Top Penny Stocks List and Weekly Update

This penny stocks list is a curated selection of low-priced stocks, typically trading below $5 per share, that are considered high-risk and potentially high-reward. These lists are valuable tools for traders looking to capitalize on market volatility and are often categorized by sector, market cap, or other financial metrics. Due to the inherent risks and often limited information available on these companies, a penny stocks list should only be used for watching — there’s no guarantee I’ll trade any of these stocks.

5 Penny Stocks To Watch This Week

My top penny stock picks right now — rated on chart pattern, price action history, and news — include the following:

The penny stocks on this list are some of the wildest movers on the market …

Trading any of these stocks should be approached with a clear strategy and an understanding of the risks involved. I don’t trade until I see a setup I like.

Jump ahead to get to my trading plans for these top penny stocks!

What Is a Penny Stock?

A penny stock is a stock trading at less than $5 per share. You can trade penny stocks on major exchanges like the New York Stock Exchange (NYSE) and Nasdaq, but many of the penny stocks I trade are exchanged through over-the-counter (OTC) trades.

You can buy penny stocks on Robinhood, TD Ameritrade, Charles Schwab, and other stock brokerages. All of them allow you to trade penny stocks on major exchanges, but some of them don’t offer OTC trades.

Before you invest your time and resources into penny stocks, it’s crucial to understand what they are and how they operate.

Penny stocks are cheap and often sketchy, but they can build your trading account quickly if you trade well. They’re volatile and unpredictable, so you need a tailor-made strategy for penny stock trading.

Why Penny Stocks Are Great for Trading

Despite being sketchy and unpredictable, I still primarily trade penny stocks. Why is that? Here are my reasons for trading penny stocks:

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With penny stocks, you should go for singles instead of home runs. And they’ll add up. Penny stock trades are often faster than trades of listed stocks, so you’ll build your trading account faster than if you were trading pricier stocks.

You can’t do this without a good broker though. That’s why I write broker-specific guides — such as this one on penny stocks on Chase. The platform offers a unique set of tools and analytics that can help you make informed decisions. Knowing how different platforms present penny stocks can be a game-changer. Learn more about penny stocks on Chase to expand your trading options.

Less Interference from Big Investors

Wall Street doesn’t like penny stocks because they see them as high-risk and sketchy, which isn’t wrong. However, their loss is our gain because you don’t have to worry about giant investment firms crashing penny stock prices by unloading their shares.

That said, the risk of trading penny stocks is real. You will encounter scams and unscrupulous companies trying to make a buck at your expense, so always research before trading.

Extended Price Moves

Fewer people trade penny stocks due to their sketchy reputation. Because penny stock trading isn’t as popular as other stocks, price moves typically play out over days, not minutes.

This isn’t to say that penny stock prices move slowly. Major price swings can lead to quick profits — or even quicker losses if you aren’t disciplined.

How To Find the Best Penny Stocks to Trade

I skip the fundamental analysis on penny stocks because most companies offering them have bad fundamentals (remember BBBY?). Instead of learning more about the company, the best way to understand penny stocks is to observe and understand. Learn their patterns and how their prices move to get a good feel of how the stock behaves.

Here are some of my top tips:

• Analyze: Analyze the market trends and news to get a better understanding of which penny stocks are worth your attention.
• Compare: Compare the volatility and liquidity of different penny stocks to make an informed decision.
• Track: Track the performance of your selected penny stocks over a period to gauge their reliability.
• Investigate: Investigate the company’s financials and news to avoid falling into a pump-and-dump scheme.
• Monitor: Monitor your watchlist regularly, study their patterns, and spot the stocks that might make big runs in the future.
• Research: Research is the cornerstone of any good trading plan. Use tools like StocksToTrade to dig deeper into each penny stock’s history.
• Assess: Assess the risk factors associated with each penny stock. Remember, we’re here for the long haul. We’re here to identify high-risk to reward setups.
• Evaluate: Evaluate the stock’s performance during market highs and lows to understand its resilience.
• Examine: Examine the stock’s trading volume and price action to predict future movements.

