Stocks Under $1 That Will Explode

Looking for penny stocks under $1 that will explode? You’re not the only one … and no guarantees on whether their ‘explosion’ is a good or bad thing.

Nasdaq is the home of many of these super-cheap stocks. The exchange began life in the ‘70s as the tech upstart little brother to the NYSE. That isn’t the case any longer, as Nasdaq has become home to some of the overall market’s most exciting stocks. Blue chip stocks like Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), and Tesla Inc. (NASDAQ: TSLA) are some of the leading stocks on the entire market!

How do you keep track of the 3,300 stocks that trade on the Nasdaq? You keep a watchlist.

You should read this article because it provides a comprehensive guide on Nasdaq penny stocks, offering valuable insights into trading strategies, stock analysis, and top picks for 2024.

I’ll answer the following questions:

• What are penny stocks, and why are they significant for traders?
• Does Nasdaq have penny stocks, and what are the criteria for them?
• What happens when a penny stock moves to the Nasdaq?
• What key factors should you consider when selecting a penny stock?
• How can you identify top penny stocks to watch on Nasdaq in 2024?
• What are some examples of Nasdaq penny stocks under $1 that might explode?
• How does news and market sentiment affect penny stock prices?
• What are the risks and rewards associated with trading Nasdaq penny stocks?
• Let’s get to the content!

Read on to see my top Nasdaq penny stocks to watch in 2024!

What Are Penny Stocks?

Penny stocks are shares of small companies trading at low prices, often under $5 per share. They’re a playground for retail traders looking for big moves on a small budget. But here’s the catch: these stocks are volatile, and their low price doesn’t always mean value. They’re not your blue-chip stocks; they’re more like wild cards in the world of trading. When you’re dealing with penny stocks, you’re often looking at businesses with smaller market caps, and sometimes, less transparency.

This means doing your homework is crucial. Dive into their financials, understand their industry position, and keep an eye on their EBITDA and revenue margins. You should know what a company is before you trade it …

But remember, trading penny stocks is not about believing in a company’s story; it’s about trading patterns and price action.

If you want to go even deeper into the sketchy neighborhoods of penny stock land, check out my roundup of stocks under 10 cents. These stocks represent the lower end of the market cap spectrum, often involving higher risks and volatility. However, for the informed trader, they can offer unique opportunities for quick gains. It’s crucial to approach these stocks with a well-defined strategy, focusing on pattern recognition and market trends rather than getting swayed by the low price alone. For a deeper dive into the world of ultra-cheap penny stocks, check out this list of penny stocks under 10 cents.

Does Nasdaq Have Penny Stocks?

Yes, there are penny stocks on Nasdaq. Generally, a penny stock is a stock that trades for under $5 per share.

The Nasdaq has rules and criteria that companies must meet before they can list on the exchange. One of those requirements is that its stock trades for over $1 per share.

You can find Nasdaq penny stocks under $1 … but they won’t stay there for long. The exchange will send the company a letter. Then the company will have a certain amount of time to get its stock price over $1 and remain listed.

This is where you can see some creative pumps from companies. They may put out press releases about products or contracts, paid promotions, and maybe even do a reverse stock split to get the price up.

If you’re looking for “true” penny stocks — stocks that trade under $1 — you’ll have to look at the OTC markets.

The OTC markets are where OTC stocks and pink sheets trade. These are the most hated of all penny stocks … but they’re my favorite.

I love them because they fit my patterns best. And I don’t have to compete against hedge fund traders and algorithms.

What Happens When a Penny Stock Goes to the Nasdaq?

If a stock is listed on the OTC markets and has news that it’s uplisting to the Nasdaq, it usually creates some trader interest. There are a few reasons this can be good news…

First, the larger stock exchanges have more stringent requirements for companies to list. So if an OTC penny stock is uplisting, it can give a company some legitimacy.

Second, institutional investors and hedge funds typically don’t trade OTC stocks because there’s not enough liquidity. When a stock uplists to the Nasdaq or NYSE, they can trade it.

Last, larger exchanges are the best place for a company to have access to more investors from around the world.

All of these results spell additional volume.

What to Look for in a Penny Stock

When hunting for penny stocks, focus on a few key factors: trading volume, share price movements, and the company’s financial health. High trading volume can indicate interest and liquidity, essential for getting in and out of positions. Analyze the share price history to understand the range and volatility.

Look beyond the hype and dive into the company’s financials. Are their sales growing? Keep an eye on industry news and analyst ratings, but take these with a grain of salt. Remember, in penny stocks, information is power, but speculation is rampant. Your best bet is to develop a solid trading strategy, focusing on chart patterns and price levels, rather than getting swayed by every headline or analyst opinion.

Keeping a watchlist of promising penny stocks can be a game-changer, allowing traders to act swiftly and decisively. It’s not just about finding any penny stock, but about finding the right ones at the right time. For a curated list of penny stocks to keep an eye on, explore my top penny stocks to watch each month.

Or just read on …

List of 5 Top Penny Stocks to Watch on Nasdaq

My top penny stock picks to watch on Nasdaq 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

For more top penny stocks to watch, sign up for my no-cost weekly watchlist.

