Top Robinhood Penny Stocks: Key Takeaways
- The hottest penny stocks to watch in October…
- Read every reason I’m watching these potential spikers…
- The only Scamex stock you should be trading…
I’ll be straight: Robinhood isn’t my go-to platform for trading penny stocks or any stocks, really. But it’s inspiring more traders to get into the markets and build a skill with the potential to change their future. So this post is dedicated to trading penny stocks on Robinhood — with a healthy dose of honesty.
Here’s an overview of my watchlist for October. See full details below.
- Camber Energy Inc. (AMEX: CEI … see my analysis here)
- U.S. Well Services Inc. (NASDAQ: USWS … see my analysis here)
- ENGlobal Corporation (NASDAQ: ENG … see my analysis here)
- EzFill Holdings Inc. (NASDAQ: EZFL … see my analysis here)
- Grom Social Enterprises Inc. (NASDAQ: GROM … see my analysis here)
- Superior Drilling Products Inc. (AMEX: SDPI … see my analysis here)
- TransCode Therapeutics Inc. (NASDAQ: RNAZ … see my analysis here)
- InnSuites Hospitality Trust Shares of beneficial Interest (AMEX: IHT … see my analysis here)
- Red Cat Holdings Inc. (NASDAQ: RCAT … see my analysis here)
- Naked Brand Group Limited (NASDAQ: NAKD … see my analysis here)
Table of Contents
- 1 Can You Buy Penny Stocks With Robinhood?
- 2 List of the Hottest Penny Stocks on Robinhood in October 2021
- 2.1 Robinhood Penny Stocks to Watch #1: Camber Energy Inc. (AMEX: CEI)
- 2.2 Robinhood Penny Stocks to Watch #2: U.S. Well Services Inc. (NASDAQ: USWS)
- 2.3 Robinhood Penny Stocks to Watch #3: ENGlobal Corporation (NASDAQ: ENG)
- 2.4 Robinhood Penny Stocks to Watch #4: EzFill Holdings Inc. (NASDAQ: EZFL)
- 2.5 Robinhood Penny Stocks to Watch #5: Grom Social Enterprises Inc. (NASDAQ: GROM)
- 2.6 Robinhood Penny Stocks to Watch #6: Superior Drilling Products Inc. (AMEX: SDPI)
- 2.7 Robinhood Penny Stocks to Watch #7: TransCode Therapeutics Inc. (NASDAQ: RNAZ)
- 2.8 Penny Stock to Watch #8: InnSuites Hospitality Trust Shares of beneficial Interest (AMEX: IHT)
- 2.9 Penny Stock to Watch #9: Red Cat Holdings Inc. (NASDAQ: RCAT)
- 2.10 Penny Stock to Watch #10: Naked Brand Group Limited (NASDAQ: NAKD)
- 3 Types of Penny Stocks on Robinhood
- 4 How to Find Penny Stocks on Robinhood
- 5 How to Choose Penny Stocks on Robinhood
- 6 How to Trade Penny Stocks on Robinhood
- 7 Robinhood Penny Stocks to Watch: How to Make Your List of Penny Stocks
- 8 Should You Trade Penny Stocks on Robinhood?
- 9 How to Manage Risk on Robinhood
- 10 Can You Get Rich Trading Penny Stocks?
- 11 Frequently Asked Questions About Robinhood Penny Stocks
- 12 Robinhood Penny Stocks to Watch: Conclusion
- 13 One Platform. One System. Every Tool
Can You Buy Penny Stocks With Robinhood?
It depends on which penny stocks you’re after. If you’re looking for stocks on the Nasdaq or NYSE exchanges, you can access these stocks on Robinhood.
But it’s not great news if you’re into OTCs or pink sheets. Robinhood doesn’t have access to OTCs on its platform.
That said, I put together a list of penny stocks you can find on Robinhood.
By the way, you can join me for my no-cost premarket sessions to build better watchlists every day. Access the full archive here and sign up for daily recaps!
