Top 7 Robinhood Penny Stocks to Watch in September 2022

Robinhood traders have always been hungry for penny stocks. Knowing what they’re watching could give you an advantage when you’re trying to interpret a crappy stock like GOVX’s 70% spike on no news…

That’s why I have this Robinhood penny stock watchlist. Extreme online traders have become a market force — ignore them at your own peril.

Watchlists are basically a cheat sheet for different parts of the market. I make specialty watchlists for sectors like biotechs…

But it’s also smart trading to understand who else is trading. That’s why we’re here today.

Penny stocks are notoriously unreliable. When you add the pack nature of Robinhood traders to the mix, you could get into some dangerous situations.

That’s why I make sure my SteadyTrade Team students trade their best patterns, and know how to navigate risk.

Don’t believe anyone who tells you that you can’t trade penny stocks safely. You can make money trading these stocks.

But you have to know what to look for. Just like in real life, discretion — i.e., not trading — is often the better part of valor.

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 September 2022

I make no guarantees with this watchlist except for one…

As long as there are penny stocks out there, smart traders can turn a profit.

A big part of being a smart trader is preparation. And watchlists are the best preparation there is.

The market moves on collective supply and demand. You’re collaborating with millions of other traders every time you trade…

You better know what they’re watching. This watchlist is my idea of what those meme stock-hungry Robinhood traders are watching right now.

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: Geovax Labs Inc. (NASDAQ: GOVX)

Guess who’s back at number 1?

GOVX had a brilliant summer. It ran 674% from July 25 to August 2 before hitting resistance in the $4s…

Monkeypox was the biggest catalyst at the time in the biotech sector in general, and for GOVX in particular. With its fade from the news, GOVX had a month-long downtrend.

Until September 9, that is. It came out of nowhere, and gained almost 70% on volume it hadn’t seen for more than a month … since its last awesome run.

Why did it pop? It’s hard to say. The stock hasn’t had any real news. Maybe shorts decided to exit their positions as the stock hit six-week lows, sending the stock price up.

Then other traders saw the momentum and jumped in. The market has a memory.

Change the time frame on your chart to six months, and you’ll see two other big, multi-day runs. Don’t think the market has forgotten that.

And with GOVX scheduled to present at the H.C. Wainwright Global Investment Conference on September 12–14, some actual news might be on the way.

It’s always a threat to dilute. Be careful with this one.

Robinhood Penny Stocks to Watch #2: Bed Bath & Beyond Inc. (NASDAQ: BBBY)

Well, BBBY is back in the news. As usual of late, the news is not good.

CFO Gustavo Arnal jumped from his Manhattan high-rise on September 4. He’d been named as a defendant in an August 23 lawsuit claiming that he and the company had conspired with meme stock millionaire Ryan Cohen on a pump-and-dump scheme.

When the market reopened on September 6, BBBY shares lost about 20%. This is also after the stock lost some mojo by announcing it would close 150 stores and lay off a fifth of its workforce.

Not good, right? Well, it doesn’t matter for the reigning king of meme stocks. BBBY finished the week strong, regaining all of its September 6 losses.

It’s not quite a penny stock, but it’s got all the irrationality that penny stocks are marked by. That means our rules still apply.

Robinhood Penny Stocks to Watch #3: Mogu Inc. (NYSE: MOGU) 

Let’s get into the true TRASH penny stocks.

MOGU jumped on news of a stock buyback September 9. It’s got a small float that’s about to get even smaller.

We built a trading plan on the SteadyTrade Team that day. MOGU didn’t hit our buy trigger, but it didn’t fall apart either.

It’s a “key opinion leader-driven online fashion and lifestyle destination in China.” Sounds wacky, but it’s got links to Alibaba and TenCent, two of China’s biggest tech companies. 

It’s also got a visionary marketing plan. Chairman and CEO Chen Qi told TechCrunch, “The manufacturers won’t even have to make the clothes upfront. Our live broadcast host will show a sample to her audience, aggregate orders, and tell the factory how many to make and in what sizes.”

Kind of wild, huh?