I don’t trade every stock on my watchlist or in my alerts. But I share them to educate traders.

Use this watchlist to find out what I look for in stocks and learn to become a self-sufficient trader. That means building your own watchlists.

Here are some of the penny stocks on Nasdaq that I’ll be watching in 2024…

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

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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

• Cabaletta Bio’s Unexpected Surge: Decoding the Recent Performance
• From Whirlwind to Calm: Analyzing Super Micro Computer’s Recent Rise and Forecast
• Opendoor Technologies: Decoding Financial Shifts and Forecasts

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

Now let’s look at some hot penny stocks on Nasdaq under $1…

5 Hot Nasdaq Penny Stocks Under $1 That Will Explode

My top Nasdaq penny stock picks under $1 are:

• Lilium N.V. [NASDAQ: LILM]
• Farmmi INC. [NASDAQ: FAMI]
• Cemtrex Inc. [NASDAQ: CETX]
• FuelCell Energy Inc. [NASDAQ: FCEL]
• N2OFF Inc. [NASDAQ: NITO]

Lilium N.V. [NASDAQ: LILM]

Lilium NV creates a sustainable and accessible mode of high-speed, regional transportation.

Farmmi INC. [NASDAQ: FAMI]

Farmmi Inc acts as a supplier of agricultural products. It mainly focuses on processing and selling various categories of agricultural products such as Shiitake mushrooms, Mu Er mushrooms, other edible fungi, and other agricultural products. It supplies mushroom products indirectly to foreign customers such as supermarkets through Chinese distributors and internationally including the USA, Japan, Canada, Europe, and the Middle East, through distributors. The company is also involved in the trading activities of purchasing other agricultural products produced by third-party manufacturers, and selling these products in the company’s online stores Farmmi Jicai and Farmmi Liangpin Market. It generates a vast majority of the revenues from the Shiitake mushrooms segment within China.

Cemtrex Inc. [NASDAQ: CETX]

Cemtrex, Inc. is a diversified technology company that’s driving innovation in a wide range of sectors, including smart technology, virtual and augmented realities, advanced electronic systems, industrial solutions, and intelligent security systems.

FuelCell Energy Inc. [NASDAQ: FCEL]

FuelCell Energy Inc is a fuel-cell power company. FuelCell designs manufactures, sells, installs, operates, and services fuel cell products, which efficiently convert chemical energy in fuels into electricity through a series of chemical reactions. It serves various industries such as Industrial, Wastewater treatment, Commercial and Hospitality, Data centers and Communications, Education and Healthcare, and others. Geographically, the company generates a majority of its revenue from the United States followed by South Korea.

N2OFF Inc. [NASDAQ: NITO]

Save Foods Inc is a development stage company which is involved in the business of developing, testing, and marketing solutions and products for extending storability and shelf life of vegetables and fruits through its subsidiary. The company develops products that treat citrus fruits, sweet potatoes, stored table potatoes and also provide storage control of fruits and vegetables. It has also started commercialization of its products.

Remember, all of these Nasdaq penny stocks under $1 will eventually have to get their stock price back over $1 or risk being delisted.

That’s reason to be careful — and reason to have them on your watchlist.

The Benefits of Investing in Nasdaq Penny Stocks

Investing in Nasdaq penny stocks can be a game of high risk and high reward. These stocks offer a chance to buy a large number of shares with a relatively small amount of money, potentially leading to significant gains if the stock price spikes. Nasdaq, being a reputable exchange, adds a layer of credibility compared to penny stocks traded on less regulated platforms. For traders who do their due diligence, understand the risks, and have a clear exit strategy, Nasdaq penny stocks can be an exciting addition to their trading portfolio. Remember, it’s not about finding the next big thing; it’s about finding stocks with the potential for big moves.

Trading sector-specific stocks can further drill down on the stocks on your watchlists. Trading gold penny stocks requires an understanding of the commodities market, global economic indicators, and sector-specific news — which is good news for traders willing to put in the work. For traders looking to diversify their penny stock portfolio or capitalize on the nuances of the gold market, gold penny stocks can be an intriguing option. To learn more about trading in this specific sector, delve into my guide to gold penny stocks.

Potential Drawbacks of Investing in Nasdaq Penny Stocks

The world of Nasdaq penny stocks is not for the faint-hearted. These stocks are notoriously volatile, making them a risky bet for the unprepared trader. The low share price often comes with lower liquidity, meaning it can be hard to sell your shares at the desired price. Also, information on these companies can be scarce, leading to decisions based on speculation rather than solid data. Many of these companies are in their early stages or struggling, which adds to the risk. As a trader, you need to be aware of these drawbacks and trade with a strategy that acknowledges these risks.

Common Mistakes to Avoid When Trading Penny Stocks

Trading penny stocks is a unique battlefield, and common mistakes can cost you. First, never trade based on emotions or hype. The penny stock world is full of stories and speculation, but your decisions should be based on research and strategy. Avoid chasing a stock after it has already made a significant move; you’re likely too late to the party. Don’t ignore the importance of volume; trading in stocks with low volume can leave you stuck in a position. Also, don’t forget to set stop-loss orders to manage your risk. Remember, in penny stock trading, cutting losses quickly is just as important as capturing gains.

