Stock Screener

Best Penny Stocks

Best penny stocks to find hot penny stocks under $1 throughout the day. The top penny stocks list is a perfect scanner for traders who want to see gainers and losers during the day for day trading or swing trading. Search for hot penny stocks to watch today with the intraday penny stock screener.

Stocks Under $1 $2 $5

Volume >=0 300,000 500,000

Gainers Losers


Last Update: Jun 17, 2024

Symbol Chart Open High Low Close Volume Percent
ALLG 1.68 1.69 1.67 1.67 8842082 127.21%
NDRA 0.13 0.15 0.11 0.15 185179775 49.52%
AZTR 0.15 0.23 0.15 0.21 13049073 38.98%
QMCO 0.66 0.85 0.60 0.76 3806442 29.03%
PSNY 0.72 0.89 0.71 0.84 37335061 23.29%
CAN 1.05 1.25 1.02 1.23 15141382 20.59%
EMKR 0.91 1.25 0.91 1.03 10257890 19.05%
NLSP 0.11 0.14 0.11 0.13 1596851 18.44%
CRKN 0.07 0.07 0.06 0.07 101542141 17.47%
DUO 0.61 0.74 0.59 0.71 522820 16.50%
NTBL 0.72 0.78 0.71 0.78 80379 14.90%
SDOT 0.27 0.33 0.27 0.31 602609 14.64%
RNXT 1.29 1.35 1.24 1.35 146062 14.41%
SNT 1.80 2.19 1.69 1.92 575046 14.29%
PRTS 1.06 1.23 1.06 1.19 968483 11.79%
CAUD 0.40 0.50 0.40 0.45 483844 11.67%
OCEA 1.41 1.72 1.37 1.57 223084 10.99%
AGRI 0.10 0.12 0.08 0.09 157810237 10.98%
CJET 0.34 0.41 0.34 0.41 1322304 10.81%
GOEV 1.95 2.00 1.82 1.98 4238617 10.04%
NXU 0.39 0.43 0.38 0.43 403544 9.67%
RCAT 1.10 1.16 1.00 1.14 879520 9.62%
SONM 0.81 0.91 0.78 0.89 730132 9.62%
IH 1.75 1.96 1.75 1.96 16016 9.50%
ECX 1.17 1.37 1.17 1.29 127688 9.32%
NUTX 0.54 0.64 0.54 0.59 247703 8.60%
YGMZ 0.37 0.40 0.37 0.39 222699 8.36%
DXF 0.23 0.25 0.23 0.24 707443 8.12%
GOSS 0.53 0.64 0.53 0.56 12650583 7.90%
WRAP 1.24 1.36 1.22 1.32 197714 7.85%
IPDN 0.60 0.61 0.56 0.59 26232 7.27%
MIGI 1.65 1.90 1.57 1.80 660220 7.14%
TCON 1.28 1.35 1.22 1.35 259508 7.14%
BW 1.28 1.41 1.25 1.38 590915 6.98%
ONCO 0.15 0.16 0.14 0.15 720760 6.90%
TLSA 0.74 0.81 0.74 0.79 95200 6.74%
GNS 0.26 0.28 0.26 0.28 2332473 6.60%
KLTR 1.20 1.34 1.19 1.30 213987 6.56%
BGXX 0.26 0.28 0.26 0.28 336817 6.40%
MDAI 1.61 1.78 1.61 1.71 164066 6.35%
HOVR 0.70 0.83 0.67 0.78 214134 6.25%
QBTS 1.18 1.22 1.15 1.21 4282155 6.14%
MVST 0.43 0.46 0.42 0.45 1701333 5.79%