Study the History

Think of stocks like athletes — they won’t deliver the same performance every time, but they have their own styles and a track record you can learn from.

One of the best ways to find which penny stock to trade is to use software like StocksToTrade to create watchlists of past runners. Monitor your watchlist regularly, study their patterns, and spot the stocks that might make big runs in the future.

Understand the Charts

Technical analysis is my preferred method for picking penny stocks because penny stock companies usually don’t have good fundamentals. Technical analysis involves identifying trends and patterns in penny stock movements.

I don’t have any magic tricks for technical analysis aside from practice, practice, and practice. Analyze as many charts as you can, make trades, and learn with every win or loss.

Top Penny Stocks List: May 17, 2024

These are just some of the top stocks I’m watching 2023 — get the full list here! 

There are always plays to make in the small-cap market …

But there are times to get aggressive, and times to be cautious.

Right now it’s time to trade more cautiously/conservatively.

There’s a decent amount of fear in the markets.

And while I don’t trade the stocks that people put their retirement money into, three out of four penny stocks follow the market.

That means that if there’s bearish sentiment, there will be fewer spikes in my niche. In addition to that, any potential spike will likely top out earlier than a spike during a bull market.

We’ve got to keep our expectations in check. That’s how pro traders protect their accounts in choppy markets.

I can’t take more than the market is willing to give me.

My job is to show up, play the patterns as I see them, and protect my brokerage account.

Either way, I’m trading safely.

I’m seeing lots of spikes with no follow-through…

You’ll hear me say it a million times. I’d rather go home flat than go home red. So, identify the penny stocks that align with your trading strategy before diving in.

I like trading multi-day runners, which give me confidence that they will bounce well off of the panics I like to trade.

There are still opportunities in this choppy market. Just make sure to keep your risk tight.

Know when to buy. Timing is everything in trading, especially with penny stocks.

Selling at the right time is just as important as buying. Always have an exit strategy.

Trade based on patterns, not emotions. Stick to your rules and you’ll be fine.

Follow the trends but don’t forget to do your own analysis.

Think like a sniper. A sniper can watch a target for days, weeks even. When the right moment comes, they’re prepared.

Top 5 Penny Stocks to Watch This Week

My top penny stock recommendations to watch this week are:

• NYSE: AMC — AMC Entertainment Holdings Inc — The Meme Stock Winner That Jack Crushed
• NYSE: GME — GameStop Corp — The Supernova Meme Stock With the Roaring Kitty Catalyst
• NASDAQ: CYN — Cyngn Inc — The AI-Powered Autonomous Vehicle Penny Stock
• NASDAQ: FFIE — Faraday Future Intelligent Electric Inc — The 7,000% Meme Stock Winner That Jack Nailed
• NASDAQ: LIDR — Aeye Inc — The Hot Sector Technology Stock With a New Deal

Some of these stocks might give you déjà vu…

My watchlists aren’t rocket science. They’re a product of paying attention to what’s already happened.

The stocks on this list are mostly former runners with recent news. That means I’m not the only one paying attention to them.

Here’s your disclaimer: There are a lot of factors to consider when trading penny stocks. The markets won’t forgive you if you trust in random chance instead of studying price patterns and trading selectively.

Proceed with EXTREME caution and check your trading plan twice before you hit that ‘buy’ button.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

Here’s some background on penny stocks:

• What is the most promising penny stock?

A stock with a lot of volatility like AMC Entertainment Holdings Inc (NYSE: AMC) is a good bet for the most promising penny stock. Remember, we’re traders, not investors. We’re watching the stocks on this list for short-term moves, not predicting which of these stocks will still be around in 2030.

• What are the top 3 penny stocks to buy now?

