The best penny stocks under $1 to buy today depend on today’s chart. The fact is, 99.9% of these cheap stocks will eventually be worth less than they are right now. That’s why I tell my students to build a watchlist every day.
The best traders watch more stocks than they trade. That’s essential for getting to know the charts of these stocks — these charts will give you valuable info about their future moves. If you study the patterns these stocks follow, you can find opportunities for the kind of small gains that can grow a small account fast.
Today I’ll show you how to build a watchlist for stocks under $1. Read on for the results!
Table of Contents
- 1 Best Penny Stocks Under $1 to Buy in January 2025
- 2 What Are the Best Penny Stocks to Buy Under $1 in January 2025?
- 3 Make This Trade Friday @ 2:59 PM
- 4 Which Is the Cheapest High-Potential Stock to Buy Right Now?
- 5 What Are Penny Stocks?
- 6 Where to Buy Penny Stocks Under $1
- 7 Top Platforms to Trade Stocks Under $1
- 8 What Are the Penny Stocks Under $1 with the Highest Potential?
- 9 Stocks Under $1 Investing Strategies
- 10 Risks When Investing in Penny Stocks Under $1
- 11 Penny Stocks Under $1 FAQs
- 11.1 Where can one find the list of companies’ penny stocks under $1?
- 11.2 What are high-volume penny stocks under $1?
- 11.3 What are some great penny stocks under $1 for selling calls and puts?
- 11.4 What is Tim Sykes’ favorite stock under $1?
- 11.5 What are the best stocks to buy under $1 that pay dividends?
- 11.6 What are the best stocks under $1 to consider for trading?
- 11.7 How can penny stocks contribute to portfolio growth and profitability?
- 11.8 What are some tips for finding bargain penny stocks with good upside potential?
Best Penny Stocks Under $1 to Buy in January 2025
The best penny stocks under $1 in January 2025 are:
- Lilium N.V. [NASDAQ: LILM]
- Farmmi INC. [NASDAQ: FAMI]
- Cemtrex Inc. [NASDAQ: CETX]
- FuelCell Energy Inc. [NASDAQ: FCEL]
- Athira Pharma Inc. [NASDAQ: ATHA]
This is a watchlist — not a “buy list.”
I’m sharing this so you can see my process. If you want to see more NO-COST watchlists, you can sign up for my weekly watchlist here.
What Are the Best Penny Stocks to Buy Under $1 in January 2025?
To find the best penny stocks to buy under $1 in January 2025 requires a top-level stock screener. I use the one in StocksToTrade — I helped design it, so it has all the tools and customizations I look for to create my penny stock watchlists.
Try StocksToTrade for 14 days and see how it helps your watchlist skills — only $7!
To find watch-worthy penny stocks under $1, I input the following criteria:
- Last Price ≤ $1
- Last Price ≥ $0.25
- Volume ≥ 100,000
- Number of Trades ≥ 100
When I run this screen in January 2025 and sort by percent change, it gives me the following top results:
Make This Trade Friday @ 2:59 PM
Every Friday afternoon like clockwork, a legendary trader scoops up shares knowing after-hours breaking news will have traders desperate on Monday morning…
To buy back from him for 5X… 10X… or even 100X what they sold for.
All the while he gets to collect as much as $9,518 OR MORE just for holding shares over the weekend.
This is the biggest overlooked opportunity in the markets right now and nobody in the media is talking about.
Click here to see this video now, before it’s too late.
Read on for the best penny stocks that I’m watching today!
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.
Athira Pharma Inc. [NASDAQ: ATHA]
Athira Pharma Inc is a biotechnology company focused on developing small molecules to restore neuronal health and stop neurodegeneration. The company is developing treatments for Alzheimer’s disease and Parkinson’s disease.
Which Is the Cheapest High-Potential Stock to Buy Right Now?
To find the cheapest high-potential stocks, you have to study their charts.
Take a look at the 1-year chart for Clean Vision Corp. [OTCPK: CLNV]:
See how many spikes this stock had in the past year? Each one of these spikes was a trading opportunity — that’s the way I’ve made over $8,000 in total earnings trading this stock (click the link to see my individual trades).
However, that’s not a recommendation to “buy” this stock. See how it drops after every spike?
It follows my 7-step pennystocking framework perfectly. This is the chart you have to commit to memory:
Remember this chart well, its the basis for my 7-step framework, @30DayBoot & @completepenny & you must study not to fall prey to greed/ignorance or you'll get wrecked like 90% of traders. It's VITAL to sell into excessive strength/hype, do not just hold & hope like most newbies pic.twitter.com/QsAGHsI6lp
— Timothy Sykes (@timothysykes) February 28, 2021
What Are Penny Stocks?
