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December’s Top Robinhood Penny Stocks #Trump #Drones #AI

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Written by Timothy Sykes
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Penny stocks trading under $5 continue to capture the interest of traders on Robinhood, offering significant short-term opportunities amidst their high volatility. December 2024 presents a new batch of compelling stocks to watch, driven by recent news and sector momentum. Here are three standout Robinhood penny stocks, along with actionable trading insights and risks to consider.

Stock TickerCompanyPerformance (YTD)
AMEX: UMACUnusual Machines Inc+ 238.38%
NASDAQ: SOUNSoundHound AI Inc+ 540.87%
NASDAQ: QUBTQuantum Computing Inc+ 715.73%

3 Robinhood Penny Stocks to Watch in December 2024

My top 3 Robinhood penny stocks to watch in December are:

  • AMEX: UMAC — Unusual Machines Inc — The Donald Trump Jr. Drone Stock
  • NASDAQ: SOUN — SoundHound AI Inc — The NVIDIA Investment AI Penny Stock
  • NASDAQ: QUBT — Quantum Computing Inc — The Quantum Computing Sector Leader Penny Stock

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. Unusual Machines Inc (AMEX: UMAC) — The Donald Trump Jr. Drone Stock

Unusual Machines Inc made headlines on November 27 after announcing Donald Trump Jr. as its new advisor. This news acted as a powerful catalyst, sending the stock price soaring in premarket trading. The combination of a high-profile advisor and the company’s focus on drone technology, a key area of defense innovation, has positioned UMAC as a stock to watch.

Key Drivers:

  • Celebrity Influence: Trump Jr.’s involvement aligns the company with a high-profile figure closely tied to national defense, generating investor excitement.
  • Premarket Momentum: UMAC was already on an upward trajectory, but the announcement triggered a parabolic spike, with the stock chart reflecting increased volume and volatility.

Trading Tip: Keep an eye on follow-up moves, especially if UMAC announces additional partnerships or developments. Stocks linked to Trump Jr., such as PSQ Holdings Inc. (NYSE: PSQH), have shown similar spikes, with PSQH climbing 270%* post-announcement.

2. SoundHound AI Inc (NASDAQ: SOUN) — The NVIDIA Investment AI Penny Stock

SoundHound AI Inc continues to thrive as a significant player in the AI sector. This stock, an early runner during the ChatGPT surge in 2023, has remained resilient and recently smashed through its 52-week highs, trading above $14.

Key Factors:

  • Backed by NVIDIA: SoundHound’s connection to tech giant NVIDIA Corporation strengthens its position in the AI space, attracting traders looking for credibility and growth potential.
  • Strong Q3 Earnings: On November 12, SOUN reported record Q3 revenue, surpassing expectations:
    • EPS of -$0.04, beating estimates by $0.03.
    • Revenue of $25 million, exceeding projections by $2 million.

Trading Insight: Identify key support levels to build a smart position. SoundHound’s blend of sector relevance and solid financials makes it an attractive pick for traders capitalizing on the AI trend.

More Breaking News

3. Quantum Computing Inc (NASDAQ: QUBT) — The Quantum Computing Sector Leader

Quantum Computing Inc has established itself as a frontrunner in the burgeoning quantum computing industry. The stock surged 560%* following its November 13 announcement of securing its first order for the TFLN photonic chip foundry.

Why QUBT Stands Out:

  • Sector Leadership: As a leading quantum computing stock, QUBT benefits from its alignment with one of the most innovative tech sectors.
  • Sustained Momentum: After its explosive spike, the stock has maintained elevated price levels, signaling ongoing investor interest and potential for further volatility.

Strategic Tip: Volatility equals opportunity. Monitor QUBT for additional spikes or pullbacks, leveraging its active price movements to capitalize on trading setups.

*Past performance does not indicate future results

Best Practices for Trading Robinhood Penny Stocks

Trading penny stocks on Robinhood requires a clear strategy, particularly given the platform’s limitations and the inherent risks of low-priced stocks. Here’s how to approach these trades effectively:

  1. Monitor News Catalysts: High-profile announcements, such as UMAC’s Trump Jr. news, can significantly impact stock prices. Stay alert to breaking developments.
  2. Leverage Technical Analysis: Use chart patterns to identify key support and resistance levels for entry and exit points.
  3. Set Stop-Loss Orders: Protect your trades from unexpected reversals by defining clear stop-loss limits.
  4. Avoid Hype: Validate news independently to avoid falling prey to overhyped stocks that lack substance.

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

Robinhood penny stocks like UMAC, SOUN, and QUBT illustrate the potential for significant gains in response to news and market trends. However, their volatility underscores the need for careful planning and disciplined trading strategies.

What’s on your Robinhood watchlist? Share your picks and strategies in the comments below — I love hearing from my readers!

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* 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”