Nasdaq Penny Stock List

It comes as no surprise that the majority of traders avoid penny stocks like the plague, and newer traders absolutely love them. And it's easy to see why with their speculative nature, and volatile price changes. NASDAQ penny stocks are a bit different but still are risky.

It's not uncommon to see a penny stock soar up or plummet down over 100% or 200% in a short period. But, a small percentage of penny stock trades work out very well, which makes them appealing to those with smaller accounts. Like anything with trading, proper risk management is key when trading high volatility stocks. Entries and exits are key. Cut your losses quickly if the trade goes against you.

If you are thinking of subscribing to a daily NASDAQ penny stock list, you need to be aware of a few things. Make sure to bookmark our day trade watch list page and check it every day. We update this page nightly with very popular NASDAQ penny stocks that are looking to potentially break out in the short term.

1. Strategies: Nasdaq Penny Stock List

Stock trading is filled with many strategies. As a result, you have many ways to make money with trading.  

The goal of every trader is to make a profit. However, 90% of traders fail because they don't take the time to learn how to trade and what to look for.  Things like candlesticks patterns, moving average crossovers, how vwap correlates with price entry and exits, and level 2 with time and sales.

New traders see penny stocks as cheap ways to grow an account without taking into consideration how penny stocks are manipulated.

That doesn't mean you can't or shouldn't trade them however. It means you need to know how to take advantages of the pumps and dump in the penny stock sector. Pump and dumps are a great way to scalp and make money if you know what you're doing. Getting the proper entry is important and knowing when to cut your losses is critical to your long term success as a momentum trader.

Trading penny stocks requires skill. That means you need to study and practice trading before going live. When you do, you'll have mastered patterns and support and resistance. 

A NASDAQ penny stock list will have penny stocks that trade on the major exchange. Make sure to take our online trading courses to learn the different ways to trade them as well as other trading strategies such as options.

2. Under $5: Nasdaq Penny Stocks

Above is a list of Nasdaq stocks that are under 5 bucks, sorted by market cap. This list will update monthly. The list can be easily copied and pasted into excel! Note: Prices update once monthly. Add these stocks into TrendSpider charts to find automated support and resistance zones. 

3. What Are Penny Stocks?

According to the Securities Exchange Commission (SEC), a penny stock is any stock trading under $5.00 per share. Penny stocks are also know as small cap stocks.

Most of these companies are relatively new, without a proven track record of success. Coupled with the fact they have a small market capitalization, they are inherently risky for both investors and traders.  

However, with a NASDAQ penny stock list, they're regulated. The regulations make them a little safer to trade. Take our penny stock trading strategies when really delves into how to trade them the right way.

We also have a live trade room where we teach how to trade them on a daily basis. If you don't have real world experience trading small cap stocks then it's very difficult to know how to trade them. That's where we come in.

We have a great trading community that teaches you how to trade NASDAQ penny stocks. We show the pros and the cons. Where to potentially enter and exit a trade. And we highlight the stocks that we do on our day trade watch list every evening live each day on our streams.

We have stream replays available as well if you're not able to catch us live each day. We also have streams in the afternoons as well teaching small caps, options, and futures. 

Again, make sure to bookmark our watch lists pages above. Just click the drop down under lists and you'll see both our day trade and swing trade watch list pages. Check out our weekly trade alerts results to see how awesome our trigger rates are on our watch lists.

4. Types of Penny Stocks to Avoid

In the penny stock arena, we have a few different types available to trade. Have you seen the movie Wolf of Wall Street?

If you haven’t yet, it’s a great movie based on the true story of Jordan Belfort. The movie depicts his rise to a wealthy stock-broker living the high life to his fall involving crime, corruption and the federal government.

His flavor of the day was trading over the counter (OTC) penny stocks known as Pink Sheets. Since OTC penny stocks aren’t listed on the NYSE or NASDAQ exchanges the companies don’t have to follow strict rules and regulations. 

To be listed on any of the major exchanges requires full transparency with all your financial dealings and your stock must remain over $1.00 per share. Those companies not willing to play by the rules.

Perhaps they’re in bankruptcy filings, will often trade on the OTC market. For these reasons it comes as no surprise, they are easily subjected to corruption.

Another downside of OTC penny stocks is their lack of liquidity which makes them far more susceptible to manipulation. Henceforth they are dangerous to trade.

For the reasons listed above, we focus our attention on stocks trading on the NYSE or NASDAQ exchange. Hence a NASDAQ penny stock list. Make sure to check out our popular pot stocks list for when this sector is running.

5. Momentum With Nasdaq Penny Stocks 

When it comes to trading stocks, penny stock or otherwise, I put the majority of my faith in technical analysis and patterns.

I focus on charts, graphs and indicators in an “attempt” to determine the direction of a stock or the beginning, continuation or end of a trend.