Penny stocks are shares of companies that trade for less than $1. These are often small-cap firms with a market cap under $300 million. They’re high-risk but can offer substantial rewards. The stock market is full of these opportunities, but you need to know where to look and what to avoid. In my years of trading and teaching, I’ve seen a TON of people make the mistake of diving into penny stocks without proper research… and it’s not pretty.
How Much Money Do You Need to Get Started with Stocks Under $1?
You don’t need a fortune to start trading penny stocks. With as little as $500, you can build a diversified portfolio. However, remember that trading these stocks comes with high risks. Small gains add up.
Is Investing in Stocks Under $1 Profitable?
Investing in stocks under $1 can be profitable, but it’s not worth the risk. I never invest in these sketchy stocks — I only trade them!
If trading stocks under $1 is too sketchy, check out my list of stocks priced under $5. These stocks can provide a broad range of opportunities while maintaining affordability. Here’s my curated list of penny stocks under $5!
Where to Buy Penny Stocks Under $1
Buying penny stocks under $1 is easier than ever, thanks to a variety of platforms. These platforms offer accessibility to stocks priced affordably, making them a popular choice for beginner traders looking for potential high returns. However, it’s crucial to perform thorough research and due diligence when selecting a platform for trading penny stocks to ensure it meets your trading needs and provides a secure environment.
Online Brokerage Platforms
Several online brokerage platforms support penny stock trading, each with its unique fee structures and restrictions:
- I use a few different brokers, depending on what I want from them — E-Trade and Interactive Brokers are usually prominent.
- No broker is perfect — check out this article I wrote on the best brokers for penny stock trading.
- Fees vary for penny stock trades, from close to free for penny stocks on major exchanges at the majority of US brokers, to $6.95 per OTC transaction. I don’t mind fees — any trade you make should consider the fees and still be profitable!
To set up an account and start trading on these platforms, follow these steps:
- Choose a Platform: Select an online brokerage that suits your trading style and budget.
- Create an Account: Provide necessary documentation, such as a government-issued ID and proof of address.
- Fund Your Account: Make the initial deposit required by the brokerage.
- Start Trading: Use the platform’s tools to research and execute trades.
Over-the-Counter (OTC) Markets
OTC markets are decentralized markets where securities not listed on major exchanges are traded. Unlike traditional exchanges, OTC markets have less stringent listing requirements, making them accessible for many penny stock companies.
Risks and Benefits of Trading on OTC Markets:
- Benefits:
- Access to a wide range of undervalued and speculative stocks.
- Potential for high returns due to lower share prices.
- Risks:
- Higher susceptibility to fraud and manipulation.
- Lower liquidity, which can lead to difficulty in executing trades.
OTC markets are where you’ll find the cheapest penny stocks on the market, such as those under 10 cents. These ultra-low-priced stocks can be highly volatile and offer substantial upside potential for traders who can navigate the risks effectively. Monitoring these stocks requires a hell of a lot of discipline and a strong understanding of market trends and trading plan building. My 10 cent penny stock watchlist has the stocks that I’m watching the closest!
Stock Trading Apps
Mobile apps have revolutionized penny stock trading by offering user-friendly interfaces and real-time updates. Popular apps include Robinhood, Webull, and Acorns — but all of the major brokers have apps that work well enough.
Remember: the best trading platform is the one you have on you!
Effective Use of Stock Trading Apps:
- Set up real-time alerts to stay updated on trading volume and price changes.
- Utilize educational resources within the app to enhance your trading knowledge.
- Monitor and analyze trends using in-app tools.
Directly from Company Offerings
Some penny stock companies offer stocks directly to investors through Direct Stock Purchase Plans (DSPPs). This method can provide direct access to shares without intermediary fees.
Steps to Evaluate and Participate in Direct Offerings:
- Research the Company: Investigate the company’s financial health and business model.
- Check Eligibility: Ensure you meet the requirements for participating in the DSPP.
- Apply for Participation: Follow the company’s application process to purchase shares directly.
Penny Stock Exchanges
Penny stock exchanges are specialized markets for low-priced stocks. Major exchanges where penny stocks under $1 are frequently traded include the OTC Bulletin Board (OTCBB) and the Pink Sheets.
Regulatory Standards and Listing Requirements: These exchanges have less stringent requirements compared to major exchanges, which can affect the quality of stocks listed. Always verify the legitimacy and financial health of companies before trading.
Top Platforms to Trade Stocks Under $1
When it comes to trading penny stocks, the platform you choose can make or break your experience. Look for platforms that offer robust analysis tools, real-time data, and low fees.
What Are the Penny Stocks Under $1 with the Highest Potential?
Look up at the charts of the stocks above. Do you see any spikes in their long-term chart? That’s a good sign.
