Alright, before I give you this week’s penny stock watchlist, we need to have a real conversation. I know why you’re here – you’ve seen some 19-year-old on TikTok turn $500 into $50,000 trading penny stocks and now you want your piece. I get it. I was you once, except my inspiration was Timothy Sykes’ Lamborghini, not some kid’s Robinhood screenshot.
Here’s the truth: I’ve made $47,000 on a single penny stock trade (KODK when it went from $2 to $60 in 2020). I’ve also lost $15,000 in three hours on a penny stock that got halted and never recovered. Penny stocks are like dating someone with face tattoos – could be the adventure of your lifetime, could end with your stuff on the lawn and your bank account empty.
But you’re still reading, which means you’re gonna trade them anyway. So let me at least help you not blow up your account. First, I’ll explain how to actually find penny stocks worth watching (spoiler: not from Reddit), then I’ll give you my actual watchlist for this week with specific levels and catalysts. Let’s dive into this beautiful dumpster fire.
What Makes a Penny Stock Worth Watching (Hint: It’s Not the Price)
Most people think penny stocks are just “stocks under $5.” Wrong. I’ve seen $0.50 stocks with billion-dollar market caps and $10 stocks that trade like penny stocks. It’s about the behavior, not just the price.
What really defines a tradeable penny stock:
- Price usually under $10 (but not always)
- High volatility (20%+ moves are normal)
- Lower market cap (under $1 billion usually)
- Often has news or catalyst driving movement
- Tends to move on momentum and sentiment, not fundamentals
- Usually has sketchy financials (let’s be honest)
The penny stocks worth watching are the ones with a story. Maybe it’s FDA approval pending, maybe it’s a rumored buyout, maybe Elon tweeted about them (RIP my DOGE position from 2019). Without a catalyst, penny stocks just slowly bleed to death.
How I Actually Find Penny Stocks (My Monday Morning Routine)
Every Sunday night, I spend about two hours building my penny stock watchlist for the week. Here’s exactly how:
Step 1: The Scanner Setup
I use Finviz (free version works fine) with these filters:
- Price: Under $10
- Average Volume: Over 1 million (liquidity matters)
- Float: Under 100 million (smaller float = bigger moves)
- Change: Up 10%+ (I want to see momentum building)
This usually gives me 30-50 stocks to investigate further.
Step 2: The News Check
For each stock, I check:
- Recent SEC filings (8-Ks are gold for finding catalysts)
- Press releases from the last week
- Upcoming events (earnings, FDA dates, conferences)
- Social media buzz (Twitter, StockTwits, Reddit)
If there’s no clear catalyst or story, I cross it off the list. No story = no sustained move.
Step 3: The Chart Check
I pull up the daily chart looking for:
- Recent breakout above resistance
- Volume spike (at least 2x average)
- Clear support levels for risk management
- Not already up 200%+ (missed that boat)
About 10-15 stocks usually make it past this filter.
Step 4: The Float Rotation Check
This is crucial. I calculate how many times the float traded in the last day (volume ÷ float). If it’s over 2x, that stock is ready to fly. Under 0.5x, it’s dead money.
Example: Stock has 10 million float, traded 25 million shares = 2.5x float rotation. That’s a mover.
Step 5: The Sympathy Play Hunt
If a sector is hot, I find the laggards. When SPCE ran to $60, I loaded VIRGIN (Virgin Orbit) at $8. When weed stocks ran, I grabbed the smaller names that hadn’t moved yet. Following the leader is okay, but finding the next runner is better.
This Week’s Penny Stock Watchlist (Week of [Current Week])
Now for what you actually came for. Here are the penny stocks I’m watching this week, with specific levels and catalysts. Remember, watching doesn’t mean buying – it means being ready if the setup develops.
FFIE (Faraday Future) – Current Price: $0.35
The Story: EV manufacturer with constant drama. They just announced a reverse split vote and have been pumping PR about their new vehicle deliveries.
Why I’m Watching: Every time this drops to the $0.30-$0.35 range, some whale comes in and pumps it to $0.60+. It’s happened four times in the last six months.
The Play: Watch for bounce off $0.32 support. If it holds with volume, looking for move to $0.50. Stop loss at $0.29.
Risk Level: 9/10 – This could literally go to zero, but the pumps are predictable.
APRN (Blue Apron) – Current Price: $2.15
The Story: Meal kit company that everyone forgot about. Just announced partnership expansion and cost-cutting measures. Short interest over 20%.
Why I’m Watching: Breaking above 50-day MA with increasing volume. Shorts might be trapped if this continues higher.
The Play: Long above $2.25 with target $2.80. If shorts start covering, could see $3.50.
Risk Level: 6/10 – At least they have real revenue, unlike most penny stocks.
SENS (Senseonics) – Current Price: $0.78
The Story: Continuous glucose monitoring system. FDA approval for 365-day sensor pending, decision expected any day.
Why I’m Watching: This is a binary event play. FDA approval sends this to $2+, rejection sends it to $0.40.
