If you aren’t serious about your trading, you may ask questions like “what are the top 10 Robinhood penny stocks to watch?”
That sounds harsh. But I’ve seen what’s out there and heard the horror stories. I think you can do better. You have access to SO much information. You can sign up for my NO-COST weekly watchlist here. And you can follow StocksToTrade on YouTube for free vids on trading education.
But since you’re here, let’s talk about trading penny stocks on Robinhood.
Robinhood has taken the industry by storm. It’s made it easier for new traders to enter the trading game. It’s also branded itself as THE “free” trading platform. (Nothing’s ever really free.)
Everywhere I go, I meet new traders who use it, and they always ask me for tips or feedback.
Listen, I’ll be honest … In my opinion, Robinhood is not the best platform for trading penny stocks. But I’m glad it’s inspiring new people to build a skill that has the potential to change their future.
So today I’ll dedicate this post to trading penny stocks on Robinhood — with a healthy dose of honesty.
Let’s do this!
Table of Contents
- 1 Can You Buy Penny Stocks With Robinhood?
- 2 List of 10 Hot Penny Stocks on Robinhood in 2020
- 2.1 AMC Entertainment Holdings Inc. (NYSE: AMC)
- 2.2 Aytu Bioscience, Inc. (NASDAQ: AYTU)
- 2.3 AgEAgle Aerial Systems Inc. (AMEX: UAVS)
- 2.4 Waitr Holdings Inc. (NASDAQ: WTRH)
- 2.5 Westport Fuel Systems Inc. (NASDAQ: WPRT)
- 2.6 MicroVision Inc. (NASDAQ: MVIS)
- 2.7 CleanSpark Inc. (NASDAQ: CLSK)
- 2.8 Tetraphase Pharmaceuticals Inc. (NASDAQ: TTPH)
- 2.9 NanoViricides, Inc. (NYSE: NNVC)
- 2.10 Applied DNA Sciences (NASDAQ: APDN)
- 3 How to Find Penny Stocks on Robinhood
- 4 How to Trade Penny Stocks on Robinhood
- 5 Should You Trade Penny Stocks on Robinhood?
- 6 Can You Get Rich Trading Penny Stocks?
- 7 Conclusion
- 8 One Platform. One System. Every Tool
Can You Buy Penny Stocks With Robinhood?
Well … the answer’s both yes and no. It really depends on which penny stocks you’re after.
If you’re looking for stocks that are under $5 and listed on the Nasdaq or NYSE exchanges, then yes. You can access these stocks on Robinhood.
But it’s not great news if you’re into OTCs or pink sheets like we are in the StocksToTrade Pro community. If you like these stocks, you’re out of luck. Robinhood won’t let you trade them on its platform.
Traders like Jack Kellogg love to focus specifically on OTC stocks and the meaty opportunities they can provide.
That said, I put together a list of penny stocks that you can find on Robinhood.
List of 10 Hot Penny Stocks on Robinhood in 2020
AMC Entertainment Holdings Inc. (NYSE: AMC)
AMC is the biggest movie theater operator in the world. Its stock soared recently after a report came out that Amazon (NASDAQ: AMZN) was considering acquiring the movie theater chain.
AMC was already suffering from the coronavirus pandemic lockdown that forced the company to shut its doors to the public … Then, more bad news came out that Universal Studios plans to release upcoming movies in both theatrical and on-demand streaming formats.
AMC was understandably upset and threatened to ban Universal movies.
The thing is … Amazon has been so successful at disrupting industries, it could be interesting to see what they’d do with a movie theater chain. AMC stock prices jumped up as much as 56% when the news broke. It’s definitely a stock to watch as this story develops.
Aytu Bioscience, Inc. (NASDAQ: AYTU)
It goes without saying that the coronavirus sector is a hot market right now. AYTU recently partnered with Sterling Medical to develop a “Healight” medical device for treating patients with the coronavirus.
The Healight platform has been in development since 2016. This device will use UV light to kill pathogens.
The stock has moved between 34 cents and $2.99 since March. It will be interesting to see what happens now that it has a licensing deal with Cedars-Sinai in Los Angeles.
AgEAgle Aerial Systems Inc. (AMEX: UAVS)
UAVS is in a sexy sector. I mean, what’s sexier than drone technology and unmanned aerial vehicles (UAVs)?
Well, UAVS received a follow-on purchase order from a “major eCommerce company” for commercial drone package delivery vehicles … And the stock jumped up to as high as $5.15 in April. The Breaking News chat guys alerted subscribers of this one on April 29.
Waitr Holdings Inc. (NASDAQ: WTRH)
WTRH is another coronavirus play. Its software is a smart solution for the lockdown — it gives restaurants a platform for online food ordering and delivery services across the U.S.
As in-house dining remains closed or restricted, WTRH can provide a way for them to make some income.
Before the lockdown, WTRH was trading under 50 cents but skyrocketed up to $4.40 since then.
Westport Fuel Systems Inc. (NASDAQ: WPRT)
WPRT is a clean-energy stock that took a hit during the pandemic. Its manufacturing plant in Italy was shut down and only recently resumed operations on May 4.