List of the Hottest Penny Stocks on Robinhood in October 2021
As of the last few days in September, these Robinhood stocks show some watchlist potential.
I can’t claim any of them are fundamentally good companies … But all of them have some hype. And maybe there’s potential for momentum or interesting price behavior on their charts.
Remember to only use this list of stocks to watch as a guide. Be sure to regularly scan the market for additional opportunities. Always do your due diligence before every trade and never risk more than you can afford to lose.
Robinhood Penny Stocks to Watch #1: Camber Energy Inc. (AMEX: CEI)
Alert, alert! The Scamex stocks are back. If you don’t know what I’m talking about, the American Exchange (AMEX) is one of the sketchiest markets. It’s very similar to OTCs.
This is a huge runner I’ve been watching for the last few days. It’s kind of overextended now, so I’d wait for a pullback before getting in. But look at that breakout over $3.
Make sure you study this chart at different time intervals. It’s a great example of a breakout pattern.
This stock just proves my point that oil and gas are going higher. It’s just one of the hot trading themes I’m watching now. Find out more in this episode of the SteadyTrade podcast.
Robinhood Penny Stocks to Watch #2: U.S. Well Services Inc. (NASDAQ: USWS)
Look at that. Another oil and gas company. This one’s in a little bit of a better position since it hasn’t broken out yet.
There looks like a pretty big line of resistance at $1.50. You can see it bobble around that level back in February.
I wouldn’t touch this thing until it gets closer to the breakout level. But the volume in the last few days has been impressive, so maybe we’ll see a spike in October.
Robinhood Penny Stocks to Watch #3: ENGlobal Corporation (NASDAQ: ENG)
I like this stock at the $4 level. Besides that, I’m not too interested in it. It’s a construction company for the energy industry, which sort of has some buzzword potential.
It’s had some nice volume in the last few days, which is encouraging too.
The only thing that worries me is the number of bag holders above $4. If it was a few days of spiking that would be one thing, but this stock hung above that level for two months.
That’s a lot of downward pressure.
Robinhood Penny Stocks to Watch #4: EzFill Holdings Inc. (NASDAQ: EZFL)
IPOs are hot right now, and this might be a perfect example of that. This company’s a leader in the mobile fuel industry. See what I’m saying? Oil and gas, baby.
The price dropped a bit after the IPO. But it looks like it put in a base at $3 and now is making its way back. The breakout level is $5, so that’s where I’m putting my attention. I’m hoping for a catalyst and for more volume to come in.
We may have seen a double bottom at $3. But it needs to trade enough shares to get through resistance.
Robinhood Penny Stocks to Watch #5: Grom Social Enterprises Inc. (NASDAQ: GROM)
This monthly chart looks pretty awful, but I think there are reasons to be a little optimistic.
First of all, it’s got a pretty low float. Stocks with low floats can spike higher because there’s less supply compared to demand. Basic economics.
The volume’s also coming in nicely. This is what I’m talking about. It has a float of 11 million shares, and on September 29, it traded 50 million shares. That’s almost five float rotations.
The company brings original content to children through social media and entertainment services. I’m not saying it’s a great company or anything. But kids are spending more time in front of screens than ever.
I’d like to see it move with a catalyst. Right now it doesn’t look like there’s much of a reason for the move, but I’ll keep my eyes open.
Robinhood Penny Stocks to Watch #6: Superior Drilling Products Inc. (AMEX: SDPI)
Oh! Another oil and gas? I promise this is the last one. Unless you want more here.
This chart doesn’t have the best history of running, but it’s approaching a breakout level. The volume’s also coming in pretty nicely.
I don’t know if it’ll be able to break through the $1.40 level without a catalyst though. Given its history of failed spikes, I wouldn’t get in until all the indicators line up.
I need support to buy on, plus a catalyst and volume. Without those three, I wouldn’t touch it.