MNTS 0.54 0.58 0.52 0.54 278863 5.77%
SVMH 0.26 0.27 0.21 0.24 23369975 5.76%
EJH 0.83 0.86 0.78 0.79 2190577 5.67%
DGHI 1.32 1.43 1.32 1.41 125808 5.64%
THCH 0.69 0.75 0.69 0.74 293515 5.46%
CLOV 1.10 1.17 1.08 1.15 4509437 5.05%
PIXY 1.76 1.91 1.72 1.91 188271 4.95%
ELWS 1.93 1.99 1.85 1.98 12376 4.76%
QTI 0.80 0.86 0.74 0.78 104683 4.75%
ABTS 0.59 0.60 0.51 0.55 52792 4.72%
ZVIA 0.78 0.79 0.77 0.79 80946 4.60%
MESA 1.11 1.17 1.11 1.15 96517 4.55%
STEM 1.12 1.17 1.11 1.16 2645316 4.50%
BNOX 0.80 0.83 0.74 0.82 142976 4.50%
PIII 0.61 0.66 0.60 0.65 148754 4.42%
ARAY 1.74 1.82 1.70 1.81 316347 4.34%
DMTK 0.31 0.35 0.31 0.33 260246 4.33%
WDH 1.19 1.23 1.12 1.23 512436 4.24%
LUXH 0.23 0.25 0.23 0.24 800509 4.22%
POET 1.69 1.74 1.65 1.76 379699 4.14%
RGTI 1.00 1.06 0.98 1.03 3896009 3.91%
IDEX 1.00 1.07 0.98 1.07 196582 3.88%
INTJ 0.98 1.05 0.98 1.02 42372 3.87%
GEVO 0.60 0.61 0.57 0.60 2391019 3.86%
SRFM 0.28 0.30 0.28 0.30 465207 3.82%
JTAI 0.48 0.53 0.47 0.50 77941 3.75%
DPRO 0.21 0.22 0.21 0.22 557326 3.73%
DRRX 1.62 1.72 1.62 1.71 80349 3.64%
FOA 0.54 0.57 0.54 0.55 46839 3.63%
CMPX 1.11 1.18 1.08 1.15 232592 3.60%
XAIR 1.26 1.32 1.20 1.30 221885 3.60%
PTPI 0.42 0.44 0.40 0.43 433842 3.49%
NCI 0.76 0.91 0.76 0.85 782452 3.48%
KA 0.58 0.61 0.48 0.53 5376801 3.43%
IAUX 1.02 1.07 1.01 1.06 2215501 3.43%
JOB 0.29 0.31 0.29 0.30 400462 3.27%
NOTE 1.37 1.47 1.31 1.44 762242 3.24%
THMO 0.33 0.38 0.30 0.32 125132 3.19%
BTCY 0.89 0.90 0.89 0.90 13817 3.15%
MAPS 1.02 1.06 1.00 1.03 336338 3.00%
HSDT 1.05 1.05 0.97 1.04 81639 2.96%
MSS 1.41 1.51 1.31 1.39 92379 2.96%
RDHL 0.39 0.40 0.37 0.40 197930 2.95%
CSLR 1.45 1.52 1.31 1.47 132265 2.86%
MMV 0.57 0.66 0.57 0.62 152015 2.85%
GANX 1.28 1.38 1.27 1.28 888233 2.82%
XTIA 0.42 0.47 0.41 0.45 1086252 2.79%
MOVE 0.41 0.44 0.41 0.43 686481 2.77%
MLSS 0.74 0.74 0.69 0.74 132613 2.75%
MRNS 1.39 1.57 1.36 1.51 1725829 2.73%
ANY 1.12 1.19 1.05 1.16 1060408 2.72%
DDL 1.88 1.99 1.88 1.91 232109 2.69%
TKLF 0.23 0.23 0.22 0.23 688487 2.69%
OPTN 1.18 1.22 1.14 1.19 205813 2.60%
AREB 0.33 0.34 0.30 0.32 279545 2.58%
SES 1.20 1.29 1.20 1.23 280505 2.50%
DFLI 0.84 0.90 0.82 0.87 436004 2.46%

What are penny stocks?

