Top Robinhood Penny Stocks in January 2022: Key Takeaways
- The January Effect is in full swing. Get involved or you’ll miss it…
- Start creating your own watchlists. Cut out the middleman and become self-sufficient.
- Get ready for some sector revival. Keep reading to find out what to watch…
Robinhood isn’t my go-to platform for trading any stocks. But I appreciate how many traders this ‘free’ broker brought into the markets. And since you’re here, read on to find out how you can build a skill with the potential to change your future.
Here’s my dedicated post to trading penny stocks on Robinhood. Plus, I’ll share some stock-hunting tips with you and more.
Here’s an overview of my watchlist for January. See full details below.
- Genprex Inc. (NASDAQ: GNPX … see my analysis here)
- Assertio Holdings (NASDA: ASRT … see my analysis here)
- Creative Medical Technology Holdings Inc. (NASDAQ: CELZ … see my analysis here)
- Nymox Pharmaceutical Corporation (NASDAQ: NYMX … see my analysis here)
- Pop Culture Group Co. Ltd (NASDAQ: CPOP … see my analysis here)
- Nuverra Environmental Solutions Inc. (AMEX: NES … see my analysis here)
- AgeX Therapeutics Inc. (AMEX: AGE … see my analysis here)
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 January 2022
I think these Robinhood stocks show some watchlist potential.
No, I can’t claim any of them are fundamentally good companies … But 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 the work on their own — with a lot of time and education. You can get an idea of what goes into the process here. Need more guidance? Apply to join the SteadyTrade Team mentorship program.
Robinhood Penny Stocks to Watch #1: Genprex Inc. (NASDAQ: GNPX)
Sketchy biotechs are back. Here’s the first on my list.
I usually don’t like recommending biotech stocks. They’re known for being unpredictable. But January is experiencing a sector revival, so I’ll entertain the thought of day trading them.
Let me be clear: This is not a ticker for a long-term hold! You can see from the chart that any gains get wiped out pretty quickly.
But it ran beautifully back in February 2020 and tried to again at the beginning of 2021. Maybe we’ll see it do the same at the beginning of this year.
I’d wait for it to settle on some support and start working back before trying to buy it.
Robinhood Penny Stocks to Watch #2: Assertio Holdings (NASDA: ASRT)
Here’s another past runner that’s picking up speed.
Last February it broke out. Pay attention! The beginning of the year is almost always a hot time for stocks.
The January Effect is in full swing, so be ready to take advantage of profits.
It’s struggling at highs right now. But if key levels hold, I could buy on a dip in anticipation of a breakout. And I’ll cut my losses if it falls through support.
Remember that high volume is key on a breakout! You don’t want to buy if the bag holders still want to unload.
Robinhood Penny Stocks to Watch #3: Creative Medical Technology Holdings Inc. (NASDAQ: CELZ)
This stock gapped up to $6 on news of uplisting to the Nasdaq. Any time a company is ‘uplisted,’ it’s usually a sign their business is legitimate and profitable.
In other words, it’s a great catalyst!
Since trading on the Nasdaq, it’s fallen off quite a bit. But now’s the perfect time for beat-down stocks to spike. That’s why I’m watching this one.
I’m waiting for another hot catalyst to launch the price past local highs. Keep an eye on the news scanner!
Robinhood Penny Stocks to Watch #4: Nymox Pharmaceutical Corporation (NASDAQ: NYMX)
Alert: another sketchy biotech.
The chart looks pretty great … until you realize it’s spiking without news.
Stay away from stocks without a catalyst. They’ll only cause you pain. Trust me. Focus on the best plays for the best chance of profiting.
It has some resistance to break through, but anything is possible. I’m staying out until I see some news. That’s final.
Robinhood Penny Stocks to Watch #5: Pop Culture Group Co. Ltd (NASDAQ: CPOP)
This is a sketchy Chinese media play. Definitely not a sound investment. But it’s set up well for buzz-wordy press releases.
Remember when stocks ran on media news after Trump’s stock skyrocketed? Hot sectors come and go. Media news might not be the best catalyst right now but all it takes is one big runner to revive the sector.
The price is basing on local lows right now. I’m waiting to see if it holds support or falls through.
Robinhood Penny Stocks to Watch #6: Nuverra Environmental Solutions Inc. (AMEX: NES)
This company uses environmental solutions to manage waste.
The chart looks a little rough. Only day trade this one. It has a history of one-and-dones.
But any news or press releases about new waste management methods or contracts could be the push it needs.
This is very speculative. But hey, didn’t I say that at the beginning? Penny stocks are sketchy!
Robinhood Penny Stocks to Watch #7: AgeX Therapeutics Inc. (AMEX: AGE)
Here’s a five-day chart for this stock. It spiked big on December 31. There wasn’t any news, so I wasn’t too keen to trade it.
But after a few days, I can see it holding highs. When a stock can stay up over multiple days without falling through support, it’s a sign.
I’ll still be careful trading this one because there isn’t any news. But a breakout is a breakout, especially if there’s big volume.
If I buy shares at all it’ll be a heat of the moment decision. Biotechs are sketchy and you should NOT trust them.
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 January 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!