The Play: Small position before FDA decision, ready to add on approval or cut on rejection. This is basically gambling, but with better odds than actual gambling.
Risk Level: 8/10 – Binary events are coin flips, size accordingly.
MULN (Mullen Automotive) – Current Price: $0.12
The Story: Another EV penny stock (seeing a pattern?). They claim to be starting production soon™️ (they’ve been saying this for two years).
Why I’m Watching: Every time this hits $0.10, retail piles in thinking “it can’t go lower.” Usually bounces to $0.15-0.20 before reality sets in again.
The Play: Quick scalp only. Buy at $0.10, sell at $0.14. Don’t get greedy, don’t believe the hype.
Risk Level: 10/10 – This is hot garbage, but predictable hot garbage.
PRTY (Party City) – Current Price: $0.45
The Story: Bankruptcy rumors, then denial, then more rumors. Classic penny stock drama. Halloween season coming up is their Super Bowl.
Why I’m Watching: If they survive to Halloween, this could see $1+ on seasonal revenue. If bankruptcy hits, goes to $0.
The Play: Watching for either bankruptcy filing (short) or Halloween revenue PR pump (long). Not touching until direction is clear.
Risk Level: 9/10 – Literally might not exist next month.
BBIG (Vinco Ventures) – Current Price: $0.89
The Story: Holding company with random assets. Constant merger and spinoff drama. Retail cult following that won’t let it die.
Why I’m Watching: Approaching major support at $0.85. Every bounce from this level has been worth 30%+.
The Play: Long at $0.85 support, sell at $1.15. If support breaks, stay away – next stop $0.50.
Risk Level: 7/10 – Has bounced from these levels multiple times, but each bounce is weaker.
GNUS (Genius Brands) – Current Price: $1.23
The Story: Kids content company run by people who tweet too much. New streaming deal announced last week.
Why I’m Watching: Breaking out of 6-month downtrend. If it can hold above $1.20, next resistance at $1.75.
The Play: Long above $1.25 with first target $1.50, second target $1.75. Stop at $1.10.
Risk Level: 6/10 – Actually has some real assets, just terribly managed.
The Dark Side of Penny Stocks Nobody Talks About
Before you YOLO your rent money, let me tell you about the ugly side of penny stocks that the pumpers won’t mention:
The Dilution Death Spiral
Companies issue new shares constantly, destroying your investment. I watched XELA go from $5 to $0.05 through endless dilution. Every pop gets sold into by the company. It’s like trying to fill a bucket with a hole in the bottom.
How to spot it: Check the share count history. If it’s doubled in the last year, run.
The Pump and Dump Reality
That Discord group with “exclusive alerts”? They’re dumping on you. That YouTube guru showing gains? He bought before telling you. I learned this when I joined a $500/month chat room and realized the moderator was front-running every alert.
How to protect yourself: Never buy on the initial alert. Wait for the first red candle, then decide if there’s real momentum or just pump.
The Halt Horror
Nothing worse than being up 50% and getting halted, only to reopen down 40%. Happened to me with KODK – was up $30k, halt hit, reopened and I was up only $8k. Still profit, but damn.
How to handle halts: Always take some profit before halts if you’re up big. Never hold full position through a halt unless you’re okay with massive gaps.
The Reverse Split Scam
Company announces 1:10 reverse split to “meet exchange requirements.” Your 1000 shares at $0.50 become 100 shares at $5, then immediately dump to $2. You just lost 60% because of financial engineering.
How to avoid: Sell before reverse splits. I’ve never seen one work out for retail traders. Ever.
My Penny Stock Trading Rules (Learned the Hard Way)
After losing $25,000 on penny stocks in my first year and making $80,000 in my second year, here are my non-negotiable rules:
Position Sizing
Never put more than 5% of your account in a single penny stock. I don’t care if it’s the next Amazon. When HMNY (MoviePass) went from $30 to $0.02, people lost life savings. Don’t be those people.
My allocation:
- 60% of account in real investments (SPY, QQQ, actual companies)
- 30% for swing trades on quality stocks
- 10% for penny stock gambling (yes, it’s gambling)
The Three Day Rule
If a penny stock runs more than three days straight, I sell. No exceptions. Fourth day is almost always a dump. Learned this after holding RNVA through a five-day run, giving back 70% of gains on day six.
Stop Losses Are Mandatory
No stop loss on a penny stock = no position. I use 15-20% stops, wider than normal stocks because penny stocks are volatile. But if it hits, I’m out. No “maybe it’ll bounce back.”
Take Profits Aggressively
Up 20%? Sell half. Up 50%? Sell another quarter. Let the rest ride with a trailing stop. This way you lock in gains while keeping upside exposure. Nothing worse than watching a 100% winner become a loser because you got greedy.
Never Average Down
Penny stock going down? There’s usually a reason. Don’t throw good money after bad. I averaged down on NKLA from $60 to $40 to $20. It went to $3. That’s $30,000 I’ll never see again.