Robinhood Penny Stocks to Watch #7: TransCode Therapeutics Inc. (NASDAQ: RNAZ)
A few days ago in premarket, I openly trashed this sketchy biotech stock. I didn’t think the news was good enough. It was cancer related, so that’s a little spooky. But it was pretty vague. Boy, was I wrong.
Had I known it was going to trade more than 200 million shares that day, I would have been singing a different tune. That’s what makes this stock different from the rest of the sketchy gappers. And that’s why it’s on my list for October.
Why? Now we know people are watching the stock. It’s a recent IPO so it has that going for it. But there wasn’t much confirmation that people wanted to trade it until now.
If it can hold its gains and push back up toward the high of $5, I’ll look for a safe entry.
I tip my hat to this spiker. It just goes to show you that once you think you know a thing or two, the market will humble you fast.
This stock helped revive the Scamex sector a bit so I’ve got it on my list for any follow-up moves. In my opinion, this is the Scamex squeezer to focus on.
I know CEI looks cool at the top of the list. But it’s so overextended. This one’s still under the breakout level, and it’s been consolidating for a bit.
You can see it has a history of spiking, which is always good. It also has a really low float so it’s easier to get full float rotation.
The point of resistance is around $5. That’s where I’ll focus my attention.
Penny Stock to Watch #9: Red Cat Holdings Inc. (NASDAQ: RCAT)
This stock interested me a few days ago after that gap-up on September 27. There was some space-related news that I liked.
Remember early last summer when Elon and Bezos were preparing to go to space? Then Richard Branson went … I sort of thought there would be a space race that would play out in the markets. It hasn’t happened yet, but I still think it’s coming.
Unfortunately, it closed red on the day. But instead of giving back the gains, it put in a base at $3 and is on its way back.
I don’t know if this stock will mark the beginning of the space race catalyst, but I’m definitely waiting for another launch higher.
Penny Stock to Watch #10: Naked Brand Group Limited (NASDAQ: NAKD)
This is a massive former runner that I’ve had on my watchlist for a while. It’s been a momentum stock forever. I’d forget about it if it fell below 50 cents, but it’s managed to stay alive.
The best part about this chart is the perfect double top it put in at $1. Nothing’s set in stone, but I think we could see a revival of this old spiker.
I’m just waiting for the volume to come in. Volume’s everything when it comes to these runners. Especially because its float is a bit bigger than most of the others on this list. If there’s enough volume and a good setup, I’ll look to get in under $1.
Who knows? Maybe a trader could ride it back to the breakout at $3.50. But that would be a scary hold.
Types of Penny Stocks on Robinhood
Robinhood is a retail-focused brokerage. That means it only allows clients to trade on major exchanges such as the NYSE and the Nasdaq.
There’s a ton of stocks below $5 on these exchanges. The problem is, you’re only getting part of the pie.
The OTC markets and pink sheets also offer a huge range of volatile penny stocks … But you’ll need a different brokerage account to trade them. Robinhood won’t cut it. Check out this post for the lowdown on how to find the best brokerage for you.
How to Find Penny Stocks on Robinhood
Don’t follow my stock picks blindly. You’ve gotta become self-sufficient. Sure, you can find penny stocks on Robinhood’s mobile app…
But I recommend creating your watchlists from your laptop — it’s a lot easier. Use a screener to search for stocks below $5. You’ll probably want to find some with volume too.
But it’s impossible for one person to watch every penny stock on Robinhood. So either grab a couple of friends to help you stare at hundreds of stocks … or choose a few that show good potential.
How to Choose Penny Stocks on Robinhood
Choosing penny stocks to trade requires a number of well-planned steps. Doesn’t matter which broker you use.
It’s all about finding hyped-up stocks. Then you ride the momentum and jump off before the move crashes. That can make it sound easy. It’s not. It takes years of education and planning to learn how to ride the momentum in this niche.
