Top 9 Trending Penny Stocks on Reddit 2024

You’ve probably heard of GameStop’s massive short squeeze in early 2021. The meme stock movement started when small-time traders on Reddit’s r/WallStreetBets collaborated to take on Wall Street. And they won.

Even though the Reddit mob gets less mainstream attention now they’re still there, plotting their next big move.

Are meme and penny stocks volatile? Yes. Can they be profitable? Absolutely. The trick to trading these stocks is to have them on your watchlist first. That way you can be prepared when they make their move.

Read on to learn more about the ins and outs of trading penny stocks, plus get access to my list of trending penny stocks on Reddit!

What Are Penny Stocks?

Penny stocks are stocks that trade at $5 per share or less. All of them are cheap, and most of them are sketchy and unstable. I like them for one big reason — the gains from penny stocks can build your trading account quickly.

If you’re coming from the world of “real” stocks, the same tactics don’t apply. You’ll need strategies tailor-made for penny stocks.4

How to Research Penny Stocks

I don’t use fundamental analysis on penny stocks because their tradeability isn’t based on fundamentals. To get a good feel for these cheap stocks, you have to watch, watch, watch — actively keep an eye on how they move, and learn the patterns to really understand how the stock behaves.

Here are two things you can do when looking for the best penny stocks.

Learn From History

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Stock history is like poetry – it doesn’t repeat, but it often rhymes. Similarly, stocks are sort of like athletes, with their own ways of playing and a track record you can learn from. This means you can take a look at past performance to make educated guesses on how the stock will perform in the future.

A good way to find high-potential penny stocks is to use a platform like StocksToTrade and create watchlists of former big runners. Study their patterns, and spot which ones are poised to make another big run.

Analyze the Chart

Technical analysis entails identifying trends and patterns in a penny stock’s movement. It’s a more useful way of evaluating penny stocks than fundamental analysis — the beauty of penny stocks is their volatility, as the market tries to figure out what these sketchy companies are worth.

There’s really no secret to being a good technical analyst except practice — studying charts, getting in screen time, watching and trading stocks. Pattern recognition skills, which are essential in technical analysis, come from experience.

Benefits of Trading Penny Stocks

While cheap, penny stocks are often sketchy or, sometimes, even outright scams. So, why should you even consider trading penny stocks? Here are some pluses of trading penny stocks…

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Small Accounts Grow Quicker

Penny stocks might be cheap, but the gains add up. Trading penny stocks can build your account faster than trading pricier stocks. If you know what to do, you can grow your account size in a matter of weeks or even days.

Less Interference From Big Accounts

Wall Street doesn’t like penny stocks. They think penny stocks are sketchy, so major hedge funds and investment firms don’t really dabble into them – this means supply and demand are relatively predictable.

With large-cap stocks like Apple, a big investor or hedge fund manager could theoretically unload their shares and completely tank the price. With penny stocks, you’re much less likely to encounter something like that.

However, that doesn’t mean penny stock trading is risk-free. There are still many scams and unscrupulous people trying to make a buck at your expense, so be careful.

Prices Move Slower

Major traders often overlook penny stocks due to their sketchiness, so prices tend to move slower. This often leads to multi-day runs, which means you have more time to get in on a move.

Risks of Trading Penny Stocks

Penny stocks aren’t all sunshine and rainbows. There’s always a risk when trading stocks — and there’s definitely a risk when trading penny stocks.

Here are three things to watch out for when trading penny stocks:

99% of Penny Stocks Fail

Penny stocks are low-cost but high-risk. Most companies selling penny stocks ultimately fail — and when they fail, they fail fast. The key to mitigating this risk is having a solid trading plan and not getting greedy.

Penny Stocks Are Volatile

Penny stocks are volatile and often have low liquidity. This is a bad combo that makes them harder to unload when you’re experiencing losses.

On the other hand, you can turn this risk into reward if you’re disciplined. One of my favorite penny stock patterns is the panic dip buy. I’ll wait for a stock to panic, then enter a position when it starts its recovery. Many times this leads to a quick bounce — when it doesn’t I cut my losses quickly.

