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.

Let’s get to the picks …

Top Penny Stocks List: October 17, 2024

My top penny stock recommendations to watch this week are:

• NASDAQ: DRUG — Bright Minds Biosciences Inc — The Meme Biotech Stock Supernova
• NASDAQ: ATNF — 180 Life Sciences Corp — The Wannabe DRUG Play That I Traded for $4.5K*
• NASDAQ: VS — Versus Systems Inc — The B2B Software Stock With Partnership News
• NASDAQ: SERV — Serve Robotics Inc — The Robotics Stock Partnering With Uber Eats
• NASDAQ: INVO — NAYA Biosciences Inc — The Biotech Stock With Merger News

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.

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 Bright Minds Biosciences Inc (NASDAQ: DRUG) 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 Bright Minds Biosciences Inc (NASDAQ: DRUG), 180 Life Sciences Corp (NASDAQ: ATNF), and Versus Systems Inc (NASDAQ: VS).

• 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 …

Bright Minds Biosciences Inc (NASDAQ: DRUG) — The Meme Biotech Stock Supernova

Get my weekly watchlist, free

Sign up to jump start your trading education!

Send me your weekly watchlist

100% Privacy. I will never spam you!

My first penny stock pick is Bright Minds Biosciences Inc (NASDAQ: DRUG).

I’ve got a blog post that details this insane price action …

Get all the details here.

But for the sake of the watchlist, here’s the gist of it …

DRUG was a huge short squeeze. Here’s what that means:

The short-selling strategy is oversaturated right now. There are a ton of greedy short sellers who target low-priced stock spikes because the companies are crap and the spikes are unsustainable.

If you look at these crappy spikers weeks after their runs — during the phase of a penny stock spike I like to call “the long kiss goodnight” — short selling might seem like a solid strategy …

But when there are too many short sellers, any bullish momentum could cause a domino effect of short sellers blowing up. And shorts could keep guessing the top and keep blowing up. So theoretically, there’s no telling how high these plays could spike.

DRUG spiked 2,300%* on Tuesday, October 15!

Here’s the crazy part …

Any trader who tuned into my AI stock-trading system had a perfect opportunity to buy shares the night before.

On the chart below you can see the trade alert that we got on October 14, before the market closed! Every candle represents one trading minute:

Get the next AI trade alert!

The chart is still up and there’s a lot of intraday volatility.

We can use that volatility to trade!

180 Life Sciences Corp (NASDAQ: ATNF) — The Wannabe DRUG Play That I Traded for $4.5K*

My second penny stock pick is 180 Life Sciences Corp (NASDAQ: ATNF).

Whenever there’s a big runner in the market, like DRUG, we often see sympathy plays the next day.

A sympathy play is a stock that’s similar to the original runner in size, sector, and price. And it spikes because everyone’s looking for the next huge runner …

DRUG was a low-float biotech stock trading below $3 before the spike on Tuesday.

ATNF was a low-float biotech stock trading below $2 before it spiked 1,000%* on Wednesday.

After more than two decades in this niche, I was ready for this sympathy play. I made two trades, and combined, I pulled $4,500 in profits (combined starting stake of $24,243).

Take a look at my trade notes below:

Similar to DRUG, ATNF could still show us profitable intraday volatility.

We’ve seen short squeezes like these before and they can stay volatile for weeks.

Wheeler Real Estate Investment Trust Inc. (NASDAQ: WHLR) is an example from September. On the chart below you can see the initial spike and at least two subsequent bounces.

Every candle represents one trading day:

Keep these short squeezes on your watchlist.

More Breaking News

• Darden’s Share Roll: Earnings and Price Targets Stir Market
• Is the Spike in Service Properties Trust Stock a Buy Signal or a Red Flag?
• Oklo Powers Up: Analyzing Recent Market Surge

Versus Systems Inc (NASDAQ: VS) — The B2B Software Stock With Partnership News

My third penny stock pick is Versus Systems Inc (NASDAQ: VS).

On October 15 during after hours, VS announced two business agreements with ASPIS, a cyber security firm.

The agreements included a $2.5 million investment in VS from ASPIS. Plus, ASPIS can license VS’s technology in its cybersecurity offerings.

VS immediately started to spike after the announcement and it reached a 730%* move by the next morning.

I traded it during premarket for a 7% profit. My trade notes are below:

The price fell lower after the highs from October 16 …

But it hasn’t given back all of its gains yet. In fact, StocksToTrade shows that it’s consolidating above the after-hours highs from October 15 at $2.50.