After releasing its latest earnings report and getting assurance of government assistance, the stock’s moving up … And with a lot of people looking for alternative fuel solutions, WPRT is one to watch.
MicroVision Inc. (NASDAQ: MVIS)
MVIS develops laser beam scanning tech. It’s been moving since the beginning of May for no apparent reason.
The company announced that it’s “exploring strategic alternatives.” That’s usually a signal that a company is looking into a merger … or that it’s up for sale.
Regardless, when a stock moves like this, I like to keep it on my watchlist for possible future setups.
CleanSpark Inc. (NASDAQ: CLSK)
CLSK is another clean-energy play. It skyrocketed on May 5 after it announced great revenue numbers despite the pandemic.
The company’s CEO is optimistic its momentum will carry on throughout 2020 and into 2021 … That’s refreshing to hear in the current economy.
Tetraphase Pharmaceuticals Inc. (NASDAQ: TTPH)
TTPH is a junk biotech stock that’s been beaten down over the past few years.
On May 7, the price jumped up on record volume. The previous volume high over the past three years wasn’t even close!
Earnings came out on May 7 … But the move was probably more influenced by the news that La Jolla Pharmaceutical Company (NASDAQ: LJPC) is interested in acquiring TTPH for $22 million.
NanoViricides, Inc. (NYSE: NNVC)
NNVC is a popular biotech stock and coronavirus play.
Last week it started moving after it announced it had developed drug candidates that have demonstrated high antiviral effectiveness against multiple coronaviruses.
Applied DNA Sciences (NASDAQ: APDN)
APDN jumped up 24% with good volume on May 4. That was after it announced encouraging news in its efforts to develop a COVID-19 vaccine.
How to Find Penny Stocks on Robinhood
You can find penny stocks on Robinhood’s mobile app…
But I recommend creating your watchlists from your laptop — it’s a lot easier.
Don’t worry … after you create your watchlists, you’ll be able to access the same lists through the mobile app if you prefer to trade from your phone.
Serious about trading low-priced stocks? Focus on your education. The coronavirus pandemic wreaked havoc in the markets — the volatility is insane. Tim Sykes and I made a “Volatility Survival Guide” to help you learn how to trade through the madness.
Plus, you can learn key tips for using the StocksToTrade platform. Like how to find the best trading opportunities with low-priced stocks…
How to Trade Penny Stocks on Robinhood
If you’re gonna trade penny stocks on Robinhood, you better know the restrictions.
Pattern Day Trading Rule
First, you still have to keep the pattern day trading (PDT) rule in mind. This rule isn’t specific to Robinhood, but if you have a small account it can affect your trading.
This 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.
This rule can be very inconvenient — especially for new and excited traders — but it was actually meant to protect traders.
Robinhood Day Trading Limit
Some people don’t know this, but there are limits on how much you can spend day trading on Robinhood.
This amount will vary according to your account size and the types of stocks you trade. The limit will generally be higher if you have more cash and if you hold low-volatility stocks.
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 really key is access to charts, watchlists, stock research, Level 2 data, and more 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 get into the best trading chat room. Read more about this killer feature here.
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.
Should You Trade Penny Stocks on Robinhood?
Robinhood tends to 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’ve gotta make money somehow. And that likely affects 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 these days. Robinhood’s app can make signing up and account funding quick.
Streamlined Interface: One of Robinhood’s drawbacks is that it lacks 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 introduced 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.
No Phone Support: Another con for Robinhood is customer service. I haven’t tried Robinhood personally, but I know a lot of people who have. I hear a lot of reports that it’s difficult to get in touch with a human being. Apparently, all communication is done via email. If you’re trading with real money, you want to know your broker will be there for you if you need help.
App Dependability: Robinhood’s app has been known to fail at crucial times. This is a serious concern for traders using real money.
Limited Functionality: Robinhood lacks 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.
Can You Get Rich Trading Penny Stocks?
That’s a loaded question! It is possible — I don’t think anyone would do it if it wasn’t.
But it’s not easy. Trading low-priced and penny stocks is just like any other skill set that may promise high rewards. You gotta work your butt off for it. And not everyone is successful.
I can tell you this, though … I’ve been around enough successful traders in my career to see what they have in common. They all commit. These traders put in the time and hard work it takes to get good at anything that’s worthwhile. And they fail just like everyone else, but they don’t quit — they learn from their mistakes and keep going.
There you have it — my Top 10 Robinhood Penny Stocks to Watch for in 2020!
As you can see, Robinhood has some pros and cons just like other brokers or platforms. It’s up to you to find your strategy, then find a broker and platform that fits your needs.
To learn more about penny stock trading, check this post out.
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.
We just added our brand-new Breaking News chat feature — and traders are in LOVE with this feature. 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.
Also, if you’re looking for mentorship, a trading education, and a trading community, come join us at StocksToTrade Pro. We connect live twice every trading day to watch the market and make solid trade plans. Join us today!
Have you used Robinhood to trade penny stocks? I’d love to hear about your experience. Leave a comment below!