Conclusion

If you want to trade super-cheap penny stocks, your skills need to be on point. Trading is a battlefield. To be profitable you’ll have to fend off competition from professional traders, hedge funds, and algorithms.

In the world of “true” penny stocks, you’ll also need to see through the lies of penny stock promoters…

I use StocksToTrade every day to find the biggest percent gainers and the stocks trading the most volume. Its Breaking News Chat alert service has put many of the stocks I’m now watching on my radar.

If you want to know more about how I trade penny stocks, apply for my Trading Challenge.

You’ll also have access to all my DVDs, video lessons, archived webinars, and arguably the best chat room ever.

The Trading Challenge is your opportunity to commit to your trading education and prepare for any market.

Pay attention to risk, follow the rules, and only trade the best setups. Take singles and cut losses quickly. It’s how I’ve grown my account to $7.8 million and counting.

Do you trade Nasdaq penny stocks? Let me know in the comments … I love to hear from you!

Penny Stocks Under $1 FAQs

Where Can I Find a List of All Penny Stocks on Nasdaq?

Use a stock screener like StocksToTrade to find a list of penny stocks on Nasdaq. You can use filters to find stocks based on price, volume, market cap, or float. Visit Timothy Sykes

What Is the Cheapest Penny Stock on Nasdaq?

The cheapest penny stock on Nasdaq will be around $1. That’s because the Nasdaq exchange requires listed companies to maintain a listing price of over $1 per share. Visit Timothy Sykes

Can I Buy Penny Stocks Under 10 Cents on Nasdaq?

You won’t find many stocks under 10 cents on the Nasdaq. The exchange has a minimum listing requirement of $1, and will delist stocks that trade under that level for too long. Most stocks that trade under $1 trade on the OTC markets.

What Do Analysts Say About Stocks Under $1?

Analysts provide essential analysis and price targets for stocks under $1, often influenced by Wall Street trends and industry directions. Their opinions are usually based on various factors, including company performance, CEO strategies, and market demand. Reading articles and facts from reputable sources can offer insights into their views.

How Can I Learn About Stocks Under $1?

For those interested in investing in stocks under $1, resources like online courses, newsletters, and investment tips on platforms like YouTube and Instagram can be valuable. Following money managers and insiders in the field, and engaging with their content, can provide practical ideas and steps to identify potential stocks.

What Technology and Healthcare Stocks Under $1 Show Promise?

In the technology and healthcare sectors, look for companies involved in software development, medical devices, and patient services. Analyzing Canadian, Californian, or Chinese companies in these industries can reveal stocks under $1 with potential, especially those with FDA approvals or innovative solutions.

How Important Are Stock Catalysts and Industry Backdrop?

Understanding the catalysts that drive stock prices and the industry backdrop is crucial. Events like product launches or regulatory approvals can significantly impact stock prices, especially for companies under $1. Identifying these catalysts and understanding the difference they make can guide your investment decisions.

What Should I Consider Before Investing in Stocks Under $1?

Before investing in stocks under $1, consider the types of industries these stocks belong to and the specific names or companies that analysts and insiders focus on. It’s also wise to consider the legal disclaimer associated with such investments, as these stocks can be more volatile and risky.

How Do ETFs and Stocks Under $1 Interact in the Market?

Exchange-Traded Funds (ETFs) often track a range of assets, including low-priced stocks. When investing in stocks under $1, it’s important to see how they fit within the broader ETFs landscape. For example, some ETFs might include small-cap or niche sector stocks, which can include stocks trading under a dollar.

What Role Do Headlines and Media Play in Stocks Under $1?

Media headlines can significantly impact stocks under $1, particularly in terms of public perception and investor sentiment. For instance, positive trial results or breakthroughs in China’s markets, especially concerning technology or healthcare sectors that affect patients, can lead to a surge in stock prices. It’s crucial to follow reliable news links and understand how media coverage influences these stocks.

How Can Social Media Influence Stocks Under $1?

Social media platforms and their vast number of followers can be a powerful tool for influencing the popularity of stocks under $1. Influential figures on platforms like YouTube and Instagram can sway public opinion, sometimes based on specific instances or examples they share. However, investors should approach these sources critically and differentiate between hype and substantive information.

What Are the Key Indicators for Evaluating Low-Priced Stocks?

When evaluating low-priced stocks, consider metrics like market capitalization, average price target, and potential upside. Tools like StocksToTrade can offer insights into a stock’s performance, helping to refine investment strategy decisions.

How Do Product Launches in Electric Vehicles Impact Stock Prices?

Product launches in the electric vehicle sector can significantly impact stock prices, particularly for companies on my Robinhood Penny Stocks watchlist. Investors should monitor daily volumes and price targets to gauge market reactions and potential investment opportunities.

What Investment Strategies Are Effective for Marijuana and Drug Stocks?

For sectors like marijuana and drug products, investment strategies should consider regulatory changes and market capitalization. Using platforms like Charles Schwab can help regular investors access these markets, potentially leading to substantial upside.