Companies with strong financials and sales metrics are better positioned for long-term success… or at least won’t fold overnight.
- Innovation in Technology: Hot technology products and services generate news, and news is good.
- Stock Catalysts: News, product launches, earnings reports, 52-week highs, and analyst insights.
- Volatility: Stocks with high volatility offer more trading opportunities, especially when their trading volume is decent.
- Market Potential: Evaluate the company’s potential to capture market share.
Upcoming market events, such as product launches or industry advancements, can significantly impact these stocks. Keeping an eye on these catalysts can help you capitalize on their growth potential.
If trading stocks under 10 cents is too sketchy, check out my list of stocks priced under $1. These stocks can provide a broad range of opportunities while maintaining affordability. Here’s my curated list of penny stocks under $1!
Best Stocks Under 10 Cents That Will Explode in 2025
To find the best stocks to buy under 10 cents in 2025 requires a top-level stock screener. I use the one in StocksToTrade — it has all the tools and customizations that traders like me look for to create hot penny stock watchlists.
Try StocksToTrade for 14 days and see how it helps your watchlist skills — only $7!
To find watch-worthy penny stocks under 10 cents, I use the following query:
- Last Price ≤ $0.10
- Last Price ≥ $0.01
- Volume ≥ 30,000
- Number of Trades ≥ 100
When I run this screen and sort by today’s biggest gainers, it gives me the following top results:
You can see how the plan with micro-cap stocks is rarely buy-and-hold…
Trading these cheap stocks should be approached with a clear strategy and an understanding of the risks involved. 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!
Here’s what I’m watching now:
| Stock Ticker | Company Name | Performance (YTD) |
| NASDAQ: ADTX | Aditxt Inc. | – 74.45% |
| NASDAQ: BHAT | Blue Hat Interactive Entertainment Technology | – 75.73% |
| NASDAQ: DGLY | Digital Ally Inc. | – 85.82% |
| NASDAQ: OCEA | Ocean Biomedical Inc. | – 85.24% |
| NASDAQ: PTPI | Petros Pharmaceuticals Inc. | – 77.43% |
| NASDAQ: SYRS | Syros Pharmaceuticals Inc. | – 64.39% |
| NASDAQ: HEPA | Hepion Pharmaceuticals Inc. | – 82.65% |
Aditxt Inc. [NASDAQ: ADTX]
Aditxt Inc is a life sciences company which focuses on prolong life and enhance life quality of transplanted patients. The firm develop products designed to induce tolerance to transplanted organs. The firm’s immunosuppressive (anti-rejection) drugs has made possible life-saving organ transplantation procedures as these drugs prevent or delay organ rejection. It is also developing a technology called Apoptotic DNA Immunotherapy (ADi) which utilizes tolerogenic approach that utilizes the body’s natural process of cell death, to deliver a modified antigen that signals the immune system to become tolerant to transplanted tissues.
Blue Hat Interactive Entertainment Technology [NASDAQ: BHAT]
Blue Hat Interactive Entertainment Technology is a producer, developer, and operator of augmented reality (AR) interactive entertainment games and toys in China, including interactive educational materials, mobile games, and toys with mobile game features. The company’s products include AR Racer, AR Crazy Bug, AR 3D Magic Box, AR Dinosaur, Talking Tom and Friends Bouncing Bubble, and Immersive Education Classes. The company reports in the following segments: Interactive toys – animation series, Interactive toys – game series, and Mobile game, Information services, Communication services, out of which the majority of the revenue is generated from the game series. The majority of its revenues are generated from China.
Digital Ally Inc. [NASDAQ: DGLY]
Digital Ally Inc produces digital video imaging and storage products for use in law enforcement, security, and commercial applications. Its products are an in-car digital video/audio recorder contained in a rear-view mirror for use in law enforcement and commercial fleets. It can integrate electronic, radio, computer, mechanical, and multi-media technologies to create solutions to address needs in a variety of other industries and markets, including mass transit, school bus, taxicab and the military. The company sells its products to law enforcement agencies and other security organizations and consumer and commercial fleet operators through direct sales domestically and third-party distributors internationally.