Let's first define what a penny stock is before we get into the strategies on how to trade penny stocks. By definition, a penny stock is any stock that is currently trading under $5.

When a stock is trading below $5, it usually means the company is in trouble and investors are not bullish on its stock.

Many factors might impact the stock price of a company. It could be that the company is not making money, has lots of debt, lacks a strong management team, the CEO is leaving, the products are losing their edge, the industry is too competitive, downgraded by analysts, or the general market is down, or all of the above.

There are two types of penny stocks, the ones trading on the regular stock exchanges such as the NYSE, NASDAQ, and AMEX, and the ones that are trading on the OTC market.

OTC penny stocks are extremely risky and are not the focus of this article. The penny stock strategy that we discuss below is for penny stocks trading in the regular exchanges.

Trading vs. investing in penny stocks

Most penny stocks are on the edge of bankruptcy, and in the long term, many do go under. Therefore, the odds are actually against any trader who invests or trades in penny stocks unless they develop a system that gives them an edge.

There are two main methods that people use to make or lose money in the stock market, trading and investing.

Investing is a method of fundamental analysis where an investor studies the fundamentals of a company. An investor studies the income statement, balance sheet, the competitiveness of the products, the competency of the management team, the strength of their competitors, and any other factors that may affect the company. The goal of investing is to buy and hold a stock for the long term hoping the stock would appreciate in one to three years or even longer.

On the other hand, trading is completely different than investing. Trading does not bother with any of the fundamental studies about the company. What it does is find stocks based on the stock charts and technical indicators. Traders look for patterns in stock charts and bet their money on patterns they think have a high probability of winning. The holding period of traders is much shorter, anywhere from a few seconds to a few weeks.

Since penny stocks have a high chance of going bankrupt in the long term, it is extremely risky to invest in penny stocks. We will focus on trading penny stocks which means we will buy and sell a stock in a very short period on price actions rather than holding them for the long term.

How to trade penny stocks?

There are various ways to trade penny stocks successfully. There are penny stock traders who make money going long and those who do well with shorting.

Some traders only trade OTC penny stocks and others only trade the penny stocks listed under the regular exchanges.

Some traders make money from day trading and others do swing trading. Day traders buy and sell a stock within a few seconds to a few minutes, whereas swing traders buy and sell stocks within a few days to a few weeks.

No matter what methods they use, successful traders all have something in common. They treat trading as a business and they study the market daily. They love what they are doing. Money is the ultimate goal of trading, but if money is the only thing that you are going after, then it is unlikely that you can make it in trading.

Penny stock trading strategy

The penny stocks strategy that we are using is layout in detail in Penny Stocks for Beginners.

The goal is to find penny stocks that spiked recently and have since fallen back. What I've found through my studies is that often these beaten-down stocks have the potential to rally again shortly.

Penny stock trading criteria

  • Small trade size  - depending on the size of your account, you should bet no more than 5% to 10% of your account on any one stock. If your account is large, you should bet an even smaller percentage. Our goal is not to make lots of money on one trade, the goal is to make small amounts from lots of trades. By betting small, we minimize our risks.
  • Penny stocks under $5 - we are only interested in trading penny stocks under $5 listed on the regular exchanges. These cheap stocks make the most significant moves when they do make a move.
  • Recent rally - the stock has made big moves recently. It should be up at least 80% with unusual volume in a few days. Unusual volume means that the stock should have at least 5 times trading volume on the rally days than the average volume.
  • Huge volume - on the days that the stock is rising, there should be huge trading volume, anywhere from 10 million to 500 million is good.
  • Falling back - after the big rise, the stock should fall back at least 60% from the recent high with decreasing volume. We want to see the stock falling with light volume.
  • Support & round number - our buy entry point will be very close to support from the previous base, and preferably a round number. For example, if a stock that made big moves has support at the round number of $3, it makes the support stronger and allows us to set tighter stop loss in case the trade doesn't work out.
  • 10% - 12% stop loss - always set a stop loss for any trade that you enter. We need a larger stop loss for penny stocks because they are more volatile than regular stocks, a 10% - 12% stop loss is good.
  • Profit target - the profit target should be at least 2 times as big as our stop loss. If your stop loss is 10%, the target profit should be at least 20%. We need to test and adjust the profit target depending on the market. When the overall market is bullish, and stocks are making big moves, we set our profit target large. On the other hand, if the market is bearish, we should set a tighter profit target and stop loss.
  • Time limit - we should always set a time limit for our stocks. We don't want to wait for a long time and lock our money if the stock is not making any move. Set a time limit of 2 to 3 weeks. If the stock starts to rise, we can wait a little longer.