But here’s a quick overview…
First, look at stocks with hype. Maybe there’s a news catalyst that day. It could be trending on social media, or maybe it’s just a current hot stock.
Next, make sure that the stock’s daily trading volume is high enough to allow you to get in and out easily. Remember managing risk.
It’s also important to check the price action on the stock chart. Reading the chart can help you pick a perfect entry position. It can also show good places to set your stop loss and help you understand what the stock’s next move might be.
Chart reading doesn’t have to be complicated. In fact, many seasoned traders look for clean and simple chart patterns.
Keeping up with news, watching the charts, and analyzing trading volume can all be done on a number of different apps … But if you want to get serious about your trading, there’s a much more effective way to do all of these things…
Get a 14-day trial of StocksToTrade for just $7 for access to one of my most powerful stock trading tools on the planet. It’s your one-stop shop to help simplify your trading.
How to Trade Penny Stocks on Robinhood
If you’re gonna trade penny stocks on Robinhood — or anywhere else — you better know the restrictions.
Pattern Day Trading Rule
You have to keep the pattern day trading (PDT) rule in mind. This rule isn’t specific to Robinhood. If you have a small account, it can affect your trading.
The rule limits traders to no more than three day trades within a rolling five-day trading period. That is unless you have $25K or more in your trading account.
It can seem inconvenient — especially for new and excited traders — but it’s actually meant to protect you. Most traders lose money. The PDT rule tries to stop newbies from overtrading.
Try to see it as a good thing. It’ll force you to only focus on the best trades. That’s the best study tool there is.
Robinhood Day Trading Limit
The PDT rule can be a big problem for some traders. But again, I encourage you to see it as a good thing. No, you don’t have to listen to me…
Just like when I said that I didn’t think Robinhood had the best day trading software around. You can use it if it works for you. But understand that different brokers can work better for different people.
Don’t limit your options by choosing one just because it’s easy.
This is important, so pay attention. Do your research. Only you can decide which broker and trading platform are right for you.
You also need to figure out if you want access to extended-hours trading. That can also come with risk. I don’t recommend that for new traders.
What’s key is access to charts, watchlists, stock research, Level 2 data, and indicators. You can get all that and more with StocksToTrade. Plus you can trade right from the platform with our broker integration — and you can add on what’s arguably the trading chat room.
When you start trading you have a lot of decisions to make. So take your time. Make a detailed list of what matters to you, then find the right broker and trading platform.
Robinhood Penny Stocks to Watch: How to Make Your List of Penny Stocks
When you build the habit of searching for the best stocks and trading setups, you’ll quickly develop a list of stock tickers that’s long. It happens to every trader…
That’s where watchlists come in handy. It’s your personal collection of stock tickers that you think show potential. Most traders keep multiple watchlists, such as one for a certain sector and others for specific chart setups. How you organize it is all up to you.
Need help with your watchlists? Learn from my process every week. Sign up for my no-cost weekly watchlist and I’ll send you my top picks for the week every Sunday!
Should You Trade Penny Stocks on Robinhood?
Robinhood can be more popular with newer traders. But as traders progress past newbie status, they tend to switch to a more robust platform.
Whether you should use Robinhood to trade penny stocks is up to you. But before you make a decision, you should know the advantages and disadvantages that come along with it.
Let’s take a look at a few.
Free Trades: There are no commission fees with Robinhood trades — that’s one of its biggest draws. But realize they gotta make money somehow. And that could potentially affect the quality of your trade executions
No Account Minimum: Traders can start right away because there’s no account minimum.
Ease of Use: More people are on their smartphones a lot these days. Robinhood’s app can make signing up for and funding an account quick.
Streamlined Interface: One of Robinhood’s drawbacks is that it lacks the tools and resources other brokers have. But its focus on simplicity can be useful for less-knowledgeable traders. Just know that as your skill set expands, you’ll likely outgrow this platform.
Fractional Shares: Robinhood has fractional shares. That means traders can pay as little as $1 for a portion of a share, even if that share’s full price is hundreds of dollars.