They’re Fraught With Fraud

The penny stock market is a playground for scam artists and market manipulators. The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) try to keep the scams in check, but it’s like trying to put out a fire on the surface of the sun.

Most news or social media posts about penny stock companies are created by people trying to pump the stock up. Never believe the hype, and do your due diligence before trading any penny stock.

What to Look for Before Trading

What do I look for before trading a penny stock? I look for unusual volume and news about the companies on my penny stock watchlists before I even think about trading them.

What kind of stocks make it onto my watchlists? Many are low float stocks — stocks whose publicly tradable shares total less than 10 million. Since their supply is so limited, changes in demand can cause big price swings.

Former runners also make it on my watchlists. These stocks have made runs before, so I know big moves are possible under the right conditions.

I learn the charts of my watchlist stocks well, how they react to shifts in volume and recent news. This gives me a better idea of the trades I’m looking to make — if I make any at all.

This is important: I’m only watching these stocks. I won’t trade them unless they fit my preferred setups. Measure twice, cut once.

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.

If you want to see more NO-COST watchlists, you can sign up for my weekly watchlist here.

9 Trending Penny Stocks on Reddit 2024

The top trending penny stocks on Reddit that I’m watching for the rest of 2024 are:

• NASDAQ: SERV — Serve Robotics Inc — The NVIDIA Partnership AI Penny Stock
• NASDAQ: MIRA — Mira Pharmaceuticals Inc — The Ketamine Analog Biotech Penny Stock
• NASDAQ: ASTS — AST SpaceMobile Inc — The Largest-Ever Commercial Communications Satellite Deployment Stock
• NASDAQ: IVP — Inspire Veterinary Partners Inc — The Earnings News Penny Stock
• NASDAQ: NUZE — NuZee Inc — The Smart Money Increasing Its Stake Stock
• NASDAQ: POAI — Predictive Oncology Inc — The AI Biotech Penny Stock
• NASDAQ: PBM — Psyence Biomedical Ltd — The Psychedelic Penny Stock That Will Jump on Any Old News
• NASDAQ: TIVC — Tivic Health Systems Inc — The Patent News Biotech Penny Stock
• NASDAQ: PEGY — Pineapple Energy Inc — The Energy Penny Stock With the Crappy Catalyst

The following are some of the stocks that people on Reddit have been talking about more than most of the market…

There’s no guarantee I’ll trade any of these stocks. I’m watching them to see if they match my preferred setups — only then will I trade them.

The best traders watch more than they trade — that’s what I’m trying to model here.

Here’s some background info on Reddit penny stocks:

• What is the most promising Reddit penny stock?

A stock with a lot of volatility like Serve Robotics Inc (NASDAQ: SERV) is a good bet for the most promising Reddit 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 Reddit penny stocks to buy now?

My top 3 Reddit penny stocks to buy now (as long as their price action is strong) are Serve Robotics Inc (NASDAQ: SERV), Mira Pharmaceuticals Inc (NASDAQ: MIRA), and AST SpaceMobile Inc (NASDAQ: ASTS).

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

Analysts don’t give any Reddit 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 …

Serve Robotics Inc (NASDAQ: SERV) — The NVIDIA Partnership AI Penny Stock

My first Reddit penny stock pick is Serve Robotics Inc (NASDAQ: SERV).

On Thursday, July 18, during after hours the market learned that NVIDIA Corporation (NASDAQ: NVDA) acquired a $3.7 million stake in SERV.

As a direct result, prices launched 420%* by that Monday, July 22.

And thanks to my trading framework, I was able to find multiple profit opportunities.

See some of my trade notes below:

I immediately noticed the opportunity on SERV because this isn’t the first spike that we’ve seen related to NVDA.

Earlier this year, between February and March, we watched SOUN spike 350%* after the market learned that NVDA acquired a stake in the small-cap stock.

These patterns repeat in the market … 

And SERV is still in play because the price is still up. It even surged to new highs on Friday, July 26.

Take a look at this chart, every candle represents one trading minute:

SOUN’s move lasted several weeks. And the move on SERV could behave similarly!

Don’t waste your hard-earned cash with random positions on this runner …

Use my AI-trading bot to build smart positions on the market’s hottest stocks!

Pay attention to key areas of support and resistance as this massive AI-runner consolidates.