My top 3 penny stocks to buy now (as long as their price action is strong) are AMC Entertainment Holdings Inc (NYSE: AMC), GameStop Corp (NYSE: GME), and Cyngn Inc (NASDAQ: CYN).

• Which penny stocks have a “Strong Buy” analyst rating?

Analysts don’t give any penny stocks “strong buy” ratings. These stocks are sketchy and unstable, and should never be investment targets. Always trade with a plan.

Let’s get to the picks …

1. AMC Entertainment Holdings Inc (NYSE: AMC) — The Meme Stock Winner That Jack Crushed

My first penny stock pick is AMC Entertainment Holdings Inc (NYSE: AMC).

Jack Kellogg is one of my most successful students.

He joined the Trading Challenge in 2017 after graduating high school. And in 2020, during the initial meme-stock craze, he passed the $1 million milestone.

Jack didn’t stop there …  Currently, he’s sitting at $12.6 million in trading profits (that includes his losses).

There’s no telling what his account could look like at the end of 2024. We’re in a HUGE meme-stock resurgence right now.

Already, Jack’s been banking on some of the biggest runners in the market. AMC is a prime example. It’s a legendary meme-stock runner from 2020 and 2021.

On Sunday, May 12, meme-stock trader, Keith Gill posted a cryptic image to X. The price spiked the next day, Monday, May 13, as a direct result.

I covered the whole story in this blog post.

You have to understand that a resurgence of one meme stock can affect the whole sector. AMC wasn’t the only meme stock to spike. It’s a huge sympathy play in the sector …

Jack experienced this volatility once before, a few years ago when he crossed $1 million in profits.

And now he’s ready to bank again. Take a look at two of his trades below:

Starting stake of $3,599,367:

Starting stake of $462,745:

AMC passed $11 per share on May 14. It spiked 300% before pulling back.

But back in 2021, AMC spiked past $60 …

(The yearly chart shows AMC spiked much higher because of a reduction in the total share count. It’s a ratio issue.)

There’s no telling how high the price could spike.

Wait for the chart to match one of the patterns within our trading framework. Trading without a plan is dangerous.

And traders who take a big loss on this HUGE trade opportunity will feel pretty silly … To say the least.

2. GameStop Corp (NYSE: GME) — The Supernova Meme Stock With the Roaring Kitty Catalyst

My second penny stock pick is GameStop Corp (NYSE: GME).

You’ve probably heard about the GameStop spike in 2020 and 2021.

It was one of the most remarkable moves the market had seen in years. As evidenced by the lack of understanding from major media sources lolol.

My students and I knew exactly what was happening … And in 2024 it’s happening all over again.

Let me explain:

GME and AMC don’t deserve to spike +100%. These are horrible companies with horrible financials.

Because the stocks are crap, a lot of major Wall Street players were shorting them. It’s a good strategy: Short stocks that are crap and the price will probably drop.

There’s One Major Issue

If there are too many short sellers in a stock, the strategy can become overcrowded.

When some short sellers exit, they buy-to-cover, and the momentary bullish momentum can cause a domino effect of short sellers blowing up.

It looks like a massive stock spike that traders are banking off of. But in reality, it’s mostly short sellers blowing up. Except for a select few traders savvy enough to profit off the common price action. Like me and my students.

We knew GME was going to run after the Roaring Kitty social media post by Keith Gill. This catalyst sounds abstract, lolol. Again, I covered the whole thing in THIS blog post.

Jack banked off of GME just like AMC. The spike got to 270%  before pulling back…

Take a look at his trade below, with a starting stake of $249,873:

And just like AMC, there’s no telling how high GME could spike.

It’s still below the highs from 2021 …

FOMO is a powerful emotion. Everyone who missed out on GME last time is likely itching to bank this time around.

It’s very possible the true GME spike is yet to come.

We’re tracking these meme stocks LIVE every day. Don’t risk your hard earned cash on a massive profit opportunity like this. Follow the process that we use to profit.

>> Join The Next Trading Live Stream <<

Take notes from professionals like Jack Kellogg and myself.