The company isn’t making money right now, but it’s got a cool story. It’s on the market’s radar, after trending down for a couple of years. Let’s see if it can make a move.

Robinhood Penny Stocks to Watch #4: PaxMedica (NASDAQ: PXMD) 

Back to biotechs. PXMD is here to give you all a timely reminder of why this is a watchlist, not a “buy list.”

PXMD IPO’d at the end of August, then earned a spot on my weekly watchlist by shooting up 40% on September 2.

It faked us out a number of times that day. As usual, daily candles don’t tell the full story. The day’s gains hid a more disappointing side to PXMD’s price action …

The stock couldn’t effectively break out.

It trended lower during the week of September 6. This is par for the course on IPOs, and why I warn my traders to wait for the chart. You can’t trade patterns before then.

PXMD still has a super low float, and some good buzz from its recent IPO — no, Robinhood traders haven’t forgotten about HKD and August’s red-hot IPO sector yet.

Wait for a break of $6.50. That’s when this stock gets cooking.

Robinhood Penny Stocks to Watch #5: Nikola Corp. (NASDAQ: NKLA)

A judge ruled Thursday that jurors may get to see the famous video of Nikola’s non-driving electric vehicle rolling down a hill in the upcoming fraud trial of the company’s founder and former CEO.

That didn’t stop the stock from gaining 10% through the next trading day.

If you recall, Nikola was one of the rising stars of the EV world in 2020. Then Heisenberg Research published an explosive short report called: “Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America.”

Great just when I was ready to Preorder a Badger….$GM steps in.

Without a doubt GM will destroy any potential of $NKLA

Hope the guys at $NKLA got paid cuz your dream is dead now.#timesstampthis5yearsfromnow pic.twitter.com/Zl5IvMJNfS

— Timothy C. Bohen 🇺🇸 (@tbohen) September 8, 2020

Heisenberg discovered where they filmed their promo video. They put a car in neutral on the same road, and filmed it moving at the same speeds as Nikola’s EV. Nikola later admitted to the deception.

At the end of August, Nikola announced that they may do a $400 million share offering. Who cares! Nothing can kill this junky stock. 

Robinhood Penny Stocks to Watch #6: Invitae Corporation (NYSE: NVTA)

I spotlighted NVTA on the last Robinhood penny stock watchlist…

It had a phenomenal spike a month ago. On August 10, it gained 277% on positive earnings — by blowing up shorts.

But even that news was flimsy. Bryce Tuohey of the StocksToTrade add-on service Small Cap Rockets gives a great metaphor in the opening scene of this video …

The card trick is called “This, That, and The Other.” That’s kind of what NVTA gave its investors.

The stock had lost over 900% of its value in the 18 months leading up to its strategic pivot on July 18. The company would restructure, lose its CEO, and cut a third of its workforce.

Its August earnings news was meant to show the world that this new strategy was working. But revenues weren’t that much better than expected. The high short interest and Cathie Wood buy did most of the heavy lifting in the spike.

I like this September run a bit more. The short interest is still high at almost 18%. The gains are more modest but longer-lasting. The stock gained over 50% during the week of September 6.

Although NVTA will continue losing money into 2024, Wood’s ARK Innovation ETF continues to buy up stock. That might be the best catalyst Robinhood traders could hear. 

Robinhood Penny Stocks to Watch #7: Forza X1, Inc. (NASDAQ: FRZA)

What is it with meme traders and electric boat stocks?

They poured into Forza’s parent company, Twin Vee Powercats Co. (NASDAQ: VEEE), right before the IPO…

VEEE gained almost 100% as FRZA made its Nasdaq debut. Listen to my adrenaline here as I read off the trades from my students on the SteadyTrade Team…

FRZA also surged around that time. It shot up to $15 on its first day. 

It’s had a couple of rips in its month-long dip. Could it finally be basing?

FRZA made my weekly watchlist. And it’s going to stay right there, as long as it continues to average two float rotations in daily volume.

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.

Decide whether you’ll trade with a cash account or use margin. Margin is automatic on some Robinhood accounts. That can be risky. Read more about margin here.

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.

Advantages

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.

Disadvantages

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 September 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!