Mira Pharmaceuticals Inc (NASDAQ: MIRA) — The Ketamine Analog Biotech Penny Stock

My second Reddit penny stock pick is Mira Pharmaceuticals Inc (NASDAQ: MIRA).

On July 22, during premarket hours, MIRA announced preclinical success for its ketamine delivery system.

The price spiked 640%* following the announcement.

Low-float biotechs like MIRA have been dominating the market recently!

Biotechs are known for their volatility, but they don’t always offer solid trade setups like this. The strength of the 2024 market is helping these spikes.

Plus, StocksToTrade shows that the float is only 9 million shares.

Anything below 10 million shares is considered a low supply. And the low supply of shares helps prices spike higher when demand increases.

On the first day of the spike, MIRA’s stock halted multiple times due to volatility! Then it fell into a multi-day consolidation.

Take a look at the chart below:

We could see MIRA rally from this level!

Get ready for follow-up moves in August.

AST SpaceMobile Inc (NASDAQ: ASTS) — The Largest-Ever Commercial Communications Satellite Deployment Stock

My third Reddit penny stock pick is AST SpaceMobile Inc (NASDAQ: ASTS).

I traded this runner once in July, but judging by the chart … I could have paid more attention to it.

I snagged 1.4% on July 25, my trade notes are below:

And since the start of May, this stock has ran 760%* … I left a lot on the table, LOL. That’s OK, there are more opportunities to profit in August!

Take a look at the ASTS run below, every candle represents one trading day:

This company is designing a global cellular network that’s compatible with un-modified networks. It’s an attempt at bringing cellular connection to those who remain technologically isolated.

The chart is fantastic, and the company is working in a red-hot tech sector right now.

We can expect more volatility from this runner in August!

Inspire Veterinary Partners Inc (NASDAQ: IVP) — The Earnings News Penny Stock

My fourth Reddit penny stock pick is Inspire Veterinary Partners Inc (NASDAQ: IVP).

This stock has had a wild ride in July …

The price spiked 1,000%* amidst a $6 million public offering. And the chart shows consolidation as we approach an earnings announcement in August.

The last earnings announcement was on May 15.

The company reported:

• Total revenue of $4.8 million, an increase of 13%.
• Services revenue of $3.5 million, an increase of 15%.
• Product revenue of $1.3 million, an increase of 6%.

And on July 24, the CEO sent a letter to shareholders detailing the current bullish qualities of the veterinary sector.

Here’s a chart of the move thus far, every candle represents one trading day. Make sure you pay attention to the recent consolidation:

I traded this runner multiple times in July, there’s an example of a trade that I made below:

The next earnings announcement is scheduled for August 21.

And we could experience bullish volatility as we approach the announcement! We don’t have to wait for the earnings to come out.

Recognize volatile price action on the chart and use my trading framework to plan solid entries.

NuZee Inc (NASDAQ: NUZE) — The Smart Money Increasing Its Stake Stock

My fifth Reddit penny stock pick is NuZee Inc (NASDAQ: NUZE).

On July 23, the market learned that Liu Yumei, who was already a significant shareholder of NUZE, holding 10% of the outstanding stock, increased her position by $797,000.

There’s a saying in the stock market: Follow the smart money.

When a major investor makes a move on a low-priced stock, it can often lead to substantial price spikes in the short term.

And as traders, we can profit off of that volatility!

Take a look at the trade that I already made off of this price action:

The chart is still up!

Prices are working toward the breakout level right now. On the chart below every candle represents one trading minute:

Also, StocksToTrade shows that the share count is incredibly low! There are only 560k shares in the float.

Remember that the low supply helps prices spike higher!

Predictive Oncology Inc (NASDAQ: POAI) — The AI Biotech Penny Stock

My sixth Reddit penny stock pick is Predictive Oncology Inc (NASDAQ: POAI).

On July 25, we learned that POAI would begin expanding its platform thanks to compelling data from its recent ovarian cancer study.

The spike didn’t last very long, but I still managed to grab a profit!

Here’s the chart from July 25 and 26, every candle represents one trading minute:

Here are my trade notes:

Some of my trades only take a few minutes.