3. Cyngn Inc (NASDAQ: CYN) — The AI-Powered Autonomous Vehicle Penny Stock

My third penny stock pick is Cyngn Inc (NASDAQ: CYN).

Artificial intelligence is still one of the hottest sectors in the market.

• Meme stocks are hot because of the hype.
• AI stocks are hot because the sector actually adds value to the market.

On May 16, CYN announced it significantly scaled up the business’ efforts to create an autonomous driving solution.

The stock spiked 120% that day as a direct result. And currently, the price shows signs of consolidation.

Stocks that move sideways after a volatile spike CAN spike higher.

Make sure you have a good understanding of support and resistance lines!

These are the levels that a stock uses to move sideways. And they can give us hints about profitable setups.

See my video below:

We can build positions above support in hopes that the price will break through upper resistance.

4. Faraday Future Intelligent Electric Inc (NASDAQ: FFIE) — The 7,000% Meme Stock Winner That Jack Nailed

My fourth penny stock pick is Faraday Future Intelligent Electric Inc (NASDAQ: FFIE).

You don’t need to be a professional trader to profit off of these moves.

Jack is one of the best traders in our community. But there are A LOT of people profiting right now who might not be as successful as Jack.

See one of my student’s posts on X that I reposted below. They traded another hot stock, Crown Electrokinetics Corp. (NASDAQ: CRKN):

Jack’s success is something to strive for.

Here’s one of the trades that Jack made on FFIE, with a starting stake of $56,700:

Most small-account traders don’t have $50k to put toward a stock.

That’s OK.

CRKN never traded above $1. And FFIE is currently trading under $2 … You could start with $100 in your account. Heck, you could start with $10.

That’s the beauty of this niche: Massive percent gains are accessible for traders with small accounts.

Even for brand new traders, there are opportunities to profit …

Here’s how you can capitalize:

Thanks to the emergence of AI in 2023, I was able to build an AI bot capable of following my trade process. The same process all of my millionaire students and I use to profit.

The first week of the FFIE stock spike, my AI bot, called XGPT, alerted four different profitable trade entries!

See the chart below, every candle represents one trading minute:

>> Get the next top AI stock pick <<

You don’t need to be an expert.

You just need to follow the rules.

5. Aeye Inc (NASDAQ: LIDR) — The Hot Sector Technology Stock With a New Deal

My fifth penny stock pick is Aeye Inc (NASDAQ: LIDR).

This company announced a new partnership with LITEON on May 9 during after hours. The agreement will give LIDR an increased customer channel and a business partnership capable of growing its industrialization of autonomous vehicles.

The next day, on May 10, stock prices started to spike. The move currently measures over 280%. And the price is consolidating, it’s a hint that it could continue higher.

Another important factor to note is the stock’s float.

The float shows the total number of shares available for traders to buy and sell in the market. Anything below 10 million shares is regarded as a low float. It can also be thought of as a low supply.

Whenever there’s an asset with a low supply, the price can spike higher when demand increases.

The business partnership from May 9 acts as a catalyst that increases demand for the stock. And the low float can help the price spike higher.

*Past performance does not indicate future results

Trading Education

Research is your best weapon in this battlefield. Equip yourself with knowledge before you start trading.

Newbie: How fast can I make $1 million?

Veteran trader: How fast can you learn patterns, ideal setups & discipline to be prepared for what the market offers?

Newbie: Give me hot picks so I can get rich ASAP

Veteran trader: Give me education so I can learn to be self-sufficient

— Timothy Sykes (@timothysykes) June 4, 2022

I can give you all the “hot picks” you want — but that means nothing if you don’t know what to do with them.

Becoming a self-sufficient trader isn’t a game of getting the right picks before anyone else…

The market is based on supply and demand. For a stock to move, other traders have to know about it.

If you spend just five minutes with a powerful trading platform like StocksToTrade, it will be obvious what stocks are hot on any given day.