History doesn’t repeat, it rhymes. And that’s a good thing for former runners…
https://t.co/gIIuF22exF Former runners can run again, never forget!
— Timothy Sykes (@timothysykes) December 7, 2020
Stocks Under $1 Investing Strategies
Investing in stocks under $1 requires a different strategy than traditional stock trading. Focus on risk management, diversification, and timely entry and exit points. I’ve been teaching these strategies for years, and they’ve been instrumental in my success and that of my students.
Stocks priced under 50 cents can be even better at running — but they’ll test your discipline even more than $1 stocks! Diversifying your investments across different price ranges and industries can give you exposure to some of the best opportunities in the market. My watchlist of the best penny stocks under 50 cents has some of the penny stocks I’m watching the closest right now.
Risks When Investing in Penny Stocks Under $1
Investing in low-priced penny stocks involves significant risks. Understanding these risks is crucial to managing your investments effectively and protecting your capital.
Read on for the biggest risks on my radar!
High Volatility
Volatility refers to the price fluctuations of a stock. Penny stocks are highly volatile, which can lead to substantial gains or losses in a short period.
Traders need volatility — but it can blow up your account if you don’t learn to CUT YOUR LOSSES QUICKLY!
Risk Management Strategies:
- Use stop-loss orders to limit potential losses.
- Diversify your portfolio to spread risk.
Liquidity Issues
Liquidity is the ability to buy or sell a stock without affecting its price. Penny stocks often face liquidity challenges, making it difficult to execute trades at desired prices.
Always look for volume when building a trade.
Assessing Liquidity:
- Check trading volume regularly.
- Avoid stocks with consistently low volume.
Potential for Total Loss
Penny stocks carry a high risk of total loss due to the speculative nature of the companies involved. Never invest in these shady stocks — only trade them!
Mitigating Total Loss Risk:
- Cut your losses quickly.
- Diversify investments across different stocks and sectors.
- Limit the size of your positions to minimize potential losses.
Lack of Analyst Coverage
Penny stocks typically receive less attention from financial analysts, resulting in less publicly available information. Twitter/X pumps is what they have in place of actual news.
Do Your Due Dilegence!
- Analyze financial statements and company news.
- Use online forums and trading communities to gather insights.
Economic Sensitivity
Penny stock companies are often more sensitive to economic changes, which can significantly impact their performance.
Monitoring Economic Indicators:
- Keep an eye on macroeconomic trends that could affect the sector.
- Stay informed about regulatory changes and market conditions.
Penny Stocks Under $1 FAQs
Just because a stock trades for under $1 doesn’t make it cheap. Read on for some more questions you might be asking…
Where can one find the list of companies’ penny stocks under $1?
Get a powerful stock screener like the one in StocksToTrade, and start building parameters. When I’m looking for tradable penny stocks under $1, I want their volume to be great enough for the stock to be liquid. This way I can enter and exit a position more easily.
What are high-volume penny stocks under $1?
A penny stock under $1 needs high volume for me to trade it. When I’m building my stock scan, I’ll typically look for stocks that have traded over 1 million shares so far that day.
The scanner I’m using in this article is set to look for penny stocks that have traded more than 100,000 shares. This will help you identify watch-worthy stocks — even if you’re looking in pre-market.
What are some great penny stocks under $1 for selling calls and puts?
Options are only offered on certain stocks. Many stocks under $1 won’t qualify.
What is Tim Sykes’ favorite stock under $1?
I don’t have a “favorite” stock under $1 — I think penny stocks are bad investments, and I don’t trust them at all. Trading scared has helped me make some profitable trades. One ticker that is ALWAYS on watch is Ozop Energy Solutions Inc. (OTCPK: OZSC) — I’ve made $45k over the years trading this penny stock (click the link for my individual trades).
What are the best stocks to buy under $1 that pay dividends?
Stocks that trade under $1 don’t usually pay dividends. Stocks that cost this little generally don’t have much going for them.
What are the best stocks under $1 to consider for trading?
The best stocks under $1 often include companies with strong growth potential and high trading volume. Look for affordable stocks that show consistent price movements and have recent news or catalysts. Always check Wall Street recommendations and perform thorough research to identify potential gainers.
How can penny stocks contribute to portfolio growth and profitability?
Penny stocks can offer significant growth due to their low entry price and high volatility. These stocks provide a unique chance for substantial returns, especially when bought at a bargain price. However, profitability requires careful selection and constant monitoring of trading patterns and company performance.
What are some tips for finding bargain penny stocks with good upside potential?
To find bargain penny stocks with upside potential, start by researching companies with recent positive developments or strong financial reports. Pay attention to sectors with increasing investor interest and cash flow. Use trading platforms and forums to gather ideas and insights from experienced traders.