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Top Robinhood Penny Stocks to Watch After Trump’s Election Win

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Written by Timothy Sykes
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As interest in penny stocks continues to grow, Robinhood remains a popular choice for trading these under $5 stocks. With high volatility and a low barrier to entry, penny stocks on Robinhood offer opportunities for disciplined traders aiming to build smaller accounts. Here’s a look at three top Robinhood penny stocks to watch after Trump’s election win, alongside trading insights and key risks to consider.

My top Robinhood penny stock picks after Trump’s win — rated on chart pattern, price action history, and news — include the following:

Stock TickerCompanyPerformance (YTD)
NASDAQ: PHUNPhunware Inc- 71.39%
NASDAQ: DJTTrump Media & Technology Group Corp+ 100.20%
NASDAQ: DRUGBright Minds Biosciences Inc+ 2,534.24%

3 Robinhood Penny Stocks to Watch After Trump’s Election Win

My top 3 Robinhood penny stocks to watch after Trump’s victory are:

  • NASDAQ: PHUN — Phunware Inc — The Donald Trump Pump AI Penny Stock
  • NASDAQ: DJT — Trump Media & Technology Group Corp — The Trump Mid-Cap Stock
  • NASDAQ: DRUG — Bright Minds Biosciences Inc — The Meme Biotech Stock Supernova

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

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.

Sign up for my NO-COST weekly watchlist to get my latest picks!

1. Phunware Inc (NASDAQ: PHUN) — The Donald Trump Pump AI Penny Stock

Phunware Inc, a tech company focused on AI-powered mobile engagement, has been on the radar for many Robinhood traders. Following its October 16 announcement of a generative AI platform, PHUN gained traction for its dual focus on AI and political connections.

Key Drivers:

  • Trump Association: PHUN has historical ties to Donald Trump’s campaigns, often sparking significant price movements. Ahead of the November 5 election, the stock surged by 330%*, highlighting its sensitivity to political events. Here’s a look at PHUN’s incredible post-election volatility.
  • AI Innovation: With growing interest in generative AI, PHUN’s platform announcement positions it within one of the market’s most dynamic sectors.

Trading Insight: Watch for post-election volatility. PHUN’s history suggests that price fluctuations are likely, regardless of election outcomes. Use technical analysis to determine entry points that align with familiar trading patterns.

2. Trump Media & Technology Group Corp (NASDAQ: DJT) — The Trump Mid-Cap Stock

Representing Truth Social, Trump Media & Technology Group has a history of sharp, speculative price spikes, making it one of the most-watched stocks in the lead-up to the election.

What to Watch:

  • Significant Price Swings: DJT spiked 1,600%* in October 2021, followed by additional gains in early 2024. In October 2024, the stock rose 260%* as election momentum built. Even though DJT isn’t a penny stock I’d still advise traders to stick to a disciplined trading plan — at the time of writing it’s down 35% from its post-election highs!
  • Speculative Appeal: Though Truth Social faces challenges with user growth and revenue, its trading history suggests that it remains a candidate for short-term gains.

Advice for Traders: Identify familiar patterns and set clear exit strategies to manage risk. DJT’s history of sharp reversals underscores the need for strict risk management.

More Breaking News

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

Bright Minds Biosciences has delivered one of the most significant penny stock moves this year. On October 15, DRUG experienced a massive short squeeze, jumping from $3 to $38 intraday, totaling a 3,000%* gain by October 18.

Check out my video!

Lessons From This Week’s 1,000%-2,000% Short Squeezes

Why Traders Are Interested:

  • Continued Volatility: The stock remains at elevated price levels, presenting potential intraday opportunities.
  • Short Squeeze Dynamics: High short interest can trigger sharp price increases when traders rush to cover positions.

Strategic Tip: Use price dips to capture potential rebounds. This aligns with the “Dip Buy” and “Dead Pump Bounce” phases in my 7-Step Pennystocking Framework.

*Past performance does not indicate future results

Best Practices for Trading Penny Stocks on Robinhood

Trading penny stocks can be risky, especially on a platform like Robinhood, which is optimized for ease of access but lacks some advanced trading features. Here’s how to approach these trades smartly:

  1. Monitor Volume and Catalysts: Watch for sudden volume increases and news catalysts that can drive price movements.
  2. Use Technical Analysis: Rely on chart patterns and historical price data to guide entry and exit points.
  3. Set Stop-Loss Orders: Given the volatility of penny stocks, setting stop-losses can protect you from unexpected reversals.
  4. Be Wary of Hype: Verify any news independently to avoid buying into inflated stocks.

Using Robinhood for Penny Stock Trading

Robinhood provides an accessible way to enter the market with zero-commission trades and fractional shares. However, trading penny stocks on Robinhood comes with some limitations, including:

  • Execution Speeds: Slower trade execution can make it challenging to enter or exit positions in fast-moving stocks.
  • Research Tools: Robinhood offers limited research options compared to more advanced platforms, which may impact your ability to analyze volatile stocks effectively.

When it comes to trading platforms, StocksToTrade is first on my list. It’s a powerful trading platform that integrates with most major brokers. I helped to design it, which means it has all the trading indicators, news sources, and stock screening capabilities that traders like me look for in a platform.

I use StocksToTrade to scan for news, tweets, earning reports, and more — all covered in its powerful news scanner. It also has a selection of add-on alerts services, so you can stay ahead of the curve.

Grab your 14-day StocksToTrade trial today — it’s only $7!

Key Takeaways From a Hot Post-Election Market

While Robinhood offers a straightforward way to trade penny stocks, successful trading requires a solid strategy and disciplined risk management. Stocks like PHUN, DJT, and DRUG represent the opportunities and risks in this market segment. Approach trades with caution, and remember that a solid trading plan is essential for navigating the highs and lows of penny stocks.

Trading isn’t rocket science. It’s a skill you build and work on like any other.

I built my Trading Challenge to pass on the things I had to learn for myself…

Apply to the Trading Challenge here.

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

Join the Conversation: What’s on your penny stock watchlist for this month? Share your thoughts in the comments, and let’s exchange strategies!

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”