Ocean Biomedical Inc [NASDAQ: OCEA]
Ocean Biomedical, Inc., a biopharmaceutical company, focuses on discovering and developing therapeutic products in oncology, fibrosis, and infectious diseases in the United States. The company develops an antibody therapeutic product candidate inhibiting Chi3l1, and a bi-specific antibody product candidate inhibiting Chi3l1 plus PD-1 and CTLA-4 for the treatment of non-small cell lung cancer and glioblastoma multiforme; and a small molecule product candidate targeting Chit1 for the treatment of idiopathic pulmonary fibrosis and Hermansky-Pudlak syndrome.
It is also developing three product candidates based on the whole proteome differential screening target discovery platform, including a malaria vaccine candidate against plasmodium falciparum Schizont Egress Antigen-1 (PfSEA-1) and/or against plasmodium falciparum Glutamic Acid Rich Protein (PfGARP); a humanized mAb malaria therapeutic candidate targeting PfGARP; and a small molecule malaria product candidate targeting PfGARP. The company was founded in 2019 and is based in Providence, Rhode Island. Ocean Biomedical, Inc. is a subsidiary of Poseidon Bio, LLC.
Petros Pharmaceuticals Inc. [NASDAQ: PTPI]
Petros Pharmaceuticals Inc is a men’s health pharmaceutical company. It focuses on identifying, developing, acquiring, and commercializing innovative therapeutics for men’s health issues including erectile dysfunction, peyronie’s disease, hormone health and substance use disorders. The company’s operating segment includes Prescription Medications and Medical Devices. It generates maximum revenue from the Prescription Medications segment. The Prescription Medications segment consists primarily of operations related to Stendra, which is sold generally in the United States, and H100 for the treatment of Peyronie’s disease.
Syros Pharmaceuticals Inc. [NASDAQ: SYRS]
Syros Pharmaceuticals Inc is a biopharmaceutical company engaged in a non-coding regulatory region of the genome controlling the activation and repression of genes. It is primarily involved in the segments of the pharmaceutical, biotechnology, and other related markets that address gene control and cancer. The Company operates only in the United States.
Hepion Pharmaceuticals Inc. [NASDAQ: HEPA]
Hepion Pharmaceuticals Inc is a biopharmaceutical company that focuses primarily on the development of drug therapy for the treatment of chronic liver diseases. This therapeutic approach targets fibrosis and hepatocellular carcinoma associated with nonalcoholic steatohepatitis, viral hepatitis, and other liver diseases. Its cyclophilin inhibitor, Rencofilstat, is being developed to offer benefits to address these multiple complex pathologies. Rencofilstat is a pan cyclophilin inhibitor that targets multiple pathologic pathways involved in the progression of liver disease.
Investing in penny stocks under 10 cents requires a strategic approach. Here’s a step-by-step guide to get you started:
- Find a Broker: Set up your trading account, ensuring you understand the broker’s tools and fees. Make sure that your broker lets you trade ALL penny stocks — Robinhood, Webull, and many other brokers limit OTC stock market participation. OTC stock exchanges are where you’ll find some of the cheapest penny stocks on the market — like the ones on this list!
- Fund Your Account: Deposit funds into your account, keeping in mind the amount you’re willing to risk.
- Choose a Trading Platform: Select a reliable platform for trading penny stocks — my choice is StocksToTrade.
- Screen for Stocks: Use stock screeners to filter stocks under $1 based on your criteria.
- Research Stocks: Analyze the stock’s financial health, market trends, and news.
- Place a Trade: Execute your trade, setting stop-loss orders to manage risk.
Performing due diligence will give you a chance at successful penny stock trading. Here’s the kind of analysis you need to do:
- Review Financial Statements: Look at the company’s earnings, revenue, and cash flow, if it’s published — not always the case with these sketchy, super small-cap stocks.
- Stay Updated with News: Monitor news, press releases, and analysts ratings that could impact the stock price — even if they’re likely to be pumps at the shallow end of the market cap pool.
