Penny stocks get a bad rap, especially from Wall Street types.
Sure, 99% of them are crap. Some are even outright scams aiming to take money from their stock customers.
But where else can you earn 15-30% profits on a single day trade?
Penny stocks are only bad if you start to believe the hype. Take Ocean Biomedical (NASDAQ: OCEA), a biotech penny stock that’s had some early 2023 spikes on positive news for its cancer treatment candidate.
It’s got an awesome story to sell. And — just maybe — they’ll become the maker of a front-line cancer treatment.
But you know who I’d bet on instead? Eli Lilly and Co. (NYSE: LLY), a $300-billion company with several FDA-approved cancer treatments already on the market.
They’ve got a $7 billion R&D budget. So yes, they’ll probably beat OCEA to any game-changing advancements.
If you buy a penny stock thinking it will become the next Amazon, you’re basically buying a lottery ticket. That can be fun, but it’s no way to build your trading account.
The right way to go about it requires discipline and a good trading plan.
Stock speculators/investors face several costs such as commissions, taxes and fees to be paid for the brokerage and other services, like the buying/selling orders placed through a stock broker stock exchange. Depending on the nature of each national or state legislation involved, a large array of fiscal obligations must be respected, and taxes are charged by jurisdictions over those transactions, dividends and capital gains that fall within their scope. However, these fiscal obligations will vary from jurisdiction to jurisdiction. Among other reasons, there could be some instances where taxation is already incorporated into the stock price through the differing legislation that companies have to comply with in their respective jurisdictions; or that tax free stock market operations are useful to boost economic growth. In the United States, for example, stock gains are generally taxed at two levels: For long-term capital gains (stocks sold after a minimum of one year's ownership, the tax rate currently (2024) is 20%. For short-term trades (stocks bought and sold within a 12-month period, capital gains are taxed at one's ordinary tax rate (e.g., 28%, 30%, 35%). Beyond these costs are the opportunity costs of money and time, currency risk, financial risk, and Internet, data and news agency services and electricity consumption expenses—all of which must be accounted for.
Stock market volatility can trigger mental health issues such as anxiety and depression. This fits in with research on the long term effects of the stock market on a person's mental health. Seasoned, experienced stock traders and investors generally achieve a level of psychological resilience able to deal with these detrimental factors in the long run or otherwise risk continuous suffering from some type of mental health issue during the course of their careers or financial activities which are dependent on the stock market.
Penny stocks refer to stocks which trade at $5 per share or less. Their market cap is usually micro — under $300 million in total stock equity.
That’s the official definition at least. In spirit, these low-priced stocks are volatile and sketchy. They sell hope like other companies sell products. Despite it all, penny stocks are still the best way to build a small account quickly.
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3 Penny Stocks to Watch in March 2025
My top stock picks for March — rated on chart pattern, price action history, and catalyst — include the following:
Stock TickerCompanyPerformance (YTD) NASDAQ: JTAIJet.AI Inc+ 49.89% NASDAQ: RGTIRigetti Computing Inc- 58.38% NASDAQ: AIFFFirefly Neuroscience Inc+ 76.17%
3 Top Penny Stocks to Watch in March 2025
My top 3 penny stocks to watch in March 2025 are:
- NASDAQ: JTAI — Jet.AI Inc — The AI Data Center Penny Stock With the Yo-Yo Price Action
- NASDAQ: RGTI — Rigetti Computing Inc — The Quantum Computing Sector Leader I’m Watching for the Next Run
- NASDAQ: AIFF — Firefly Neuroscience Inc — The NVIDIA Partnership AI Biotech Penny Stock
There’s no guarantee I’ll trade any of these stocks. I’m watching them to see if they match my preferred setups — only then will I trade them.
The best traders watch more than they trade — that’s what I’m trying to model here.
Here’s some background info on penny stocks:
- What is the most promising penny stock?
A stock with a lot of volatility like Jet.AI Inc (NASDAQ: JTAI) is a good bet for the most promising penny stock. Remember, we’re traders, not investors. We’re watching the stocks on this list for short-term moves, not predicting which of these stocks will still be around in 2030.
- What are the top 3 penny stocks to buy now?
My top 3 penny stocks to buy now (as long as their price action is strong) are Jet.AI Inc (NASDAQ: JTAI), Rigetti Computing Inc (NASDAQ: RGTI), and Firefly Neuroscience Inc (NASDAQ: AIFF).
- Which penny stocks have a “Strong Buy” analyst rating?
Analysts don’t give any penny stocks “strong buy” ratings. These stocks are sketchy and unstable, and should never be investment targets. Always trade with a plan.
Let’s get to the picks …
Jet.AI Inc (NASDAQ: JTAI) — The AI Data Center Penny Stock With the Yo-Yo Price Action
My first penny stock pick is Jet.AI Inc (NASDAQ: JTAI).
On February 14, JTAI announced that it would be acquired by flyExclusive through an all-stock transaction.
The stock spiked 350%* after the news was announced. And the intraday stock charts show a lot of volatility.
As a result, I’ve been able to trade this stock four times since the news came out. Here’s an example from the first day of the spike:
Source: Profit.ly
The chart still shows us intraday volatility.
Partially because the float is only 572k shares …
A low supply of shares, anything below 10 million, will help prices spike higher when demand increases. It’s a basic law of supply and demand.
The price already bounced off of $5 on February 24. Keep an eye on those major support levels.