Guess what? Other traders know that too.

Trading is a battlefield. If you don’t read the instructions, you just get the location — no weapon.

But fear not — giving new traders their education is what I was put on this earth to do!

**Apply for the Trading Challenge Today**

I’ve been trading for more than 20 years. During that time, I’ve made over $7.5 million.

That isn’t what I’m most proud of. I’m prouder that I’ve turned more than 20 of my Trading Challenge students into millionaire traders.

I didn’t do this by giving them hot stock picks. I did it by being relentlessly honest about my successes and failures and teaching them to be that way, too.

You don’t become a millionaire trader by trying to impress your Twitter followers, like so many other ‘gurus’ do. You get there by being honest with them, and yourself. That’s why I’m always honest with my students — ESPECIALLY about my failures.

Because they’re not real failures if I’m following my rules, and cutting my losses quickly. When I lose, I want to show my students the right way to trade. That’s the secret to becoming a self-sufficient trader — knowing how to manage your losses.

Are you ready for this level of real talk? Apply for my Trading Challenge and show me what you’ve got.

We don’t accept everyone. We like to limit our community to people who are humble, people who work hard.

Think you’ve got what it takes? Apply to my Trading Challenge today!

Why You Should Consider Penny Stocks

Penny stocks get a bad rap.

Sure, 99% of them are crap. Most are even outright scams.

But where else can you earn 15-30% profits on a single trade?

If you buy a penny stock thinking it will become the next Amazon, you’re basically buying a lottery ticket. That can be fun, but it’s no way to build your trading account.

The right way to go about it requires discipline and a good trading plan.

How To Choose the Right Penny Stocks to Trade

I want my students to become self-sufficient. Like I said before, my watchlists aren’t rocket science. I build them by sticking to these eight steps.

Look for Big Percent Gainers

How do you find hot stocks? The first step is learning to use a stock screener.

I scan in the premarket to know what’s moving. Penny stocks that know the game often put out PR in the premarket. This gives traders the whole day to send their stock prices up before they dilute.

I typically look for 10% gainers. These are the stocks that the rest of the market has their eyes on.

I keep these big gainers at the top of my watchlists. These stocks can offer quick gains if you play your cards right, but remember, the volatility works both ways. Stay ahead of the game by keeping an eye on penny stocks on the move.

Does It Have News?

We’re in the world of penny stocks, so this is a fair question to ask.

The ‘product’ of most penny stocks is their own stock. They want to pump it up, then insider trade/dilute into this built-up demand.

A lot of penny stock traders will believe anything — but I won’t. I want to see more than a celebrity tweet of a stock before I trade it.

How’s the Volume?

Volume is the proof of demand. If a stock has enough volume — on a small enough float — that’s a good sign that the price will continue to move.

Look at the Exchange

OTC exchanges aren’t for everyone.

Figure out whether your strategy works with OTC stocks. If you’re not willing to pay the fees and deal with low volume, you might want to stick to listed stocks.

Penny stocks on Nasdaq offer a different flavor of risk and reward. Understanding their nuances can give you an edge in your trading strategy. Check out this guide on penny stocks on Nasdaq for more insights.

Investigate the Company History

This is another good way of seeing whether the news will hold up.

Is this a real company? Is their stock a former runner?

You know the saying ‘fool me once, shame on you, fool me twice, shame on me?’ Smart traders don’t get fooled twice.

Always Verify Their Claims

Sketchy penny stock companies will say anything to pump their stocks.

Luckily, you have the internet at your disposal. Always check up on their claims.

Be Skeptical

Expect the stock you’re watching to tank. Nine out of 10 will — the percentage goes higher if you watch them long enough.

Rinse and Repeat to Add Penny Stocks to Your List

That’s it! Keep an eye on stocks that are moving, and wait for their next move. Never trade them before they fit your preferred setup.

How To Use the Top Penny Stocks List

You should use this list as a model for your own watchlists.

