You’re reading a post on Robinhood penny stocks — so I assume you must be new to trading.
And I want you to know something: It is possible to get rich trading stocks. Want proof?
Or better still, there’s my mentor and buddy Tim Sykes, who taught both these traders and many more. He has made over $7 million in profits over the last two decades. Here’s a chart of his profits on Profit.ly, the site he helped design for traders to track all their trades…
Know this too: If you’re serious about profiting in this niche, you must upgrade your tools.
I’m not trying to be mean. But in my opinion, Robinhood traders are completely outmatched. Don’t worry, though. I have a solution for you…
Use Robinhood to get curious. You can use it to study too. But I sure hope that if you’re gonna make a trade, you’ll use a better broker and platform.
Use these tools to your advantage.
Now, let’s take a few minutes to analyze the hottest penny stocks you can find on Robinhood in April. Start studying right now …
Here’s my dedicated post to trading penny stocks on Robinhood. Plus, I’ll share some stock-hunting tips with you and more.
Table of Contents
- 1 Can You Buy Penny Stocks With Robinhood?
- 2 List of the Hottest Penny Stocks on Robinhood in April 2022
- 2.1 Robinhood Penny Stocks to Watch #1: Mullen Automotive, Inc. (NASDAQ: MULN)
- 2.2 Robinhood Penny Stocks to Watch #2: Hycroft Mining Holding Corporation (NASDAQ: HYMC)
- 2.3 Robinhood Penny Stocks to Watch #3: Takung Art Co., Ltd. (NYSE: TKAT)
- 2.4 Robinhood Penny Stocks to Watch #4: Protalix BioTherapeutics, Inc. (NYSE: PLX)
- 2.5 Robinhood Penny Stocks to Watch #5: Phio Pharmaceuticals Corp. (NASDAQ: PHIO)
- 2.6 Robinhood Penny Stocks to Watch #6: Iveda Solutions, Inc. (NASDAQ: IVDA)
- 2.7 Robinhood Penny Stocks to Watch #7: Momentus Inc. (NASDAQ: MNTS)
- 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 the penny stock. You can access penny stocks on the Nasdaq or NYSE exchanges with Robinhood.
But no dice if you’re into OTCs or pink sheets. Robinhood doesn’t have access to OTCs on its platform.
Which kinda sucks, because OTC stocks can run hundreds of percentage points. If you’re interested in capitalizing on that volatility, stop what you’re doing and watch this video …
That said, I put together a list of penny stocks you can find on Robinhood.
If you’re looking for more of the hottest stocks, sign up for my weekly watchlist!
List of the Hottest Penny Stocks on Robinhood in April 2022
I think these Robinhood stocks show some watchlist potential.
No, I can’t claim any of them are fundamentally good companies … But they all have some hype. And maybe there’s potential for momentum or interesting price behavior on their charts.
Remember, this is just a guide. The smartest traders I know figure out how to do this on their own — with a lot of time and practice. You can get an idea of what goes into the process here.
Robinhood Penny Stocks to Watch #1: Mullen Automotive, Inc. (NASDAQ: MULN)
A strong history of spiking is one of the best things to see in a stock chart, especially when it comes to day trading.
There are more than a few charts on this list that show past spikes. And past spikers can spike again. Always remember that.
The first example I have to show you is on this five-year chart of MULN … Check out the spike from under $5 to over $30!
That’s the volatility traders look to take advantage of for profits.
The price ran a bit since then, from under $5 spike to $20. Now the price is back below $5. See where I’m going with this?
Now before you get excited … understand what MULN is. It’s the same thing as most penny stocks: garbage.
Why do you think the price keeps falling back down?
This is a sketchy company trying to bank off the EV sector. Don’t believe what it says. Every press release is a desperate attempt to push the stock price higher.
That said, there’s still a way to make money on these trash stocks.
But it doesn’t involve a long-term investment. These are day trades only. Things move fast in this niche. You don’t want to get stuck in a penny stock that’s crashing…
The best idea is to use support and resistance levels to plan safer entries and exits. If you’re completely confused right now, watch this video…
The breakout level is the most recent high which was set back in March. Since then, the price has consolidated nicely.
There’s a double-bottom right above $2. Let’s see if that level holds.
Robinhood Penny Stocks to Watch #2: Hycroft Mining Holding Corporation (NASDAQ: HYMC)
This stock ran back in early March, then tried to hold a breakout at the end of the month.