The Weekend Rule
Never hold penny stocks over the weekend unless you’re in love with pain. Weekend news is usually bad news – dilution announcements, SEC investigations, executives resigning. Sell Friday, rebuy Monday if the setup is still valid.
How to Actually Trade Penny Stocks (Not Just Watch Them)
Watching is easy. Trading is hard. Here’s my actual process:
Pre-Market Prep (4:00 AM – 6:30 AM Pacific)
- Check pre-market movers on watchlist
- Read any overnight news
- Set alerts at key levels
- Size positions based on account value
- Write down entry, stop, and target (no mental stops)
The Open (6:30 AM – 7:00 AM)
First 30 minutes is chaos. I rarely trade the open unless something is breaking out with massive volume. Usually I’m just watching, letting the craziness settle.
Prime Time (7:00 AM – 11:00 AM)
This is when I make most of my trades. Initial volatility has calmed, patterns are forming, and you can see if the move has legs. If a penny stock is still strong at 10 AM, it’s probably running all day.
Lunch Fade (11:00 AM – 12:30 PM)
Volume dies, moves slow down. I’m usually closing positions or adjusting stops. Never initiate new positions during lunch unless news drops.
Power Hour (12:30 PM – 1:00 PM)
Last 30 minutes can be wild. Shorts cover, day traders close positions, swing traders position for overnight. If I’m not already in, I’m not chasing here.
The Psychology of Penny Stock Trading (Why You’ll Probably Fail)
Real talk – 95% of penny stock traders lose money. Not because the game is rigged (though it kind of is), but because of psychology.
You’ll fall in love with your positions. “This company is going to revolutionize [insert industry]!” No, it’s not. It’s a penny stock. Trade it, don’t marry it.
You’ll revenge trade. Lost money on FFIE? You’ll try to “get it back” with bigger positions. This is how accounts die.
You’ll believe the hype. That CEO interview saying revenues will 10x? That Reddit DD with 47 rocket emojis? It’s all BS designed to create bagholders.
You’ll ignore risk management because “it’s only $500.” Those $500 losses add up to $5,000 real quick.
Advanced Penny Stock Strategies That Actually Work
The Sympathy Momentum Play
When one penny stock in a sector runs, others follow. SPCE runs? Buy ASTR, ASTS, RDW. Weed stock runs? Buy the laggards. I made $8,000 when TLRY ran by immediately buying SNDL and ACB.
The Pre-Market Gap Fade
Penny stock gaps up 40% pre-market on no news? That’s retail FOMO. Short at the open (or buy puts if available), cover when it fills the gap. Works 70% of the time.
The Offering Bounce
Company announces offering at $2, stock drops to $1.80 in panic. Buy at $1.80, sell at $1.95 when it bounces. Offerings act as support because that’s where institutions bought.
The Volume Explosion Pattern
When a dead penny stock suddenly trades 10x average volume with no news, something’s brewing. I scan for these every morning. Either insider buying or news coming.
This Week’s Economic Calendar and How It Affects Penny Stocks
Penny stocks don’t trade in a vacuum. Here’s what could impact them this week:
Monday: No major events – Good day for momentum to build Tuesday: Consumer confidence data – If bad, risk-off could hurt penny stocks Wednesday: Fed minutes – Any hawkish tone crushes speculative stocks Thursday: GDP data – Bad number = penny stocks dump Friday: PCE inflation – High inflation = risk-off = penny stocks die
Best days to trade penny stocks are usually Monday (weekend FOMO) and Friday (covering before weekend). Worst day is Wednesday (Fed usually speaks).
Your First Penny Stock Trade – Don’t Be an Idiot
If you’re going to trade penny stocks after reading this, here’s how to not immediately blow up:
- Start with $100. Not $1,000, not $10,000. One hundred dollars.
- Pick ONE stock from the watchlist above
- Buy SHARES, not options (penny stock options are usually garbage)
- Set a stop loss at -15%
- Set a sell order at +25%
- Don’t touch it, don’t adjust it, don’t “feel” the market
- Win or lose, journal what happened
Do this 10 times with $100 positions. If you’re profitable after 10 trades, you can increase size. If not, penny stocks aren’t for you, and you just saved yourself thousands.
The Bottom Line on Penny Stocks
Look, I’m not going to tell you not to trade penny stocks. You’re an adult (I hope), and it’s your money. But understand what you’re getting into – this isn’t investing, it’s speculation at best and gambling at worst.
Can you make money? Absolutely. I’ve had $40,000 months from penny stocks. Can you lose money? Even more absolutely. I’ve had -$20,000 months too. The difference between profitable penny stock traders and broke ones isn’t the stocks they pick – it’s risk management and emotional control.
Trade small, take profits quickly, cut losses even quicker, and never believe the hype. And for the love of all that is holy, don’t use margin on penny stocks. That’s like juggling chainsaws while drunk – technically possible but definitely ending badly.
These stocks I listed aren’t recommendations – they’re just what I’m watching. Do your own research, size appropriately, and remember: the goal isn’t to get rich quick, it’s to not go broke quickly. If you can manage that with penny stocks, you’re already ahead of 95% of traders.