Don’t just copy the stocks on this list. Learn my selection process and create your own.

Sign up here and I’ll send you a new NO-COST watchlist every week.

What Are the Common Risks of Investing in Penny Stocks?

If you’re thinking about investing in penny stocks, you better know the risks involved. These aren’t your blue-chip, dividend-paying stocks. We’re talking about companies with a low market cap, often less than $300 million. These are small-cap stocks, and they come with their own set of challenges.

High Volatility

First off, let’s talk about volatility. Penny stocks are like riding a roller coaster without a seatbelt. The share price can swing wildly in a matter of hours. I’ve seen it all in my years of trading and teaching. One minute you’re up, and the next, you’re staring at a sea of red on your trading page. High volatility isn’t for the faint-hearted. You need a solid strategy to navigate these choppy waters.

Low Liquidity

Next up, low liquidity. You might find a penny stock with a great name and business model, but if no one’s buying or selling, you’re stuck. I’ve written articles and newsletters warning about this. You can place an order, but there’s no guarantee it’ll get filled. Low liquidity means you might not be able to sell when you want to, and that’s a risk you can’t ignore.

Pump-and-Dump Scams

Be wary of pump-and-dump schemes. These are orchestrated efforts to inflate a stock’s price artificially. I’ve been exposing these scams for years. They often include misleading information and are usually promoted through sketchy newsletters or web pages. Don’t fall for it. Always do your due diligence.

Lack of Information

Lastly, the lack of information. Unlike large-cap stocks, penny stocks don’t have to disclose as much. You might find yourself sifting through Canadian or even Chinese companies with little to no information. Access to reliable data is limited, and that’s a significant risk. Always double-check your sources and look for credible links.

Key Takeaways

Penny stock trading is a great way to build your account as a new trader. If you’re new to this, study the patterns I teach. And pay attention to the following …

Key Considerations:

• A lot of penny stocks are shady. Risk in penny stocks can be heightened due to limited company information and unsavory promotion.
• There’s a possibility for big gains. I trade penny stocks because you can trade conservatively and still rack up gains. These stocks can go supernova at any time. Aim for “the meat of the move.”
• These companies are often young. Some penny stocks are newer companies, and can dramatically shift their market trajectory and valuation.

Penny stocks can be a blessing or a curse — it’s all in how you trade them. Don’t just copy my penny stock picks blindly. Learn why I picked them and choose your own stocks to watch.

Which penny stocks are on YOUR watchlist? If you’ve been paying attention, write “I always trade with a plan” in the comments!

Frequently Asked Questions

Trading is the hardest thing you’ll ever learn. There are no dumb questions.

How Many Penny Stocks Should I Buy?

Diversification is key, but don’t go overboard. I usually recommend watching a few different penny stocks, and making even fewer trades. But remember, the more you include, the harder it is to keep track of them all. Stick to a manageable number.

Should Beginners Invest in Penny Stocks?

Penny stocks aren’t for everyone. The risks are high, and the learning curve is steep.

And whatever you do, remember… never invest in these stocks, only trade them!

Is There Any Alternative to Investing in Penny Stocks?

If penny stocks seem too risky, there are alternatives. Consider investing in small-cap ETFs. These give you exposure to small businesses without the extreme volatility. You can also look into dividend-paying stocks with a higher market cap for a more stable investment.

How Does Fundamental Research Affect Penny Stocks?

Reports are crucial documents that often provide detailed financial statements and analyses of a company. They can significantly influence the growth of penny stocks by revealing positive or negative performance metrics. Notices, on the other hand, are usually shorter pieces of information like press releases or regulatory disclosures that can also impact stock growth. For example, if a company receives a notice about an upcoming partnership, this could positively affect its growth prospects.

What Role Does Market Context Play in Penny Stocks?

Partners can offer substantial business advantages, especially for penny stocks which are often smaller companies seeking growth opportunities. A strategic partner can provide much-needed capital, expertise, or market access to markets like China.