Technically, this is an example of a failed breakout. Usually, if stocks dip back below the breakout level, it’s a sign it’s going lower.
But this is a special case. If you’re unaware, AMC Entertainment Holdings, Inc. (NYSE: AMC) acquired 22% of this mining company in March. Remember the AMC short squeeze? It’s the same company. Here are some more details …
Now, let’s get something straight.
AMC acquiring a big stake in HYMC doesn’t mean the price will go higher.
But penny stock trading is all about riding momentum and hype.
Why do you think AMC or GameStop Corp. (NYSE: GME) shot up so much in 2021? It was all hype and short squeezes.
It’s the same thing with Hycroft Mining. The relationship with AMC puts it in the spotlight, and the recent volatility will likely attract more traders.
Make sure to play off lows and wait for a recent press release before getting in. And remember, sometimes the best trade is no trade at all.
Robinhood Penny Stocks to Watch #3: Takung Art Co., Ltd. (NYSE: TKAT)
Here’s another great example of a stock with a history of spiking. Actually, it’s one of the best when it comes to a true penny stock runner.
This spiked from under $5 to over $70 in less than two trading weeks.
There are a lot of opportunities to profit during a 130%+ spike. What a beauty.
Don’t let that volatility rattle you. The key to consistent profits is taking it one trade at a time. So let’s take a look at a more recent chart time frame.
Find what the breakout level is, then look for local support to buy above. And for the love of all things holy, wait for a press release and some volume.
Robinhood Penny Stocks to Watch #4: Protalix BioTherapeutics, Inc. (NYSE: PLX)
I’m less excited about this one. But I’ve been wrong before. That’s why it’s still on my watchlist.
Understand that any of these stocks could pop off at any time. To be ready, I keep track of the ones with the highest probability.
This chart has a pretty awful history.
Sure, it gapped up and ran on April 4. But by the end of the day, it gave back all of the gains and closed red. Not too impressive.
But volatility is volatility. And so far it has been consolidating above $1.30.
Also, it’s a biotech, as are a few others on this list. Biotech stocks have been getting hot recently.
Pay attention to the sectors of hot stocks. If I see a trend, it helps me watch the right tickers before they start moving. It’s called sector momentum. Read this for more on hot sectors.
I’d like to see PLX’s price shoot back above $1.50. But another plan could be to buy above or at local lows and wait for another breakout.
I also want to see a recent press release along with the move.
Worst case scenario, cut the loss right after it breaks down below support.
Robinhood Penny Stocks to Watch #5: Phio Pharmaceuticals Corp. (NASDAQ: PHIO)
This is a really recent runner. As I’m writing this, it’s on day two of the move.
Here’s the news it’s spiking on…
When I’m looking to day trade a volatile stock, I want a reason for the move.
It’s not enough to just trade tickers that are up on the day. If there isn’t a catalyst, stay away. That’s one of the best ways to protect your trading account.
And, “positive new data … antitumor,” are pretty good buzzwords to read. That’s the kind of news that excites the market.
So far, the chart looks good. The sideways consolidation looks awesome. I’m excited to see where this thing goes.
Robinhood Penny Stocks to Watch #6: Iveda Solutions, Inc. (NASDAQ: IVDA)
This stock ran a bit toward the end of 2021. Again, I’m glad to see a history of spiking.
More recently, it gapped way up from below $1 to above $3. And mid-April it spiked past that level again, trading a lot of shares. That’s a good sign when it comes to breakout days.
I’ll keep an eye on it. It was a nice afternoon spike on April 11!
Robinhood Penny Stocks to Watch #7: Momentus Inc. (NASDAQ: MNTS)
Here’s an aerospace and defense play that’s been consolidating lately.
I kind of like the sector. There’s been a lot of news recently about billionaires going to space. And Russia’s recent war in Ukraine is only making things more interesting. Here’s what I’m reading in the news…
Here’s the reason for the spike on April 7 …
Here we see another penny stock with a catalyst and sideways consolidation. It sort of reminds me of PHIO …
Support is at $3.80, so I’d look to buy above that level in anticipation of a breakout. And I’d cut the loss if it breaks down.
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 April 2022.
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.
Last year, we added our brand-new Breaking News chat feature — and traders are in LOVE with it. See how two skilled stock market pros can help you find the news with the most potential to move stocks. Here’s where you can learn more and sign up TODAY.
Have you used Robinhood to trade penny stocks? I’d love to hear about your experience. Leave a comment below!