Penny stock example

Let's look at a penny stock example chart for the stock HUSA. The stock gapped up from $2 to $15 in one day with a gain of over 700% back in March. This kind of explosive move is not possible with larger cap stocks, which is why beginners are so excited about trading penny stocks.

Following our penny stock strategy, we would add this stock to our watchlist in March, but we won't buy it until the stock falls to the previous support of $3.

  • Small trade size - if you have $10,000 in your trading account, you should be no more than $500 to $1,000 on any one stock.
  • Penny stocks under $5 - the stock's next support for HUSA would be $3 which meets our trading criteria of stocks under $5.
  • Recent rally - HUSA rallies from under $2 to a high of over $16 in two days on March 7, and March 8, which satisfies our second criteria.
  • Huge volume - the volume of the rally was almost 200 million on the first day, and over 60 million on the second day.
  • Falling back - we need to wait for the stock to fall at least 60% from its recent peak price. If our goal is to enter a long position of $3, it would be an 80% fall.
  • Support & round number - the support for HUSA is $3 and it happens to be a round number which adds further strength to our signal. Therefore, our entry price should be around $3.
  • 10% to 12% stop loss - if we buy the stock at $3, a 10% stop loss would mean that we cut loss when the stock hit $2.7. If we buy it at $3.2, we would have to cut our loss when it hits $2.88.
  • Profit target - our profit target should be at least 2 times the stop loss. If we buy HUSA at $3, and our stop loss is 10%, we will need at least 20% for your profit. That means we will sell our stock at $3.6 or higher.
  • Time limit - set a time limit of 2 to 3 weeks initially, and adjust along the way. If the stock doesn't move anywhere, then sell.

Here's another penny stock example, SIDU that just rallied 40% today. The stock met all of our trading criteria.

Penny stock trading psychology

What most beginners don't understand is that trading psychology is much more important than any good trading strategy. You can have the world's best trading strategy, but if you fail to execute it flawlessly, you are going to lose money.

Without the right mindset and mental discipline, it is very difficult to follow a trading strategy properly. That's why two traders who use the same strategy may have completely different results.

Unfortunately, the right trading mindset is not something that you can learn just by reading. It is the fear and greed that you will learn only through real trading experience. However, many traders lose their money without ever learning to how to deal with their trading emotions.

Every serious penny stock trader should read Trading in the Zone and Reminiscences of a Stock Operator.

These two timeless books will show you how professional traders think and operate in the stock market.

Penny stocks risk management

The best penny stocks to buy are the stocks that meet the criteria of the trader. It is going to be different for every trader.

Once a trader finds a profitable trading method, and a list of stocks to watch, the next step is to wait for an entry price.

Buying a stock is easy, but the selling part is difficult. Many traders have difficulty selling a stock when they are sitting on a loss. They try to wait for a comeback so that they can get out even.

It is this kind of thinking that gets beginners and some experienced traders into trouble. If your system tells you it's time to get out, be quick to cut your loss and move on to the next trade.

There are thousands of potentially profitable trades waiting for you in the next few years, you don't have to get stuck on a losing trade. The stock market would never run away.

Many times the feeling of missing out may kick in and urges you to get in a trade early, resist that emotion. You have to get in at the exact price so that you don't get shaken out when the trade goes against you.