That’s how I mitigate risk on volatile stocks. I only pay attention to the best setups so that my account isn’t exposed all-day long.

• I recognize solid price action.
• I get in.
• I get out.

Ever curious how my students and I find the right entries and exits??

In 2024 we have an AI trading bot that follows my process to a T!

Enter your favorite ticker into the AI and it will spit out a trade plan as if you asked me directly.

POAI is a huge past spiker. And past spikers can spike again …

It’s only a matter of time until there’s another catalyst that moves the price.

Psyence Biomedical Ltd (NASDAQ: PBM) — The Psychedelic Penny Stock That Will Jump on Any Old News

My seventh Reddit penny stock pick is Psyence Biomedical Ltd (NASDAQ: PBM).

On July 25 the stock spiked 190%* after the company announced business updates regarding its export of psilocybin to Australia and its already announced Phase 2 trial.

The fact that this stock spiked 190%* after updating the market on an already announced trial … That’s a testament to the strength of the biotech sector right now.

Prices sank after the announcement, but the chart shows some consolidation near the lows. Take a look at the chart below:

All it needs is another business update to spike the stock!

Plus, StocksToTrade shows there are only 88,000 shares in the float. Get ready for more volatility.

Tivic Health Systems Inc (NASDAQ: TIVC) — The Patent News Biotech Penny Stock

My eighth Reddit penny stock pick is Tivic Health Systems Inc (NASDAQ: TIVC).

On July 23 we learned that the company gained three new patents in the U.S. and Europe, which reportedly increases the intellectual property of the company.

Prices didn’t move much until July 25. But once it started to spike, it ran 150%*.

This move is an excellent reminder that news can take a few days to circulate, especially in the penny-stock market.

Take a look at the chart below thus far:

This stock also has a decent history of spiking. And I’ve already traded it a few times thanks to past spikes with news.

I didn’t catch the most recent spike, but judging by the chart’s price action … There’s still time to play this volatility.

Pineapple Energy Inc (NASDAQ: PEGY) — The Energy Penny Stock With the Crappy Catalyst

My ninth Reddit penny stock pick is Pineapple Energy Inc (NASDAQ: PEGY).

The most recent spike on this stock wasn’t very good … but now we know that the company wants to inflate its price.

That can lead to great trade opportunities in the future!

On April 25 during after hours, this company commented on the Environmental Protection Agency’s announcement of $7 billion worth of awards within the Solar for All program.

PEGY didn’t win any of the cash. Instead, the company merely applauded the financial allocation and the general policy. Price launched 80% the next day but closed in the red.

I’m hoping to see a better catalyst from PEGY. One that shows more value added.

The recent volatility is a good sign!

I’m excited to watch this stock over the next few weeks …

*Past performance does not indicate future results

How to Trade Penny Stocks

Trading penny stocks is a high-risk, high-reward proposition. You might make money, but a lot more traders lose money.

Here’s my advice if you want to trade penny stocks:

Study Hard, Especially When You’re New

If you’re just starting as a trader, you need to build your knowledge account first. To do that, you need screen time and trade time. Start small and build your trading skills over time.

Don’t want to put actual money on the line? Try paper trading on a platform like StocksToTrade.

Maintain a Penny Stocks Watchlist

A watchlist helps you keep track of stocks you frequently trade or would like to trade. I make watchlists of former runners that might make more runs in the future, so I can get in on the run as soon as it happens.

I gave you a list of penny stocks to watch in this article, but don’t copy them blindly. Learn why I picked them and choose your own stocks to watch.

Use a Stock Screener

A powerful stock screener is absolutely essential — it’s your eyes in the trading battlefield. A trader-first platform like StocksToTrade will help you keep track of breakout plays and sudden volume spikes.

Full disclosure, I developed and invested in StocksToTrade — I love it because it’s tailor-made to how I trade. It’s the first trading platform I’ve encountered that has everything I need in one place, from incredible add-ons like the Breaking News Chat to intuitive, flexible charting.

Curious how StocksToTrade helps my trading? Sign up for a 14-day trial now and see how it can help you!