- Analyze Market Trends: Understand the broader market trends affecting the sector and prominent brands and securities — as penny stocks mostly run on hype, this is where their crude oil comes from.
Top Risks You Should Consider Buying Penny Stocks
Investing in penny stocks under 10 cents comes with significant risks. High volatility can lead to rapid price fluctuations, both positive and negative. These stocks are often from companies with unstable financials and limited market presence, increasing the risk of substantial losses.
Here are practical tips to mitigate these risks:
- Set a Budget: Only invest money you can afford to lose.
- Use Stop-Loss Orders: Protect your trades by setting limits on potential losses.
- Stay Informed: Regularly monitor news and updates related to your stocks.
Sometimes cheap is not a good thing! If trading stocks under 10 cents tests your trading discipline, you should look at my list of stocks priced under $2. These stocks still have the incredible upside of cheaper stocks, but have a bit more market participation in their trading. Here’s my watchlist of penny stocks under $2!
High Volatility and Market Risks
Penny stocks are notorious for their high volatility. Prices can swing dramatically within short periods due to market trends, company news, and investor sentiment. This volatility can create opportunities for significant gains but also poses substantial risks.
Strategies to manage volatility include:
- Set Stop-Loss Orders: Automatically sell a stock when it reaches a certain price to limit losses.
- Monitor Trading Volume: High trading volume indicates better liquidity and less price manipulation.
- Stay Updated with News: Keep track of news and market trends affecting your stocks.
Potential for Fraud and Scams
Penny stocks are often targets for fraud and scams, such as pump-and-dump schemes. These schemes involve artificially inflating a stock’s price to attract investors, only for the perpetrators to sell their shares at the peak, leaving other investors with significant losses.
To avoid scams, follow these guidelines:
- Research the Company: Ensure the company has legitimate business operations and products.
- Verify News Sources: Only trust information from reputable sources.
- Beware of Hype: Be cautious of overly optimistic promotions and unsolicited stock tips.
- Check Regulatory Filings: Look for filings with the SEC to ensure transparency and compliance.
Liquidity Issues
Liquidity refers to how easily you can buy or sell a stock without affecting its price. Penny stocks often have low liquidity, making it challenging to enter or exit positions quickly. Low liquidity can lead to significant price changes with relatively small trades.
Assessing liquidity before investing:
- Check Trading Volume: Higher trading volume indicates better liquidity.
- Use Stock Screeners: Filter stocks based on average trading volume.
- Monitor Bid-Ask Spread: A narrow spread indicates better liquidity and less price manipulation.
Regulatory Risks and Compliance
The regulatory landscape for penny stocks can be complex. The SEC imposes specific rules to protect investors, but enforcement can be inconsistent. Recent changes in regulations can impact the trading and profitability of penny stocks.
Key points on regulatory risks:
- Understand SEC Rules: Familiarize yourself with SEC regulations on penny stocks.
- Stay Updated on Changes: Keep abreast of new rules and changes affecting penny stocks.
- Ensure Compliance: Invest in companies that comply with regulatory requirements.
Frequently Asked Questions
Are Penny Stocks Under 10 Cents Safe Investments?
Penny stocks under 10 cents are NEVER safe or investments. They’re not included in ETFs or stock market indexes. They always belong to companies with uncertain financial health and high volatility. These stocks can offer significant returns but also come with the risk of substantial losses. It’s important to trade these stocks with a clear strategy and thorough research.
Can You Make Money with Sub-10-Cent Penny Stocks?
Yes, it’s possible to make money with sub-10-cent penny stocks, but it requires careful planning and risk management. High returns are possible due to the significant price movements of these stocks. However, success stories are less common, and many traders experience losses. Just like options or currencies trading, penny stock trading needs its own customized strategy.
Should Beginners Invest in Penny Stocks Under 10 Cents?
Wall Street doesn’t invest in these stocks — why would you ever think beginners should put them in a portfolio? Never invest, only trade these stocks under the guidance of a good trading plan!