Remember, we always need to have a stop loss for every trade we enter. If your entry price is too far away from the support, you would have to set your stop loss bigger for every trade which increases your risk.

The trick to trading success is to minimize risk as the first priority and make profit second. You need to be able to stay in the game to play the game. If your risk is too high, you might get wiped out of the market before you can start to make a profit.

How to buy penny stocks?

To buy penny stocks online, one needs to open an account with an online broker. The two brokers that we recommended are TD Ameritrade and Fidelity. Visit the top 5 online stock brokers to learn more about these two brokers along with three others.

Once you open a brokerage account, you need to understand how to buy penny stocks with different types of orders.

Type of Orders

  • Market Order - A trade order to buy or sell a stock at the current market price. The price is determined by the market meaning that the price you entered may not be the same as the price that your order is filled. When the liquidity of a stock is low, traders end up paying high slippage with market orders. Most penny stocks have low liquidity and high volatility, so it is not recommended that you use market order when trading penny stocks.
  • Limit Order - A trade order to buy or sell a stock at a particular price. The limit order prevents traders from getting prices they do not want as with market orders. However, it doesn't guarantee that the order will be executed if the price of stock never hits your limit price. I always use a limit order when trading with penny stocks.
  • Stop Order - A stop order also known as a stop loss order is a trade order to protect big losses from any trade. For example, if a stock is currently trading at $10, and a trader who has a long position on the stock wants to sell the stock it falls to $9 for a maximum loss of $1. He would use a stop order to sell the stock at $9. If the stock falls from $10 to $9, his trade gets executed.
  • Stop-Limit Order - A trade order that combines a limit order and a stop order.

These are the four main trade orders that every penny stock trader should be aware of. There are also other types of trade orders such as Trailing Stop Loss and Trailing Stop Limit orders. You can look up these orders on your broker's website to learn how they work.

Penny stocks to watch

Our intraday penny stock screener scans for the top penny stock gainers and losers throughout the day allowing traders to find hot penny stocks to watch that meet their trading criteria.

The penny stock scanner does not suggest which stocks to buy or sell, the trader needs to already know what types of stocks he's looking for.

Every trader should already have a trading system that gives them an edge in the market or a chart pattern that gives a high probability setup. If he does not have a system or a pattern that he can use, he has no business in the market.

In that case, his first step is to go and find this pattern. He can look for patterns based on technical analysis or study the charts of successful stocks and look for a common pattern that occurs in the winning penny stocks.

I spend about 1 to 2 hours daily studying the charts, learning about the market, and looking for stocks that meet my trading criteria. Noone says that trading is easy. You have to be a dedicated learner of the market to be successful with penny stock trading. I've seen people go broke quickly but rarely seen anyone getting rich quickly in the stock market.

How to find penny stocks to watch?

To find penny stocks to watch, you can use our technical stock screener. The screen allows a trader to find hot penny stocks based on technical indicators. Following are a few more ways that penny stock traders can use to find top penny stocks.

Penny stock screener - a stock screener that has the option to search for stocks based on price action and volume.

OTC stock screener - for those who trade OTC stocks, you may use our OTC penny stock screener to find the top daily gainers and losers.

To use any of the stock screeners, a trader needs to already have a trading method as the screeners don't give any recommendations on what penny stocks to buy. A screener helps traders to find what they need so that they don't have to search for penny stocks that meet their trading criteria manually.

Final Words

Penny stocks are volatile, and trading with penny stocks is extremely risky. If you can't afford to lose the money, then don't trade until you save up some spare money that you can play with.

It might take a beginner one to two years just to learn how the stock market works. Some people take much longer.

Trading is like a job, if you are not passionate about the work you are doing, chances are you are not doing your best work.

You need to be excited to learn about the market in order not to lose money. The average trader gets wiped out in their first year of trading. Trading success can only be done if you put the time into it like acquiring any other skills.

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