Learn the Patterns

Pattern recognition is essential in identifying which stocks to trade. This only comes with experience, so keep analyzing charts. Eventually you’ll get a sixth sense for how the stocks you’re watching respond to volume, what market makers pop up in their Level II quotes, how their price action works.

Remember — it’s not about memorizing patterns. A good trader understands why the patterns happen and adapts their strategies to fit the circumstances.

Find Trading Setups That Work for You

If you’re new, you probably don’t know which trading setups work for you. There’s only one cure for that — try a bunch out! These are my favorites:

• Morning panic dip buys
• Buying first green days
• Shorting first red days

This isn’t rocket science. Most of my top students and I have two or three patterns that we use again and again. That’s how we’ve gotten better at trading, and built our trading strategies.

Make a Trading Plan

A trading plan represents who you are as a trader and includes your trading style, preferred category of penny stocks, risk tolerance, account size, and many other factors. It helps you focus and keeps you from buying random stocks that don’t fit your objectives and goals.

A solid trading plan helps you reduce risk by setting a defined loss. Once you’ve hit your loss, you need to exit the trade.

Win or lose, I call it a successful trade if you build, execute, and follow your trading plan.

Aim for Small Gains and Cut Losses Quickly

Don’t hold and hope when dealing with penny stocks. I know it’s tempting to hold onto a stock and wait for it to reach even higher prices, but the chances of it happening to a penny stock are pretty slim. Instead, secure the small wins and cut losses as quickly as possible.

Daily reminder that you do NOT have to just hold & hope like shady promoters say. It's tragic each time I get messages from those duped into holding promoted plays like $CYN $STRN $MRAI $TIVC $CEI & newbies literally think risking losses of 30-50-70% is part of the game. WAKE UP!

— Timothy Sykes (@timothysykes) January 25, 2022

Record Every Trade and Learn From Them

Every trade is a learning experience. Keep a log of ALL the trades you made and review them regularly. Identify what worked, what can be improved, and what needs to be avoided.

Are Penny Stocks Worth It?

Yes, penny stocks are worth it. As of the time of writing, I’ve made $7.7 million trading penny stocks over my 20-plus years in the stock market.

I think penny stock trading is the best way to build small accounts quickly. That said, it’s also a surefire way to lose money if you don’t know what you’re doing.

Can Penny Stocks Make You Money in 2024?

Penny stocks can make you money this year — especially now that OTC stocks are starting to run again. Check how SERV and ASTS performed over the past few months for proof.

You can also take a look at my most recent trades.

Learn How to Make the Right Penny Stock Picks

Now that you’ve learned the top tips for trading penny stocks, it’s time to learn how to pick them yourself. If you want access to my daily watchlist and so much more, I recommend joining my Trading Challenge.

I’ll share what I learned the hard way. I had no one to show me the ropes. If you promise to study hard, I’ll help you become a self-sufficient, safe, and smart trader — and avoid some of the bumps on the way.

This isn’t a get-rich-quick class. I don’t accept everyone — I want people who work hard and appreciate what I teach. It’s up to you to develop your own trading strategies, but you’ll do so with the support of my top former students and a raft of current ones — all of them working together to get the best out of the trading lifestyle.

Here’s what you get:

• Interactive webinars with me and my top students
• Over 7,000 video lessons
• Entry to my incredible community chat room
• Access to my 30-Day Bootcamp, my DVD collection, and much more!

Key Takeaways

Reddit communities like r/WallStreetBets have the power to pool people together and make penny stocks into real stocks, like we’ve seen with GameStop. I’m not telling you to trade every Reddit meme stock out there, but they’re definitely worth keeping an eye on.

The thing that matters most is having a trading plan and discipline. Do your research, and don’t follow the hype. That’s the way you get the good out of trading without taking the bad.

Trading isn’t rocket science. It’s a skill you build and work on like any other. Trading has changed my life, and I think this way of life should be open to more people…

I’ve built my Trading Challenge to pass on the things I had to learn for myself. It’s the kind of community that I wish I had when I was starting out.

We don’t accept everyone. If you’re up for the challenge — I want to hear from you.

Apply to the Trading Challenge here.

Trading is a battlefield. The more knowledge you have, the better prepared you’ll be.

Do you have any Reddit stock picks? Let me know in the comments!