Top Robinhood Penny Stocks: Key Takeaways
- The hottest penny stocks to watch in September…
- See why I’m watching these potential spikers…
- The awesome power of OTC stocks and how you can trade them…
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 my watchlist for September (details below).
- Elys Game Technology Corp. (NASDAQ: ELYS … see my analysis here)
- Globalstar Inc. (AMEX: GSAT … see my analysis here)
- Naked Brand Group Limited (NASDAQ: NAKD … see my analysis here)
- NanoVibronix Inc. (NASDAQ: NAOV … see my analysis here)
- ENDRA Life Sciences Inc. (NASDAQ: NDRA … see my analysis here)
- Navios Maritime Acquisition Corporation (NYSE: NNA … see my analysis here)
- Exela Technologies Inc. (NASDAQ: XELA … see my analysis here)
- Coastal Capital Acquisition Corp. (OTCPK: CCAJ … see my analysis here)
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 September 2021
As of a few days into 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: Elys Game Technology Corp. (NASDAQ: ELYS)
This company claims to be the fastest-growing sports betting service. I don’t know about all that, but the stock ran quite a bit on heavy volume after releasing news. New contracts and licenses are exactly the kinds of catalysts we look for to spike stocks.
ELYS surged from $4 up to $6 in one day and is now attempting to hold gains. It had a choppy run from $1 to $7 back in December 2020, and it was able to consolidate around the $4 level.
This recent catalyst makes the stock exciting. I’m looking for it to hold its gains and show signs that it’ll go further. Look for more catalysts to come and increased volume. Remember, safe entries and exits — don’t get greedy.
Robinhood Penny Stocks to Watch #2: Globalstar Inc. (AMEX: GSAT)
Here’s a telecommunications company that’s starting to heat up. It has a pretty good pattern and history of running.
See how it set a top at $1.50 back in January 2021? Then it blew past the level in February on big volume. Textbook chart pattern.
It gapped up recently on some news that Apple Inc. (NASDAQ: AAPL) might use satellites for its new iPhones. That’s right up GSAT’s alley.
It’s dipped a bit since then, but the gains continue to hold for now. I want to see it hold this level and show it can continue further. The breakout level is $3, so we have some wiggle room still.
Robinhood Penny Stocks to Watch #3: Naked Brand Group Limited (NASDAQ: NAKD)
This is a huge runner from January 2021. Look at that spike from 50 cents to $3. That’s some nice volatility.
It looks pretty lazy as of late, but I’m picking up on a few subtle hints. It’s on the watchlist because …
- It’s managed to stay above the previous break-out level of 50 cents
- It tested the $1 level in June and now looks like it’s moving back toward the same resistance point
I wouldn’t buy it until it manages to break through the $1 level. It’s just too risky right now. There’s quite a bit of resistance there. And since it only ran a little under a year ago we could still have bag holders all the way up at $3.
Look for a convincing break above $1. There needs to be high volume and some consolidation before I think about getting in. This isn’t a done deal by any means, but I think it has a lot of great potential.
Robinhood Penny Stocks to Watch #4: NanoVibronix Inc. (NASDAQ: NAOV)
I was ready to write this one off after it spiked and dipped back down. But it found a nice base at $1.50 to bounce off. See how it hung out at that level back in January and February 2021?
Since then it’s continued to push back up and hold gains. It might put in a double-bottom right above $2.50. If it pushes back up, I’m interested to see what it’ll do above $3.
The breakout level is a little ill-defined, so be extra careful and make sure to get a safe entry. It looks like $4 is the level to beat. That’s where the highest volume was. You can see the big green volume bar on the graph below the chart.
This company sells products for home-administered pain and wound relief. Home doctor visits have been increasing in popularity recently. I just had my first video call appointment a few weeks ago, and I loved it.
This technology could prove more popular in the future as the trend continues. Look for catalysts and more volume before getting in. This one could be big.
Robinhood Penny Stocks to Watch #5: ENDRA Life Sciences Inc. (NASDAQ: NDRA)
This chart is a little choppier than I’d like, but there’s still some potential. There are two main resistance levels you should be paying attention to. Can you guess what they are?
The stock seems to have put in a pretty solid top at $3 and was playing around with a floor at $2 before falling through.
Instead of falling back to sub-$1 land (a true penny stock!), it dipped below $1.50 and is now challenging $2. How exciting!
I’d look to get in if it surges past the $2 resistance on some volume. Then wait for a catalyst to spike this baby past $3.
Remember, it’s a bit choppy and its history of running is a little trash. Keep your expectations realistic. Notice what happened last time it broke out and tried to run … There was a big green candle and then it gapped all the way back down the next morning.
Do you know why? Take a look at the volume. You need big volume to hold breakouts. That’s key.
Robinhood Penny Stocks to Watch #6: Navios Maritime Acquisition Corporation (NYSE: NNA)
This stock is probably the most speculative on the list. But hey, it’s a watchlist. I never said I would trade any of them. I’m just looking for opportunities.
Of all the sketchy penny stocks you could play on Robinhood, this one makes the list on volume alone.
It gapped up and ran to $3.50 after releasing merger news. Since then, it’s been able to hold gains nicely and even creep a little higher.
It’s a bit of a sketchier play, but I’m interested enough to keep my eyes on it.
Robinhood Penny Stocks to Watch #7: Exela Technologies Inc. (NASDAQ: XELA)
Here’s another great chart. It’s got a really good history of volatility and spiking. The only thing I think you should watch out for … its last true spike was a one-and-done.
Now, some one-and-dones turn into great runners later on. But that’s not always the case, so be careful.
The breakout level is a bit hard to tell here since it spiked to $7 in March and $5 in July. I’d say you’re looking for a solid entry on a dip before $5. But you could also try to catch it between $5 and $8. A lot of opportunity there.
It looks like there’s a double-bottom above $2. I’d like to see it push past the most recent resistance at $3 before looking to get in.
The company specializes in workflow automation. As technology improves we may continue to see jobs disappear to automated systems. This stock could move higher after a new contract catalyst.
Watch for increased volume and consolidation above $3.
Penny Stock to Watch #8: Coastal Capital Acquisition Corp. (OTCPK: CCAJ)
Yep, it’s an OTC. And nope, you can’t trade this stock on Robinhood. Doesn’t that suck?
Why is it on this list? I want to show you the kinds of plays you could be missing out on.
Here’s a shell company that gained 330% in one day. The company doesn’t even do anything. The whole point of a shell company is to merge with a more successful private company. That way the private company can go public without as much red tape.
These sketchy runners are textbook trade opportunities in the OTC market. But you won’t get the chance to trade them on Robinhood.
You can keep trading on Robinhood and I’ll keep giving you monthly stocks to watch. But if you want to get serious about penny stocks I’d look into trading OTCs. I think the chart speaks for itself. And yeah, that’s a day trade only kind of play.
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 10 Robinhood penny stocks to watch in September 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!