The price could rally from this level and give us an opportunity for a bounce trade.

Serve Robotics Inc (NASDAQ: SERV) — The Robotics Stock Partnering With Uber Eats

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

This is a big former spiker!

In July, the price ran 810%* over multiple days after the market learned that NVIDIA Corporation (NASDAQ: NVDA) bought a stake in the company.

I kept it on my watchlist because past spikers can spike again. Especially if they’re related to the AI sector.

Sure enough, SERV started to show us volatility again in October.

We also learned that the company plans to roll out the third generation of an autonomous delivery robot.

Here are the key points from the company:

• “Faster, smarter delivery robots will support Serve’s scaling across the U.S.”
• “Manufacturing cost halved, while advancing safety, autonomy, performance and speed”
• “New robots have entered manufacturing and are on track for deployment in 2025”

This stock is still associated with NVDA and it continues to push out bullish press releases.

I traded it on October 16 for a small profit. But I’m excited for the price action to come …

NAYA Biosciences Inc (NASDAQ: INVO) — The Biotech Stock With Merger News

My fifth penny stock pick is NAYA Biosciences Inc (NASDAQ: INVO).

On October 14, this company announced an upcoming merger with NAYA Biosciences. As a result of the merger, INVO will start trading under the revised ticker NAYA.

The stock spiked 190%* that day into after hours as a result of the news.

I’m watching this play for follow-up spikes, but there’s a very important trading rule that I’m following.

It’s called: Buy the rumor, sell the news.

There’s no telling how a stock will react in the midst of a catalyst that the market already knows about.

It’s possible the event is already priced in. In which case, when the event comes to pass, the resulting stock move could be the exact opposite of the more logical outcome.

We don’t want to hold shares of this stock during the merger …

Instead, we trade the volatility before and after the merger.

*Past performance does not indicate future results

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:

Small Accounts Grow Quickly

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: October 17, 2024

These are just some of the top stocks I’m watching this year — 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.

How Penny Stocks Watch Lists Work

A penny stocks watchlist is a crucial tool for any trader looking to capitalize on the volatile nature of these low-priced stocks. This list helps you monitor potential trades and stay informed about the latest market movements. By organizing and tracking various penny stocks, you can quickly identify opportunities and make more informed trading decisions. Over my 20+ years trading and teaching, I’ve seen how effective watchlists can streamline the trading process and enhance overall performance.

Investors use these lists to track potential investment opportunities. Common tools and resources include:

• Stock screeners: Filter stocks based on specific criteria.
• Financial news sites: Stay updated with market news and trends.
• Broker platforms: Offer advanced charting and tracking features.
• Social media: Monitor sentiment and hype around specific stocks.
• Trading forums: Exchange ideas and strategies with other traders.

Top Penny Stocks That Will Explode in 2024

In 2024, the hottest penny stocks are coming with certain market trends and sectors. Technological advancements, especially in AI and crypto, are likely to drive significant growth. Companies developing innovative products and services in these areas could see substantial returns. My experience with penny stocks has shown that keeping an eye on emerging technologies can lead to profitable trades.

Investors should look for characteristics or indicators such as:

• Strong financial performance
• Innovative products
• High trading volume
• Positive market sentiment
• Strategic partnerships
• Growth potential in emerging markets

Best Penny Stocks for Long-Term

In my philosophy, there are no “best penny stocks to invest in” for the long-term. Penny stocks are inherently speculative and volatile, making them unsuitable for long-term investments. The high-risk nature of these stocks means they can experience significant price swings, often driven by market sentiment rather than solid fundamentals. This volatility is why I trade penny stocks and never invest in them.

When it comes to AI penny stocks or those in emerging sectors, the potential for rapid gains exists, but so does the potential for substantial losses. Traditional finance principles and brokers typically advise against holding penny stocks for extended periods due to their unpredictable nature. Investing in such speculative stocks long-term is more like gambling than making informed financial decisions.

Sure, you might win at the roulette wheel once, but letting it all ride through multiple spins is a sure recipe for going home broke.

Instead of making long-term investments in penny stocks, I approach these stocks with a trading mindset. Here’s what I do in every penny stock trade:

• Focus on short-term gains: Capitalize on quick price movements.
• Use a disciplined strategy: Implement stop-loss orders to manage risks.
• Stay informed: Constantly monitor market trends and news.
• Leverage trading tools: Utilize advanced charting and analysis tools provided by brokers.

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 $7.6 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.