No OTC Trades: One of the biggest disadvantages of using Robinhood is that it doesn’t allow OTC trades. If trading penny stocks is your strategy, that takes a huge amount of low-priced stock opportunities off your table.
Poor Phone Support: I haven’t tried Robinhood personally, but I know people who have. I hear a lot of reports that it’s difficult to get in touch with a human being. It looks like they’re starting to realize the importance of customer satisfaction. They’ve been expanding their live phone support to try to fix the problem. If you’re trading with real money, you want to know your broker will be there for you if you need help. Communication may be getting better at Robinhood, but seems to be slow going.
App Dependability: Look online and you’ll see complaints about Robinhood’s app reportedly failing at crucial times. This is a serious concern for traders using real money.
Limited Functionality: Robinhood lacks the tools and resources more experienced traders expect.
Potentially Delayed Data: Stock quote data may be delayed as much as 20 minutes. Yep, that’s a problem if you’re trading low-priced stocks. They move fast.
How to Manage Risk on Robinhood
In Hollywood movies, stock traders are often portrayed as high-octane risk-takers. But in reality, the habits of most successful traders aren’t quite as exciting.
The first thing smart traders think about before entering a trade is how to manage risk.
It means you don’t lose more money than your trading plan allows. It’s important to be able to exit positions easily with little stress. When you have a bad day in the market, at least you’ve done your best to protect your account and live to fight another day.
One way to manage risk is to set stop-loss levels. You can place an order with your broker to close a position if you lose too much money. For those disciplined enough, top traders set mental stops and manually close positions that hit loss limits.
Traders can place stop-loss orders from the Robinhood app. They should work as long as there’s enough trading volume in your stock.
Can You Get Rich Trading Penny Stocks?
I hate this question.
Look, you can get rich doing just about anything. Go to med school and become a brain surgeon. Sell the finest underwater woven baskets the world has ever seen. Brew kombucha in your garage. Pump penny stocks.
OK … some of those might be a stretch. My point is anything is possible.
But day trading is hard. Day trading penny stocks on Robinhood can be even harder.
It’s not impossible to get rich in this niche. But be realistic with your expectations. Nothing good ever came from laying around on your butt thumbing through stock pick articles.
If you’re serious about trading penny stocks, start taking your education seriously.
If you’re looking for mentorship, a trading education, and a trading community, come join the SteadyTrade Team. We connect live twice every trading day to watch the market and make solid trade plans. Join us!
Frequently Asked Questions About Robinhood Penny Stocks
Does Robinhood Really Give You a Free Stock?
As of now, yes, traders get a free stock when opening a Robinhood account. To me, it seems like another way the broker tries to entice users. But do your research. Check the terms and conditions, as they can change at any time.
Can You Day Trade Penny Stocks on Robinhood?
Day trading on Robinhood is like pulling onto the highway with two flat tires. You can do it, and it’ll work, but it won’t be pretty. Serious traders tend to use more robust software. Research different brokerages and software to find what might work best for you.
What’s the Catch With Robinhood?
Robinhood has a sleek app, zero commissions, and you can even get a free stock for opening an account. How can that be profitable? They make money by charging what’s known as ‘payment for order flow.’ Market makers and trading firms pay Robinhood for the ability to take the other side of your trades. They make tiny profits on each transaction, which add up over time. And no, they aren’t the only broker to do that.
Robinhood Penny Stocks to Watch: Conclusion
There you have it — my top Robinhood penny stocks to watch in October 2021.
As you can see, Robinhood has some pros and cons just like any other broker or platform. It’s up to you to find your strategy, then find a broker and platform that fits your needs.
If you want to try a more advanced platform, check out StocksToTrade. It’s a platform built by traders for traders and it has a TON of tools and resources that will make even the most experienced traders happy.
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Have you used Robinhood to trade penny stocks? I’d love to hear about your experience. Leave a comment below!