Finding the best penny stocks on Robinhood is a strategy that many traders have adopted in the past few months. The increasing popularity of Robinhood over the past few years has effectively democratized trading penny stocks and blue chips. And as a result, there are billions of dollars in capital in the stock market now that were not there only two years back. With this, however, has come heightened volatility to an already volatile market.
And in 2021, market fluctuations are more common than in many years prior. But, as traders it is our job to see this volatility, and use it as an advantage. And with a proper trading strategy on hand, that is completely doable. But, there are a few things that all investors should keep in mind.
For one, making money with penny stocks or any stocks for the matter, cannot be done if emotion gets in the way. This includes FOMO or making rash decisions based on short-term price moves. So, never trade with emotion, and always have a proper entrance/exit strategy.
And second, research should always be the backbone of your trading. This means understanding exactly what a company does, what its financials look like, and so on. While these two rules may seem obvious, they are often overlooked by traders of all types. So, with all of this in mind, let’s take a look at three penny stocks under $4 on Robinhood right now.3 Under $4 Penny Stocks to Watch on Robinhood Right Now
- Atossa Therapeutics Inc. (NASDAQ: ATOS)
- Iterum Therapeutics plc (NASDAQ: ITRM)
- Meten EdtechX Education Group Ltd. (NASDAQ: METX)
Atossa Therapeutics Inc. is a biotech company that creates a wide variety of medicines for infectious diseases. In the past six months, ATOS stock has gained a great deal of notoriety for its work on Covid, and consistent stock gains. If we look at its pipeline, we see Its Endoxifen product which is in Phase 2 clinical trials to treat and prevent breast cancer. It also has AT-301 and AT-H201 which are for patients with COVID-19. As stated earlier, the company’s work on a Covid treatment has helped to make it highly popularized in the past few months.[Read More] 10 Robinhood Penny Stocks To Buy For Under $1 Right Now
On August 13th, the company reported its financial results and a corporate update for the second quarter of 2021. At the end of the quarter, the company had cash and cash equivalents of $142.5 million. Its total operating expenses for the three and six months ended June 30th, 2021, increased 78% and 53% respectively. With biotech stocks, investors always like to see a high cash balance. This allows a company to grow in the present, and secure the future growth of its pipeline.
“We continue to experience encouraging progress in our MBD and COVID-19 programs, with new regulatory approvals being granted in Sweden for a Phase 2 trial in MBD and authorization in Australia to commence a Phase 2 study of AT-H201 for respiratory illness associated with COVID-19.”President and CEO of Atossa, Dr. Steven Quay
Considering all of this information, will ATOS make it onto your list of penny stocks to watch?Iterum Therapeutics plc (NASDAQ: ITRM)
Iterum Therapeutics plc is a biotech penny stock that has had some interesting trading patterns in the past few months. After hitting a 2 month high of over $2.35 per share back in June, shares quickly retreated to their current level of $0.69 as of September 2nd. And while this may seem disheartening, we do see corrections like this at times with penny stocks.
For some context, Iterum is a clinical-stage pharmaceutical company that develops anti-infectives for multi-drug resistant pathogens. It is currently developing sulopenem which is a novel anti-infective compound with oral and IV formulations in Phase III clinical trials to treat urinary tract infections.
Back in July, the company got a complete response letter from the FDA for its oral sulopenem. In this response letter, the FDA denied the company’s application for the product. The CEO of Iterum, Corey Fishman said, “We are disappointed in this outcome and believe that the data package submitted was adequate for the approval of oral sulopenem.”
This is more or less the cause of ITRM’s substantial stock drop in the period shortly after. Despite this, ITRM stock has been pushing up in several recent trading sessions. With all of this in mind, will ITRM stock be on your penny stocks watchlist in September 2021?Meten EdtechX Education Group Ltd. (NASDAQ: METX)
Meten EdtechX Education Group Ltd. is a penny stock that managed to climb by over 58% in the past five days before a sizable over 50% correction today. This is a common sight with penny stocks, but it is even more common considering how Chinese education-tech stocks have been moving lately. If you haven’t heard of it, Meten EdtechX is an education company that provides English language training services in China. Meten offers adult and junior ELT services under the Meten name, and junior ELT services under the ABC brand name.
On September 1st, the company announced the adoption of a new initiative to develop a blockchain and cryptocurrency business. The goal is to transition the company’s business model into one that can change with the future. And given that blockchain is all the rage right now, this could be a smart move for METX. The company started exploring blockchain technology last year and has now developed a blockchain technology strategic plan.
“After an in-depth research and exploration in the crypto world, with the resources and talents of the Company, we are committed to building a professional team to explore the blockchain and cryptocurrency business while maintaining our core adult ELT business.”CEO of METX, Alan Peng
METX’s stock price skyrocketed on the same day as this announcement. So, while METX stock is highly volatile, it could have a lot to offer to potential investors. For this reason, it may be worth giving a first or second look considering the future of the blockchain industry.Which Robinhood Penny Stocks Are You Watching Right Now?
Finding the best penny stocks to buy on Robinhood can be challenging given that there are so many to choose from. But, with a proper trading strategy and a commitment to understanding all one can about a company, investors can have an easier time making money with penny stocks. Considering all of this, which Robinhood penny stocks are you watching right now?