Are you also finding a way to trade Penny stocks? A lot of investors wish to trade in penny stocks but only some of them can do so because it associates high risk and volatility with it.
But, who can resist high returns in a short time? No one surely. You can still manage to turn things in your favor by making sure that you are choosing the right platform for the trade.
There are a lot of penny stocks available out there and you need to choose the one that will also provide you with the best results. Therefore, you will have to separate the best ones for you from all the available stocks available. That is for sure not Easy.
Out of all the available options of Brokerage platforms. Robinhood is everyone’s favorite. The platform has a very simple yet intuitive interface which makes it everybody’s top choice for trading. It is very simple to buy, sell, or manage your portfolio on the application.
How To Find Penny Stocks On Robinhood?
Surely there are a lot of penny stocks available on the application, buying all of them is not possible. Therefore, you will have to choose the one which suits your needs and provides you with good returns.
Below we have explained to you how to find penny stocks in Robinhood. Ensure to follow all the steps in the same sequence.
Steps to Find Penny Stocks on Robinhood:
Step 1: To begin with, you will have to go to the Robinhood website and log in to your account. For this, you need to keep in mind that you will not be able to find penny stocks on the mobile application.
Step 2: When you will log in, you will have to go to the popular collections option. Under this, choose the show more option.
Step 3: Now, you will have to tap on the technology under which you are looking for a penny stock. You can also tap on the option to see all stocks options to check all the categories.
Step 4: After this, you will have to tap on the right side menu on the screen and then tap on the filter and choose the price as $5.
With all the steps mentioned, you will be able to get a list of limited penny stocks available on Robinhood. You will then be able to filter all the stocks based on price, market capitalization. Analyst rating, movement, and popularity.
When it comes to Robinhood, it offers you a wide range of penny stocks and different tools that one can use to find the perfect penny stock for you.
But, you need to understand how to use all these tools so that you make fewer mistakes. Therefore, to make sure to avoid all the costly mistakes, you will have to ensure that you are aware of Robinhood’s penny stock offering.
This post deals with how to find penny stocks on Robinhood and how you can buy them. Also, check out all the risks associated with penny stocks trading on Robinhood. Check out everything about penny stocks on Robinhood in this post.
Also Read: How Many Day Trades Can You Make on Robinhood?
Does Robinhood Sell Penny Stocks?
Now, before we explain to you how to find penny stocks on Robinhood, the main concern is “Does Robinhood sell penny stocks”. Fortunately, Robinhood does offer penny stocks but you will not get many options. The options for penny stocks are limited to a certain extent on this platform.
Robinhood does not support guiding, buying, and selling OTC shares. The best penny shares supported via way of means of Robinhood are shares that exchange on both the NASDAQ and NYSE.
This may occur because penny stocks are not present on big exchanges like New York stock and Nasdaq. They are only present in some over-the-counter markets.
On Robinhood, you can only trade stocks listed on the exchange which makes the options available on the application limited.
Moreover, it is somewhat difficult to find penny stocks on the application. On the application, you will be able to find many broader categories but penny stocks may not come under any category which makes it difficult to find a penny stock.
People usually prefer investing in penny stocks listed on the exchange because they go through a lot of filters before being listed on the exchange.
A stock will have to go through a paid entry, minimum equity amount of the stockholder, least share prices, shareholder count, and annual listing fees as well.
On Robinhood, you will not find any over-the-counter penny stocks. So, now that you know if you can find penny stocks on Robinhood, in the next section check out how to find the one for you.
Also Read: This Stock is Not Supported on Robinhood
How To Buy Penny Stocks On Robinhood?
So, now that you can find penny stocks, do you want to proceed with buying them? Here is the complete process for you.
Steps to Buy Penny Stocks on Robinhood:
Step 1: Add Funds To Your Account
So the very first thing that you will have to do is to add funds to your account. For this, connect the Robinhood application to your bank account. It is therefore suggested that you add funds to your account and then only go with the purchase.
Step 2: Pick Your Penny Stock
Now that you have added funds to your account, you will have to choose the penny stocks that you wish to invest in.
Step 3: Choose The Type Of Order
Choose whether you wish to go for limit orders, stop-limit orders, or stop-loss orders to purchase the stock.
Step 4: Enter Number Of Shares
Step 5: Review Your Order
Check your order once again and make sure your order is correct.
Step 6: Place Your Order
So, the last thing that you have to do is to submit your order if everything is correct or if anything is wrong, modify the order.
Also Read: Why Robinhood is Bad?
Associated Risks With Penny Stocks
As we have mentioned, you will not get any over-the-counter shares on Robinhood which will then lead to some issues with buying penny stocks.
Therefore, we have come up with some points that you have to keep in mind so that you can find and buy stock on Robinhood.
Illiquidity
One of the biggest concerns of the user is how much profit you can get with liquidating your penny stocks. Problems occur when Stocks don’t have much liquidity, you will not be able to sell Stocks.
To be honest, there is not much profit when it comes to penny stocks that you may get when you will invest in any blue-chip company.
Lack Of History And Information
Many of the organizations taken into consideration to be micro-cap shares as either newly formed or coming near bankruptcy.
These organizations typically have poor track records or none at all. As you could imagine, this lack of historical information makes it tough to decide a stock`s potential.
Can Not Be Predicted
Another risk associated with buying penny stocks is that you can not predict them. A drastic swing has been seen in the trend of penny stocks and hence, it becomes very difficult to predict the trend.
You May Not Get Dividends
You can rarely get any dividend by investing in penny stocks. So, you may not get different sources of profit with penny stocks.
Limited Stocks
So, the last thing is that you will not get many options on Robinhood. Therefore, you need to choose from the available options and see how it works for you. This makes it difficult for you to find an appropriate stock to invest in.
Also Read: How to Activate Robinhood Debit Card?
Winding Up
So, this was the whole process you have to follow to find penny stocks Robinhood. Also, there are some questions related to if you can trade penny stocks intraday on Robinhood, what are the associated risks, and others.
We have tried to answer all these questions in detail in this post. Hopefully, you have found his article helpful and informative for you. To know more about such things, keep reading articles on our site.