Notice how I emphasize attempt. Momentum or penny stock traders look for stocks moving significantly in one direction with high volume.  

These traders attempt to ride the momentum wave to their desired profits. Fortunately or unfortunately, the list of indicators available to identify the momentum stocks is endless. As you can see below we have:

• Volume  - it's important to look for volume to come in on NASDAQ penny stocks as well as OTC stocks. Without volume, it's hard for the breakout confirmation to be solid.
• MACD - this is a lagging indicator but very popular and can give you clues on potential reversals.
• EMA - aka exponential moving averages are very important gauges for support and resistance levels. The most popular ones are the 9 and 20 ema or the 13 ema.
• SMA - aka simple moving averages are also very important support and resistance indicators. The most popular ones are the 50, 100, and 200.
• RSI - aka relative strength index is a popular overbought and oversold indicator that give potentially warning signs of when a stock might look to reverse.
• VWAP - aka volume weighted average price is a critical support and resistance level to keep an eye on when trading small cap stocks. This shows a stocks equilibrium level intraday and traders around the world pay close attention to the support and resistance line.
• Float - is the number of shares outstanding for a stock. The lower the float, the higher the volatility. Low float stocks are the ones that typically pump and dump the most. Higher float stocks typically do less pumping and dumping. Low floaters produces high risk but also higher reward.

6. Criteria: Nasdaq Penny Stock List 

Even though many day trading strategies work, they all need to have liquidity and volatility. Personally, I use three criteria to identify NASDAQ penny stocks that have the highest probability of making a run:

1. Breaking News Catalyst
2. High Relative Volume
3. Low Float

Breaking news catalyst. Stocks that go parabolic are those that have massive moves up or down on the same day, and these are the stocks we want to trade. We often see these moves after the news (i.e. positive results in a cancer trial). In a lot of cases, the spikes happen out of the gate and last for about 30 minutes. A lot of times, the gap up occurs in the pre-market, so a good scanner should pick them up.

High Relative Volume. Compares the current volume to normal volume for the same time of day and is displayed as a ration. For example, a stock trading five times its normal volume would have a relative volume of five. As day traders, we want the RVOL at two or higher with a positive catalyst. Coupled with a low float (see below), this stock has the potential to make you money. Generally speaking, almost every winner is high in relative volume that day compared to its average volume.

We provide our members with a lot of helpful tools to make them a better trader. Trade Ideas is one of our most favorite tools that we use. We post their daily gappers each morning here. Make sure to check this page each morning by 9:15 am. Trade Ideas captures the most popular morning movers in the premarket, including NASDAQ penny stocks. It's one of the best tools to use when trading small cap stocks.

7. Why Float Matters

Low float stocks are apart of the NASDAQ penny stock list criteria. What is low float and why does it matter? 

Low float. Float is the number of shares available to trade on the open market. And the lower, the better because these are the stocks that will move and move quickly because they’re less liquid.

Be warned though, the lower the float, the more potential it has to do something nuts. Another key point to remember is that the parabolic runners are almost always low floats and most likely have some form of manipulation happening.

The smaller the float (5-8M or lower) = less liquidity = more volatility = use LESS SIZE. However, I suggest you stick with a float greater than 300,000 to ensure you’re trading a liquid stock.

But the float should also be less than 20 million since stocks with floats over 20 million typically don’t have the big daily price moves you need.

With a low float, parabolic moves can and will happen. Make sure you have proper stock training so you don't get caught with a loss.

8. Next Steps

Some may say trading is like gambling as we're trying to predict the future. We don't, or at least we shouldn't just open our computer and place a trade just because we "feel" like it.

No, this is not what we do; we base our judgement on a set of criteria that, when fulfilled, will guide our decisions. Again, assuming that all the boxes are ticked off, we enter the trade; if they aren't, we don't.

It's as simple as that, nothing more, nothing less. Of course, money can be made from NASDAQ penny stocks but understanding and applying the right criteria is vital.

This is where our trading community really kicks in and becomes helpful. We are a unique trading community. We provide a lot of real world resources to help traders learn. We're all about providing our members a hand up to help them become successful and confident traders.

Make sure to take our free stock trading courses below if you're new to trading. We teach a lot of different trading strategies. Penny stocks, swing trading, options trading, candlesticks patterns, and so much more.

And...we can't say enough how important it is to watch us live each day in our trade rooms. This is where the action really takes place each day. Knowing how to trade in a real world environment makes all of the difference in the world as a trader.

So if you're interested in learning our profit-making criteria, head on over to our website and try us out for free for 14 days.  You'll gain access to our free stock market courses, daily Nasdaq penny stock list, swing trade watch list, real time stock alerts, trade rooms with live daily streaming, and so much more.